SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Carlsbad Irrigation Project Acquired 
Land Conveyance Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) The term ``District'' means the Carlsbad Irrigation 
        District, a quasimunicipal corporation formed under the laws of 
        the State of New Mexico that has its principal place of 
        business in the city of Carlsbad, Eddy County, New Mexico.
            (2) The term ``Secretary'' means the Secretary of the 
        Interior.
            (3) The term ``Project'' means all right, title, and 
        interest in and to the lands (including the subsurface and 
        mineral estate) in Eddy County, New Mexico, described as the 
        acquired lands in section (7) of the Status of Lands and Title 
        Report: Carlsbad Project as reported by the Bureau of 
        Reclamation in 1978 and all interests the United States holds 
        in the irrigation and drainage system of the Carlsbad Project 
        and all related ditch rider houses, maintenance shop and 
        buildings, and Pecos River Flume.

SEC. 3. CONVEYANCE OF PROJECT.

    (a) In General.--Except as provided in subsection (b), in 
consideration of the District accepting the obligations of the Federal 
Government for the Project, and subject to the completion of payments 
by the District required under subsection (c)(3), the Secretary shall 
convey the Project to the District.
    (b) Retained Title.--The Secretary shall retain title to the 
surface estate (but not the mineral estate) of such Project lands which 
are located under the footprint of Brantley and Avalon dams or any 
other Project dam or reservoir diversion structure. The Secretary shall 
retain storage and flow easements for any tracts located under the 
maximum spillway elevations of Avalon and Brantley Reservoirs.
    (c) Deadline.--
            (1) In general.--If no changes in Project operations are 
        expected following the conveyance under subsection (a), the 
        Secretary shall complete the conveyance expeditiously, but not 
        later than 180 days after the date of the enactment of this 
        Act.
            (2) Deadline if changes in operations intended.--If the 
        District intends to change Project operations as a result of 
        the conveyance under subsection (a), the Secretary--
                    (A) shall take into account those potential changes 
                for the purpose of completing any required 
                environmental evaluation associated with the 
                conveyance; and
                    (B) shall complete the conveyance by not later than 
                2 years after the date of the enactment of this Act.
            (3) Administrative costs of conveyance.--If the Secretary 
        fails to complete the conveyance under this Act before the 
        applicable deadline under paragraph (1) or (2), the full cost 
of administrative action and environmental compliance for the 
conveyance shall be borne by the Secretary. If the Secretary completes 
the conveyance before that deadline, \1/2\ of such cost shall be paid 
by the District.

SEC. 4. RELATIONSHIP TO EXISTING OPERATIONS.

    (a) In General.--Nothing in this Act shall be construed as 
significantly expanding or otherwise changing the use and operation of 
the Project from its current use. The Project shall continue to be 
managed and used by the District for the purposes for which the Project 
was authorized, based on historic operations, and consistent with the 
management of other adjacent project lands.
    (b) Future Alterations.--If the District alters the operations or 
uses of the Project, it shall comply with all applicable laws or 
regulations governing such changes at that time (subject to section 5).

SEC. 5. RELATIONSHIP TO CERTAIN CONTRACT OBLIGATIONS.

    (a) In General.--Except as provided in subsection (b), upon 
conveyance of the Project under this Act the District shall assume all 
rights and obligations of the United States under the agreement dated 
July 28, 1994, between the United States and the Director, New Mexico 
Department of Game and Fish (Document No. 2-LM-40-00640), relating to 
management of certain lands near Brantley Reservoir for fish and 
wildlife purposes and the agreement dated March 9, 1977, between the 
United States and the New Mexico Department of Energy, Minerals, and 
Natural Resources (Contract No. 7-07-57-X0888) for the management and 
operation of Brantley Lake State Park.
    (b) Limitation.--The District shall not be obligated for any 
financial support agreed to by the Secretary, or the Secretary's 
designee, in either agreement and the District shall not be entitled to 
any receipts or revenues generated as a result of either agreement.

SEC. 6. LEASE MANAGEMENT AND PAST REVENUES COLLECTED FROM THE ACQUIRED 
              LANDS.

    (a) Notification of Leaseholders.--Within 120 days after the date 
of enactment of this Act, the Secretary shall provide to the District a 
written identification of all mineral and grazing leases in effect on 
Project lands on the date of enactment of this Act and notify all 
leaseholders of the conveyance authorized by this Act.
    (b) Management of Leases, Licenses, and Permits.--The District 
shall assume all rights and obligations of the United States for all 
mineral and grazing leases, licenses, and permits existing on the 
Project lands conveyed under section 3, and shall be entitled to any 
receipts from such leases, licenses, and permits accruing after the 
date of conveyance. All such receipts shall be used for purposes for 
which the Project was authorized and for financing the portion of 
operations, maintenance, and replacement at the Sumner Dam that, prior 
to conveyance, was the responsibility of the Bureau of Reclamation, 
with the exception of major maintenance programs in progress prior to 
conveyance. The District shall continue to adhere to the current Bureau 
of Reclamation mineral leasing stipulations for the Project.
    (c) Availability of Amounts Paid Into the Reclamation Fund.--
            (1) Amounts in fund on date of enactment.--Amounts in the 
        reclamation fund on the date of enactment of this Act which 
        exist as construction credits to the Carlsbad Project under the 
        terms of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 
        351-359) shall be deposited into the general fund of the 
        Treasury and credited to deficit reduction or retirement of the 
        Federal debt.
            (2) Receipts after date of enactment.--Of the receipts from 
        mineral and grazing leases, licenses, and permits on Project 
        lands to be conveyed under section 3 that are received by the 
        United States after the date of enactment of this Act and 
        before the date of conveyance, up to $200,000 shall be applied 
        to pay the cost referred to in section 3(c)(3) and the 
        remainder shall be deposited into the general fund of the 
        Treasury of the United States and credited to deficit reduction 
        or retirement of the Federal debt.

SEC. 7. WATER CONSERVATION PRACTICES.

    Nothing in this Act shall be construed to limit the ability of the 
District to voluntarily implement water conservation practices.

SEC. 8. LIABILITY.

    Except as otherwise provided by law, effective on the date of 
conveyance of the Project under this Act, the United States shall not 
be liable for damages of any kind arising out of any act, omission, or 
occurrence based on its prior ownership or operation of the conveyed 
property.

SEC. 9. FUTURE RECLAMATION BENEFITS.

    After completion of the conveyance under this Act, the District 
shall not be eligible for any emergency loan from the Bureau of 
Reclamation for maintenance or replacement of any facility conveyed 
under this Act.
Carlsbad Irrigation Project Acquired Land Conveyance Act - Directs the Secretary of the Interior to convey to the Carlsbad Irrigation District specified lands and interests within the Carlsbad Project in New Mexico in consideration of the District accepting the Federal Government obligations for the project, and subject to the completion of payments by the District required under this Act. 
Directs the Secretary to complete such conveyance expeditiously, if no changes in Project operations are expected following such conveyance, but within 180 days after the enactment of this Act. Requires the Secretary, if the District intends to change Project operations as a result of the conveyance, to: (1) take into account those potential changes for the purpose of completing any required environmental evaluation associated with the conveyance; and (2) complete the conveyance within two years after enactment.  Provides for: (1) the full cost of administrative action and environmental compliance for the conveyance to be borne by the Secretary if he or she fails to complete the conveyance before the applicable deadline; and (2) one-half of such cost to be paid by the District if the Secretary completes the conveyance before that deadline. 
Directs the Secretary to: (1) provide a written identification of all mineral and grazing leases in effect on such lands; and (2) notify all such leaseholders of the conveyance made by this Act.  Requires receipts from leases, licenses, and permits accruing after the conveyance date to be used for Project purposes and for financing the portion of operations, maintenance, and replacement at the Summer Dam that, prior to conveyance, was the responsibility of the Bureau of Reclamation, with the exception of major maintenance programs in progress prior to the conveyance.  Requires amounts paid into the reclamation fund as construction credits to the Project to be credited to deficit reduction or retirement of the Federal debt. 
Makes the District ineligible for any emergency loan from the Bureau for maintenance or replacement of any facility conveyed after the completion of such conveyance.
Carlsbad Irrigation Project Acquired Land Conveyance Act