[106th Congress Public Law 512]
[From the U.S. Government Printing Office]

[DOCID: f:publ512.106]

[[Page 2377]]

                      PALMETTO BEND CONVEYANCE ACT

[[Page 114 STAT. 2378]]

Public Law 106-512
106th Congress

                                 An Act

 Providing for conveyance of the Palmetto Bend project to the State of 
              Texas. <<NOTE: Nov. 13, 2000 -  [S. 1474]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Palmetto Bend Conveyance 
Act.>> assembled,


    This Act may be cited as the ``Palmetto Bend Conveyance Act''.


    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.


    (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 <<NOTE: Deadline.>> 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.


    (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 preceding 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

[[Page 114 STAT. 2379]]

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 
    (c) Additional Costs.--The State shall bear the cost of all boundary 
surveys, title searches, appraisals, and other transaction costs for the 
    (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.


    (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 
            (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 

[[Page 114 STAT. 2380]]


    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.


    (a) In General.--Effective <<NOTE: Effective date.>> on the date of 
conveyance of the Project, the United States shall not 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.).


    (a) Deauthorization.--Effective <<NOTE: Effective date.>> 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.).

    Approved November 13, 2000.


HOUSE REPORTS: No. 106-832 accompanying H.R. 2674 (Comm. on Resources).
SENATE REPORTS: No. 106-358 (Comm. on Energy and Natural Resources).
            Oct. 13, considered and passed Senate.
            Oct. 24, considered and passed House.