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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
/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 /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 /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 /6\ right and interest
transferred cannot be subject to partition from the undivided /6\
right and interest retained under the jurisdiction of the Bureau of
Indian Affairs.
(b) Price.--The sale price for the undivided /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 /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 /6\
interest in the facilities under this Act shall result in a /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 /6\ interest
to Reclamation and an undivided /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 /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 /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 /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 /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.
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.