84TH CONaREESS HOUSE OF REPRESENTATIVES 2REPORT

Rd Session No. 2882

PROVIDING COMPENSATION FOR CERTAIN PROPERTY LOSSES IN

CERTAIN RESERVOIR PROJECTS AND FOR THE REPLACEMENT
OF SCHOOL FACILITIES OF THE POLLOCK INDEPENDENT SCHOOL
DISTRICT, POLLOCK, S. DAK., ACQUIRED BY THE UNITED STATES
FOR THE OAHE DAM AND RESERVOIR

JULY 23, 1956.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed

Mr. DAvIS of Tennessee, from the Committee on Public Works, sub-

mitted the following
REPORT
[To accompany S. 2093]
The Committee on Public Works, to whom was referred the bill
(S. 2093) to authorize the Secretary of the Army, acting through the
Corps of Engineers, to undertake certain public works and grant com-
pensation for certain property damages as a result of the construction
of the Oahe, Gavins Point, and Fort Randall Dams and Reservoir
projects, Missouri River, having considered thethat same, report favor-
the bill do pass.
ably thereon with amendments and recommend
The amendments are as follows:
Strike out all after the enacting clause and insert the following:
That the Secretary of the Army is authorized and directed to pay to any bona
fide lessee or permittee owning improvements situated on a railroad right-of-way
or on Indian tribal land the fair value, as determined by the Secretary, or by a
court of competent jurisdiction, of any such improvements which will be rendered
inoperative or be otherwise adversely affected by the construction of tie Gavins
Point, Fort Randall, and Oahe Dams and Reservoir projects on the Missouri River.
SEC. 2. The Secretary of the Army is authorized and directed to pay to the
Pollock Independent School District No. 3, Pollock, South Dakota, an amount
equal to the difference between the sum paid for the taking of school facilities of
said school district in the condemnation proceeding entitled "United States of
America, Plaintiff, v. 10.00 Acres of Land etc., Defendants, Civil No. 682nd, filed
in the United States District Court for the District of South Dakota Northern
Division, on May 7, 1956, and the actual cost of replacing the school facilities so
acquired as the Secretary shall find to be reasonable: Provided, however, That in
no event shall the additional amount paid pursuant to this authorization exceed
$200,000.
SEC. 3. The Secretary of the Army is authorized to provide the funds necessary
to carry out the provisions of this Act from any moneys appropriated for the
71006
2 COMPENSATION FOR CERTAIN PROPERTY AND SCHOOL FACILITIES
construction of the Oahe, Gavins Point, and Fort Randall Dams and Reservoir
projects; Provided, however, That in no event shall the amount so expended
exceed $550,000.
Amend the title so as to read:
An Act to provide compensation for certain property losses in certain reservoir
projects and for the replacement of school facilities of the PollDck Independent
School District, Pollock, South Dakota, acquired by the United States for the
Oahe Dam and Reservoir.
PURPOSE OF THE BILL
The purpose of S. 2093 is to authorize the Secretary of the Army,
acting through the Corps of Engineers, to compensate for certain
construction of dams and
consequential damages resulting from the
reservoirs as a part of the Missouri River Basin project, and where
existing Federal laws do not permit equitable compensation with
respect to such damages.
GENERAL STATEMENT

The Corps of Engineers is presently engaged in construction of the

Missouri River Basin program for purposes of navigation, irrigation,
hydroelectric power development and control of floods from Sioux
COity downstream to the mouth of the Missouri River. The reservoirs
included in the program will create a chain of large lakes extending
through South and North Dakota and into Montana.
In South Dakota there are three major dams presently under
construction. The Fort Randall Dam is nearing completion and the
Gavins Point Dam is scheduled for closure at a very early date.
The largest of the projects, the Oahe Dam, is under construction.
The dam site is located immediately upstream from the State capital
in central South Dakota, and will create a reservoir of about 24 million
acre-feet, extending upstream 200 miles to Bismarck, the capital of
North Dakota.
PROBLEMS CREATED
A large portion of the area required for the reservoirs consists of
Indian tribal lands. Other minor areas consist of townsites where
buildings and structures have been erected on railroad rights-of-way
by easements. The Corps of Engineers state that they are authorized
to acquire property that would be inundated by the reservoirs, but
are without authority to purchase buildings or structures located on
Indian tribal lands, or railroad riglts-of-way by leases licenses, or
permits. These easements have been fully recognized although they
are revokable. The permittee who constructed buildings on tribal
land or on railroad right-of-way expected to remain there for tile life
of the building, dealing only with the landowner. Such property is
now being taken by the United States in certain instances through
no fault or failure on the part of the landowner or the person holding
the easement.
Operation of the Oaho Reservoir would necessitate the relocation
or abandonment of the small town of Pollock, S. Dak. The town is
being relocated on a new townsite outside the effects of the reservoir,
with all its community facilities. The Corps of Engineers has
authority to make a settlement with the Pollock Independent School
District for the school facilities in the reservoir area, but its authority
 COMPENSATION FOR CERTAIN PROPERTY AND SCHOOL FACILITIES 3
is limited to payment to the school district for the depreciated value
of the present school building based upon its original cost. It is
recognized that a school building built several years ago could not be
duplicated today even at the total amount of its original cost at the
time of construction.
DISCUSSION
The committee held hearings on S. 2093 and a companion measure,
H. R. 7561, on June 7, 1955. Representatives of the Corps of Engi-
neers testified that the Department of the Army would have no
section 1 (a) (1) and section 1 (a) (2) of S. 2093 but is
objectiontotoother
opposed provisions of the bill. The committee accordingly
amended the bill by striking out all after the enacting clause and
substitutingFornew languagetoto provide-
bona fide lessee or permittee owning
(1) payment any
improvements situated on a railroad right-of-way or on Indian
tribal land, in connection with the Gavins Point, Fort Randall,
and Oahe Dam projects, and
(2) For payment to the Pollock, S. Dak., Independent School
District, an amount equal to the difference between the sum
facilities of said school district in
paid for the taking of school filed
the condemnation proceeding in the United States District
Court for the District of South Dakota, Northern Division, on
May 7, 1956, and the actual cost of replacing the school facilities
so acquired as the Secretary finds to be reasonable, such addi-
tional amount not to exceed $200,000.
The committee recommends enactment of S. 2093 as amended. It
believes that the adopted amendments will protect the Government's
interests and insure the most economical but fair method of settlement
of the property damages resulting from the huge program of develop-
ment of the Missouri River Basin program.
The letter from the Department of the Army commenting on S.
2093 is set forth below and herein made a part of this report:
DEPARTMENT OF THE ARMY,
Washington, D. C., February 2, 1956.
Hon. CHARLEs A. BUCKLEY,
Clairmnan, Committee on Public Works,
House of Representatives.
DEARi Man. CHAIRMAN: Reference is made to your request for the
views of the Department of the Army with respect to S. 2093, 84th
Congress, to authorize the Secretary of the Army, acting through the
Corps of Engineers, to undertake certain public works and grant
compensation for certain property damages as a result of the construc-
tion of the Oahe, Gavins Point, and Fort Randall Dams and Reservoir
projects Missouri River.
Thle Department of the Army has considered the above-mentioned
bill. Th'le of the bill are set forth below, together with the
views of thispurposes
Department with respect to each individual provision.
Section 1 (a) (1) provides for payment to any bona fide lessee or
permittee owning improvements situated on a railroad right-of-way
or on Indian tribal land, in connection with tlhe Gavins Point, Fort
Randall, and Oahe Dam projects. This Department has no objection
to this provision.
4 COMPENSATION FOR CERTAIN PROPERTY AND SCHOOL FACILITIES

Section 1 (a) (2) provides for payment to the Pollack, S. Dak.,

Independent School District, of a sum not to exceed $400,000 as may be
required to reestablish elementary and high school facilities, in con-
nection with Oahe Dam. The appraised value of .the school as ap-
proved by the Department is $200,000. The estimated cost of
suitable replacement facilities was understood at one time to be
$325,000, but apparently there is a more recent estimate approximating
the amount referred to in the bill. Legally, this Department could
recommend payment of $200,000 only.
Section 1 (b) (1) provides for constructing suitable sewer facilities
at St. Joseph's Indian School, Chamberlain, S. Dak., at not to exceed
$35,000, in connection with the Fort Randall Dam. Operations of
the Fort Randall Reservoir will not interfere with the operation of the
sewage plant. There will be no interference with the discharge of
sewage since the elevations of the outlets are above maximum oper-
ating level of the reservoir. If the extreme reservoir level should be
reached, the outlet would be slightly submerged but would continue to
function without ill effect. Accordingly, there appears no basis,
attributable to Fort Randall Reservoir, which would permit participa-
tion by the Federal Government in the construction of sewerage
facilities at St. Joseph's School. This Department is opposed to
section 1 (b) (1).
Section 1 (b) (2) and (3) provides for sewer facilities at not to exceed
$120,000 snd water facilities not exceeding $25,000 at Fort Pierre,
S. Dak., and sewer facilities at not to exceed $210,000 at Pierre.
These cities are located about 60 miles above the upper limits of Fort
Randall Reservoir pool and 8 miles below Oahe Dam. Accordingly,
there could be no adverse effect from these projects at either of these
locations. This Department is opposed to section 1 (b) (2) and (3).
Section 1 (c) provides for reimbursement of business and industrial
firms for expenses necessarily incurred by them in moving to new
locations necessitated by construction of Oahe, Gavins Point and
Fort Randall Dams. It is the position of this office that the reim-
bursement for moving expenses should be on the same basis on all
projects, whether for civil or military purposes. Accordingly, in
view of section 513 of the military construction act of 1955, Public
Law 161, which repeals previous limitations on matters such as this
and applies to military and civil public works, it is suggested that this
section providing for special treatment in these projects be deleted
from the bill.
This Department is unable to estimate the cost of meeting the
requirements in section 1 (a) (1) and 1 (c).
Attention is invited to an inadvertent error in the bill in that the
word "to" in line 1, page 2 should be "or".
The Bureau of the Budget advised that there would be no objection
to the submission of a similar report on a companion bill, H. R. 7561.
Sincerely yours, WILBER MI. BRUCKER
Secretary of the Army.
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