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<br />.-4 <br />~ <br /> <br />Agenda Item 7 <br />May 3, 1989 <br /> <br />c <br /> <br />DOW could assemble the necessary funding and purchase the <br />property from the Conservancy. When the property was conveyed <br />to DOW, the deeds from the Conservancy contained language to <br />the effect that the conveyance was made subject to the <br />condition that the property shall forever be used as wildlife <br />habitat and for no purpose inconsistent therewith, with a <br />reverter of the property to the Conservancy if it is not used <br />exclusively for wildlife habitat. <br /> <br />In order to prepare designs and specifications for the dam <br />and reservoir, it is necessary for the Bureau of Reclamation to <br />enter upon the Bodo property to perform a variety of activities <br />which entail surface and subsurface disturbance. The <br />Conservancy has taken the position that such activities may be <br />or are inconsistent with the limitations in the deeds. <br /> <br />While an agreement was reached with the Conservancy for <br />last year's and this year's field seasons to allow Reclamation <br />access to the Bodo property, the long-range solution is to <br />acquire the Conservancy's reverter interest in the property so <br />that it is no longer involved. Indeed, DOW and the Conservancy <br />have agreed to attempt to negotiate the value, if any, of the <br />Conservancy's reverter interest. <br /> <br />Even if such negotiations are successful, DOW is not <br />authorized to expend money for this purpose. Therefore, I <br />would like to explore whether the Board's funds pursuant to the <br />authority of S.B. 142 could be utilized for this purpose. This <br />would entail, as I currently envision it, a three party <br />agreement by which Reclamation would give credit to the Board <br />for any monies paid to the Conservancy and DOW would agree to <br />accept from Reclamation a lesser sum of money for the Bodo <br />property, or a lesser value of replacement property, by the <br />amount that the Board had paid to the Conservancy. <br /> <br />Recommendation <br /> <br />Assuming that Reclamation finds favor with the above <br />outlined proposal at our May 10 meeting, I recommend that the <br />Board authorize me to proceed to negotiate a contract based on <br />this proposal, with the final terms and conditions of any such <br />contract being subject to the Board's approval at a subsequent <br />meeting. If Reclamation does not find favor with this <br />approach, I will so report to the Board at its meeting and <br />present a revised recommendation to you. <br /> <br />JWM/gl <br />cc: next page <br /> <br />-4- <br />