Blunt Reservoir and Pierre Canal Land Conveyance Act of 2006
PL 109-458 (S.2205), enacted 12/22/2006

120 STAT. 3394
PUBLIC LAW 109–458—DEC. 22, 2006
Public Law 109–458
109th Congress
An Act
To direct the Secretary of the Interior to convey certain parcels of land acquired
for the Blunt Reservoir and Pierre Canal features of the initial stage of the
Oahe Unit, James Division, South Dakota, to the Commission of Schools and
Public Lands and the Department of Game, Fish, and Parks of the State of
South Dakota for the purpose of mitigating lost wildlife habitat, on the condition
that the current preferential leaseholders shall have an option to purchase the
parcels from the Commission, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Blunt Reservoir and Pierre
Canal Land Conveyance Act of 2006’’.
SEC. 2. BLUNT RESERVOIR AND PIERRE CANAL.
(a) DEFINITIONS.—In this section:
(1) BLUNT RESERVOIR FEATURE.—The term ‘‘Blunt Reservoir
feature’’ means the Blunt Reservoir feature of the Oahe Unit,
James Division, authorized by the Act of August 3, 1968 (82
Stat. 624), as part of the Pick-Sloan Missouri River Basin
program.
(2) COMMISSION.—The term ‘‘Commission’’ means the
Commission of Schools and Public Lands of the State.
(3) NONPREFERENTIAL LEASE PARCEL.—The term ‘‘nonpref-
erential lease parcel’’ means a parcel of land that—
(A) was purchased by the Secretary for use in connec-
tion with the Blunt Reservoir feature or the Pierre Canal
feature; and
(B) was considered to be a nonpreferential lease parcel
by the Secretary as of January 1, 2001, and is reflected
as such on the roster of leases of the Bureau of Reclamation
for 2001.
(4) PIERRE CANAL FEATURE.—The term ‘‘Pierre Canal fea-
ture’’ means the Pierre Canal feature of the Oahe Unit, James
Division, authorized by the Act of August 3, 1968 (82 Stat.
624), as part of the Pick-Sloan Missouri River Basin program.
(5) PREFERENTIAL LEASEHOLDER.—The term ‘‘preferential
leaseholder’’ means a person or descendant of a person that
held a lease on a preferential lease parcel as of January 1,
2001, and is reflected as such on the roster of leases of the
Bureau of Reclamation for 2001.
(6) PREFERENTIAL LEASE PARCEL.—The term ‘‘preferential
lease parcel’’ means a parcel of land that—
Blunt Reservoir
and Pierre Canal
Land Conveyance
Act of 2006.
Dec. 22, 2006
[S. 2205]
VerDate 14-DEC-2004
12:05 Jul 13, 2007
Jkt 059194
PO 00003
Frm 00197
Fmt 6580
Sfmt 6581
E:\PUBLAW\PUBL003.109
APPS06
PsN: PUBL003
120 STAT. 3395
PUBLIC LAW 109–458—DEC. 22, 2006
(A) was purchased by the Secretary for use in connec-
tion with the Blunt Reservoir feature or the Pierre Canal
feature; and
(B) was considered to be a preferential lease parcel
by the Secretary as of January 1, 2001, and is reflected
as such on the roster of leases of the Bureau of Reclamation
for 2001.
(7) SECRETARY.—The term ‘‘Secretary’’ means the Secretary
of the Interior, acting through the Commissioner of Reclama-
tion.
(8) STATE.—The term ‘‘State’’ means the State of South
Dakota, including a successor in interest of the State.
(9) UNLEASED PARCEL.—The term ‘‘unleased parcel’’ means
a parcel of land that—
(A) was purchased by the Secretary for use in connec-
tion with the Blunt Reservoir feature or the Pierre Canal
feature; and
(B) is not under lease as of the date of enactment
of this Act.
(b) 
DEAUTHORIZATION.—The 
Blunt 
Reservoir 
feature 
is
deauthorized.
(c) ACCEPTANCE OF LAND AND OBLIGATIONS.—
(1) IN
GENERAL.—As a term of each conveyance under
subsections (d)(5) and (e), respectively, the State may agree
to accept—
(A) in ‘‘as is’’ condition, the portions of the Blunt Res-
ervoir feature and the Pierre Canal feature that pass into
State ownership;
(B) any liability accruing after the date of conveyance
as a result of the ownership, operation, or maintenance
of the features referred to in subparagraph (A), including
liability associated with certain outstanding obligations
associated with expired easements, or any other right
granted in, on, over, or across either feature; and
(C) the responsibility that the Commission will act
as the agent for the Secretary in administering the pur-
chase option extended to preferential leaseholders under
subsection (d).
(2) RESPONSIBILITIES
OF
THE
STATE.—An outstanding
obligation described in paragraph (1)(B) shall inure to the ben-
efit of, and be binding upon, the State.
(3) OIL, GAS, MINERAL AND OTHER OUTSTANDING RIGHTS.—
A conveyance to the State under subsection (d)(5) or (e) or
a sale to a preferential leaseholder under subsection (d) shall
be made subject to—
(A) oil, gas, and other mineral rights reserved of record,
as of the date of enactment of this Act, by or in favor
of a third party; and
(B) any permit, license, lease, right-of-use, or right-
of-way of record in, on, over, or across a feature referred
to in paragraph (1)(A) that is outstanding as to a third
party as of the date of enactment of this Act.
(4) ADDITIONAL CONDITIONS OF CONVEYANCE TO STATE.—
A conveyance to the State under subsection (d)(5) or (e) shall
be subject to the reservations by the United States and the
conditions specified in section 1 of the Act of May 19, 1948
(chapter 310; 62 Stat. 240), as amended (16 U.S.C. 667b),
VerDate 14-DEC-2004
12:05 Jul 13, 2007
Jkt 059194
PO 00003
Frm 00198
Fmt 6580
Sfmt 6581
E:\PUBLAW\PUBL003.109
APPS06
PsN: PUBL003
120 STAT. 3396
PUBLIC LAW 109–458—DEC. 22, 2006
for the transfer of property to State agencies for wildlife con-
servation purposes.
(d) PURCHASE OPTION.—
(1) IN GENERAL.—A preferential leaseholder shall have an
option to purchase from the Secretary or the Commission, acting
as an agent for the Secretary, the preferential lease parcel
that is the subject of the lease.
(2) TERMS.—
(A) IN GENERAL.—Except as provided in subparagraph
(B), a preferential leaseholder may elect to purchase a
parcel on one of the following terms:
(i) Cash purchase for the amount that is equal
to—
(I) the value of the parcel determined under
paragraph (4); minus
(II) ten percent of that value.
(ii) Installment purchase, with 10 percent of the
value of the parcel determined under paragraph (4)
to be paid on the date of purchase and the remainder
to be paid over not more than 30 years at 3 percent
annual interest.
(B) VALUE UNDER $10,000.—If the value of the parcel
is under $10,000, the purchase shall be made on a cash
basis in accordance with subparagraph (A)(i).
(3) OPTION EXERCISE PERIOD.—
(A) IN GENERAL.—A preferential leaseholder shall have
until the date that is 5 years after enactment of this
Act to exercise the option under paragraph (1).
(B) CONTINUATION OF LEASES.—Until the date specified
in subparagraph (A), a preferential leaseholder shall be
entitled to continue to lease from the Secretary the parcel
leased by the preferential leaseholder under the same terms
and conditions as under the lease, as in effect as of the
date of enactment of this Act.
(4) VALUATION.—
(A) IN
GENERAL.—The value of a preferential lease
parcel shall be its fair market value for agricultural pur-
poses determined by an independent appraisal less 25 per-
cent, exclusive of the value of private improvements made
by the leaseholders while the land was federally owned
before the date of the enactment of this Act, in conformance
with the Uniform Appraisal Standards for Federal Land
Acquisition.
(B) FAIR MARKET VALUE.—Any dispute over the fair
market value of a property under subparagraph (A) shall
be resolved in accordance with section 2201.4 of title 43,
Code of Federal Regulations.
(5) CONVEYANCE TO THE STATE.—
(A) IN
GENERAL.—If a preferential leaseholder fails
to purchase a parcel within the period specified in para-
graph (3)(A), the Secretary shall offer to convey the parcel
to the State of South Dakota Department of Game, Fish,
and Parks.
(B) WILDLIFE
HABITAT
MITIGATION.—Land conveyed
under subparagraph (A) shall be used by the South Dakota
Department of Game, Fish, and Parks for the purpose
VerDate 14-DEC-2004
12:05 Jul 13, 2007
Jkt 059194
PO 00003
Frm 00199
Fmt 6580
Sfmt 6581
E:\PUBLAW\PUBL003.109
APPS06
PsN: PUBL003
120 STAT. 3397
PUBLIC LAW 109–458—DEC. 22, 2006
of mitigating the wildlife habitat that was lost as a result
of the development of the Pick-Sloan project.
(6) USE OF PROCEEDS.—Proceeds of sales of land under
this Act shall be deposited as miscellaneous funds in the
Treasury and such funds shall be made available, subject to
appropriations, to the State for the establishment of a trust
fund to pay the county taxes on the lands received by the
State Department of Game, Fish, and Parks under the bill.
(e) CONVEYANCE
OF NONPREFERENTIAL LEASE PARCELS
AND
UNLEASED PARCELS.—
(1) CONVEYANCE BY SECRETARY TO STATE.—
(A) IN GENERAL.—Not later than 1 year after the date
of enactment of this Act, the Secretary shall offer to convey
to the South Dakota Department of Game, Fish, and Parks
the nonpreferential lease parcels and unleased parcels of
the Blunt Reservoir and Pierre Canal.
(B) WILDLIFE
HABITAT
MITIGATION.—Land conveyed
under subparagraph (A) shall be used by the South Dakota
Department of Game, Fish, and Parks for the purpose
of mitigating the wildlife habitat that was lost as a result
of the development of the Pick-Sloan project.
(2) LAND EXCHANGES FOR NONPREFERENTIAL LEASE PARCELS
AND UNLEASED PARCELS.—
(A) IN GENERAL.—With the concurrence of the South
Dakota Department of Game, Fish, and Parks, the South
Dakota Commission of Schools and Public Lands may allow
a person to exchange land that the person owns elsewhere
in the State for a nonpreferential lease parcel or unleased
parcel at Blunt Reservoir or Pierre Canal, as the case
may be.
(B) PRIORITY.—The right to exchange nonpreferential
lease parcels or unleased parcels shall be granted in the
following order or priority:
(i) Exchanges with current lessees for nonpref-
erential lease parcels.
(ii) Exchanges with adjoining and adjacent land-
owners for unleased parcels and nonpreferential lease
parcels not exchanged by current lessees.
(C) EASEMENT FOR WATER CONVEYANCE STRUCTURE.—
As a condition of the exchange of land of the Pierre Canal
feature under this paragraph, the United States reserves
a perpetual easement to the land to allow for the right
to design, construct, operate, maintain, repair, and replace
a pipeline or other water conveyance structure over, under,
across, or through the Pierre Canal feature.
(f) RELEASE FROM LIABILITY.—
(1) IN GENERAL.—Effective on the date of conveyance of
any parcel under this Act, the United States shall not be
held liable by any court for damages of any kind arising out
of any act, omission, or occurrence relating to the parcel, except
for damages for acts of negligence committed by the United
States or by an employee, agent, or contractor of the United
States, before the date of conveyance.
(2) NO ADDITIONAL LIABILITY.—Nothing in this section adds
to any liability that the United States may have under chapter
171 of title 28, United States Code (commonly known as the
‘‘Federal Tort Claims Act’’).
Effective date.
Deadline.
VerDate 14-DEC-2004
12:05 Jul 13, 2007
Jkt 059194
PO 00003
Frm 00200
Fmt 6580
Sfmt 6581
E:\PUBLAW\PUBL003.109
APPS06
PsN: PUBL003
120 STAT. 3398
PUBLIC LAW 109–458—DEC. 22, 2006
LEGISLATIVE HISTORY—S. 2205 (H.R. 4301):
HOUSE REPORTS: No. 109–588 accompanying H.R. 4301 (Comm. on Resources).
CONGRESSIONAL RECORD, Vol. 152 (2006):
Dec. 7, considered and passed Senate.
Dec. 8, considered and passed House.
(g) REQUIREMENTS CONCERNING CONVEYANCE OF LEASE PAR-
CELS.—
(1) INTERIM REQUIREMENTS.—During the period beginning
on the date of enactment of this Act and ending on the date
of conveyance of the parcel, the Secretary shall continue to
lease each preferential lease parcel or nonpreferential lease
parcel to be conveyed under this section under the terms and
conditions applicable to the parcel on the date of enactment
of this Act.
(2) PROVISION OF PARCEL DESCRIPTIONS.—Not later than
180 days after the date of the enactment of this Act, the
Secretary, in consultation with the Commission, shall provide
the State a full legal description of all preferential lease parcels
and nonpreferential lease parcels that may be conveyed under
this section.
(h) CURATION
OF ARCHEOLOGICAL COLLECTIONS.—The Sec-
retary, in consultation with the State, shall transfer, without cost
to the State, all archeological and cultural resource items collected
from the Blunt Reservoir feature and Pierre Canal feature to the
South Dakota State Historical Society.
(i) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this Act $750,000 to reimburse
the Secretary for expenses incurred in implementing this Act, and
such sums as are necessary to reimburse the Commission and
the State Department of Game, Fish, and Parks for expenses
incurred implementing this Act, not to exceed 10 percent of the
cost of each transaction conducted under this Act.
Approved December 22, 2006.
Deadline.
VerDate 14-DEC-2004
12:05 Jul 13, 2007
Jkt 059194
PO 00003
Frm 00201
Fmt 6580
Sfmt 6580
E:\PUBLAW\PUBL003.109
APPS06
PsN: PUBL003