§ 590z-2. — Repayment contracts.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC590z-2]
TITLE 16--CONSERVATION
CHAPTER 3C--WATER CONSERVATION
SUBCHAPTER II--CONSERVATION AND UTILIZATION PROJECTS
Sec. 590z-2. Repayment contracts
(a) Necessity
No water for irrigation may be delivered from the works of any
project constructed under the authority of this subchapter until after
the repayment contract or contracts required by this section have been
executed. Where practicable in the judgment of the Secretary, the
repayment contract shall be with a water users' organization or
organizations satisfactory in form and powers to the Secretary; and
otherwise the repayment contract shall be with the individual
landowners. The contract or contracts shall contain such provisions as
the Secretary deems necessary to carry out the purposes of this
subchapter and to protect the interests of the United States.
(b) ``Reimbursable construction cost'' defined
The term ``reimbursable construction costs'' as used in this
subchapter means that part of the costs of investigating, constructing,
and operating and maintaining the project, which are allocated by the
Secretary to irrigation, and which are met by expenditures of moneys
therefor appropriated under the authority of section 590z-10(1) of this
title, plus such amounts as the President, under section 590z(1) of this
title, may determine to be reimbursable: Provided, That administrative
expenses incurred in the District of Columbia in connection with the
investigation construction, or operation and maintenance of a project
shall not be included in the reimbursable construction costs nor shall
they be charged to the water users in any way.
(c) Terms
The repayment contract or contracts for a project shall, in their
aggregate, provide for repayment to the United States of the total
amount of the reimbursable construction costs of the project allocated
to irrigation. Each such contract shall provide, among other things,
that--
(1) The Secretary shall fix a development period for each
project of not to exceed ten years from and including the first
calendar year in which water is delivered for the lands in said
project; and during the development period water shall be delivered
to the lands in the project involved at a charge per acre-foot, or
other charge, to be fixed by the Secretary each year and to be paid
in advance of delivery of water. Such charges shall be fixed with a
view of returning such amounts as in the Secretary's judgment are
justified by the rate of project development, including as a minimum
the return over the full development period of that part of the cost
of operating and maintaining the project, during said period,
allocated by the Secretary to irrigation; and collections of such
charges in excess of the cost of the operation and maintenance
during the development period, as thereafter determined by the
Secretary, shall be credited to the reimbursable construction costs
of the project in the manner determined by the Secretary.
(2) The United States shall operate and maintain the project
during the development period fixed for it. After the development
period, the United States shall operate and maintain the project or
any part thereof as long as is deemed necessary by the Secretary,
and shall be paid in advance for each year that part of the
estimated cost of operating and maintaining the project for such
year allocated by the Secretary to irrigation. In the event charges
due the United States are not paid when due the United States may,
at its election, suspend operations in whole or in part.
(3) The repayment of the reimbursable construction costs, except
as to Indian lands which shall be repayable in accordance with
existing law relating to Indian lands, shall be spread in not to
exceed forty annual installments, of the number and amounts fixed by
the Secretary; and the first annual installment under each contract
shall become due and payable on the date fixed by the Secretary, in
the year next following the last year of the development period
fixed under subsection (c)(1) of this section: Provided, That the
provisions of this subsection shall not be construed to modify the
provisions of special legislation pertaining to any particular
project.
(4) The water users or their organization will take such
measures as the Secretary deems proper to secure the adoption of
proper accounting, to protect the condition of project works, and to
provide for the proper use thereof, and to protect project lands
against deterioration due to improper use of water. Delinquencies in
any payments due to the United States shall be penalized by a
penalty of not less than one-half of 1 per centum per month. No
water shall be delivered to or for any land or party while either
said land or the organization in which it is located or said party
is in arrears in the advance payment of operation and maintenance
charges or development period charges under subsection (c)(1) of
this section, or in arrears for more than twelve months in the
payment of an installment of the reimbursable construction costs.
(5) The Secretary shall establish the size of farm units of
irrigable lands on each project in accordance with his findings of
the area sufficient in size for the support of a family on the lands
to be irrigated. No water may be delivered to or for more than the
farm unit area of irrigable lands in the project owned by a single
landowner: Provided, That this subsection shall not apply to the
United States or any agency or instrumentality thereof, corporate or
otherwise. No water shall be delivered to or for any land, in a
project area, transferred or disposed of subsequent to approval of
the project by the President, and within three years from the time
water becomes available, unless and until it has been shown to the
satisfaction of the Secretary or his duly authorized representative
that the land has been transferred or disposed of at a price not
exceeding the appraised value as determined by the Secretary or his
duly authorized representatives, and upon proof of fraudulent
representation as to the true consideration involved the Secretary
is authorized to cancel the water right attaching to the land
involved: Provided further, That nothing herein shall be construed
to create authority to interfere with the delivery of water under
prior rights.
(Aug. 11, 1939, ch. 717, Sec. 4, as added Oct. 14, 1940, ch. 861, 54
Stat. 1121; amended July 16, 1943, ch. 242, Sec. 5, 57 Stat. 567.)
References in Text
Herein, referred to in subsec. (c)(5), means act Aug. 11, 1939,
which comprises this subchapter.
Prior Provisions
A prior section 4 of act Aug. 11, 1939, ch. 717, 53 Stat. 1419,
covered authorization of appropriations, prior to the general amendment
of that act by act Oct. 14, 1940. See section 590z-10 of this title.
Amendments
1943--Subsec. (d). Act July 16, 1943, added subsec. (d).
Expiration of Subsection (d)
Subsection (d) of this section, by the terms thereof, ceased to be
of force and effect, except as to certain projects, six months after
cessation of hostilities of World War II, which was proclaimed at 12
o'clock noon of December 31, 1946, by Proc. No. 2714, 12 F.R. 1, set out
as a note preceding section 1 of Appendix to Title 50, War and National
Defense.
Extension of Variable Payment Plan
Authority of Secretary to extend benefits of variable payment plan
to organizations with which he contracts or has contracted for the
repayment of construction costs allocated to irrigation on any project
undertaken by the United States, including contracts under this
subchapter, see section 2 of Pub. L. 85-611, Aug. 8, 1958, 72 Stat. 542,
set out as a note under section 485h of Title 43, Public Lands.
Section Referred to in Other Sections
This section is referred to in sections 590y, 590z-1, 590z-3, 590z-
4, 590z-6, 590z-7 of this title.
