To transfer certain facilities, easements, and rights-of-way to Fort Sumner Irrigation District, New Mexico.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fort Sumner Project Title Conveyance 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) District.--The term ``District'' means the Fort Sumner 
        Irrigation District, located in De Baca County, New Mexico.
            (2) Forbearance agreement.--The term ``Forbearance 
        Agreement'' means the contract between the United States and 
        the District for the forbearance of exercising priority water 
        rights numbered 08-WC-40-292 and dated August 21, 2009 
        (including any amendments to that contract).
            (3) Project.--The term ``Project'' means the Fort Sumner 
        reclamation project.
            (4) Repayment contract.--The term ``Repayment Contract'' 
        means the contract between the United States and the District 
        numbered Ilr-1524 and dated November 5, 1948 (including any 
        supplements and amendments to that contract).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (6) Memorandum of agreement.--The term ``Memorandum of 
        Agreement'' means the agreement entitled ``Memorandum of 
        Agreement between the United States and the Fort Sumner 
        Irrigation District Concerning Principles and Elements of 
        Proposed Transfer of Title to Fort Sumner Irrigation District 
        Facilities'' and numbered 11-WC-40-406 (including any 
        amendments to that agreement).
            (7) Transfer agreement.--The term ``Transfer Agreement'' 
        means the agreement between the United States and the Fort 
        Sumner Irrigation District that identifies the specific terms 
        and conditions of the title transfer. This document will be 
        completed after the requirements described in section 3(d) are 
        satisfied.

SEC. 3. CONVEYANCE.

    (a) In General.--The Secretary is authorized to convey to the 
District all right and title of the United States in and to all works, 
land, and facilities of the Project, in accordance with the terms and 
conditions established in the Transfer Agreement.
    (b) Valid Existing Rights.--The conveyance under this section shall 
be subject to all valid existing leases, permits, rights-of-way, 
easements, and other rights appurtenant to the property conveyed.
    (c) Costs of Conveyance.--The costs of the conveyance under this 
section, including the costs of environmental compliance, may be shared 
between the United States and the District, in accordance with the 
Memorandum of Agreement.
    (d) Compliance With Environmental Laws.--
            (1) In general.--Before carrying out the conveyance under 
        subsection (a), the Secretary shall assure compliance with all 
        applicable requirements under--
                    (A) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.);
                    (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.); and
                    (C) any other law applicable to the property 
                conveyed.
            (2) Effect.--Nothing in this Act modifies or alters any 
        obligation under--
                    (A) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.); or
                    (B) the Endangered Species Act of 1973 (16 U.S.C. 
                1531 et seq.).
    (e) Failure To Convey.--If the Secretary fails to complete the 
conveyance under this section by the date that is 2 years after the 
date of completion of the requirements described in subsection (d) of 
this Act, the Secretary shall submit to Congress a report that--
            (1) explains the reasons why the conveyance has not been 
        completed; and
            (2) states the date by which the conveyance will be 
        completed.

SEC. 4. LIABILITY.

    (a) In General.--Effective on the date of the conveyance under 
section 3, the United States--
            (1) shall have no further interest in, and shall have no 
        responsibility for operating or maintaining, the Project; and
            (2) shall not be liable for damages of any kind arising out 
        of any act, omission, or occurrence relating to the conveyed 
        property, except for damages caused by acts committed by the 
        United States or employees, agents, or contractors of the 
        United States before the date of the conveyance.
    (b) Effect of Section.--Nothing in this section increases the 
liability of the United States beyond the liability provided under 
chapter 171 of title 28, United States Code (commonly known as the 
``Federal Tort Claims Act'').

SEC. 5. TERMINATION OF REPAYMENT CONTRACT.

    Effective beginning on the date of the conveyance under section 3--
            (1) the Repayment Contract shall terminate; and
            (2) the United States and the District shall have no 
        obligations under the Repayment Contract.

SEC. 6. FORBEARANCE AGREEMENT.

    (a) Payment Obligation.--In accordance with paragraph 4(a) of the 
Forbearance Agreement, effective beginning on the date of termination 
of the Repayment Contract under section 5, the United States shall have 
no payment obligation under paragraph 4(a) of the Forbearance 
Agreement.
    (b) Other Terms and Conditions.--All other terms and conditions of 
the Forbearance Agreement shall remain in full force and effect on 
termination of the Repayment Contract under section 5.
    (c) Term.--The term of the Forbearance Agreement shall be not less 
than 10 years after the date of enactment of this Act, as set forth in 
the Memorandum of Agreement.

SEC. 7. FUTURE BENEFITS.

    After conveyance of title under this Act--
            (1) the conveyed property shall not be considered to be a 
        part of a Federal reclamation project; and
            (2) the entity to which the property is conveyed shall not 
        be eligible to receive any benefits, including Federal project 
        power, with respect to the conveyed property, except for 
        benefits that would be available to a similarly situated entity 
        with respect to property that is not part of a Federal 
        reclamation project.

Summary: Fort Sumner Project Title Conveyance Act - Authorizes the Secretary of the Interior to convey to the Fort Sumner Irrigation District, located in De Baca County, New Mexico, all works, land, and facilities of the Fort Sumner reclamation project in accordance with the Memorandum of Agreement between the United States and the Fort Sumner Irrigation District Concerning Principles and Elements of Proposed Transfer of Title to Fort Sumner Irrigation District Facilities.

Requires the Secretary, before carrying out such conveyance, to assure compliance with all applicable requirements under the National Environmental Policy Act of 1969, the Endangered Species Act of 1973, and any other law applicable to the property conveyed. Requires the Secretary to report to Congress if such conveyance isn't completed within two years after such requirements are met.

Terminates, on the date of such conveyance: (1) U.S. interest in and responsibility for the project and liability relating to the conveyed property; (2) a specified repayment contract between the United States and the District dated November 5, 1948; and (3) a specified payment obligation of the United States under the contract between the United States and the District for the forbearance of exercising priority water rights, dated August 21, 2009. Provides that all other terms of such forbearance agreement shall remain in effect for not less than 10 years after this Act's enactment.

Provides that after conveyance of title under this Act: (1) the conveyed property shall not be considered to be a part of a federal reclamation project; and (2) the entity to which the property is conveyed shall not be eligible to receive any benefits, including federal project power, with respect to the conveyed property, except for benefits that would be available to a similarly situated entity with respect to property that is not part of a federal reclamation project.