Blunt Reservoir and Pierre Canal Land Conveyance Act of 2002

Blunt Reservoir and Pierre Canal Land Conveyance Act of 2002 - Deauthorizes the Blunt Reservoir feature of the Oahe Irrigation Project authorized as part of the Pick-Sloan Missouri River Basin Program.

Allows preferential leaseholders (original landowners or descendants, or operators of the land at the time of purchase) of parcels of the Blunt Reservoir and Pierre Canal an option to purchase from the Commission of Schools and Public Lands of South Dakota the land they lease. Sets terms for such purchases. Directs the Secretary of the Interior to convey all preferential lease parcels not purchased by the leaseholder to the 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.

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

Requires the Governor of South Dakota, or a designee of the Governor (the "Governor"), to accept certain conditions of conveyance, including that: (1) the State receives the land conveyed in "as is" condition; (2) the State assumes responsibility for any liabilities accruing after the date of conveyance as a result of ownership, operation or maintenance of such land; (3) the Federal Government retains all oil, gas, and mineral rights; (4) the property shall continue to be used for wildlife conservation; and (5) title shall revert to the United States if the land is needed for national defense purposes.

Authorizes the Governor to allow a person to exchange other land in South Dakota for a nonpreferential lease parcel or unleased parcel at Blunt Reservoir or Pierre Canal.

Permits the United States a perpetual easement for a water conveyance structure over, under, across, or through the Pierre Canal Feature.