[Senate Report 104-388]
[From the U.S. Government Publishing Office]
Calendar No. 611
104th Congress Report
SENATE
2d Session 104-388
_______________________________________________________________________
CARLSBAD IRRIGATION DISTRICT
_______
September 30, 1996.--Ordered to be printed
_______________________________________________________________________
Mr. Murkowski, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany S. 2015]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 2015) to convey certain real property
located within the Carlsbad Project in New Mexico to the
Carlsbad Irrigation District, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
purpose of the measure
S. 2015, as ordered reported, would transfer the interests
of the United States in the lands and facilities associated
with the irrigation and drainage system of the Carlsbad Project
in New Mexico to the Carlsbad Irrigation District except for
any acquired lands on which any dam or reservoir diversion
structure is located (in which case the transfer will only
include the mineral estate) and storage and flow easements for
any tracts under the maximum spillway elevations of Avalon and
Brantley Reservoirs. The District is required to continue to
manage the lands for project purposes and will assume all
obligations of the United States under certain agreements for
recreation and fish and wildlife purposes except that the
District will not be obliged to provide financial support and
will not be entitled to any revenues from the agreements.
The Districts will also assume any rights and obligations
of the United States under any grazing or mineral leases.
Mineral lease receipts credited to the Project will be
distributed under the Fact Finders Act of 1942. The Fact
Finders Act provides generally that when water users take over
operation of a project, the net profits from operation of
project power, leasing of project lands (for grazing or other
purposes), and sale or use of town sites are to be applied
first to construction charges, second to operation and
maintenance (O&M) charges, and third ``as the water users may
direct''.
background and need
The transfer of the Carlsbad and Elephant Butte projects
was the genesis for the development of S. 620, on which the
Subcommittee on Forests and Public Land Management conducted a
hearing on March 24, 1995 and the Committee received extensive
testimony on the situation at both Elephant Butte and Carlsbad
at that time. The Carlsbad Irrigation District is located in
southeastern New Mexico. It takes its water from the Pecos
River and serves 25,055 acres through the Bureau of
Reclamation's Carlsbad Project. The single purpose project was
created in 1905 by the Bureau acquiring all dams, facilities,
lands, and water rights of the privately owned Pecos Irrigation
Company. The Irrigation District has had O&M responsibility
since 1932 and all repayment obligations were satisfied in
1991.
legislative history
Senator Pete Domenici introduced S. 2015 on August 1, 1996.
The Subcommittee on Forests and Public Land Management held a
hearing on September 3, 1996.
committee recommendations and tabulation of vote
The Senate Committee on Energy and Natural Resources, in
open business session on Thursday, September 12, 1996, by a
unanimous voice vote of a quorum present, recommended that the
Senate pass S. 2015 as described herein.
SECTION-BY-SECTION ANALYSIS
Section 1--Conveyance
Subsection 1(a) provides that all right, title, and
interest of the United States in and to the lands acquired
lands described in subsection (b), in addition to all interests
the United States holds in the irrigation and drainage systems
of the Carlsbad Project and all related lands including ditch
rider houses, maintenance shop and buildings, and Pecos River
Flume, are conveyed by operation of law to the Carlsbad
Irrigation District.
Subsection 1(b) describes the acquired lands to be
transferred to the District.
Subsection 1(c) sets the terms and conditions for the
conveyance of the acquired lands: (1) The lands shall continue
to be managed and used for the purposes for which the Carlsbad
Project was authorized; and (2) the District shall assume all
rights and obligations of the United States under agreements
relating to management of certain lands near Brantley Reservoir
for fish and wildlife purposes and for the management and
operation of Brantley Lake State Park. However, two exceptions
to the previous terms and conditions are set forth: (1) The
District shall not be obligated for any financial support
associated with the agreements described immediately above; and
(2) the District shall not be entitled to any revenues
generated by the operation of Brantley Lake State Park.
Section 2--Lease management and past revenues from acquired lands
Subsection 2(a) requires the Secretary of the Interior to
provide to the District, within 45 days of enactment of the
Act, written identification of all mineral and grazing leases
in effect on the acquired lands on the date of enactment of the
Act, and to notify all leaseholders of the conveyance made by
the Act.
Subsection 2(b) requires the District to assume all rights
and obligations of the United States for all mineral and
grazing leases on the acquired lands, and to be entitled to any
revenues from such leases accruing after the conveyance. The
District will be required to continue to adhere to the current
Bureau of Reclamation mineral leasing stipulations for the
Carlsbad Project.
Subsection 2(c) provides that receipts paid into the
reclamation fund that now exist as credits to the Carlsbad
Project under the Mineral Lands Leasing Act of 1920 are to be
made available to the District under the distribution scheme
set forth in section (4)(I) of the Act of December 5, 1924 (43
U.S.C. 501; commonly referred to as the ``Fact Finders Act of
1924''). This language is intended to clarify that receipts
paid into the Reclamation Fund that were collected prior to the
date of the conveyance shall be available to the District for
purposes of offsetting reimbursable operation and maintenance
costs of the Bureau.
COST AND REGULATORY CONSIDERATIONS
The Congressional Budget Office estimate of the costs of
this measure follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 25, 1996.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2015, a bill to
convey real property located within the Carlsbad Project in New
Mexico to the Carlsbad Irrigation District.
Enacting S. 2015 would affect direct spending. Therefore,
pay-as-you-go procedures would apply to the bill.
If you wish further details on this estimate, we will be
pleased to provide them.
Sincerely,
June E. O'Neill, Director.
Enclosure.
congressional budget office cost estimate
1. Bill number: S. 2105.
2. Bill title: A bill to convey certain real property
located within the Carlsbad Project in New Mexico to the
Carlsbad Irrigation District.
3. Bill status: As reported by the Senate Committee on
Energy and Natural Resources on September 16, 1996.
4. Bill purpose: S. 2015 would convey the irrigation and
drainage system of the Carlsbad Project, New Mexico, and
related lands and property, including the surface and mineral
estates, to the Carlsbad Irrigation District. The district
would assume all rights and obligations of the United States
under mineral and grazing leases on the acquired lands and
would be entitled to all revenues acquired from such leases
after the conveyance. Additionally, amounts paid into the
reclamation fund prior to enactment that have been recorded as
construction credits to the Carlsbad Project would be credited
toward the district's ongoing operation and maintenance
obligation to the federal government.
5. Estimated cost to the Federal Government: CBO estimates
that enacting H.R. 3258 would increase direct spending by $1.7
million in 1997, and by about $200,000 each year thereafter.
Implementing the bill also would increase administrative costs
at the Bureau of Reclamation in 1997, subject to the
availability of appropriated funds, by about $200,000. The
effects on direct spending are summarized in the following
table.
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
1997 1998 1999 2000 2001 2002
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated budget authority................................ 2 (\1\) (\1\) (\1\) (\1\) (\1\)
Estimated outlays......................................... 2 (\1\) (\1\) (\1\) (\1\) (\1\)
----------------------------------------------------------------------------------------------------------------
\1\ Less than $500,000.
The costs of this bill fall within budget function 300.
6. Basis of estimate: S. 2015 would provide a monetary
credit for receipts paid into the reclamation fund prior to
conveyance. The size of the credit is unclear because the
provision incorrectly cites the Mineral Leasing Act of 1920,
which covers payments from leases on all withdrawn and public
domain lands (lands that have never passed out of federal
ownership) and which governs no receipts that have been
recorded as construction credits to the Carlsbad project. The
apparent intent of the provision is to identify for transfer
amounts that represent credits to the Carlsbad Project under
the Mineral Leasing Act for Acquired Lands of 1947. Hence, CBO
estimates that enacting this provision would likely result in a
credit to the district of $1.5 million in 1997, the amount
which is attributed to the district under the 1947 act. This
credit would be used by the district to reimburse the Bureau of
Reclamation for the district's share of operations and
maintenance expenses. The value of the monetary credit would be
counted as direct spending in the year it is issued.
Enacting S. 2015 also would increase direct spending by
reducing offsetting receipts in 1997 and subsequent years. The
bill would transfer the right to all future receipts from
mineral and grazing leases on the specified lands. This would
result in a loss of offsetting receipts totaling about $200,000
a year beginning in 1997.
Finally, based on information provided by the Bureau of
Reclamation, CBO estimates that enacting S. 2015 would result
in discretionary spending of about $200,000 in 1997 for
administrative costs associated with transferring the specified
lands, subject to the availability of appropriated funds.
7. Pay-as-you-go considerations: Section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985 sets
up pay-as-you-go procedures for legislation affecting direct
spending or receipts through 1998. CBO estimates that enacting
S. 2015 would affect direct spending. Therefore, pay-as-you-go
procedures would apply to the bill. The following table
summarizes the estimated pay-as-you-go impact.
[By fiscal year, in millions of dollars]
------------------------------------------------------------------------
1996 1997 1998
------------------------------------------------------------------------
Change in outlays............................ 0 2 0
Change in receipts........................... (\1\) (\1\) (\1\)
------------------------------------------------------------------------
\1\ Not applicable.
8. Estimated impact on State, local, and tribal
governments: S. 2015 contains no intergovernmental mandates as
defined in the Unfunded Mandates Reform Act of 1995 (Public Law
104-4) and would impose no costs on state, local, or tribal
governments. The Carlsbad Irrigation District would receive, at
no cost, all the benefits conveyed by this bill, including the
irrigation and drainage system, related lands and property, and
surface and mineral estates. These benefits would include the
right to all future receipts from mineral and grazing leases on
the lands, which we estimate will total about $200,000 per
year. Further, the district would be able to use the monetary
credit provided by this bill to reimburse the Bureau of
Reclamation for its share of operations and maintenance
expenses, thus avoiding future cash payments averaging about
$30,000 per year.
9. Estimated impact on the private sector: This bill would
impose no new private-sector mandates as defined in Public Law
104-4.
10. Previous CBO estimate: On September 25, 1996, CBO
provided an estimate for H.R. 3258, as reported by the House
Committee on Resources on September 18, 1996. The two bills and
their estimated costs are similar.
11. Estimate prepared by: Federal Cost Estimate: Gary Brown
and Victoria Heid. Impact on State, Local, and Tribal
Governments: Marjorie Miller. Impact on the Private Sector:
Patrice Gordon.
12. Estimate approved by: Robert A. Sunshine (for Paul N.
Van de Water, Assistant Director for Budget Analysis).
federal mandate evaluation
The Congressional Budget Office has determined that S. 2015
contains no new private sector mandates as defined in the
Unfunded Mandates Reform Act of 1995 (Public Law 104-4).
regulatory impact evaluation
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
implementing S. 2015. The bill is not a regulatory measure in
the sense of imposing government-established standards or
significant economic responsibilities on private individuals
and businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
The paperwork requirements imposed on the Department of the
Interior as a result of the conveyance required by this Act are
not believed to be significant.
executive communications
A Statement of Administration Position has not been
submitted as of the date this report was filed. When the SAP is
available, the Chairman will request that it be printed in the
Congressional Record for the advice of the Senate.
ADDITIONAL VIEWS BY SENATOR PETE V. DOMENICI
In May, 1995, the Subcommittee on Forests and Public Land
Management held a hearing on S. 620, the Reclamation Facilities
Transfer Act. At that hearing, it became very clear that a more
project-specific approach would be needed to provide
legislative support for the Clinton Administration's commitment
to ``aggressively pursue'' the transfer of ownership and
control of certain project lands and facilities from the Bureau
of Reclamation to the various project beneficiaries, ``. . .
where it makes sense.''
Since that time, the Bureau and the Carlsbad Irrigation
District have been working together to craft a legislative
proposal that would address the specific issues involved in the
transfer of acquired lands and certain irrigation facilities
from the Bureau to the District. On August 1, 1996, I
introduced S. 2015 to address the major concerns raised by the
Administration and the minority with the earlier legislation.
At the Subcommittee hearing on September 5, the
Administration raised additional concerns with S. 2015, as it
was introduced. In response to these concerns, I have been
working with the Bureau to craft suitable language that will
allow the Secretary of the Interior to complete the facilities
transfer to the Carlsbad Irrigation District, while providing
the District with assurances that the transfer process will be
done in a timely and cost effective manner.
When the Committee agreed to report S. 2015 for
consideration by the Senate, I restated my commitment to work
with the Bureau in an effort to resolve the remaining issues of
concern. Although several issues had not been fully resolved, I
believed that an agreement was very close, and I indicated my
intent to offer a substitute amendment on the Senate floor that
would clarify a number of provisions and reflect the resolution
of outstanding concerns.
Among the provisions that required some clarification is
the subsection dealing with the availability of receipts that
have been paid into the reclamation fund since the District
completed its contractual obligation for repayment of
construction costs in 1991. As currently drafted, subsection
2(c) remains somewhat unclear as to the funds available to the
District for project purposes. In order to clarify my intent, I
wish to state that any amendment I offer will contain the
following clarification for subsection 2(c).
Availability of Amounts Paid Into the Reclamation
Fund.--Receipts paid into the reclamation fund which
only exist as construction credits to the Carlsbad
Project under the terms of the Mineral Leasing Act for
Acquired Lands of 1947 (30 U.S.C. 351-359) as amended,
as explained by Interior Solicitor's Opinion M-36969
dated September 8, 1989, entitled Proper Disbursement
and Crediting of Mineral Leasing Revenues from
Reclamation Acquired Lands, shall be made available to
the District as credits towards its ongoing operation
and maintenance obligation to the United States until
such credits are depleted.
This legislation, as introduced, or as I would agree to
amend it, is intended to provide the Secretary of the Interior
with the authority to convey lands acquired by the Bureau for
the purposes of constructing and operating the Carlsbad
Project. All costs to the United States associated with the
acquisition having been repaid by the water users under the
terms of the construction repayment contract, these lands
should revert back to the those same water users for whom the
project was constructed. In the end, I intend to make it
perfectly clear that this legislation would in no way affect
the management or ownership of withdrawn public domain, and
similarly that it would in no way affect the multi-purpose
functions of the Brantley Reservoir Project, which was
superimposed over a part of the single purpose Carlsbad
Project.
Pete V. Domenici.
changes in existing law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by the bill S. 2015, as
ordered reported.