“LEASE LOT CONVEYANCE ACT OF 2002” published by Congressional Record on March 19, 2002

“LEASE LOT CONVEYANCE ACT OF 2002” published by Congressional Record on March 19, 2002

Volume 148, No. 32 covering the 2nd Session of the 107th Congress (2001 - 2002) was published by the Congressional Record.

The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.

“LEASE LOT CONVEYANCE ACT OF 2002” mentioning the U.S. Dept. of Justice was published in the House of Representatives section on pages H946-H948 on March 19, 2002.

The publication is reproduced in full below:

LEASE LOT CONVEYANCE ACT OF 2002

Mr. HAYWORTH. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 706) 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, as amended.

The Clerk read as follows:

H.R. 706

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 ``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 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

(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) 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 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 1093), and Acts supplemental to and amendatory of that Act (43 U.S.C. 371 et seq.).

The SPEAKER pro tempore. Pursuant to the rule, the gentleman from Arizona (Mr. Hayworth) and the gentleman from American Samoa (Mr. Faleomavaega) each will control 20 minutes.

The Chair recognizes the gentleman from Arizona (Mr. Hayworth).

Mr. HAYWORTH. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, H.R. 706, sponsored by the gentleman from New Mexico

(Mr. Skeen), directs the Secretary of the Interior to convey certain properties in the vicinity of the Elephant Butte Reservoir and the Caballo Reservoir in New Mexico, to transfer 403 recreational lots on the two reservoirs to private ownership. This transaction will be done at fair market value. Congress expects that the cost of the appraisal and surveys will be included as reimbursable costs to the purchaser. The manager's amendment clarifies several technical issues regarding the transfer of the properties.

Mr. Speaker, I yield such time as he may consume to the gentleman from New Mexico (Mr. Skeen), the bill's sponsor, to offer further information on this legislation.

Mr. SKEEN. Mr. Speaker, I rise today to ask the House of Representatives to support passage of H.R. 706, legislation that will allow citizens to purchase the lands on which their homes were built near a Bureau of Reclamation project in southern New Mexico.

The Elephant Butte Reservoir story begins in the 1930s as the government offered people the opportunity to build recreational homes on the land leased from the U.S. Bureau of Reclamation. The covenants in the lease agreements required leaseholders to make substantial investments on the 400-plus sites under this program. It was every leaseholder's hope that the government would someday privatize the leased land and offer it for sale through a purchase option.

The Bureau throughout most of the 20th century apparently felt that some day they might need this land if the dams were ever enlarged. We now believe that the modification or enlargement will never occur.

While legislation enacted by Congress in 1984 allowed the leaseholders of Lake Sumner in New Mexico, where recreational homes also existed, the opportunity to purchase their lots, the residents of Elephant Butte remained in a lease-only situation.

Despite my previous efforts, including the introduction of prior-year legislation, and established patterns of government transfers, the project remained lease-only and lease lot holders remained in limbo.

There are two issues that had to be resolved with the Bureau of Reclamation in order to facilitate a successful transfer. These included property appraisal and the number of lots that would be sold.

My bill, H.R. 706, addresses each of these issues in a fair and equitable manner. In effect, all current leaseholders would have the opportunity to purchase the land on which their homes currently exist as an unapproved, lakefront appraised value.

Finally, the bill guarantees continued public access to the water. I do want to thank the House Committee on Resources for their assistance and especially the Subcommittee on Water and Power chairman, the gentleman from California (Mr. Calvert), and his talented staff for their assistance and patience in working with me on this important bill.

This legislation is carefully crafted to resolve these issues, and we must not lose the sight of the fact that this is really a story about people, their lives, and the role of the government in the settling of the West.

In closing, Mr. Speaker, I ask Members to do what is right by passing this legislation. It is time that we offer these fine people the opportunity to purchase the land that many have leased for over 60 years.

I thank the gentleman from Arizona (Mr. Hayworth) for his kindness.

Mr. HAYWORTH. Mr. Speaker, I reserve the balance of my time.

Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may consume.

(Mr. FALEOMAVAEGA asked and was given permission to revise and extend his remarks.)

Mr. FALEOVAVAEGA. Mr. Speaker, I would like to commend the distinguished chairman of the Subcommittee on Interior of the Committee on Appropriations, the gentleman from New Mexico (Mr. Skeen) as the principal author of this legislation.

Mr. Speaker, the amendment would transfer title to 43 lakefront lots and improvements within the Bureau of Reclamation's Rio Grande Project in New Mexico and Texas to the Elephant Butte/Caballo Leaseholders Association.

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In the late 1940s, reclamation leased one-half acre lakefront sites to visitors using tents, campers or other temporary structures. Over time, permanent structures and other improvements replaced the temporary structures, and many are now used on a full-time basis.

The amendment reflects changes recommended by the Interior and Justice Departments. It requires the leaseholders to pay market value, without regard to improvements made by the lessees.

Certainly there is no question that this legislation is necessary as a relief for these lakefront property owners; and again, I commend the gentleman from New Mexico (Mr. Skeen), the chairman of our Committee on Appropriations' Subcommittee on Interior. I urge my colleagues to support this legislation.

Mr. Speaker, I reserve the balance of my time.

Mr. HAYWORTH. Mr. Speaker, I yield myself such time as I may consume.

Though this oft times is far from the roar of the grease paint and the smell of the crowd, this is another commonsense piece of legislation that we will move on today to reaffirm what is really, we call it bipartisan but basically nonpartisan, focusing on results for real people.

The gentleman from New Mexico (Mr. Skeen), the dean of that State's delegation, put it quite succinctly, and I think very poignantly, when he said this legislation ultimately is about people and doing what is right; and it is in that spirit that I would commend this legislation to the full body. I congratulate the gentleman from New Mexico (Mr. Skeen) on a commonsense piece of legislation.

I thank, once again, the gentleman from American Samoa (Mr. Faleomavaega) for his help on this and the help of all the members of the committee to expedite this process to do the right thing.

Mr. Speaker, I urge passage of this legislation, and I yield back the balance of my time.

Mr. FALEOMAVAEGA. Mr. Speaker, I yield myself such time as I may consume.

I want to remind my colleagues, this piece of legislation had the full, bipartisan support of the Committee on Resources. It also has the support of the administration, and I urge my colleagues to support this bill.

Mr. Speaker, I yield back the balance of my time.

The SPEAKER pro tempore (Mr. Culberson). The question is on the motion offered by the gentleman from Arizona (Mr. Hayworth) that the House suspend the rules and pass the bill, H.R. 706, as amended.

The question was taken; and (two-thirds having voted in favor thereof) the rules were suspended and the bill, as amended, was passed.

A motion to reconsider was laid on the table.

____________________

SOURCE: Congressional Record Vol. 148, No. 32

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