To disclaim any interests of the United States in certain lands on San Juan Island, Washington and for other purposes.

Directs the Secretary of the Interior (Secretary), acting through the Director of the Bureau of Land Management, to complete a survey of certain lands on San Juan Island, Washington, and to prepare a survey plat detailing those portions of the lands granted to the State of Washington that have been encroached upon. Limits to 50 percent the Federal share of the costs for such survey. Exempts such encroached lands from reversion rights of the Federal Government.

Disclaims all Federal right, title, and interest in the encroached lands and vests them in the University of Washington.

Conditions such exemption, disclaimer, and vesting on a binding agreement among the State of Washington, the University, and the Secretary: (1) to accept the map location of the encroached lands as accurate and conclusive; (2) to prohibit the transfer of the lands to any party or parties other than the occupants; and (3) to reimburse the Secretary for the administrative costs of implementing this Act plus half the costs of the survey, and also to pay the Secretary any profits from conveyance of the encroached lands to the occupants. States that all amounts received by the Secretary shall be used for public land management.

Amends Federal law to prohibit the reversion to the United States of certain land conveyed to the State of Washington if: (1) such land becomes contaminated with hazardous substances; or (2) such land is used for purposes that result in contamination by hazardous substances. Requires the State of Washington to pay the Secretary the fair market value, including any improvement value, if such land is used for unauthorized purposes which result in disposal, placement, or release of any hazardous substance.