SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pine River Project Conveyance Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``Jurisdictional Map'' means the map entitled 
        ``Transfer of Jurisdiction--Vallecito Reservoir, United States 
        Department of Agriculture, Forest Service and United States 
        Department of the Interior, Bureau of Reclamation and the 
        Bureau of Indian Affairs'' dated March, 1998.
            (2) The term ``Pine River Project'' or the ``Project'' 
        means Vallecito Dam and Reservoir owned by the United States 
        and authorized in 1937 under the provisions of the Department 
        of the Interior Appropriation Act of June 25, 1910, 36 Stat. 
        835; facilities appurtenant to the Dam and Reservoir, including 
        equipment, buildings, and other improvements; lands adjacent to 
        the Dam and Reservoir; easements and rights-of-way necessary 
        for access and all required connections with the Dam and 
        Reservoir, including those for necessary roads; and associated 
        personal property, including contract rights and any and all 
        ownership or property interest in water or water rights.
            (3) The term ``Repayment Contract'' means Repayment 
        Contract #I1r-1204, between Reclamation and the Pine River 
        Irrigation District, dated April 15, 1940, and amended November 
        30, 1953, covering the Pine River Project and certain lands 
        acquired in support of the Vallecito Dam and Reservoir pursuant 
        to which the Pine River Irrigation District has assumed 
        operation and maintenance responsibilities for the dam, 
        reservoir, and water-based recreation in accordance with 
        existing law.
            (4) The term ``Reclamation'' means the Department of the 
        Interior, Bureau of Reclamation.
            (5) The term ``Secretary'' means the Secretary of the 
        Interior.
            (6) The term ``Southern Ute Indian Tribe'' or ``Tribe'' 
        means a federally recognized Indian tribe, located on the 
        Southern Ute Indian Reservation, La Plata County, Colorado.
            (7) The term ``Pine River Irrigation District'' or 
        ``District'' means a political division of the State of 
        Colorado duly organized, existing, and acting pursuant to the 
        laws thereof with its principal place of business in the City 
        of Bayfield, La Plata County, Colorado and having an undivided 
        \5/6\ right and interest in the use of the water made available 
        by Vallecito Reservoir for the purpose of supplying the lands 
        of the District, pursuant to the Repayment Contract, and the 
        decree in Case No. 1848-B, District Court, Water Division 7, 
        State of Colorado, as well as an undivided \5/6\ right and 
        interest in the Pine River Project.

SEC. 3. TRANSFER OF THE PINE RIVER PROJECT.

    (a) Conveyance.--The Secretary is authorized to convey, without 
consideration or compensation, except as provided in this section, to 
the District, by quitclaim deed or patent, pursuant to section 6, the 
United States' undivided \5/6\ right and interest in the Pine River 
Project under the jurisdiction of Reclamation for the benefit of the 
Pine River Irrigation District. The quitclaim deed or patent shall 
expressly provide that the undivided \5/6\ right and interest 
transferred cannot be subject to partition from the undivided \1/6\ 
right and interest retained under the jurisdiction of the Bureau of 
Indian Affairs.
    (b) Price.--The sale price for the undivided \5/6\ right and 
interest to the Project to be transferred to the Pine River Irrigation 
District shall be Four Hundred Ninety-two Thousand and 00/100 Dollars 
($492,000) (the ``Sale Price''). Concurrently with the conveyance, the 
Sale Price shall be deposited as miscellaneous receipts into the 
Reclamation Fund of the United States. Payment of the Sale Price shall 
extinguish all obligations between the District and the Bureau of 
Indian Affairs on the one hand and Reclamation on the other hand, under 
the Repayment Contract or with respect to the Pine River Project. 
Upon completion of the title transfer, said Repayment Contract shall 
become null and void.
    (c) Transaction Costs.--Pursuant to the April 1, 1998, Memorandum 
of Understanding between Reclamation and the District, the District is 
responsible for paying all costs associated with the title transfer. 
The Secretary shall credit 50 percent of all costs incurred to fulfill 
the requirements of the National Environmental Policy Act and other 
Federal laws toward the Sale Price due under section 3(b) herein, such 
credit not to exceed the Sale Price.
    (d) Bureau of Indian Affairs Interest.--At the option of the Tribe, 
the Secretary is authorized to convey to the Tribe the Bureau of Indian 
Affairs' undivided \1/6\ right and interest in the Pine River Project 
and the water supply made available by Vallecito Reservoir pursuant to 
the Memorandum of Understanding between the Bureau of Reclamation and 
the Office of Indian Affairs dated January 3, 1940, together with its 
Amendment dated July 9, 1964 (``MOU''), the Repayment Contract and 
decrees in Case Nos. 1848-B and W-1603-76D, District Court, Water 
Division 7, State of Colorado. In the event of such conveyance, no 
additional consideration or compensation shall be required to be paid 
to the United States.
    (e) Federal Dam Use Charge.--Conveyance of Reclamation's \5/6\ 
interest in the facilities under this Act shall result in a \5/6\ 
reduction in the Federal dam use charge assessed under section 10(e) of 
the Federal Power Act for use of the hydropower potential of the 
facilities.

SEC. 4. JURISDICTIONAL TRANSFER OF LANDS.

    (a) Inundated Lands.--To provide for the consolidation of lands 
associated with the Pine River Project to be retained by the Forest 
Service and the consolidation of lands to be transferred to the 
District, the administrative jurisdiction of lands inundated by and 
along the shoreline of Vallecito Reservoir, as shown on the 
Jurisdictional Map, shall be transferred, as set forth below (the 
``Jurisdictional Transfer''), concurrently with the conveyance 
described in section 3(a). Except as otherwise shown on the 
Jurisdictional Map--
            (1) for withdrawn lands (approximately 260 acres) lying 
        below the 7,765-foot reservoir water surface elevation level, 
        the Forest Service shall transfer an undivided \5/6\ interest 
        to Reclamation and an undivided \1/6\ interest to the Bureau of 
        Indian Affairs in trust for the Tribe; and
            (2) for Project acquired lands (approximately 230 acres) 
        above the 7,765-foot reservoir water surface elevation level, 
        Reclamation and the Bureau of Indian Affairs shall transfer 
        their interests to the Forest Service.
    (b) Map.--The Jurisdictional Map and legal descriptions of the 
lands transferred pursuant to subsection (a) above shall be on file and 
available for public inspection in the offices of the Chief of the 
Forest Service, Department of Agriculture, the Commissioner of 
Reclamation, Department of the Interior, appropriate field offices of 
those agencies, and the Committee on Resources of the House of 
Representatives and the Committee on Energy and Natural Resources of 
the Senate.
    (c) Administration.--Following the Jurisdictional Transfer:
            (1) All lands that, by reason of the Jurisdictional 
        Transfer, become National Forest System lands within the 
        boundaries of the San Juan National Forest, shall be 
        administered in accordance with the laws, rules, and 
        regulations applicable to the National Forest System.
            (2) Reclamation withdrawals of land from the San Juan 
        National Forest established by Secretarial Orders on November 
        9, 1936, October 14, 1937, and June 20, 1945, together 
        designated as Serial No. C-28259, shall be revoked.
            (3) The Forest Service shall issue perpetual easements to 
        the District and the Bureau of Indian Affairs, at no cost to 
        the District or the Bureau of Indian Affairs, providing 
        adequate access across all lands subject to Forest Service 
        jurisdiction to insure the District and the Bureau of Indian 
        Affairs the ability to continue to operate and maintain the 
        Pine River Project.
            (4) The undivided \5/6\ interest in National Forest System 
        lands that, by reason of the Jurisdictional Transfer is to be 
        administered by Reclamation, shall be conveyed to the District 
        pursuant to section 3(a).
            (5) The District and the Bureau of Indian Affairs shall 
        issue perpetual easements to the Forest Service, at no cost to 
        the Forest Service, from National Forest System lands to 
        Vallecito Reservoir to assure continued public access to 
        Vallecito Reservoir when the Reservoir level drops below the 
        7,765-foot water surface elevation.
            (6) The District and the Bureau of Indian Affairs shall 
        issue a perpetual easement to the Forest Service, at no cost to 
        the Forest Service, for the reconstruction, maintenance, and 
        operation of a road from La Plata County Road No. 501 to 
National Forest System lands east of the Reservoir.
    (d) Valid Existing Rights.--Nothing in this section shall affect 
any valid existing rights or interests in any existing land use 
authorization, except that any such land use authorization shall be 
administered by the agency having jurisdiction over the land after the 
Jurisdictional Transfer in accordance with subsection (c) and other 
applicable law. Renewal or reissuance of any such authorization shall 
be in accordance with applicable law and the regulations of the agency 
having jurisdiction, except that the change of administrative 
jurisdiction shall not in itself constitute a ground to deny the 
renewal or reissuance of any such authorization.

SEC. 5. LIABILITY.

    Effective on the date of the conveyance of an undivided \5/6\ right 
and interest in the Pine River Project to the District, 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 such 
undivided \5/6\ right and interest, 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 conveyance. Nothing in this 
section shall be deemed to increase the liability of the United States 
beyond that currently provided in the Federal Tort Claims Act (28 
U.S.C. 2671 et seq.)

SEC. 6. COMPLETION OF CONVEYANCE.

    (a) In General.--The Secretary's completion of the conveyances 
under section 3 shall occur promptly after the following events:
            (1) Compliance with the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.), and other applicable Federal 
        and State laws.
            (2) A written statement from the Southern Ute Indian Tribe 
        indicating the Tribe's satisfaction that the Tribe's Indian 
        Trust Assets are protected in the conveyance described in 
        section 3.
            (3) The issuance by the Federal Energy Regulatory 
        Commission of an amendment to license #3174-001 which revises 
        annual charges and otherwise reflects the conveyance described 
        in section 3.
            (4) The submission of a statement by the Secretary to the 
        District, the Bureau of Indian Affairs, and the State of 
        Colorado on the existing condition of Vallecito Dam based on 
        Bureau of Reclamation's current knowledge and understanding.
            (5) The development of an agreement between the Bureau of 
        Indian Affairs and the District to prescribe the District's 
        obligation to so operate the Project that the \1/6\ rights and 
        interests to the Project and water supply made available by 
        Vallecito Reservoir held by the Bureau of Indian Affairs are 
        protected.
            (6) The submission of a plan by the District to manage the 
        Project in a manner substantially similar to the manner in 
        which it was managed prior to the transfer and in accordance 
        with applicable Federal and State laws, including management 
        for the preservation of public access and recreational values 
        and for the prevention of growth on certain lands to be 
        conveyed hereunder, as set forth in an Agreement dated March 
        20, 1998, between the District and residents of Vallecito 
        Reservoir. Any future change in the use of the water supplied 
        by Vallecito Reservoir shall comply with applicable law.
            (7) The development of a flood control plan by the 
        Secretary of the Army acting through the Corps of Engineers 
        which shall direct the District in the operation of Vallecito 
        Dam for such purposes.
    (b) Report.--If the transfer authorized in section 3 is not 
substantially completed, the Secretary, in coordination with the 
District, shall provide a report to the Committee on Resources of the 
House of Representatives and to the Committee on Energy and Natural 
Resources of the Senate within 18 months from the date of enactment of 
this Act on the status of the transfer described in section 3(a), any 
obstacles to completion of such transfer, and the anticipated date for 
such transfer.
    (c) Future Benefits.--Effective upon transfer, the District shall 
not be entitled to receive any further Reclamation benefits pursuant to 
the Reclamation Act of June 17, 1902, and Acts supplementary thereto or 
amendatory thereof.
Output: Pine River Project Conveyance Act - Authorizes the Secretary of the Interior to convey to the Pine River Irrigation District, Colorado, a specified interest of the Pine River Project (a water facilities project which includes the Vallecito Dam and Reservoir in Colorado, along with related easements and appurtenances).  Authorizes the Secretary to convey a remaining fractional interest in such Project to the Southern Ute Indian Tribe of Colorado, pursuant to a specified memorandum of understanding. 
Provides for:  (1) the transfer of certain inundated lands along the Dam and Reservoir; and (2) appropriate administrative jurisdiction over such lands after such transfer. 
Requires the conveyance under this Act to occur promptly after the completion of specified events, including compliance with applicable environmental laws, issuance of a statement by the Ute Tribe that their trust assets have been protected, and development of a flood control plan by the Secretary of the Army which shall direct the District in the operation of the Vallecito Dam for such purpose.  Directs the Secretary, if the transfer is not substantially completed, to report to specified congressional committees within 18 months after the enactment of this Act on the transfer's status, obstacles, and anticipated completion date.