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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Fern Lake Conservation and
Recreation Act of 2001''.

SEC. 2. FINDINGS AND PURPOSES.

(a) Findings.--The Congress finds the following:
(1) Fern Lake and its surrounding watershed in Bell County,
Kentucky, and Claiborne County, Tennessee, is within the
potential boundaries of Cumberland Gap National Historical Park
as originally authorized by the Act of June 11, 1940 (54 Stat.
262; 16 U.S.C. 261 et seq.).
(2) The acquisition of Fern Lake and its surrounding
watershed and its inclusion in Cumberland Gap National
Historical Park would protect the vista from Pinnacle Overlook,
which is one of the park's most valuable scenic resources and
most popular attractions, and enhance recreational
opportunities at the park.
(3) Fern Lake is the water supply source for the city of
Middlesboro, Kentucky, and environs.
(4) The 4500-acre Fern Lake watershed is privately owned,
and the 150-acre lake and part of the watershed are currently
for sale, but the Secretary of the Interior is precluded by the
first section of the Act of June 11, 1940 (16 U.S.C. 261), from
using appropriated funds to acquire the lands.
(b) Purposes.--The purposes of the Act are--
(1) to authorize the Secretary of the Interior to use
appropriated funds if necessary, in addition to other
acquisition methods, to acquire from willing sellers Fern Lake
and its surrounding watershed, in order to protect scenic and
natural resources and enhance recreational opportunities at
Cumberland Gap National Historical Park; and
(2) to allow the continued supply of water from Fern Lake
to the city of Middlesboro, Kentucky, and environs.

SEC. 3. LAND ACQUISITION, FERN LAKE, CUMBERLAND GAP NATIONAL HISTORICAL
PARK.

(a) Definitions.--In this section:
(1) Fern lake.--The term ''Fern Lake'' means Fern Lake
located in Bell County, Kentucky, and Claiborne County,
Tennessee.
(2) Land.--The term ''land'' means land, water, interests
in land, and any improvements on the land.
(3) Park.--The term ''park'' means Cumberland Gap National
Historical Park, as authorized and established by the Act of
June 11, 1940 (54 Stat. 262; 16 U.S.C. 261 et seq.).
(4) Secretary.--The term ''Secretary'' means the Secretary
of the Interior, acting through the Director of the National
Park Service.
(b) Acquisition Authorized.--The Secretary may acquire for addition
to the park lands consisting of approximately 4,500 acres and
containing Fern Lake and its surrounding watershed, as generally
depicted on the map entitled ''Cumberland Gap National Historical Park,
Fern Lake Watershed'', numbered 380/80,004, and dated May 2001. The map
shall be on file in the appropriate offices of the National Park
Service.
(c) Authorized Acquisition Methods.--
(1) In general.--Notwithstanding the Act of June 11, 1940
(16 U.S.C. 261 et seq.), the Secretary may acquire lands
described in subsection (b) by donation, purchase with donated
or appropriated funds, or exchange. However, the lands may be
acquired only with the consent of the owner.
(2) Easements.--At the discretion of the Secretary, the
Secretary may acquire land described in subsection (b) that is
subject to an easement for water supply facilities and
equipment associated with the withdrawal and delivery of water
by a utility from Fern Lake to the city of Middlesboro,
Kentucky, and environs.
(d) Boundary Adjustment and Administration.--Upon the acquisition
of land under this section, the Secretary shall revise the boundaries
of the park to include the land in the park. Subject to subsection (e),
the Secretary shall administer the acquired lands as part of the park
in accordance with the laws and regulations applicable to the park.
(e) Special Issues Related to Fern Lake.--
(1) Protection of water supply.--The Secretary shall manage
public recreational use of Fern Lake, if acquired by the
Secretary, in a manner that is consistent with the protection
of the lake as a source of untreated water for the city of
Middlesboro, Kentucky, and environs.
(2) Sale of water.--
(A) Contract with utility.--Upon the Secretary's
acquisition of land that includes Fern Lake, the
Secretary shall enter into a contract to sell untreated
water from the lake to a utility that delivers and
distributes water to the city of Middlesboro, Kentucky,
and environs. The Secretary shall ensure that the terms
and conditions of the contract are equitable, ensuring
a balance between the protection of park resources and
the delivery and distribution of sufficient water to
continue meeting the water demands of the city of
Middlesboro, Kentucky, and environs.
(B) Proceeds from water.--The Secretary shall
negotiate a reasonable return to the United States for
the sale of the water, which the Secretary may receive
in the form of reduced charges for water service.
Proceeds from the sale of the water, reduced by any
offsets for water service to the park, shall be
available for expenditure by the Secretary at the park
without further appropriation.
(f) Consultation Requirements.--In order to better manage Fern Lake
and its surrounding watershed, if acquired by the Secretary, in a
manner that will facilitate the provision of water for municipal needs
as well as the establishment and promotion of new recreational
opportunities made possible by the addition of Fern Lake to the park,
the Secretary shall consult with--
(1) appropriate officials in the States of Kentucky,
Tennessee, and Virginia, and political subdivisions of these
States;
(2) organizations involved in promoting tourism in these
States; and
(3) other interested parties.

Passed the House of Representatives December 5, 2001.

Attest:

JEFF TRANDAHL,

Clerk.
Fern Lake Conservation and Recreation Act of 2001 - Authorizes the Secretary of the Interior, acting through the Director of the National Park Service, to acquire by donation, purchase, or exchange (but only from a willing seller), specified lands which contain Fern Lake and its surrounding watershed located in Bell County, Kentucky, and Claiborne County, Tennessee. Authorizes the Secretary to acquire any such land subject to an easement for water supply facilities and equipment associated with the withdrawal and delivery of water by a utility from Fern Lake to Middlesboro, Kentucky, and environs.Directs the Secretary to: (1) revise the boundaries of the Cumberland Gap National Historical Park to include such acquired land; (2) protect the lake as a source of untreated water; (3) contract to sell the untreated water to a utility that delivers water to Middlesboro, Kentucky, and environs; and (4) use water sale proceeds (after reductions for park water service offsets) for expenditure at the park, without further appropriation. Requires the utility contract to ensure an equitable balance between protecting the park and providing sufficient water.Requires the Secretary to consult with the appropriate State (Kentucky, Tennessee, and Virginia) officials and tourism organizations.