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115th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       115-900

======================================================================



 
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.
---------------------------------------------------------------------------
    \1\https://www.usbr.gov/projects/index.php?id=450.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \2\Act of June 17, 1920, ch. 1093, 32 Stat. 388.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

                            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]