Lease Lot Conveyance Act of 2002
PL 107-335 (H.R.706), enacted 12/16/2002

116 STAT. 2878 
PUBLIC LAW 107-335—DEC. 16, 2002 
Public Law 107-335 
107th Congress 
An Act 
Dec. 16, 2002 
To direct the Secretary of the Interior to convey certain properties in the vicinity 
[H R 706] 
of the Elephant Butte Reservoir and the Caballo Reservoir, New Mexico. 
Be it enacted by the Senate and House of Representatives 
of 
Lease Lot 
the United States of America in Congress assembled, 
Conveyance Act 
of 2002. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Lease Lot Conveyance Act of 
2002". 
SEC. 2. FINDINGS. 
The Congress finds that the conveyance of the Properties to 
the Lessees for fair market value would have the beneficial results 
of— 
(1) eliminating Federal payments in lieu of taxes and asso-
ciated management 
expenditures in connection with 
the 
Grovernment's ownership of the Properties, while increasing 
local tax revenues from the new owners; 
(2) sustaining existing economic conditions in the vicinity 
of the Properties, while providing the new owners of the Prop-
erties the security to invest in permanent structures and 
improvements; and 
(3) adding needed jobs to the county in which the Properties 
are located and increasing revenue to the county and sur-
rounding communities through property and gross receipt taxes, 
thereby increasing economic stability and a 
sustainable 
economy in one of the poorest counties in New Mexico. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) FAIR MARKET VALUE.—The term "fair market value" 
means, with respect to a parcel of property, the value of the 
property determined— 
(A) without regard to improvements constructed by 
the Lessee of the property; 
(B) by an appraisal in accordance with the Uniform 
Standards for Federal Land Acquisitions; and 
(C) by an appraiser approved by the Secretary and 
the purchaser. 
(2) IRRIGATION DISTRICTS.—The term "Irrigation Districts" 
means the Elephant Butte Irrigation District and the El Paso 
County Water Improvement District No. 1. 
(3) LESSEE.—^The term "Lessee" means the leaseholder of 
a Property on the date of enactment of this Act, and any 
PUBLIC LAW 107-335—DEC. 16, 2002 
116 STAT. 2879 
heir, executor, or assign of the leaseholder with respect to 
that leasehold interest. 
(4) PROPERTY.—The term "Property" means any of the cabin 
sites comprising the Properties. 
(5) PROPERTIES.—^The term "Properties" means all the real 
property comprising 403 cabin sites under the administrative 
jurisdiction of the Bureau of Reclamation that are located along 
the western portion of the reservoirs in Elephant Butte State 
Park and Caballo State Park, New Mexico, including ease-
ments, roads, and other appurtenances. The exact acreage and 
legal description of such real property shall be determined 
by the Secretary after consulting with the Purchaser. 
(6) PURCHASER.—^The term "Purchaser" means the Ele-
phant Butte/Caballo Leaseholders Association, Inc., a nonprofit 
corporation established under the laws of New Mexico. 
(7) RESERVOIRS.—^The term "reservoirs" means the Ele-
phant Butte Reservoir and the Caballo Reservoir in the State 
of New Mexico. 
(8) SECRETARY.—^The term "Secretary" means the Secretary 
of the Interior. 
SEC. 4. CONVEYANCE OF PROPERTIES. 
(a) IN GENERAL.—^The Secretary shall convey to the Purchaser 
in accordance with this Act, subject to valid existing rights, all 
right, title, and interest of the United States in and to the Properties 
and all appurtenances thereto, including specifically easements 
for— 
(1) vehicular access to each Property; 
(2) drainage; and 
(3) access to and the use of all ramps, retaining walls, 
and other improvements for which access is provided under 
the leases that apply to the Properties as of the date of the 
enactment of this Act. 
(b) COI^JSIDERATION.—^As consideration for any conveyance 
under this section, the Secretary shall require the Purchaser to 
pay to the United States fair market value of the Properties. 
SEC. 5. TERMS OF CONVEYANCE. 
(a) SPECIFIC CONDITIONS.—^As conditions of any conveyance 
to the Purchaser under this Act, the Secretary shall require the 
following: 
(1) LEASEHOLDERS' OPTION.—The Purchaser shall grant to 
each Lessee of a Property an option— 
(A) to purchase the Property at fair market value; 
or 
(B) to continue leasing the Property on terms to be 
negotiated with the Purchaser. 
(2) ADMINISTRATIVE COSTS.—^Any reasonable administrative 
cost incurred by the Secretary incident to the conveyance under 
section 6 shall be reimbursed by the Purchaser. 
(b) RESTRICTIVE USE COVENANT.— 
(1) IN GENERAL.—^To maintain the unique character of the 
area in the vicinity of the Reservoirs, the Secretary shall estab-
lish, by the terms of conveyance, use restrictions to carry out 
paragraph (2) that— 
(A) are appurtenant to, and run with, each Property; 
and 
116 STAT. 2880 
PUBLIC LAW 107-335—DEC. 16, 2002 
(B) are binding upon each subsequent owner of each 
Property. 
(2) ACCESS TO RESERVOIRS.—^The use restrictions required 
by paragraph (1) shall ensure that— 
(A) public access to and along the shoreline of the 
Reservoirs in existence on the date of enactment of this 
Act is not obstructed; 
(B) adequate public access to and along the shoreline 
of the Reservoirs is maintained; and 
(C) the operation of the Reservoirs by the Secretary 
or the Irrigation Districts shall not result in liability of 
the United States or the Irrigation Districts for damages 
incurred, as a direct or indirect result of such operation, 
by the owner of any Property conveyed under this Act, 
including— 
(i) damages for any loss of use or enjoyment of 
a Property; and 
(ii) damages resulting from any modifications or 
construction of any reservoir dam. 
(c) TIMING.— 
(1) IN GENERAL.—The Secretary shall convey the Properties 
under this Act as soon as practicable after the date of enactment 
of this Act and in accordance with all applicable law. 
Deadline. 
(2) REPORT.—If the Secretary has not completed conveyance 
of the Properties to the Purchaser by the end of the 1-year 
period beginning on the date of the enactment of this Act, 
the Secretary shall, before the end of that period, submit a 
report to the Congress explaining the reasons that conveyance 
has not been completed and stating the date by which the 
conveyance will be completed. 
(d) REIMBURSEMENT OF PURCHASER'S COSTS.—^The terms of 
conveyance shall authorize the Purchaser to require each Lessee 
to reimburse the Purchaser for a proportionate share of the costs 
incurred by the Purchaser in completing the transactions pursuant 
to this Act, including any interest charges. 
SEC. 6. RESOLUTION OF CLAIMS AND DISPUTES. 
Notification. 
After conveyance of the Properties to the Purchaser, if any 
Lessee has a dispute with or claim against the Purchaser or any 
of its officers, directors, or members arising from the Properties, 
the Lessee shall promptly give written notice of the dispute or 
claim to the Purchaser. If such notice is not provided to the Pur-
chaser within 20 days after the date the Lessee knew or should 
have known of such dispute or claim, then any right of the Lessee 
for relief based on such dispute or claim shall be waived. If the 
Lessee and the Purchaser are unable to resolve the dispute or 
claim by mediation, the dispute or claim shall be resolved by binding 
arbitration. 
SEC. 7. FEDERAL RECLAMATION LAW. 
No conveyance under this Act shall restrict or limit the 
authority or ability of the Secretary to fulfill the duties of the 
Secretary under the Act of June 17, 1902 (32 Stat. 388, chapter 
PUBLIC LAW 107-335—DEC. 16, 2002 
116 STAT. 2881 
1093), and Acts supplemental to and amendatory of that Act (43 
U.S.C.371etseq.). 
Approved December 16, 2002. 
LEGISLATIVE HISTORY—H.R. 706: 
HOUSE REPORTS: No. 107-368 (Comm. on Resources). 
SENATE REPORTS: No. 107-287 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD, Vol. 148 (2002): 
Mar. 19, considered and passed House. 
Nov. 19, considered and passed Senate.