H. Rept. 115-900 - TO ESTABLISH A PROCEDURE FOR THE CONVEYANCE OF CERTAIN FEDERAL PROPERTY AROUND THE DICKINSON RESERVOIR IN THE STATE OF NORTH DAKOTA115th Congress (2017-2018)
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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-900
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TO ESTABLISH A PROCEDURE FOR THE CONVEYANCE OF CERTAIN FEDERAL PROPERTY
AROUND THE DICKINSON RESERVOIR IN THE STATE OF NORTH DAKOTA
_______
August 14, 2018.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Bishop of Utah, from the Committee on Natural Resources, submitted
the following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 6038]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 6038) 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, report favorably thereon with an amendment and recommend
that the bill as amended do pass.
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
one or more haying or grazing contracts in effect as of the
date of enactment of this Act.
(b) 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.
(c) 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.
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.
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 OF THE BILL
The purpose of H.R. 6038 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 FOR LEGISLATION
Constructed in 1950 by the Bureau of Reclamation, the
Dickinson Unit consists of the Dickinson Dam and Reservoir
(known as Edward Arthur Patterson Lake). It also includes over
1,200 land acres, many of which are used for recreational
activities, including swimming, boating, picnicking, and
overnight camping.\1\ H.R. 6038 would transfer ownership of
recreation land and structures from the Bureau of Reclamation
to local ownership. However, the Dickinson Dam and Reservoir
will remain under the ownership of Reclamation.
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\1\https://www.usbr.gov/projects/index.php?id=450.
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Reclamation holds title to the individual water, power
supply and delivery, and recreational facilities it has
constructed over the last century. The federal government
provided the initial capital contribution to build the vast
majority of these early projects; however, the water, power,
and recreational customers who benefitted from the facilities
entered into long-term contracts with the federal government to
repay their part of the initial taxpayer investment. Under the
Reclamation Act of 1902,\2\ Reclamation may transfer day-to-day
operational and maintenance responsibilities to project
beneficiaries; however, the title or ownership of any facility
must remain in federal ownership until Congress enacts
legislation specifically authorizing such a conveyance.
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\2\Act of June 17, 1920, ch. 1093, 32 Stat. 388.
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Dickinson Dam and Reservoir were originally constructed to
supply the city of Dickinson with a municipal water source.
However, in 1991, the City began getting its water from Lake
Sakakawea through the Southwest Pipeline Project, and Edward
Arthur Patterson Lake is now primarily used for recreation.\3\
Around this lake, many people are permitted to own homes on
federal land. Unfortunately, not owning the land under their
homes has resulted in many complications and financial
uncertainty to the residents. According to the President of the
Patterson Lake Homeowners Association, homeowners have not been
able to access things such as home improvement loans or other
sources of equity because of this situation.\4\ H.R. 6038 will
give homeowners the option to buy the land under their
permanent homes from the Dickinson Department of Parks and
Recreation, allowing them to leverage the land and improvements
they have made.\5\
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\3\Submitted Testimony of Mr. Tom Fisher, President, Patterson Lake
Homeowners Association, before the Senate Water and Power Subcommittee,
June 14, 2017, p. 1.
\4\Submitted testimony of Mr. Tom Fisher, President of the
Patterson Lake Homeowners Association, to the Senate Committee on
energy and Natural Resources legislative hearing, June 14, 2017.
\5\Id. at 6, p. 2.
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At a July 2018 Subcommittee on Water, Power and Oceans
hearing, Mr. Tom Fisher from the Patterson Lake Homeowners
Association spoke to the benefits that title transfer will have
on the local environment and for the community that depends on
the Lake. Mr. Fisher testified that the community conducted
public meetings throughout this process, and that the title
transfer would result in ``additional property taxes to the
county and school, which will further benefit the community''
by investing that increased revenue in the upkeep of the
Lake.\6\ Representative Paul A. Gosar (R-AZ) noted this
increased incentive to preserve the local environment, and Mr.
Fisher stated that, as a result, ``none of those [reversionary
clauses in H.R. 6038] are necessary; they would not help.''\7\
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\6\Legislative Hearing on H.R. 5556, H.R. 6038, H.R. 6039, and H.R.
6040 Before H. Comm. on Natural Resources, Subcomm. on Water, Power and
Oceans, 115th Cong., 2, (2018) (Statement of Mr. Tom Fisher), available
at https://naturalresources.house.gov/uploadedfiles/
7.11_testimony_fisher.pdf, p. 2.
\7\Legislative Hearing on H.R. 5556, H.R. 6038, H.R. 6039, and H.R.
6040 Before H. Comm. on Natural Resources, Subcomm. on Water, Power and
Oceans, 115th Cong., 2, (2018) (Oral Statement of Mr. Tom Fisher),
available at https://naturalresources.house.gov/calendar/
eventsingle.aspx?EventID=405249, starting at 1:42:32.
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COMMITTEE ACTION
H.R. 6038 was introduced on June 7, 2018, by Congressman
Kevin Cramer (R-ND). The bill was referred to the Committee on
Natural Resources, and within the Committee to the Subcommittee
on Water, Power and Oceans. On July 11, 2018, the Subcommittee
held a hearing on the bill. On July 18, 2018, the Natural
Resources Committee met to consider the bill. The Subcommittee
was discharged by unanimous consent. Natural Resources
Committee Chairman Rob Bishop (R-UT) offered an amendment
designated #1; it was adopted by a roll call vote of 18 yeas to
14 noes, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
No additional amendments were offered, and the bill, as
amended, was ordered favorably reported to the House of
Representatives by voice vote.
COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
COMPLIANCE WITH HOUSE RULE XIII AND
CONGRESSIONAL BUDGET ACT
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 2, 2018.
Hon. Rob Bishop,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6038, a bill to
establish a procedure for the conveyance of certain Federal
property around Dickinson Reservoir in the State of North
Dakota.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Aurora
Swanson.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 6038--A bill to establish a procedure for the conveyance of
certain Federal property around Dickinson Reservoir in the
State of North Dakota
H.R. 6038 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 transactions 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 H.R. 6038 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 H.R. 6038 would not
affect revenues.
Under H.R. 6038, 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 Dickinson Dam and Reservoir in
North Dakota.
CBO estimates that enacting H.R. 6038 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 6038 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act.
On July 9, 2018, CBO transmitted a cost estimate for S.
440, a bill to establish a procedure for the conveyance of
certain Federal property around Dickinson Reservoir in the
State of North Dakota, as ordered reported by the Senate
Committee on Energy and Natural Resources on May 17, 2018. The
two pieces of legislation are similar and CBO's estimates of
their budgetary effects are the same.
The CBO staff contact for this estimate is Aurora Swanson.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goal or
objective of this bill is to establish a procedure for the
conveyance of certain Federal property around the Dickinson
Reservoir in the State of North Dakota.
EARMARK STATEMENT
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
COMPLIANCE WITH PUBLIC LAW 104-4
This bill contains no unfunded mandates.
COMPLIANCE WITH H. RES. 5
Directed Rule Making. This bill does not contain any
directed rule makings.
Duplication of Existing Programs. This bill does not
establish or reauthorize a program of the federal government
known to be duplicative of another program. Such program was
not included in any report from the Government Accountability
Office to Congress pursuant to section 21 of Public Law 111-139
or identified in the most recent Catalog of Federal Domestic
Assistance published pursuant to the Federal Program
Information Act (Public Law 95-220, as amended by Public Law
98-169) as relating to other programs.
PREEMPTION OF STATE, LOCAL OR TRIBAL LAW
This bill is not intended to preempt any State, local or
tribal law.
CHANGES IN EXISTING LAW
If enacted, this bill would make no changes to existing
law.
DISSENTING VIEWS
H.R. 6038 authorizes the conveyance of public lands located
around the Dickinson Reservoir in western North Dakota. Because
H.R. 6038 fails to include standard safeguards that protect
taxpayers and preserve public access to public lands, we oppose
H.R. 6038 as reported.
Congress has a long tradition of supporting public land
conveyances that promote genuine public purposes. However,
Congress has typically required some form of compensation to
the American taxpayer. Compensation could mean that conveyed
land is sold at fair market value or conveyed with a
reversionary interest that requires the land to be used for a
specific public purpose or ownership returns to the United
States. Reversionary interests protect taxpayer interests by
preventing the future sale or inconsistent use of a property
traded away for a specific public purpose.
As introduced, H.R. 6038 contained standard, essential
reversionary clauses that would have ensured that the land
conveyance authorized by the bill preserves public access to
conveyed lands. The language in the introduced version of H.R.
6038 had broad support and passed the Senate Energy and Natural
Resources Committee by voice vote.
Unfortunately, during the House markup of H.R. 6038,
Chairman Bishop offered a poison pill amendment that eliminated
the essential reversionary clauses from the underlying bill.
The amendment passed with a strict party-line vote. By removing
the bill's reversionary clauses, what had previously been a
bill scheduled to pass the Committee by unanimous consent
became a bill that fails to garner broad, bipartisan support.
Whenever Congress conveys public lands, it is essential
that public access be preserved or taxpayers be compensated for
the full value of the lands that are lost. H.R. 6038 fails to
meet either of these requirements. For these reasons, we oppose
H.R. 6038 as reported.
Raul M. Grijalva,
Ranking Member,
House Natural Resources
Committee.
Jared Huffman.
[all]