[House Report 115-901] [From the U.S. Government Publishing Office] 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]