To convey the Lower Yellowstone Irrigation Project, the Savage Unit of the Pick-Sloan Missouri Basin Program, and the Intake Irrigation Project to the pertinent irrigation districts.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Lower Yellowstone Reclamation 
Projects Conveyance Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Intake irrigation district.--The term ``Intake 
        Irrigation District'' means the Irrigation District by that 
        name that is organized under the laws of the State of Montana 
        and operates the Intake Project.
            (2) Intake project.--The term ``Intake Project'' means the 
        Federal irrigation development operated by the Intake 
        Irrigation District and authorized under the terms of the Act 
        of August 11, 1939 (chapter 717; 53 Stat. 1418).
            (3) Irrigation districts.--The term ``Irrigation 
        Districts'' means--
                    (A) the Intake Irrigation District;
                    (B) the Lower Yellowstone Irrigation District No. 
                1;
                    (C) the Lower Yellowstone Irrigation District No. 
                2; and
                    (D) the Savage Irrigation District.
            (4) Lower yellowstone irrigation district no. 1.--The term 
        ``Lower Yellowstone Irrigation District No. 1'' means the 
        irrigation district by that name that is organized under the 
        laws of the State of Montana and operates the part of the Lower 
        Yellowstone Irrigation Project located in the State of Montana.
            (5) Lower yellowstone irrigation district no. 2.--The term 
        ``Lower Yellowstone Irrigation District No. 2'' means the 
        irrigation district by that name organized under the laws of 
        the State of North Dakota and operates the part of the Lower 
        Yellowstone Irrigation Project located in the State of North 
        Dakota.
            (6) Lower yellowstone irrigation project.--The term ``Lower 
        Yellowstone Irrigation Project'' means the Federal irrigation 
        development operated by Lower Yellowstone Irrigation District 
        No. 1 and Lower Yellowstone Irrigation District No. 2 and 
        authorized by the Act of June 17, 1902 (chapter 1093; 32 Stat. 
        388).
            (7) Memorandum of understanding.--The term ``Memorandum of 
        Understanding'' means the memorandum of understanding dated 
        November 16, 1999, and any subsequent replacements or 
        amendments between the Districts and the Montana Area Office, 
        Great Plains Region, Bureau of Reclamation, for the purpose of 
        defining certain principles by which the title to the projects 
        will be transferred from the United States to the districts.
            (8) Pick-sloan missouri basin program.--The term ``Pick-
        Sloan Missouri Basin Program'' means the comprehensive Federal 
        program for multipurpose benefits within the Missouri River 
        Basin including irrigation authorized by section 9 of the Act 
        of December 22, 1944, commonly known as the ``Flood Control Act 
        of 1944'' (chapter 665; 58 Stat. 891).
            (9) Pick-sloan missouri basin program project use power.--
        The term ``Pick-Sloan Missouri Basin Program Project Use 
        Power'' means power available for establishing and maintaining 
        the irrigation developments of the Pick-Sloan Missouri Basin 
        Program.
            (10) Projects.--The term ``Projects'' means--
                    (A) the Lower Yellowstone Irrigation Project;
                    (B) the Intake Project; and
                    (C) the Savage Unit.
            (11) Savage irrigation district.--The term ``Savage 
        Irrigation District'' means the irrigation district by that 
        name that is organized under the laws of the State of Montana 
        and operates the Savage Unit.
            (12) Savage unit.--The term ``Savage Unit'' means the 
        Savage Unit of the Pick-Sloan Missouri Basin Program, a Federal 
        irrigation development authorized by the Act of December 22, 
        1944, commonly known as the ``Flood Control Act of 1944'' 
        (chapter 665; 58 Stat. 891).
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 3. CONVEYANCE OF PROJECTS.

    (a) Conveyances.--
            (1) General.--The Secretary shall convey works, facilities, 
        and lands of the Projects to the Irrigation Districts in 
        accordance with all applicable laws and pursuant to the terms 
        of the Memorandum of Understanding.
            (2) Lands.--
                    (A) General.--All lands, easements, and rights-of-
                way the United States possesses that are to be conveyed 
                by the Secretary to the respective irrigation districts 
                shall be conveyed by quitclaim deed. Conveyance of such 
                lands, easements, and rights-of-way is subject to 
                permits, licenses, leases, rights-of-use, or right-of-
                way of record outstanding in third parties on, over, or 
                across such lands, easements, and rights-of-way.
                    (B) Mineral rights.--Conveyance of all lands herein 
                described shall be subject to a reservation by the 
                United States reserving all minerals of a nature 
                whatsoever, excluding sand and gravel, and subject to 
                oil, gas, and other mineral rights heretofore reserved 
                of record by or in favor of third parties.
            (3) Water rights.--The Secretary shall transfer to the 
        respective Irrigation Districts in accordance with and subject 
        to the law of the State of Montana, all natural flow, 
        wastewater, seepage, return flow, domestic water, stock water, 
        and groundwater rights held in part or wholly in the name of 
        the United States that are used to serve the lands within the 
        Irrigation Districts.
            (4) Costs.--
                    (A) Reclamation withdrawn lands.--The Irrigation 
                Districts shall purchase Reclamation withdrawn lands as 
                identified in the Memorandum of Understanding for their 
                value in providing operation and maintenance benefits 
                to the Irrigation Districts.
                    (B) Savage unit repayment obligations.--
                            (i) Savage irrigation district.--As a 
                        condition of transfer, the Secretary shall 
                        receive an amount from the Savage Irrigation 
                        District equal to the present value of the 
                        remaining water supply repayment obligation of 
                        $60,480 that shall be treated as full payment 
                        under Contract Number I1r-1525, as amended and 
                        as extended by Contract No. 9-07-60-W0770.
                            (ii) Pick-sloan missouri basin program 
                        construction obligation.--As a condition of 
                        transfer, the Secretary shall accept $94,727 as 
                        payment from the Pick-Sloan Missouri Basin 
                        Program (Eastern Division) power customers 
                        under the terms specified in this section, as 
                        consideration for the conveyance under this 
                        subsection. This payment shall be out of the 
                        receipts from the sale of power from the Pick-
                        Sloan Missouri Basin Program (Eastern Division) 
                        collected by the Western Area Power 
                        Administration and deposited into the 
                        Reclamation fund of the Treasury in fiscal year 
                        2003. This payment shall be treated as full and 
                        complete payment by the power customers of the 
                        construction aid-to-irrigation associated with 
                        the facilities of the Savage Unit.
    (b) Revocation of Reclamation Withdrawals and Orders.--
            (1) The Reclamation withdrawal established by Public Land 
        Order 4711 dated October 6, 1969, for the Lower Yellowstone 
        Irrigation Project in lots 1 and 2, section 3, T.23N., R. 59 
        E., is hereby revoked in its entirety.
            (2) The Secretarial Order of March 22, 1906, which was 
        issued for irrigation works on lots 3 and 4 section 2, T. 23N., 
        R. 59E., and Secretarial Order of August 8, 1905, which was 
        issued for irrigation works in section 2, T. 17 N., R. 56 E. 
        and section 6, T. 17 N., R. 57 E., are hereby revoked in their 
        entirety.
            (3) The Secretarial Order of August 24, 1903, and July 27, 
        1908, which were issued in connection with the Lower 
        Yellowstone Irrigation Project, are revoked insofar as they 
        affect the following lands:
                    (A) Lot 9 of Sec. 2 and lot 2 of Sec. 30, T.18N., 
                R.57E.; lot 3 of Sec. 4, T.19N., R.58E.; lots 2 and 3 
                and 6 and 7 of Sec. 12, T.21N., R.58E.; SW\1/4\NW\1/4\ 
                of Sec. 26, T.22N., R.58E; lots 1 and 4 and 7 and NW\1/
4\SW\1/4\ of Sec. 20, T.22N., R.59E.; SE\1/4\NE\1/4\ of Sec. 13, 
T.23N., R.59E.; and lot 2 of Sec. 18, T.24N., R.60E.; all in the 
Principal Meridian, Montana.-
                    (B) Lot 8 of Sec. 2 and lot 1 and lot 2 and lot 3 
                and NE\1/4\NE\1/4\ of Sec. 10 and lot 2 of Sec. 11 and 
                lot 6 of Sec. 18 and lot 3 of Sec. 35, T.151N., 
                R.104W.; and lot 7 of Sec. 28, T.152N., R.104W.; all in 
                the Fifth Principal Meridian, North Dakota.

SEC. 4. REPORT.

    If the conveyance under this Act has not occurred within 2 years 
after the date of the enactment of this Act, the Secretary shall submit 
to the Congress a status report.

SEC. 5. RECREATION MANAGEMENT.

    As a condition of the conveyance of lands under section 3, the 
Secretary shall require that Lower Yellowstone Irrigation District No. 
1 and Lower Yellowstone Irrigation District No. 2 convey a perpetual 
conservation easement to the State of Montana, at no cost to the State, 
for the purposes of protecting, preserving, and enhancing the 
conservation values and permitting recreation on Federal lands in part 
to be conveyed under this Act. Lower Yellowstone Irrigation District 
No. 1, Lower Yellowstone Irrigation District No. 2, and the State of 
Montana have mutually agreed upon such conservation easement.

SEC. 6. PROJECT PUMPING POWER.

    The Secretary shall sustain the irrigation developments established 
by the Lower Yellowstone and Intake Projects and the Savage Unit as 
components of the irrigation plan under the Pick-Sloan Missouri River 
Basin Program and shall continue to provide the Irrigation Districts 
with Pick-Sloan Missouri River Basin Project Use power at the 
Irrigation Districts' pumping plants, except that the rate shall be at 
the preference power rate and there shall be no ability-to-pay 
adjustment.

SEC. 7. YELLOWSTONE RIVER FISHERIES PROTECTION.

    (a) General.--As a condition of transfer, the Secretary, prior to 
the conveyances under section 3 and in cooperation with the Irrigation 
Districts, shall provide fish protection devices to prevent juvenile 
and adult fish from entering the Main Canal of the Lower Yellowstone 
Irrigation Project and allow bottom dwelling fish species to migrate 
above the Project's Intake Diversion Dam.
    (b) Participation.--The Secretary and the Irrigation District shall 
work cooperatively in planning, engineering, and constructing the fish 
protection devices.
    (c) Monitoring.--The Secretary, acting through the Commissioner of 
the Bureau of Reclamation and the Director of the United States Fish 
and Wildlife Service, shall establish and conduct a monitoring plan to 
measure the effectiveness of the devices for a minimum of 2 years after 
construction is completed. The Commissioner of the Bureau of 
Reclamation shall be responsible to modify the devices as necessary to 
ensure proper functioning.
    (d) Yellowstone River Fisheries Protection Devices Costs.--The cost 
incurred in planning, engineering, constructing, monitoring, and 
modifying all fish protection devices shall be deemed non-reimbursable.
    (e) Operation, Maintenance and Replacements.--Following completion 
of the construction period and the two-year monitoring period, the 
Districts shall operate, maintain, and replace the fisheries protection 
devices in a manner to ensure proper functioning.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to implement this section.

SEC. 8. RELATIONSHIP WITH OTHER LAWS AND FUTURE BENEFITS.

    Upon conveyance of the projects under this Act, the Irrigation 
Districts shall not be subject to the Reclamation laws or entitled to 
receive any Reclamation benefits under those laws except as provided in 
section 6.

SEC. 9. LIABILITY.

    Effective on the date of conveyance of a project under this Act, 
the United States shall not be liable under any State or Federal law 
for damages of any kind arising out of any act, omission, or occurrence 
relating to the projects, except for damages caused by acts of 
negligence committed by the United States or by its employees, agents, 
or contractors prior to the date of this conveyance. Nothing in this 
section shall be considered to increase the liability of the United 
States beyond that currently provided in chapter 171 of title 28, 
United States Code, popularly known as the Federal Tort Act.

SEC. 10. COMPLIANCE WITH LAWS.

    As a condition of the conveyances under section 3, the Secretary 
shall by no later than the date on which the conveyances occur complete 
appropriate analyses of the transfer in compliance with the 
requirements of the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.), the Endangered Species Act of 1973 (16 U.S.C. 
1531 et seq.), and other applicable laws.

Summary: Lower Yellowstone Reclamation Projects Conveyance Act - (Sec. 3) Directs the Secretary of the Interior to convey the works, facilities, and lands of the Lower Yellowstone Irrigation Project, the Intake Project, and the Savage Unit to the Lower Yellowstone Irrigation Districts One (Montana) and Two (North Dakota), the Intake Irrigation District (Montana), and the Savage Irrigation District (Montana), respectively, pursuant to the terms of the Memorandum of Understanding (the Memorandum) reached between the Districts and the Bureau of Reclamation on November 16, 1999.States that all lands, easements, and rights-of-way that are to be conveyed under this Act shall be conveyed by quitclaim deed. Subjects such conveyances to permits, licenses, and other arrangements outstanding in third parties on, over, or across such lands, easements, and rights-of-way. States that the United States shall retain the mineral rights on the lands being conveyed, subject to the mineral rights heretofore reserved by or in favor of third parties.Directs the Secretary to transfer to the respective Districts, in accordance with and subject to the law of the State of Montana, the water rights held in part or wholly in the name of the United States that are used to serve the lands within the Districts.Requires the Districts to buy Reclamation withdrawn lands as identified in the Memorandum for their value in providing operation and maintenance benefits.Requires the Secretary to accept from: (1) the Savage Irrigation District, as a condition of transfer, an amount equal to the present value of the remaining water supply repayment obligation of $60,480, which shall be treated as full payment of such District's share of the construction of the Savage Unit; and (2) the Pick Sloan Missouri Basin Program (Eastern Division) power customers, as a condition of transfer, an amount equal to $94,727, which shall be considered full payment for the construction aid-to-irrigation associated with the facilities of the Savage Unit.Revokes certain reclamation withdrawals and orders.(Sec. 4) Requires the Secretary to submit a status report to Congress if, two years after the enactment of this Act, the conveyance under this Act has not occurred.(Sec. 5) Directs the Secretary to require as a condition of conveyance that Yellowstone Irrigation Districts One and Two grant a perpetual conservation easement to the State of Montana (as agreed to by the parties), at no cost to the State, for the purposes of: (1) maintaining conservation values; and (2) permitting recreation on Federal lands in part to be conveyed under this Act.(Sec. 6) Provides for the continued supply by the Secretary to the Districts of Pick-Sloan Missouri River Basin Project Use pumping power service.(Sec. 7) Requires the Secretary to: (1) provide fish protection devices to prevent fish from entering the main canal of the Lower Yellowstone Irrigation Project and allow bottom dwelling fish species to migrate above the Project's Intake Diversion Dam; and (2) conduct a monitoring plan to measure the effectiveness of such devices for a minimum of two years. Directs that following the two-year monitoring period, the Districts shall assume responsibility for operating the fish protection devices.(Sec. 8) Declares that upon conveyance of the projects under this Act, the Districts shall not be subject to the Reclamation laws or entitled to Reclamation benefits under those laws except with regards to project pumping power.(Sec. 9) Exempts the United States from being held liable under any State or Federal law for damages relating to the projects, except for damages caused by acts of negligence by the United States or its employees, agents, or contractors prior to the date of this conveyance.(Sec. 10) Directs the Secretary, as a condition of the conveyances, to complete appropriate analyses of the transfer in compliance with applicable laws.