SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Canadian River Project Prepayment 
Act''.

SEC. 2. DEFINITIONS.

    For the purposes of this Act:
        (1) The term ``Authority'' means the Canadian River Municipal 
    Water Authority, a conservation and reclamation district of the 
    State of Texas.
        (2) The term ``Canadian River Project Authorization Act'' means 
    the Act entitled ``An Act to authorize the construction, operation, 
    and maintenance by the Secretary of the Interior of the Canadian 
    River reclamation project, Texas'', approved December 29, 1950 (ch. 
    1183; 64 Stat. 1124).
        (3) The term ``Project'' means all of the right, title and 
    interest in and to all land and improvements comprising the 
    pipeline and related facilities of the Canadian River Project 
    authorized by the Canadian River Project Authorization Act.
        (4) The term ``Secretary'' means the Secretary of the Interior.

SEC. 3. PREPAYMENT AND CONVEYANCE OF PROJECT.

    (a) In General.--(1) In consideration of the Authority accepting 
the obligation of the Federal Government for the Project and subject to 
the payment by the Authority of the applicable amount under paragraph 
(2) within the 360-day period beginning on the date of the enactment of 
this Act, the Secretary shall convey the Project to the Authority, as 
provided in section 2(c)(3) of the Canadian River Project Authorization 
Act (64 Stat. 1124).
    (2) For purposes of paragraph (1), the applicable amount shall be--
        (A) $34,806,731, if payment is made by the Authority within the 
    270-day period beginning on the date of the enactment of this Act; 
    or
        (B) the amount specified in subparagraph (A) adjusted to 
    include interest on that amount since the date of the enactment of 
    this Act at the appropriate Treasury bill rate for an equivalent 
    term, if payment is made by the Authority after the period referred 
    to in subparagraph (A).
    (3) If payment under paragraph (1) is not made by the Authority 
within the period specified in paragraph (1), this Act shall have no 
force or effect.
    (b) Financing.--Nothing in this Act shall be construed to affect 
the right of the Authority to use a particular type of financing.

SEC. 4. RELATIONSHIP TO EXISTING OPERATIONS.

    (a) In General.--Nothing in this Act shall be construed as 
significantly expanding or otherwise changing the use or operation of 
the Project from its current use and operation.
    (b) Future Alterations.--If the Authority alters the operations or 
uses of the Project it shall comply with all applicable laws or 
regulations governing such alteration at that time.
    (c) Recreation.--The Secretary of the Interior, acting through the 
National Park Service, shall continue to operate the Lake Meredith 
National Recreation Area at Lake Meredith.
    (d) Flood Control.--The Secretary of the Army, acting through the 
Corps of Engineers, shall continue to prescribe regulations for the use 
of storage allocated to flood control at Lake Meredith as prescribed in 
the Letter of Understanding entered into between the Corps, the Bureau 
of Reclamation, and the Authority in March and May 1980.
    (e) Sanford Dam Property.--The Authority shall have the right to 
occupy and use without payment of lease or rental charges or license or 
use fees the property retained by the Bureau of Reclamation at Sanford 
Dam and all buildings constructed by the United States thereon for use 
as the Authority's headquarters and maintenance facility. Buildings 
constructed by the Authority on such property, or past and future 
additions to Government constructed buildings, shall be allowed to 
remain on the property. The Authority shall operate and maintain such 
property and facilities without cost to the United States.

SEC. 5. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

    (a) Payment Obligations Extinguished.--Provision of consideration 
by the Authority in accordance with section 3(b) shall extinguish all 
payment obligations under contract numbered 14-06-500-485 between the 
Authority and the Secretary.
    (b) Operation and Maintenance Costs.--After completion of the 
conveyance provided for in section 3, the Authority shall have full 
responsibility for the cost of operation and maintenance of Sanford 
Dam, and shall continue to have full responsibility for operation and 
maintenance of the Project pipeline and related facilities.
    (c) In General.--Rights and obligations under the existing contract 
No. 14-06-500-485 between the Authority and the United States, other 
than provisions regarding repayment of construction charge obligation 
by the Authority and provisions relating to the Project aqueduct, shall 
remain in full force and effect for the remaining term of the contract.

SEC. 6. RELATIONSHIP TO OTHER LAWS.

    Upon conveyance of the Project under this Act, the Reclamation Act 
of 1902 (82 Stat. 388) and all Acts amendatory thereof or supplemental 
thereto shall not apply to the Project.

SEC. 7. LIABILITY.

    Except as otherwise provided by law, effective on the date of 
conveyance of the Project under this Act, the United States shall not 
be liable under any law for damages of any kind arising out of any act, 
omission, or occurrence relating to the conveyed property.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
Output: Canadian River Project Prepayment Act - Directs the Secretary of the Interior, in consideration of the Canadian River Municipal Water Authority accepting the obligation of the Federal Government for the Canadian River Project, Texas (a water reclamation project), and subject to a specified payment by the Authority, to convey the Project to the Authority as provided under the Canadian River Project Authorization Act. 
Directs the Secretary, acting through the National Park Service, to continue to operate the Lake Meredith National Recreation Area. Directs the Secretary of the Army, acting through the Corps of Engineers, to continue to prescribe regulations for the use of storage allocated to flood control at Lake Meredith as prescribed in a certain Letter of Understanding. 
Grants the Authority the right to occupy and use without payment of lease or rental charges or license or user fees the property retained by the Bureau of Reclamation at Sanford Dam for use as a headquarters and maintenance facility. 
Provides party rights and obligations under current contract obligations and in relationship to other laws.