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LEASE LOT CONVEYANCE ACT OF 2002
[[Page 116 STAT. 2878]]
Public Law 107-335
107th Congress
An Act
To direct the Secretary of the Interior to convey certain properties in
the vicinity of the Elephant Butte Reservoir and the Caballo Reservoir,
New Mexico. <<NOTE: Dec. 16, 2002 - [H.R. 706]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Lease Lot Conveyance Act of
2002.>> assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Lease Lot Conveyance Act of 2002''.
SEC. 2. FINDINGS.
The Congress finds that the conveyance of the Properties to the
Lessees for fair market value would have the beneficial results of--
(1) eliminating Federal payments in lieu of taxes and
associated management expenditures in connection with the
Government's ownership of the Properties, while increasing local
tax revenues from the new owners;
(2) sustaining existing economic conditions in the vicinity
of the Properties, while providing the new owners of the
Properties the security to invest in permanent structures and
improvements; and
(3) adding needed jobs to the county in which the Properties
are located and increasing revenue to the county and surrounding
communities through property and gross receipt taxes, thereby
increasing economic stability and a sustainable economy in one
of the poorest counties in New Mexico.
SEC. 3. DEFINITIONS.
In this Act:
(1) Fair market value.--The term ``fair market value''
means, with respect to a parcel of property, the value of the
property determined--
(A) without regard to improvements constructed by
the Lessee of the property;
(B) by an appraisal in accordance with the Uniform
Standards for Federal Land Acquisitions; and
(C) by an appraiser approved by the Secretary and
the purchaser.
(2) Irrigation districts.--The term ``Irrigation Districts''
means the Elephant Butte Irrigation District and the El Paso
County Water Improvement District No. 1.
(3) Lessee.--The term ``Lessee'' means the leaseholder of a
Property on the date of enactment of this Act, and any
[[Page 116 STAT. 2879]]
heir, executor, or assign of the leaseholder with respect to
that leasehold interest.
(4) Property.--The term ``Property'' means any of the cabin
sites comprising the Properties.
(5) Properties.--The term ``Properties'' means all the real
property comprising 403 cabin sites under the administrative
jurisdiction of the Bureau of Reclamation that are located along
the western portion of the reservoirs in Elephant Butte State
Park and Caballo State Park, New Mexico, including easements,
roads, and other appurtenances. The exact acreage and legal
description of such real property shall be determined by the
Secretary after consulting with the Purchaser.
(6) Purchaser.--The term ``Purchaser'' means the Elephant
Butte/Caballo Leaseholders Association, Inc., a nonprofit
corporation established under the laws of New Mexico.
(7) Reservoirs.--The term ``reservoirs'' means the Elephant
Butte Reservoir and the Caballo Reservoir in the State of New
Mexico.
(8) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
SEC. 4. CONVEYANCE OF PROPERTIES.
(a) In General.--The Secretary shall convey to the Purchaser in
accordance with this Act, subject to valid existing rights, all right,
title, and interest of the United States in and to the Properties and
all appurtenances thereto, including specifically easements for--
(1) vehicular access to each Property;
(2) drainage; and
(3) access to and the use of all ramps, retaining walls, and
other improvements for which access is
provided under the leases that apply to the Properties as of the date of
the enactment of this Act.
(b) Consideration.--As consideration for any conveyance under this
section, the Secretary shall require the Purchaser to pay to the United
States fair market value of the Properties.
SEC. 5. TERMS OF CONVEYANCE.
(a) Specific Conditions.--As conditions of any conveyance to the
Purchaser under this Act, the Secretary shall require the following:
(1) Leaseholders' option.--The Purchaser shall grant to each
Lessee of a Property an option--
(A) to purchase the Property at fair market value;
or
(B) to continue leasing the Property on terms to be
negotiated with the Purchaser.
(2) Administrative costs.--Any reasonable administrative
cost incurred by the Secretary incident to the conveyance under
section 6 shall be reimbursed by the Purchaser.
(b) Restrictive Use Covenant.--
(1) In general.--To maintain the unique character of the
area in the vicinity of the Reservoirs, the Secretary shall
establish, by the terms of conveyance, use restrictions to carry
out paragraph (2) that--
(A) are appurtenant to, and run with, each Property;
and
[[Page 116 STAT. 2880]]
(B) are binding upon each subsequent owner of each
Property.
(2) Access to reservoirs.--The use restrictions required by
paragraph (1) shall ensure that--
(A) public access to and along the shoreline of the
Reservoirs in existence on the date of enactment of this
Act is not obstructed;
(B) adequate public access to and along the
shoreline of the Reservoirs is maintained; and
(C) the operation of the Reservoirs by the Secretary
or the Irrigation Districts shall not result in
liability of the United States or the Irrigation
Districts for damages incurred, as a direct or indirect
result of such operation, by the owner of any Property
conveyed under this Act, including--
(i) damages for any loss of use or enjoyment
of a Property; and
(ii) damages resulting from any modifications
or construction of any reservoir dam.
(c) Timing.--
(1) In general.--The Secretary shall convey the Properties
under this Act as soon as practicable after the date of
enactment of this Act and in accordance with all applicable law.
(2) <<NOTE: Deadline.>> Report.--If the Secretary has not
completed conveyance of the Properties to the Purchaser by the
end of the 1-year period beginning on the date of the enactment
of this Act, the Secretary shall, before the end of that period,
submit a report to the Congress explaining the reasons that
conveyance has not been completed and stating the date by which
the conveyance will be completed.
(d) Reimbursement of Purchaser's Costs.--The terms of conveyance
shall authorize the Purchaser to require each Lessee to reimburse the
Purchaser for a proportionate share of the costs incurred by the
Purchaser in completing the transactions pursuant to this Act, including
any interest charges.
SEC. 6. RESOLUTION OF CLAIMS AND DISPUTES.
After <<NOTE: Notification.>> conveyance of the Properties to the
Purchaser, if any Lessee has a dispute with or claim against the
Purchaser or any of its officers, directors, or members arising from the
Properties, the Lessee shall promptly give written notice of the dispute
or claim to the Purchaser. If such notice is not provided to the
Purchaser within 20 days after the date the Lessee knew or should have
known of such dispute or claim, then any right of the Lessee for relief
based on such dispute or claim shall be waived. If the Lessee and the
Purchaser are unable to resolve the dispute or claim by mediation, the
dispute or claim shall be resolved by binding arbitration.
SEC. 7. FEDERAL RECLAMATION LAW.
No conveyance under this Act shall restrict or limit the authority
or ability of the Secretary to fulfill the duties of the Secretary under
the Act of June 17, 1902 (32 Stat. 388, chapter
[[Page 116 STAT. 2881]]
1093), and Acts supplemental to and amendatory of that Act (43 U.S.C.
371 et seq.).
Approved December 16, 2002.
LEGISLATIVE HISTORY--H.R. 706:
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HOUSE REPORTS: No. 107-368 (Comm. on Resources).
SENATE REPORTS: No. 107-287 (Comm. on Energy and Natural Resources).
CONGRESSIONAL RECORD, Vol. 148 (2002):
Mar. 19, considered and passed House.
Nov. 19, considered and passed Senate.
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