Blunt Reservoir and Pierre Canal Land Conveyance Act of 1999

Blunt Reservoir and Pierre Canal Land Conveyance Act of 1999 - Deauthorizes the Blunt Reservoir feature of the Oahe Irrigation Project authorized as part of the Pick-Sloan Missouri River Basin Program.

Directs the Secretary of the Interior, acting through the Commissioner of Reclamation, to convey all of the preferential lease parcels to the Commission of Schools and Public Lands of South Dakota, on the condition that the Commission honor the purchase option provided to preferential leaseholders under this Act.

Requires a preferential leaseholder to have an option to purchase from the Commission the preferential lease parcel that is the subject of the lease. Permits a preferential leaseholder to elect to purchase a parcel on one of the following terms: (1) cash purchase for the amount that is equal to the value of the parcel minus ten percent of that value; or (2) installment purchase, with 20 percent of the value of the parcel to be paid on the purchase date and the remainder to be paid over no more than 30 years at three percent annual interest. Provides that if the value of the parcel is under $10,000, the purchase shall be made on a cash basis. Provides for such leaseholders to have until ten years after the date of the conveyance to exercise such option. Requires the Commission, if a preferential leaseholder fails to purchase a parcel within such period, to convey the parcel to the State of South Dakota Department of Game, Fish, and Parks to be used for mitigating the wildlife habitat that was lost as a result of the development of the Pick-Sloan project.

Sets forth the uses of proceeds from such land sales.

Directs the Secretary, through the Commissioner, to convey to the Department the nonpreferential leased parcels and unleased parcels of the Blunt Reservoir and Pierre Canal to be used for the purpose of mitigating the wildlife habitat that was lost as a result of the development of the Pick-Sloan project.

Authorizes the Commission, with the Department's concurrence, to allow a person to exchange land that the person owns elsewhere in South Dakota for a nonpreferential lease parcel or unleased parcel at Blunt Reservoir or Pierre Canal.

Requires a preferential leaseholder that purchases land at Pierre Canal or exchanges land for land at the Canal to allow the State of South Dakota to retain an easement on the land for an irrigation pipe.