In the course of arriving at the foregoing settlement agreement, the Interior Department decided not to assess or collect charges for the company's past use of water in excess of the company's rights to such water and for any unauthorized use by the company or its predecessor of Federal lands in the Furnace Creek area. Under the agreement, the Furnace Creek Inn and Ranch, plus the hotel company's easements and water rights (2.064 cubic feet per second), will be sold to Fred Harvey Co., and the Interior Department will sell to Fred Harvey Co. 0.536 cubic feet per second beyond its 2.064 cubic feet per second entitlement, plus such additional water beyond 2.60 cubic feet per second as the Harvey Co. may require. However, the Interior Department reserves the right to withdraw (a) the 0.536 cubic feet per second if it is needed for any Federal purpose. (b) any of the water beyond the 2.60 cubic feet per second which is needed for any use the Interior Department may desire, and (c) half the water sold if any temporary shortage develops. Thus, the Interior Department can sell such water to the Harvey Co. to produce revenue. and can withdraw the water for almost any development purpose in the Furnace Creek area. The Harvey Co. will also pay its proportionate share of the cost of maintaining and replacing the water collection and distribution system. In May 1969, because it appeared that Federal funds would not be available to acquire the aforementioned 7,300 acres of inholdings until perhaps fiscal year 1971, the Park Service worked with a private, nonprofit organization, The Nature Conservancy of Washington, D.C., which arranged to use its own funds to acquire and hold the land until Federal funds are available. The possible substitution of Conservancy as temporary transferee of the 7,300 acres was specifically contemplated in the closing agreement which the Harvey Co. and the United States made on May 5, 1969, and which implemented the memorandum of understanding of November 1, 1968. Thus the 7,300 acres are now being held by Conservancy, and the Park Service has a contractual right to purchase the land later at the same price. Assuring that the 7,300 acres will be held for the Park Service has spared the Monument from the risk of commercial or subdivision development of that land, an eventuality which would have been disastrous to the scenic and conservation values of this unique area. The May 5 agreement expressly provides that Conservancy's purchase of the land would not affect or modify the obligations or rights of the Harvey Co. or the United States with respect to other provisions of the agreement. Hence no water rights of any kind have passed to Conservancy. (No water rights are appurtenant to the 7,300 acres.) The May 5 agreement allocated all water rights involved between the Harvey Co. and the United States in accordance with the November 1 memorandum of understanding. In sum, the agreement appears to provide an excellent solution for the long-standing, complex dispute concerning the water rights and land ownership in the Furnace Creek area of Death Valley National Monument. It will eliminate the largest amount of private land in-holdings and consolidate Federal land ownership in the monument. The Government would also obtain, without the cost and hazard of litigation, the clear right to approximately 60 percent of the presently known water in the Furnace Creek area, plus all water which may be discovered there in the future. The Bureau of Land Management on August 31, 1965, issued a corrective, independent resurvey of T. 21 N., R. 1 E., San Bernardino meridian, California, to help determine the precise boundaries between the Federal and hotel company lands in the Furnace Creek area. LONG-RANGE PLANS FOR DEVELOPMENT OF FURNACE CREEK AREA (Recommendation 2): (a) The Department should expedite completion of long-range plans for National Park Service development of the Furnace Creek and adjacent areas of the Monument to which the conducting of water from the Furnace Creek area would be technically and economically feasible. Plans should be based on the optimum utilization by such developments of the approximate amount of water to which it now appears the United States is entitled. (b) Studies preceding the plans should include— (i) expert hydrological and engineering advice as to the most efficient and economical methods of developing and using water in the area; (ii) full consideration of a wide range of public-use needs, such as trailer camps, cabins, campgrounds, picnic areas, swimming facilities, and so forth; and (iii) long-range projections of staffing needs of the Park Service in the Furnace Creek and nearby areas. In this connection, the committee believes there should be a careful evaluation of the area above Furnace Creek abandoned in 1957 as a proposed new residence site for employees. Pending conclusion of studies and formulation of plans as to the best use of this area, whether for staff residences, for public use, or for other purposes, it should be kept free of large-scale or permanent improvement or impairment. Results. The Park Service's work on formulating its long-range plans for the development of the Furnace Creek area of Death Valley National Monument has been slowed by the need for resolving the land and water rights disputes with the Death Valley Hotel Co., as well as by budgetary limitations. The Interior Department has advised the committee that the committee's recommendations will be given careful consideration when the Department prepares its long-range plans for the Monument. CONFLICTS OF INTEREST BY MEMBERS OF THE ADVISORY BOARD ON NATIONAL PARKS, HISTORIC SITES. BUILDINGS, AND MONUMENTS (Recommendation 3): A special directive on conflict of interest should be issued to members of the Advisory Board on National Parks, Historic Sites, Buildings, and Monuments. The directive should require a Board member to refrain from direct or indirect participation in and otherwise disqualify himself concerning any departmental matter or activity affecting a national park area, site, or building associated with which there is private property or business in which the Board member has a specific financial or personal interest. The directive should make clear that failure to comply would be cause for the Secretary, acting under his statutory discretion, to terminate the member's appointment. Results. The Secretary of the Interior advised the committee that members of the Advisory Board on National Parks, Historic Sites, Buildings and Monuments, as well as other official boards and commissions, were given copies of President Kennedy's memorandum of May 2, 1963, entitled "Preventing Conflicts of Interest on the Part of Special Government Employees." The Department of the Interior did not issue a special directive on conflicts of interest to the Advisory Board. FREE OR REDUCED RATES FOR ACCOMMODATIONS TO NATIONAL PARK SERVICE EMPLOYEES (Recommendation 4): A survey should be made of the practices of operators of businesses within the national park areas so that any necessary steps can be taken to insure that National Park Service employees accept no free or reduced-rate meals and lodging, or other gratuities, from such operators except in accordance with official regulation or contract. Results. The Interior Department has abandoned its previous requirement that concessioners operating businesses in national park areas must furnish free accommodations to certain departmental officials. In addition, in order to avoid undue personal gain to employees and at the same time to facilitate performance of public business, the Interior Department has taken steps to assure that any reduced rates granted to Federal employees on official business relate reasonably to the maximum per diem allowance permitted under Federal law. |