[United States Statutes at Large, Volume 120, 109th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

120 STAT. 3394

Public Law 109-458
109th Congress

An Act


 
To direct the Secretary of the Interior to convey certain parcels of
land acquired for the Blunt Reservoir and Pierre Canal features of the
initial stage of the Oahe Unit, James Division, South Dakota, to the
Commission of Schools and Public Lands and the  NOTE: Dec. 22,
2006 -  [S. 2205]  Department of Game, Fish, and Parks of the State of
South Dakota for the purpose of mitigating lost wildlife habitat, on the
condition that the current preferential leaseholders shall have an
option to purchase the parcels from the Commission, and for other
purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,  NOTE: Blunt Reservoir
and Pierre Canal Land Conveyance Act of 2006.

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Blunt Reservoir and Pierre Canal Land
Conveyance Act of 2006''.

SEC. 2. BLUNT RESERVOIR AND PIERRE CANAL.

(a) Definitions.--In this section:
(1) Blunt reservoir feature.--The term ``Blunt Reservoir
feature'' means the Blunt Reservoir feature of the Oahe Unit,
James Division, authorized by the Act of August 3, 1968 (82
Stat. 624), as part of the Pick-Sloan Missouri River Basin
program.
(2) Commission.--The term ``Commission'' means the
Commission of Schools and Public Lands of the State.
(3) Nonpreferential lease parcel.--The term
``nonpreferential lease parcel'' means a parcel of land that--
(A) was purchased by the Secretary for use in
connection with the Blunt Reservoir feature or the
Pierre Canal feature; and
(B) was considered to be a nonpreferential lease
parcel by the Secretary as of January 1, 2001, and is
reflected as such on the roster of leases of the Bureau
of Reclamation for 2001.
(4) Pierre canal feature.--The term ``Pierre Canal feature''
means the Pierre Canal feature of the Oahe Unit, James Division,
authorized by the Act of August 3, 1968 (82 Stat. 624), as part
of the Pick-Sloan Missouri River Basin program.
(5) Preferential leaseholder.--The term ``preferential
leaseholder'' means a person or descendant of a person that held
a lease on a preferential lease parcel as of January 1, 2001,
and is reflected as such on the roster of leases of the Bureau
of Reclamation for 2001.
(6) Preferential lease parcel.--The term ``preferential
lease parcel'' means a parcel of land that--

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(A) was purchased by the Secretary for use in
connection with the Blunt Reservoir feature or the
Pierre Canal feature; and
(B) was considered to be a preferential lease parcel
by the Secretary as of January 1, 2001, and is reflected
as such on the roster of leases of the Bureau of
Reclamation for 2001.
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Interior, acting through the Commissioner of Reclamation.
(8) State.--The term ``State'' means the State of South
Dakota, including a successor in interest of the State.
(9) Unleased parcel.--The term ``unleased parcel'' means a
parcel of land that--
(A) was purchased by the Secretary for use in
connection with the Blunt Reservoir feature or the
Pierre Canal feature; and
(B) is not under lease as of the date of enactment
of this Act.

(b) Deauthorization.--The Blunt Reservoir feature is deauthorized.
(c) Acceptance of Land and Obligations.--
(1) In general.--As a term of each conveyance under
subsections (d)(5) and (e), respectively, the State may agree to
accept--
(A) in ``as is'' condition, the portions of the
Blunt Reservoir feature and the Pierre Canal feature
that pass into State ownership;
(B) any liability accruing after the date of
conveyance as a result of the ownership, operation, or
maintenance of the features referred to in subparagraph
(A), including liability associated with certain
outstanding obligations associated with expired
easements, or any other right granted in, on, over, or
across either feature; and
(C) the responsibility that the Commission will act
as the agent for the Secretary in administering the
purchase option extended to preferential leaseholders
under subsection (d).
(2) Responsibilities of the state.--An outstanding
obligation described in paragraph (1)(B) shall inure to the
benefit of, and be binding upon, the State.
(3) Oil, gas, mineral and other outstanding rights.--A
conveyance to the State under subsection (d)(5) or (e) or a sale
to a preferential leaseholder under subsection (d) shall be made
subject to--
(A) oil, gas, and other mineral rights reserved of
record, as of the date of enactment of this Act, by or
in favor of a third party; and
(B) any permit, license, lease, right-of-use, or
right-of-way of record in, on, over, or across a feature
referred to in paragraph (1)(A) that is outstanding as
to a third party as of the date of enactment of this
Act.
(4) Additional conditions of conveyance to state.--A
conveyance to the State under subsection (d)(5) or (e) shall be
subject to the reservations by the United States and the
conditions specified in section 1 of the Act of May 19, 1948
(chapter 310; 62 Stat. 240), as amended (16 U.S.C. 667b),

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120 STAT. 3396

for the transfer of property to State agencies for wildlife
conservation purposes.

(d) Purchase Option.--
(1) In general.--A preferential leaseholder shall have an
option to purchase from the Secretary or the Commission, acting
as an agent for the Secretary, the preferential lease parcel
that is the subject of the lease.
(2) Terms.--
(A) In general.--Except as provided in subparagraph
(B), a preferential leaseholder may elect to purchase a
parcel on one of the following terms:
(i) Cash purchase for the amount that is equal
to--
(I) the value of the parcel
determined under paragraph (4); minus
(II) ten percent of that value.
(ii) Installment purchase, with 10 percent of
the value of the parcel determined under paragraph
(4) to be paid on the date of purchase and the
remainder to be paid over not more than 30 years
at 3 percent annual interest.
(B) Value under $10,000.--If the value of the parcel
is under $10,000, the purchase shall be made on a cash
basis in accordance with subparagraph (A)(i).
(3) Option exercise period.--
(A) In general.--A preferential leaseholder shall
have until the date that is 5 years after enactment of
this Act to exercise the option under paragraph (1).
(B) Continuation of leases.--Until the date
specified in subparagraph (A), a preferential
leaseholder shall be entitled to continue to lease from
the Secretary the parcel leased by the preferential
leaseholder under the same terms and conditions as under
the lease, as in effect as of the date of enactment of
this Act.
(4) Valuation.--
(A) In general.--The value of a preferential lease
parcel shall be its fair market value for agricultural
purposes determined by an independent appraisal less 25
percent, exclusive of the value of private improvements
made by the leaseholders while the land was federally
owned before the date of the enactment of this Act, in
conformance with the Uniform Appraisal Standards for
Federal Land Acquisition.
(B) Fair market value.--Any dispute over the fair
market value of a property under subparagraph (A) shall
be resolved in accordance with section 2201.4 of title
43, Code of Federal Regulations.
(5) Conveyance to the state.--
(A) In general.--If a preferential leaseholder fails
to purchase a parcel within the period specified in
paragraph (3)(A), the Secretary shall offer to convey
the parcel to the State of South Dakota Department of
Game, Fish, and Parks.
(B) Wildlife habitat mitigation.--Land conveyed
under subparagraph (A) shall be used by the South Dakota
Department of Game, Fish, and Parks for the purpose

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of mitigating the wildlife habitat that was lost as a
result of the development of the Pick-Sloan project.
(6) Use of proceeds.--Proceeds of sales of land under this
Act shall be deposited as miscellaneous funds in the Treasury
and such funds shall be made available, subject to
appropriations, to the State for the establishment of a trust
fund to pay the county taxes on the lands received by the State
Department of Game, Fish, and Parks under the bill.

(e) Conveyance of Nonpreferential Lease Parcels and Unleased
Parcels.--
(1) Conveyance by secretary to state.--
(A) In general.--Not later  NOTE: Deadline.  than
1 year after the date of enactment of this Act, the
Secretary shall offer to convey to the South Dakota
Department of Game, Fish, and Parks the nonpreferential
lease parcels and unleased parcels of the Blunt
Reservoir and Pierre Canal.
(B) Wildlife habitat mitigation.--Land conveyed
under subparagraph (A) shall be used by the South Dakota
Department of Game, Fish, and Parks for the purpose of
mitigating the wildlife habitat that was lost as a
result of the development of the Pick-Sloan project.
(2) Land exchanges for nonpreferential lease parcels and
unleased parcels.--
(A) In general.--With the concurrence of the South
Dakota Department of Game, Fish, and Parks, the South
Dakota Commission of Schools and Public Lands may allow
a person to exchange land that the person owns elsewhere
in the State for a nonpreferential lease parcel or
unleased parcel at Blunt Reservoir or Pierre Canal, as
the case may be.
(B) Priority.--The right to exchange nonpreferential
lease parcels or unleased parcels shall be granted in
the following order or priority:
(i) Exchanges with current lessees for
nonpreferential lease parcels.
(ii) Exchanges with adjoining and adjacent
landowners for unleased parcels and
nonpreferential lease parcels not exchanged by
current lessees.
(C) Easement for water conveyance structure.--As a
condition of the exchange of land of the Pierre Canal
feature under this paragraph, the United States reserves
a perpetual easement to the land to allow for the right
to design, construct, operate, maintain, repair, and
replace a pipeline or other water conveyance structure
over, under, across, or through the Pierre Canal
feature.

(f) Release From Liability.--
(1) In general.--Effective  NOTE: Effective date.  on the
date of conveyance of any parcel under this Act, 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
the parcel, except for damages for acts of negligence committed
by the United States or by an employee, agent, or contractor of
the United States, before the date of conveyance.
(2) No additional liability.--Nothing in this section adds
to any liability that the United States may have under chapter
171 of title 28, United States Code (commonly known as the
``Federal Tort Claims Act'').

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(g) Requirements Concerning Conveyance of Lease Parcels.--
(1) Interim requirements.--During the period beginning on
the date of enactment of this Act and ending on the date of
conveyance of the parcel, the Secretary shall continue to lease
each preferential lease parcel or nonpreferential lease parcel
to be conveyed under this section under the terms and conditions
applicable to the parcel on the date of enactment of this Act.
(2) Provision of parcel descriptions.--
Not  NOTE: Deadline.  later than 180 days after the date of
the enactment of this Act, the Secretary, in consultation with
the Commission, shall provide the State a full legal description
of all preferential lease parcels and nonpreferential lease
parcels that may be conveyed under this section.

(h) Curation of Archeological Collections.--The Secretary, in
consultation with the State, shall transfer, without cost to the State,
all archeological and cultural resource items collected from the Blunt
Reservoir feature and Pierre Canal feature to the South Dakota State
Historical Society.
(i) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this Act $750,000 to reimburse the Secretary
for expenses incurred in implementing this Act, and such sums as are
necessary to reimburse the Commission and the State Department of Game,
Fish, and Parks for expenses incurred implementing this Act, not to
exceed 10 percent of the cost of each transaction conducted under this
Act.

Approved December 22, 2006.

LEGISLATIVE HISTORY--S. 2205 (H.R. 4301):
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HOUSE REPORTS: No. 109-588 accompanying H.R. 4301 (Comm. on Resources).
CONGRESSIONAL RECORD, Vol. 152 (2006):
Dec. 7, considered and passed Senate.
Dec. 8, considered and passed House.