SALE OF PROPERTIES.

SEC. 1004. SALE OF PROPERTIES. (a) In General.—Consistent with the Act of June 17, 1902 (32 Stat. 388, chapter 1093) and Acts supplemental to and amendatory of that Act (43 U.S.C. 371 et seq.), the Secretary shall convey to CFRA or a purchaser— (1) all right, title, and interest (except the mineral estate) of the United States in and to the properties, subject to valid existing rights and the operational requirements of the Pick-Sloan Missouri River Basin Program; and (2) perpetual easements for— (A) vehicular access to each property; (B) access to and use of 1 dock per property; and (C) access to and use of all boathouses, ramps, retaining walls, and other improvements for which access is provided in the leases as of the date of enactment of this Act. (b) Description of Properties.— (1) In general.—The properties to be conveyed are— (A) the 265 cabin sites of the Bureau of Reclamation located along the northern end of the Reservoir in portions of sections 2, 11, 12, 13, 15, 22, 23, and 26, Township 10 North, Range 1 West; and (B) any small parcel contiguous to any property (not including shoreline or land needed to provide public access to the shoreline of the Reservoir) that the Secretary determines should be conveyed in order to eliminate an inholding and facilitate administration of surrounding land remaining in Federal ownership. (2) Acreage; legal description.—The acreage and legal description of each property and of each parcel shall be determined by the Secretary in consultation with CFRA. (3) Restrictive use covenant.— (A) In general.—In order to maintain the unique character of the Reservoir area, the Secretary, the purchaser, CFRA, and each subsequent owner of each property shall covenant that the use restrictions to carry out subparagraphs (B) and (C) shall— (i) be appurtenant to, and run, with each property; and (ii) be binding on each subsequent owner of each property. (B) Access to reservoir.— (i) In general.—The Secretary, the purchaser, CFRA, and the subsequent owners of each property shall ensure that— (I) public access to and along the shoreline of the Reservoir in existence on the date of enactment of this Act is not obstructed; and (II) adequate public access to and along the shoreline of the Reservoir is maintained. (ii) Federal reclamation law.— (I) In general.—No conveyance of property under this Act shall restrict or limit the authority or ability of the Secretary to fulfill the duties of the Secretary under the Act of June 17, 1902 (32 Stat. 388, chapter 1093), and Acts supplemental 112 STAT. 2681–713to and amendatory of that Act (43 U.S.C. 371 et seq.). (II) No liability.—The operation of the Reservoir by the Secretary in fulfillment of the duties described in subclause (I) shall not result in liability for damages, direct or indirect, to the owner of any property conveyed under section 4(a) or damages from any loss of use or enjoyment of the property. (C) Historical use.—The Secretary, the purchaser, CFRA, and each subsequent owner of each property shall covenant that future uses of the property shall be limited to the type and intensity of uses in existence on the date of enactment of this Act, as limited by the prohibitions contained in the annual operating plan of the Bureau of Reclamation for the Reservoir in effect on October 1, 1998. (c) Purchase Process.— (1) In general.—The Secretary shall— (A) solicit sealed bids for the properties; (B) subject to paragraph (2), sell the properties to the bidder that submits the highest bid above the minimum bid determined under paragraph (2); and (C) not accept any bid for less than all of the properties in 1 transaction. (2) Minimum bid.— (A) In general.—Before accepting bids, the Secretary shall establish a minimum bid, which shall be equal to the fair market value of the properties determined by an appraisal of each property, exclusive of the value of private improvements made by the leaseholders before the date of the conveyance, in conformance with the Uniform Appraisal Standards for Federal Land Acquisition. (B) Fair market value.—Any dispuste over the fair market value of a property under subparagraph (A) shall be resolved in accordance with section 2201.4 of title 43, Code of Federal Regulations. (3) Right of first refusal.—If the highest bidder is other than CFRA, CFRA shall have the right to match the highest bid and purchase the properties at a price equal to the amount of the highest bid. (d) Terms of conveyance.— (1) Purchaser.—If the highest bidder is other than CFRA, and CFRA does not match the highest bid, the following shall apply: (A) Payment.—The purchaser shall pay the amount bid to the Secretary for distribution in accordance with section 6. (B) Conveyance.—The Secretary shall convey the properties to the purchaser. (C) Option to purchase.—The purchaser shall give each lessee of a property conveyed under this section an option to purchase the property at fair market value, as determined under subsection (c)(2). (D) Nonpurchasing lessees.— (i) Right to continue lease.—A lessee that is unable or unwilling to purchase a property shall be provided the opportunity to continue to lease the 112 STAT. 2681–714property for fair market value rent under the same terms and conditions as apply under the existing lease for the property, and shall have the right to renew the term of the existing lease for 2 consecutive 5-year terms. (ii) Compensation for improvements.—If a lessee declines to purchase a property, the purchaser shall compensate the lessee for the fair market value, as determined pursuant to customary appraisal procedures, of all improvements made to the property by the lessee. The lessee may sell the improvements to the purchaser at any time, but the sale shall be completed by the final termination of the lease, after all renewals under clause (i). (2) CFRA.—If CFRA is the highest bidder, or matches the highest bid, the following shall apply: (A) Closing.—On receipt of a purchase request from a lessee or CFRA, the Secretary shall close on the property and prepare all other properties for closing within 45 days. (B) Payment.—At the closing for a property— (i) the lessee or CFRA shall deliver to the Secretary payment for the property, which the Secretary shall distribute in accordance with section 6; and (ii) the Secretary shall convey the property to the lessee or CFRA. (C) Appraisal.—The Secretary shall determine the purchase amount of each property based on the appraisal conducted under subsection (c)(2), the amount of the bid under subsection (c)(1), and the proportionate share of administrative costs pursuant to subsection (e). The total purchase amount for all properties shall equal the total bid amount plus administrative costs under subsection (e). (D) Timing.—CFRA and the lessees shall purchase at least 75 percent of the properties not later than August 1 of the year that begins at least 12 months after title to the first property is conveyed by the Secretary to a lessee. (E) Right to renew.—The Secretary shall afford the lessees who have not purchased properties under this section the right to renew the term of the existing lease for 2 (but not more than 2) consecutive 5-year terms. (F) Reimbursement.—A lessee shall reimburse CFRA for a proportionate share of the costs to CFRA of completing the transactions contemplated by this Act, including any interest charges. (G) Rental payments.—All rent received from the leases shall be distributed by the Secretary in accordance with section 6. (e) Administrative Costs.—Any reasonable administrative costs incurred by the Secretary, including the costs of survey and appraisals, incident to the conveyance under subsection (a) shall be reimbursed by the purchaser or CFRA. (f) Timing.—The Secretary shall make every effort to complete the conveyance under subsection (a) not later than 1 year after the satisfaction of the condition established by section 8(b).112 STAT. 2681–715 (g) Closings.—Real estate closings to complete the conveyance under subsection (a) may be staggered to facilitate the conveyance as agreed to by the Secretary and the purchaser or CFRA. (h) Conveyance to Lessee.—If a lessee purchases a property from the purchaser or CFRA, the Secretary, at the request of the lessee, shall have the conveyance documents prepared in the name or names of the lessee so as to minimize the amount of time and number of documents required to complete the closing for the property.