Palmetto Bend Conveyance Act
PL 106-512 (S.1474), enacted 11/13/2000

114 STAT. 2378 
PUBLIC LAW 106-512—NOV. 13, 2000 
Nov. 13, 2000 
[S. 1474] 
Palmetto Bend 
Conveyance Act. 
Deadline. 
Public Law 106-512 
106th Congress 
An Act 
Providing for conveyance of the Palmetto Bend project to the State of Texas. 
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 "Palmetto Bend Conveyance 
Act". 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) PROJECT.—the term "Project" means the Palmetto Bend 
Reclamation Project in the State of Texas authorized under 
Pubhc Law 90-562 (82 Stat. 999). 
(2) SECRETARY.—The term "Secretary" means the Secretary 
of the Interior. 
(3) STATE.—The term "State" means the State of Texas, 
acting through the Texas Water Development Board or the 
Lavaca-Navidad River Authority or both. 
SEC. 3. CONVEYANCE. 
(a) IN GENERAL.—The Secretary shall, as soon as practicable 
after the date of enactment of this Act and in accordance with 
all applicable law, and subject to the conditions set forth in sections 
4 and 5, convey to the State all right, title and interest (excluding 
the mineral estate) in and to the Project held by the United States. 
(b) REPORT.—If the conveyance under section 3 has not been 
completed within 1 year and 180 days after the date of enactment 
of this Act, the Secretary shall submit to the Committee on 
Resources of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate a report that 
describes— 
(1) the status of the conveyance; 
(2) any obstacles to completion of the conveyance; and 
(3) the anticipated date for completion of the conveyance. 
SEC. 4. PAYMENT. 
(a) IN GENERAL.—^As a condition of the conveyance, the State 
shall pay the Secretary the adjusted net present value of current 
repayment obligations on the Project, calculated 30 days prior to 
closing using a discount rate equal to the average interest rate 
on 30-year United States Treasury notes during the preceding cal-
endar month, which following application of the State's August 
1, 1999 payment, was, as of October 1999, calculated to be 
$45,082,675 using a discount rate of 6.070 percent. The State shall 
PUBLIC LAW 106-512—NOV. 13, 2000 
114 STAT. 2379 
also pay interest on the adjusted net present value of current 
repa3anent obligations from the date of the State's most recent 
annual payment until closing at the interest rate for constant 
maturity United States Treasury notes of an equivalent term. 
(b) OBLIGATION EXTINGUISHED.—Upon payment by the State 
under subsection (a), the obligation of the State and the Bureau 
of Reclamation under the Bureau of Reclamation Contract No. 
14-06-500-1880, as amended shall be extinguished. After comple-
tion of conveyance provided for in section 3, the State shall assume 
full responsibility for all aspects of operation, maintenance and 
replacement of the Project. 
(c) ADDITIONAL COSTS.—The State shall bear the cost of all 
boundary surveys, title searches, appraisals, and other transaction 
costs for the conveyance. 
(d) RECLAMATION FUND.—All funds paid by the State to the 
Secretary under this section shall be credited to the Reclamation 
Fund in the Treasury of the United States. 
SEC. 5. FUTURE MANAGEMENT. 
(a) IN GENERAL.—As a condition of the conveyance under sec-
tion 3, the State shall agree that the lands, water, and facilities 
of the Project shall continue to be managed and operated for the 
purposes for which the Project was originally authorized; that is, 
to provide a dependable municipal and industrial water supply, 
to conserve and develop fish and wildlife resources, and to enhance 
recreational opportunities. In future management of the Project, 
the State shall, consistent with other project purposes and the 
provision of dependable municipal and industrial water supply— 
(1) provide full public access to the Project's lands, subject 
to reasonable restrictions for purposes of Project security, public 
safety, and natural resource protection; 
(2) not sell or otherwise dispose of the lands conveyed 
under section 3; 
(3) prohibit private or exclusive uses of lands conveyed 
under section 3; 
(4) maintain and manage the Project's fish and wildlife 
resource and habitat for the benefit and enhancement of those 
resources; 
(5) maintain and manage the Project's existing recreational 
facilities and assets, including open space, for the benefit of 
the general public; 
(6) not charge the public recreational use fees that are 
more than is customary and reasonable. 
(b) 
FISH, WILDLIFE, AND RECREATION MANAGEMENT.—AS 
a 
condition of conveyance under section 3, management decisions 
and actions affecting the public aspects of the Project (namely, 
fish, wildlife, and recreation resources) shall be conducted according 
to a management agreement between all recipients of title to the 
Project and the Texas Parks and Wildlife Department that has 
been approved by the Secretary and shall extend for the useful 
life of the Project. 
(c) EXISTING OBLIGATIONS.—The United States shall assign to 
the State and the State shall accept all surface use obligations 
of the United States associated with the Project existing on the 
date of the conveyance including contracts, easements, and any 
permits or license agreements. 
114 STAT. 2380 
PUBLIC LAW 106-512—NOV. 13, 2000 
SEC. 6. MANAGEMENT OF MINERAL ESTATE. 
All mineral interests in the Project retained by the United 
States shall be managed consistent with Federal law and in a 
manner that will not interfere with the purposes for which the 
Project was authorized. 
SEC. 7. LIABILITY. 
Effective date. 
(a) IN GENERAL.—Effective on the date of conveyance of the 
Project, the United States shall not be liable for damages of any 
kind arising out of any act, omission, or occurrence relating to 
the Project, except for damages caused by acts of negligence com-
mitted prior to the date of conveyance by— 
(1) the United States; or 
(2) an employee, agent, or contractor of the United States. 
(b) No INCREASE IN LIABILITY.—Nothing in this Act increases 
the liability of the United States beyond that provided for in the 
Federal Tort Claims Act (28 U.S.C. 2671 et seq.). 
SEC. 8. FUTURE BENEFITS. 
Effective date. 
(a) DEAUTHORIZATION.—Effective on the date of conveyance of 
the Project, the Project conveyed under this Act shall be deauthor-
ized. 
(b) No RECLAMATION BENEFITS.—After deauthorization of the 
Project under subsection (a), the State shall not be entitled to 
receive any benefits for the Project under Federal reclamation law 
(the Act of Jime 17, 1902 (32 Stat. 388, chapter 1093)), and Acts 
supplemental to and amendatory of that Act (43 U.S.C. 371 et 
seq.). 
Approved November 13, 2000. 
LEGISLATIVE HISTORY—S. 1474 (H.R. 2674): 
HOUSE REPORTS: No. 106-832 accompanying H.R. 2674 (Comm. on Resources). 
SENATE REPORTS: No. 106-358 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD, Vol. 146 (2000): 
Oct. 13, considered and passed Senate. 
Oct. 24, considered and passed House.