Statement of John Keys III

Commissioner, Bureau of Reclamation

U.S. Department of Interior

On S. 2696

To Clear Title to Certain Real Property in New Mexico

With the Middle Rio Grande Project, and for Other Purposes

Before the

Senate Energy and Natural Resources Committee

Subcommittee on Water and Power

United States Senate



July 31, 2002

My name is John Keys and I am the Commissioner of the Bureau of Reclamation (Reclamation). I am pleased to be here today to present the views of the Department regarding S. 2696, which would clear title to real property in New Mexico associated with the Middle Rio Grande Project and for other purposes.



The Department has some concerns with S. 2696, primarily that the dispute over ownership of the San Gabriel and Tingley Beach parcels is currently embodied in a pending lawsuit before the United States District Court for the District of New Mexico. Aside from the lawsuit, the Department also has concerns about the method in which this legislation attempts to transfer the property. The Department is not adverse to transferring ownership to another entity, but all parties must agree on the venue and all applicable federal laws must be met in the process. The Department believes the prudent course of action is to allow the legal system to render its decision regarding the disputed lands before instituting a legislative remedy. Therefore, the Department cannot support S. 2696 at this time.



With respect to the City Of Albuquerque's desires to make improvements on this property, Reclamation has provided a license to the City which allows the use of those lands as proposed in the City's improvement plans.



The Middle Rio Grande Conservancy District (District) was created by the Conservancy Act of 1923 to improve the economy of the Middle Valley by lowering the water table and providing flood protection and water for irrigation. In the 1940's, the District requested that Reclamation take over the operation of the District and retire its outstanding bonds. In September 1951, the District and Reclamation entered into a 50-year repayment contract in the amount of $15,708,567. A key component of the contract is Article 29, which states:



"Title to all works constructed by the United States under this contract and to all such works as are conveyed to the United States by the provision hereof, shall as provided in Article 26, be and continue to be vested in the name of the United States until otherwise provided for by Congress, notwithstanding the transfer hereafter of any such works to the District for operation and maintenance."



Furthermore, the District acknowledged the need and desire to seek reconveyance after their debt was repaid when it testified in 1998 before a committee of the New Mexico Legislature.



Section 5 of the bill states that "nothing in this act shall be construed to affect or otherwise interfere with any position set forth by any party in the lawsuit…" It is unclear to the Department how the passage of this legislation could not affect the lawsuit given that the ownership of the two parcels referenced in the bill is part of the lawsuit itself.



Despite this disagreement, the District has been a good partner on this project and has retired its debt to the United States. While we believe that it is best to wait on the court's decision to settle this matter, we are always open to working with all interested parties to find acceptable solutions.



Mr. Chairman, that concludes my remarks and I would be happy to respond to any questions the Committee may have.