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                                                     Calendar No. 533
115th Congress         }                    {                 Report
                                 SENATE
 2d Session            }                    {                 115-313

======================================================================



 
TO ESTABLISH A PROCEDURE FOR THE CONVEYANCE OF CERTAIN FEDERAL PROPERTY 
                     AROUND THE DICKINSON RESERVOIR

                                _______
                                

                 August 1, 2018.--Ordered to be printed

                                _______
                                

        Ms. Murkowski, from the Committee on Energy and Natural 
                   Resources, submitted the following

                              R E P O R T

                         [To accompany S. 440]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 440) to establish a procedure for the 
conveyance of certain Federal property around the Dickinson 
Reservoir in the State of North Dakota, having considered the 
same, reports favorably thereon with an amendment in the nature 
of a substitute and recommends that the bill, as amended, do 
pass.

                               AMENDMENT

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. DEFINITIONS.

    In this Act:
          (1) Department.--The term ``Department'' means Dickinson 
        Parks & Recreation in Dickinson, North Dakota.
          (2) Dickinson reservoir.--The term ``Dickinson Reservoir'' 
        means the Dickinson Reservoir constructed as part of the 
        Dickinson Unit, Heart Division, Pick-Sloan Missouri Basin 
        Program, as authorized by section 9 of the Act of December 22, 
        1944 (commonly known as the ``Flood Control Act of 1944'') (58 
        Stat. 891, chapter 665).
          (3) Game and fish headquarters.--The term ``game and fish 
        headquarters'' means the approximately 10 acres of land 
        depicted as ``Game and Fish Headquarters'' on the Map.
          (4) Management agreement.--The term ``Management Agreement'' 
        means the management agreement entitled ``Management Agreement 
        between the Bureau of Reclamation, et al., for the Development, 
        Management, Operation, and Maintenance of Lands and Recreation 
        Facilities at Dickinson Reservoir'', MA No. 07AG602222, 
        Modification No. 1 and dated March 15, 2017.
          (5) Map.--The term ``Map'' means the map prepared by the 
        Bureau of Reclamation, entitled ``Dickinson Reservoir'', and 
        dated May 2018.
          (6) Permitted cabin land.--The term ``permitted cabin land'' 
        means the land depicted as ``Permitted Cabin Land'' on the Map.
          (7) Property.--The term ``property'' means any cabin site 
        located on permitted cabin land for which a permit is in effect 
        on the date of enactment of this Act.
          (8) Recreation land.--The term ``recreation land'' means the 
        land depicted as ``Recreation and Public Purpose Lands'' on the 
        Map.
          (9) Secretary.--The term ``Secretary'' means the Secretary of 
        the Interior, acting through the Commissioner of Reclamation.
          (10) State.--The term ``State'' means the State of North 
        Dakota, acting through the North Dakota Game and Fish 
        Department.

SEC. 2. CONVEYANCES TO DICKINSON DEPARTMENT OF PARKS AND RECREATION.

    (a) Conveyances to Dickinson Department of Parks and Recreation.--
          (1) In general.--Subject to the management requirements of 
        paragraph (3) and the easements and reservations under section 
        4, not later than 5 years after the date of enactment of this 
        Act, the Secretary shall convey to the Department all right, 
        title, and interest of the United States in and to--
                  (A) the recreation land; and
                  (B) the permitted cabin land.
          (2) Costs.--
                  (A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall convey the land described in 
                paragraph (1) at no cost.
                  (B) Title transfer; land surveys.--As a condition of 
                the conveyances under paragraph (1), the Department 
                shall agree to pay all survey and other administrative 
                costs necessary for the preparation and completion of 
                any patents for, and transfers of title to, the land 
                described in paragraph (1).
          (3) Management.--
                  (A) Recreation land.--The Department shall manage the 
                recreation land conveyed under paragraph (1)--
                          (i) for recreation and public purposes 
                        consistent with the Act of June 14, 1926 
                        (commonly known as the ``Recreation and Public 
                        Purposes Act'') (44 Stat. 741, chapter 578; 43 
                        U.S.C. 869 et seq.);
                          (ii) for public access;
                          (iii) for fish and wildlife habitat; or
                          (iv) to preserve the natural character of the 
                        recreation land.
                  (B) Permitted cabin land.--The Department shall 
                manage the permitted cabin land conveyed under 
                paragraph (1)--
                          (i) for cabins or recreational residences in 
                        existence as of the date of enactment of this 
                        Act; or
                          (ii) for any of the recreation land 
                        management purposes described in subparagraph 
                        (A).
          (4) Haying and grazing.--With respect to recreation land 
        conveyed under paragraph (1) that is used for haying or grazing 
        authorized by the Management Agreement as of the date of 
        enactment of this Act, the Department may continue to permit 
        haying and grazing in a manner that is permissible under the 1 
        or more haying or grazing contracts in effect as of the date of 
        enactment of this Act.
    (b) Reversion.--If a parcel of land conveyed under subparagraph (A) 
or (B) of subsection (a)(1) is used in a manner that is inconsistent 
with the requirements described in subparagraph (A) or (B), 
respectively, of subsection (a)(3), the parcel of land shall, at the 
discretion of the Secretary, revert to the United States.
    (c) Sale of Permitted Cabin Land by Department.--
          (1) In general.--If the Department sells any parcel of 
        permitted cabin land conveyed under subsection (a)(1)(B), the 
        parcel shall be sold at fair market value, as determined by a 
        third-party appraiser in accordance with the Uniform Standards 
        of Professional Appraisal Practice, subject to paragraph (2).
          (2) Improvements.--For purposes of an appraisal conducted 
        under paragraph (1), any improvements on the permitted cabin 
        land made by the permit holder shall not be included in the 
        appraised value of the land.
          (3) Proceeds from the sale of land by the department.--If the 
        Department sells a parcel of permitted cabin land conveyed 
        under subsection (a)(1)(B), the Department shall pay to the 
        Secretary the amount of any proceeds of the sale that exceed 
        the costs of preparing the sale by the Department.
    (d) Availability of Funds to the Secretary.--Any amounts paid to 
the Secretary for land conveyed by the Secretary under this Act shall 
be made available to the Secretary, without further appropriation, for 
activities relating to the operation of the Dickinson Dam and 
Reservoir.

SEC. 3. CONVEYANCE OF GAME AND FISH HEADQUARTERS TO THE STATE.

    (a) Conveyance of Game and Fish Headquarters.--Not later than 5 
years after the date of enactment of this Act, the Secretary shall 
convey to the State all right, title, and interest of the United States 
in and to the game and fish headquarters, on the condition that the 
game and fish headquarters continue to be used as a game and fish 
headquarters or substantially similar purposes.
    (b) Reversion.--If land conveyed under subsection (a) is used in a 
manner that is inconsistent with the requirements described in that 
subsection, the land shall, at the discretion of the Secretary, revert 
to the United States.

SEC. 4. RESERVATIONS, EASEMENTS, AND OTHER OUTSTANDING RIGHTS.

    (a) In General.--Each conveyance to the Department or the State 
pursuant to this Act shall be made subject to--
          (1) valid existing rights;
          (2) operational requirements of the Pick-Sloan Missouri River 
        Basin Program, as authorized by section 9 of the Act of 
        December 22, 1944 (commonly known as the ``Flood Control Act of 
        1944'') (58 Stat. 891, chapter 665), including the Dickinson 
        Reservoir;
          (3) any flowage easement reserved by the United States to 
        allow full operation of Dickinson Reservoir for authorized 
        purposes;
          (4) reservations described in the Management Agreement;
          (5) oil, gas, and other mineral rights reserved of record, as 
        of the date of enactment of this Act, by, or in favor of, the 
        United States or a third party;
          (6) any permit, license, lease, right-of-use, flowage 
        easement, or right-of-way of record in, on, over, or across the 
        applicable property or Federal land, whether owned by the 
        United States or a third party, as of the date of enactment of 
        this Act;
          (7) a deed restriction that prohibits building any new 
        permanent structure on property below an elevation of 2,430.6 
        feet; and
          (8) the granting of applicable easements for--
                  (A) vehicular access to the property; and
                  (B) access to, and use of, all docks, boathouses, 
                ramps, retaining walls, and other improvements for 
                which access is provided in the permit for use of the 
                property as of the date of enactment of this Act.
    (b) Liability; Taking.--
          (1) Liability.--The United States shall not be liable for 
        flood damage to a property subject to a permit, the Department, 
        or the State, or for damages arising out of any act, omission, 
        or occurrence relating to a permit holder, the Department, or 
        the State, other than for damages caused by an act or omission 
        of the United States or an employee, agent, or contractor of 
        the United States before the date of enactment of this Act.
          (2) Taking.--Any temporary flooding or flood damage to the 
        property of a permit holder, the Department, or the State, 
        shall not be considered to be a taking by the United States.

SEC. 5. INTERIM REQUIREMENTS.

    During the period beginning on the date of enactment of this Act 
and ending on the date of conveyance of a property or parcel of land 
under this Act, the provisions of the Management Agreement that are 
applicable to the property or land, or to leases between the State and 
the Secretary, and any applicable permits, shall remain in force and 
effect.

                                PURPOSE

    The purpose of S. 440 is to establish a procedure for the 
conveyance of certain Federal property around the Dickinson 
Reservoir in the State of North Dakota.

                          BACKGROUND AND NEED

    The Dickinson Dam and Reservoir, also referred to as 
Patterson Lake, in North Dakota is part of the Dickinson Unit 
of the Pick-Sloan Missouri Basin Project that is operated by 
the Bureau of Reclamation (BOR). The project was authorized in 
the Flood Control Act of 1944 (58 Stat. 891), with federal 
lands acquired to construct and operate the project for 
municipal water supply, irrigation, flood control, and 
recreation. The project provided municipal water to the City of 
Dickinson until 1991 when the city switched to water supplied 
by the Southwest Pipeline Project. While the reservoir is no 
longer used for municipal drinking water purposes, it continues 
to serve two water service contracts.
    BOR lands surrounding Patterson Lake include recreational 
lands, wildlife habitat, grazing and haying lands, and 41 lots 
with permitted cabins. All of these federal lands are managed 
by the Dickinson Parks and Recreation Department (Department) 
under an agreement with the BOR and are not necessary to 
fulfill authorized project purposes. In addition, the North 
Dakota Game and Fish Department leases approximately 10 acres 
for a District Headquarters directly from the BOR.
    As part of its management of the BOR lands, the Department 
issues permits for the 41 cabin lots. Some of the permitees now 
use these cabins year-round as primary residences and have made 
improvements to cabin lots at their own expense. In order to 
have certainty about the management of these lands, to secure 
the ability to obtain financing for home purchases and 
improvements, and to address increasing permit fees, permittees 
would like to purchase the lots they currently occupy. 
Additionally, North Dakota Fish and Game has expressed interest 
in assuming ownership of the lands they currently lease from 
BOR.

                          LEGISLATIVE HISTORY

    Senators Hoeven and Heitkamp introduced S. 440 on February 
17, 2017. The Subcommittee on Water and Power held a hearing on 
S. 440 on June 14, 2017.
    The Committee on Energy and Natural Resources met in open 
business session on May 17, 2018, and ordered S.440 favorably 
reported, as amended.

                        COMMITTEE RECOMMENDATION

    The Senate Committee on Energy and Natural Resources, in 
open business session on May 17, 2018, by a majority voice vote 
of a quorum present recommends that the Senate pass S. 440, if 
amended as described herein.

                          COMMITTEE AMENDMENT

    During its consideration of S. 440, the Committee adopted 
an amendment in the nature of a substitute. The amendment 
authorizes the Secretary to convey recreation land and 
permitted land to the Department, instead of providing the 
permittee of the property with the first option to purchase. 
The amendment also adds restrictions on the future uses of the 
property and makes numerous clarifications, technical 
corrections, and conforming changes. The amendment is further 
described in the section-by-section analysis.

                      SECTION-BY-SECTION ANALYSIS

Sec.1. Definitions

    Section 1 contains definitions.

Sec. 2. Conveyances to Dickinson Department of Parks and Recreation

    Subsection (a) directs the Secretary of the Interior 
(Secretary) to convey recreation land and permitted cabin land 
surrounding Dickinson Reservoir to the Department within five 
years of the Act's enactment. The conveyances by the Secretary 
are to be made at no cost, but the Department is required to 
pay for survey and administrative-related costs. The Department 
is directed to manage conveyed recreation land for recreation 
and public purposes consistent with the Recreation and Public 
Purposes Act (43 U.S.C. 869 et seq.); public access; fish and 
wildlife habitat; or to preserve the land's natural character. 
Additionally, if conveyed recreation land is authorized for 
haying and grazing by the Management Agreement as of the date 
of the Act's enactment, the Department may continue to permit 
those activities. The Department is directed to manage conveyed 
permitted cabin lands for any of the specified recreation land 
management purposes or for cabins or recreational residences in 
existence as of the date of the Act's enactment.
    Subsection (b) provides that the conveyed lands will revert 
to the United States, at the discretion of the Secretary, if 
they are used in a manner that is inconsistent with the Act's 
authorized uses.
    Subsection (c) requires the Department to charge fair 
market value for the sale of any parcel of permitted cabin 
land, and specifies improvements made by the permitee shall not 
be included in the valuation. This subsection also requires the 
Department to pay the Secretary the amount of any sale proceeds 
that exceed the costs of preparing the sale.
    Subsection (d) makes any amount paid to the Secretary for 
conveyed land available to the Secretary, without further 
appropriation, for operation of the Dickinson Dam and 
Reservoir.

Sec. 3. Conveyance of Game and Fish Headquarters to the State

    Section 3 directs the Secretary to convey all right, title, 
and interested in the game and fish headquarters currently 
leased to the North Dakota Game and Fish Department to the 
State of North Dakota for continued use as a headquarters or 
substantially similar purposes, and provides the Secretary with 
a reversionary interest in the event the land is used in an 
inconsistent manner with these requirements.

Sec. 4. Reservations, easements, and other outstanding rights

    Subsection (a) specifies that conveyances made pursuant to 
this Act are subject to valid existing rights; operational 
requirements of the Pick-Sloan Missouri River Basin Program, 
including the Dickinson Reservoir; reserved flowage easements; 
Management Agreement reservations; reserved oil, gas and other 
mineral rights; any existing permit, license, lease, right-of-
use, flowage easement, or right-of-way; deed restrictions 
prohibiting any permanent structures below the reservoir 
elevation of 2,430.6 feet; and the granting of easements for 
access to the property and associated facilities.
    Subsection (b) shields the United States from liability for 
property damage, other than damages caused by an act or 
omission of the United States or an employee, agent, or 
contractor of the United States prior to the Act's enactment. 
This subsection further states that any temporary flooding or 
flood damage to the property shall not be considered a taking 
by the United States.

Sec. 5. Interim requirements

    Section 5 applies the Management Agreement provisions as 
interim requirements during the time period starting from the 
date of the Act's enactment and ending on the date of the land 
or property conveyance.

                   COST AND BUDGETARY CONSIDERATIONS

    The following estimate of the costs of this measure has 
been provided by the Congressional Budget Office:
    S. 440 would direct the Bureau of Reclamation (BOR) to 
convey certain federal land located near the Dickinson 
Reservoir in North Dakota to the Dickinson Parks and Recreation 
department. Under the bill, after the property is conveyed, the 
department could sell the property to certain existing cabin 
permit holders and the net proceeds of those transaction would 
be paid to the federal government. Those proceeds would be 
classified as offsetting receipts, which are treated as 
reductions in direct spending, and could subsequently be spent 
by BOR without further appropriation.
    Enacting S. 440 would increase offsetting receipts and the 
associated direct spending; therefore, pay-as-you-go procedures 
apply. However, CBO estimates that the net effect on the budget 
would be negligible. Enacting S. 440 would not affect revenues.
    Under S. 440, BOR would convey specified federal property 
to the Dickinson Parks and Recreation department within 5 years 
after enactment. Using information from BOR, CBO expects that 
41 cabin permit holders would purchase lots from the department 
for about $100,000 per lot. CBO estimates that the department 
would transfer the net proceeds of about $4 million to the 
federal government and those offsetting receipts would be spent 
for annual operations costs and deferred maintenance projects 
at the Jamestown Dam and Reservoir in North Dakota.
    CBO estimates that enacting S. 440 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    S. 440 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Aurora Swanson. 
The estimate was reviewed by Leo Lex, Deputy Assistant Director 
for Budget Analysis.

                      REGULATORY IMPACT EVALUATION

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 440. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 440, as ordered reported.

                   CONGRESSIONALLY DIRECTED SPENDING

    S. 440, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        EXECUTIVE COMMUNICATIONS

    The testimony provided by the Department of the Interior at 
the June 14, 2017, hearing on S. 440 follows:

   Statement of Scott Cameron, Acting Assistant Secretary--Water and 
                Science U.S. Department of the Interior

    Chairman Flake, Ranking Member King, and members of the 
Subcommittee, I am Scott Cameron, Acting Assistant Secretary 
for Water and Science at the Department of the Interior. Thank 
you for the opportunity to provide the views of the Department 
of the Interior (Department) on S. 440, a bill to establish a 
procedure for the conveyance of certain Federal property around 
the Dickinson Reservoir in the State of North Dakota. The 
intent of the legislation is to provide a path for current 
permitted cabin owners and the Dickinson Parks and Recreation 
Department to take ownership of certain Federal lands, allowing 
flexible management of the lands to meet local needs and 
alleviate the administrative oversight and management of the 
land.
    Before I discuss our views on S. 440, I wanted to note the 
Secretary's staunch commitment against the wide-scale sale or 
transfer of federal lands. He firmly holds that our treasured 
public lands are to be maintained and preserved according to 
the inscription on the Yellowstone National Park Arch that 
reads `for the benefit and enjoyment of the people.' The 
Secretary is willing to work with Congress to ensure proposals 
of this nature preserve access and recreation for future 
generations to come. Therefore, we recommend the following 
changes to provide additional clarity and protections. The 
Flood Control Act of 1944 authorized construction of Dickinson 
Dam and Reservoir (Project) as part of the Dickinson Unit, 
Heart Division, Pick-Sloan Missouri Basin Program. Federal 
lands were acquired for Project purposes which include 
municipal water supply, irrigation with flood control, and 
recreation benefits. The Project provided municipal water to 
the City of Dickinson until 1991 when the City switched its 
water supply to the Southwest Pipeline Project. There are 
currently two water service contracts associated with the 
Project, one with Dickinson Parks and Recreation and one with 
an irrigation district downstream of the Reservoir.
    The current management agreement between Reclamation and 
Dickinson Parks and Recreation for operation and maintenance of 
the majority of lands around the Reservoir includes the area 
for 41 permitted exclusive use cabins occupied year round 
(approximately 25 acres) as well as additional lands dedicated 
to recreation, and wildlife management (approximately 2,434 
acres). In addition to lands managed by Dickinson Parks and 
Recreation, Reclamation leases a 10 acre parcel to the North 
Dakota Game and Fish Department (NDG&F) for the Southwest 
District Headquarters. In 2013, Reclamation's Dakotas Area 
Office (DKAO) requested a fair market appraisal of the rates 
for the exclusive use cabins be conducted pursuant to the Code 
of Federal Regulations related to Use of Bureau of Reclamation 
Land, Facilities, and Waterbodies (43 CFR 429). As required by 
Department policy, the appraisals were conducted by the 
Department of the Interior's Office of Valuation Services for 
all reservoirs with exclusive use under the administration of 
DKAO, resulting in the need to raise rates at all areas to 
recover fair market value. The results of the appraisal were 
presented to the respective managing partners in 2016.
    Section 1(b) of S. 440 would provide for conveyance of land 
permitted to cabin owners and land managed by Dickinson Parks 
and Recreation. However, some Project land is not included in 
the Management Agreement with Dickinson Parks and Recreation 
(i.e., 10 acres currently under lease to NDG&F) and is not 
included in the legislation. This would result in fractionated 
ownership with continued Reclamation oversight responsibilities 
and costs. The Department will work with the sponsor of the 
bill and the Committee to revise the language to include those 
lands acquired for the Project with the exception of the 
footprint of the Dam, auxiliary spillway, and any realty 
interest necessary to operate and maintain the Dam.
    Section 1(b) of S. 440 would also allow permittees two 
years following the date of enactment of this legislation to 
purchase a property. The Department has concerns with the 
timeline in the legislation as drafted given that surveys of 
land could take up to two years to complete. A third party 
appraisal, which can take a year or longer to complete, can 
only begin once the survey is complete. Once the appraised 
value is determined, additional time may be required for the 
permittee to seek financing or resolve any appraisal disputes 
if necessary. The Department recommends that permittees be 
allowed up to five years or ``as reasonably practicable after 
enactment of the Act'' to allow sufficient time for the pre-
sale activities and to arrange financing.
    Section 1(b)(2)(A) of S. 440 provides for the fair market 
value of a property to be determined by a local, third party 
appraiser, valuing the property as unimproved residential 
property, excluding all improvements. A third party appraisal 
would involve a contract between the permittee and the 
appraiser with the permittee responsible for direct payment to 
the appraiser. If Reclamation were to pay for the appraisal 
upfront, the contract would shift to an agreement between the 
United States and the appraiser, meaning it would no longer 
comply with the language in S. 440 as currently drafted. The 
Department recommends clarification of this language to ensure 
that permittees understand the cost requirement. The Department 
recommends that Section 1(b)(2)(A) be revised so that the fair 
market value of a property shall be determined by an appraiser 
using the Office of Valuation Services' third party appraisal 
process, valuing the property as unimproved residential 
property, excluding all improvements. The Department also 
recommends that the bill be amended to include a requirement 
for review of the third party appraisal by the Office of 
Valuation Services as specified in section 2201.4 of title 43, 
Code of Federal Regulations (or successor regulations) to 
ensure that the third party appraisal credibly represents the 
fair market value of the property being conveyed. The 
Department further recommends that all costs paid for by the 
permittee shall have no effect on the appraised value and the 
cost for the third party appraisal shall be the responsibility 
of the permittee.
    Section 1(b)(4) provides for the transfer of Federal land 
currently managed by Dickinson Parks and Recreation, without 
cost, subject to the requirements in Section 1(c) with no 
protections required to ensure lands acquired for public 
purpose will remain available for public use in the future. The 
Department recommends that the deed transferring land to 
Dickinson Parks and Recreation shall provide that all property 
transferred to Dickinson Parks and Recreation be used and 
maintained for public access and recreation purposes. 
Currently, opportunities to recreate within this area include 
walking trails, boating ramps, golfing, and modern and 
primitive camping. According to Dickinson Parks and Recreation, 
camping spots on the property average 2,158 rentals between 
mid-May and mid-September alone. Given the Secretary's firm 
commitment to protecting public lands, it is of critical 
importance that Dickinson continues to manage the parcels with 
recreational interests in mind. That is why the Department 
recommends that if the property ceases to be used or maintained 
for that purpose, the jurisdiction of the land would then 
revert back to the United States.
    As drafted, S. 440 does not specifically address the land 
within Dickinson Parks and Recreation's Management Agreement 
located under the Reservoir. The Department would be happy to 
work with the sponsor and the Committee on language to minimize 
future confusion and/or oversight by the U.S. on land under the 
reservoir.
    Section 1(c) of S. 440 provides that each conveyance 
pursuant to subsection (b) is made subject to two protections. 
The Department believes additional protections are necessary to 
safeguard the interests of the United States and the public to 
operate the dam as authorized. The Department recommends the 
following protections be added: the prohibition of any 
conveyance of subsurface or mineral rights, (2) the inclusion 
of language to maintain a flowage easement for flood control 
purposes, and the allowance for the Secretary to make necessary 
terms, reservations, restrictions, and conditions to safeguard 
the interests of the United States. The Department is willing 
to provide work with the Committee to amend the bill to ensure 
these protections are put in place. Section 1(d) of S. 440 
provides that the liability and taking provisions only apply to 
the permittees, not any other transfer of federal land or to 
any future owners. In addition to technical recommendations, 
the Department recommends amending the definition of Permittee 
in Section 1(a)(3) to include future assignees of the current 
owners of the cabin sites.
    Section 1(e)(2) of S. 440 requires that not later than 180 
days after enactment, the Secretary to provide legal 
descriptions to Dickinson Parks and Recreation of the land to 
be conveyed. This will require Reclamation to contract with a 
registered Land Surveyor to survey the lands and develop the 
legal descriptions, access, utility, and flowage easements and 
individual lot surveys. The Department does not believe it will 
be reasonable to complete this work within 180 days and 
suggests increasing the time to no later than 2 years or ``as 
reasonably practicable after enactment of the Act''. Section 
1(e)(3)(A) of S. 440 provides the elevation above which any new 
improvements can be constructed is currently listed as 2,430 
feet. This elevation is incorrect and ought to be changed to 
2,430.6 feet to correctly locate the design maximum water 
surface elevation.
    Section 1(f) of S. 440 provides that any revenues from a 
sale of Federal land pursuant to this section shall be made 
available to the Secretary, without further appropriation, for 
the costs to the Secretary of carrying out this section. 
Because revenues are not generated until the properties are 
transferred to the permittee, the United States would need to 
use appropriated funds to complete the surveys and appraisals 
and other pre-sale activities. In previous legislation to 
transfer cabin properties, as well as Reclamation's process for 
Use Authorization requests, it is the responsibility of the 
permittees/requestor to pay for the required pre-sale work, 
including all administrative costs to convey Federal property 
to private individuals/beneficiaries rather than placing this 
burden on the United States. As written it appears the United 
States is responsible for the administrative costs and 
therefore in ``net'' it receives less than market value for the 
land.
    The Department would be happy to work with the sponsor and 
the Committee to revise the language based on our 
recommendations. This concludes my written statement. I am 
pleased to answer questions at the appropriate time.

                        CHANGES IN EXISTING LAW

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the bill as ordered 
reported.

                                  [all]