[Pages S10538-S10540]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

PALMETTO BEND CONVEYANCE ACT

The Senate proceeded to consider the bill (S. 1474) providing for
conveyance of the Palmetto Bend project to the State of Texas, which
had been reported from the Committee on Energy and Natural Resources,
with an amendment, as follows:
(Strike out all after the enacting clause and insert the part printed
in italic.)

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
Public 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.

[[Page S10539]]

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 U.S. Treasury notes during
the proceeding calendar month, which following application of
the State's August 1, 1999 payment, is currently calculated
to be $45,082,675 using a discount rate of 6.070%. The State
shall also pay interest on the adjusted net present value of
current repayment obligations from the date of State's most
recent annual payment until closing at the interest rate for
constant maturity U.S. 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 completion 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
section 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 and shall extend for the useful life of
the Project that has been approved by the Secretary.
(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.

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.

(a) In General.--Effective on the date of conveyance of the
Project, the United States shall 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 committed 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.

(a) Deauthorization.--Effective on the date of conveyance
of the Project, the Project conveyed under this Act shall be
deauthorized.
(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 June 17, 1902 (32 Stat. 388,
chapter 1093), and Acts supplemental to and amendatory of
that Act (43 U.S.C. 371 et seq.).

The amendment (No. 4318) was agreed to, as follows:

In the Committee amendment:
In section 4(a), after ``August 1, 1999 payment,'' strike
``is currently'' and insert ``was, as of October, 1999,''.
In section 5(b), strike ``and shall extend for the useful
life of the Project that has been approved by the
Secretary.'' and insert ``that has been approved by the
Secretary and shall extend for the useful life of the
Project.''.

The committee amendment in the nature of a substitute, as amended,
was agreed to.
The bill (S. 1474), as amended, was read the third time, and passed,
as follows:

S. 1474

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.

SEC. 3. 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 proceeding calendar 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 also pay interest on
the adjusted net present value of current repayment
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 completion 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
section 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.

[[Page S10540]]

SEC. 6. MANAGEMENT OF MINERAL ESTATE.

SEC. 7. LIABILITY.

SEC. 8. FUTURE BENEFITS.

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