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115th Congress    }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {       115-901

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

 
TO ESTABLISH A PROCEDURE FOR THE CONVEYANCE OF CERTAIN FEDERAL PROPERTY 
 AROUND THE JAMESTOWN RESERVOIR IN THE STATE OF NORTH DAKOTA, AND FOR 
                             OTHER PURPOSES

                                _______
                                

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. 6039]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 6039) to establish a procedure for the 
conveyance of certain Federal property around the Jamestown 
Reservoir in the State of North Dakota, and for other purposes, 
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) Board.--The term ``Board'' means the Stutsman County Park 
        Board in Jamestown, North Dakota.
          (2) Game and fish headquarters.--The term ``game and fish 
        headquarters'' means the land depicted as ``Game and Fish 
        Headquarters'' on the Map.
          (3) Jamestown reservoir.--The term ``Jamestown Reservoir'' 
        means the Jamestown Reservoir constructed as a unit of the 
        Missouri-Souris 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).
          (4) Management agreement.--The term ``Management Agreement'' 
        means the management agreement entitled ``Management Agreement 
        between the United States of America and Stutsman County Park 
        Board for the Management, Development, Operation and 
        Maintenance of Recreation and Related Improvements and 
        Facilities at Jamestown Reservoir Stutsman County, North 
        Dakota'', numbered 15-LM-60-2255, and dated February 17, 2015.
          (5) Map.--The term ``Map'' means the map prepared by the 
        Bureau of Reclamation, entitled ``Jamestown Reservoir'', and 
        dated May 2018.
          (6) Permitted cabin land.--The term ``permitted cabin land'' 
        means the land depicted as ``Permitted Cabin Lands'' 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 STUTSMAN COUNTY PARK BOARD.

  (a) Conveyances to Stutsman County Park Board.--
          (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 Board 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 Board 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 Board 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 Board 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 Board 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 Board.--
          (1) In general.--If the Board 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 a permit holder shall not be included in the 
        appraised value of the land.
          (3) Proceeds from the sale of land by the board.--If the 
        Board sells a parcel of permitted cabin land conveyed under 
        subsection (a)(1)(B), the Board shall pay to the Secretary the 
        amount of any proceeds of the sale that exceed the costs of 
        preparing the sale by the Board.
  (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 Jamestown 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 Board 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 Jamestown 
        Reservoir;
          (3) any flowage easement reserved by the United States to 
        allow full operation of the Jamestown 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 1,454 
        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 Board, or 
        the State, or for damages arising out of any act, omission, or 
        occurrence relating to a permit holder, the Board, 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 Board, 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. 6039 is to establish a procedure for 
the conveyance of certain Federal property around the Jamestown 
Reservoir in the State of North Dakota.

                  BACKGROUND AND NEED FOR LEGISLATION

    Constructed in 1952 by the Bureau of Reclamation, the 
Jamestown Unit consists of the Jamestown Dam and Reservoir and 
the surrounding recreational areas. Initial development of 
recreation, including water wells, a swimming beach, and 
campgrounds, was accomplished using federal money specifically 
appropriated for that purpose.\1\ The Jamestown Reservoir now 
has roughly 4,421 acres dedicated to recreation and wildlife 
management, including about 73 acres of permitted use cabin 
land.\2\
---------------------------------------------------------------------------
    \1\https://www.usbr.gov/projects/index.php?id=474.
    \2\Submitted Testimony of Mr. Alan Mikkelsen, Senior Advisor to the 
Secretary for Water and Western Resource Issues, U.S. Department of 
Interior, before the Senate Water and Power Subcommittee legislative 
hearing, February 28, 2018, p. 1.
---------------------------------------------------------------------------
    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,\3\ 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.
---------------------------------------------------------------------------
    \3\Act of June 17, 1920, ch. 1093, 32 Stat. 388.
---------------------------------------------------------------------------
    The area surrounding Jamestown Reservoir is home to 71 
permitted exclusive use cabins, which encompass approximately 
73 acres.\4\ These homes are owned by private individuals yet 
are situated on land owned by the federal government. In 
similar cases, this has disadvantaged homeowners by preventing 
them access to things such as home improvement loans or other 
sources of equity.\5\ Further, according to the Department of 
the Interior, transfer of these parcels to the applicable 
homeowner will allow ``flexible management of the lands to meet 
local needs and alleviate the Department's administrative 
oversight and management of the land.''\6\ H.R. 6039 will give 
homeowners the option to buy the land under their homes from 
the Stutsman County Park Board.
---------------------------------------------------------------------------
    \4\Submitted Testimony of Mr. Alan Mikkelsen, Senior Advisor to the 
Secretary for Water and Western Resource Issues, U.S. Department of 
Interior, before the Senate Water and Power Subcommittee legislative 
hearing, February 28, 2018, p. 1.
    \5\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.
    \6\Submitted Testimony of Mr. Alan Mikkelsen, Senior Advisor to the 
Secretary for Water and Western Resource Issues, U.S. Department of 
Interior, before the Senate Water and Power Subcommittee legislative 
hearing, February 28, 2018, p. 1.
---------------------------------------------------------------------------
    State representative and member of the Jamestown Reservoir 
Cabin Owners Association Board of Directors, Craig Headland, 
testified on the benefits that conveyance will have on the 
local environment and for those who depend on the Jamestown 
Reservoir for their livelihoods. Representative Headland 
testified that, ``The cabin owners pay property taxes to 
Stutsman County and the Jamestown School District for the 
assessed value of our homes. Additionally, we pay an annual 
permit fee to the park department. These funds have been used 
to help maintain the public lands, recreation areas and access 
points around the river. If this bill is approved, we will pay 
additional property taxes for the assessed value of our land, 
further benefitting our community.''\7\ During the July 11, 
2018, Water, Power and Oceans Subcommittee hearing on H.R. 
6039, Representative Paul A. Gosar (R-AZ) noted this increased 
incentive to preserve the local environment, and the witness 
stated that, as a result, ``[the reversionary clauses in H.R. 
6039] are not necessary.''\8\
---------------------------------------------------------------------------
    \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) (Statement of Mr. Craig Headland), 
available at https://naturalresources.house.gov/uploadedfiles/
7.11_testimony_headland.pdf, p. 1-2.
    \8\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. Craig Headland) 
available at https://naturalresources.house.gov/calendar/
eventsingle.aspx?EventID=405249, beginning at 1:42:40.
---------------------------------------------------------------------------

                            COMMITTEE ACTION

    H.R. 6039 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 20 yeas to 
15 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 1, 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. 6039, a bill to 
establish a procedure for the conveyance of certain Federal 
property around Jamestown Reservoir in the State of North 
Dakota, and for other purposes.
    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. 6039--A bill to establish a procedure for the conveyance of 
        certain Federal property around Jamestown Reservoir in the 
        State of North Dakota, and for other purposes

    H.R. 6039 would direct the Bureau of Reclamation (BOR) to 
convey certain federal land and facilities located near the 
Jamestown Reservoir in North Dakota to the Stutsman County Park 
Board. After the property is conveyed, the board could sell the 
property to 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.
    Under the bill, BOR would convey specified federal property 
to the Stutsman County Park Board within 5 years after 
enactment. Using information from BOR, CBO expects that 71 
permit holders would purchase lots from the board for an 
estimated $100,000 per lot. CBO estimates that the board would 
transfer the net proceeds of about $7 million to the federal 
government, which would be spent for annual operations costs 
and deferred maintenance projects at the Jamestown Darn and 
Reservoir in North Dakota.
    Because enacting H.R. 6039 would affect direct spending, 
pay-as-you-go procedures apply. However, CBO estimates that the 
net effect on the budget would be negligible. Enacting H.R. 
6039 would not affect revenues.
    CBO estimates that enacting H.R. 6039 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 6039 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. 
2074, a bill to establish a procedure for the conveyance of 
certain Federal property around Jamestown 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 Jamestown 
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. 6039 authorizes the conveyance of public lands located 
around the Jamestown Reservoir in eastern North Dakota. Because 
H.R. 6039 fails to include standard safeguards that protect 
taxpayers and preserve public access to public lands, we oppose 
H.R. 6039 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. 6039 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. 
6039 had broad support and passed the Senate Energy and Natural 
Resources Committee by voice vote.
    Unfortunately, during the House markup of H.R. 6039, 
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. 6039 fails to 
meet either of these requirements. For these reasons, we oppose 
H.R. 6039 as reported.
                                   Raul M. Grijalva,
                                           Ranking Member,
                                           House Natural Resources
                                           Committee.
                                   Jared Huffman.

                                  [all]