§ 485h-1. — Administration of repayment contracts and longterm contracts to furnish water; renewal and conversion; credit for payments; right to available water supply; rates; construction component.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC485h-1]
TITLE 43--PUBLIC LANDS
CHAPTER 12--RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT
SUBCHAPTER X--PAYMENT OF CONSTRUCTION CHARGES
Sec. 485h-1. Administration of repayment contracts and long-term
contracts to furnish water; renewal and conversion; credit for
payments; right to available water supply; rates; construction
component
In administering subsections (d) and (e) of section 485h of this
title, the Secretary of the Interior shall--
(1) include in any long-term contract hereafter entered into
under subsection (e) of section 485h of this title provision, if the
other contracting party so requests, for renewal thereof under
stated terms and conditions mutually agreeable to the parties. Such
terms and conditions shall provide for an increase or decrease in
the charges set forth in the contract to reflect, among other
things, increases or decreases in construction, operation, and
maintenance costs and improvement or deterioration in the party's
repayment capacity. Any right of renewal shall be exercised within
such reasonable time prior to the expiration of the contract as the
parties shall have agreed upon and set forth therein;
(2) include in any long-term contract hereafter entered into
under subsection (e) of section 485h of this title with a
contracting organization provision, if the organization so requests,
for conversion of said contract, under stated terms and conditions
mutually agreeable to the parties, to a contract under subsection
(d) of section 485h of this title at such time as, account being
taken of the amount credited to return by the organization as
hereinafter provided, the remaining amount of construction cost
which is properly assignable for ultimate return by it can probably
be repaid to the United States within the term of a contract under
subsection (d) of section 485h of this title;
(3) credit each year to every party which has entered into or
which shall enter into a long-term contract pursuant to subsection
(e) of section 485h of this title so much of the amount paid by said
party on or before the due date as is in excess of the share of the
operation and maintenance costs of the project which the Secretary
finds is properly chargeable to that party. Credit for payments
heretofore made under any such contract shall be established by the
Secretary as soon after July 2, 1956 as it is feasible for him to do
so. After the sum of such credits is equal to the amount which would
have been for repayment by the party if a repayment contract under
subsection (d) of section 485h of this title had been entered into,
which amount shall be established by the Secretary upon completion
of the project concerned or as far in advance thereof as is
feasible, no construction component shall be included in any charges
made for the furnishing of water to the contracting party and any
charges theretofore fixed by contract or otherwise shall be reduced
accordingly;
(4) provide that the other party to any contract entered into
pursuant to subsection (d) of section 485h of this title or to any
long-term contract entered into pursuant to subsection (e) of
section 485h of this title shall, during the term of the contract
and of any renewal thereof and subject to fulfillment of all
obligations thereunder, have a first right (to which right the
rights of the holders of any other type of irrigation water contract
shall be subordinate) to a stated share or quantity of the project's
available water supply for beneficial use on the irrigable lands
within the boundaries of, or owned by, the party and a permanent
right to such share or quantity upon completion of payment of the
amount assigned for ultimate return by the party subject to payment
of an appropriate share of such costs, if any, as may thereafter be
incurred by the United States in its operation and maintenance of
the project works; and \1\
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\1\ So in original. The word ``and'' probably should not appear.
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(5) Provide \2\ for payment of rates under any contract entered
into pursuant to said subsection (e) in advance of delivery of water
on an annual, semiannual, bimonthly, or monthly basis as specified
in the contract.\3\
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\2\ So in original. Probably should not be capitalized.
\3\ So in original. The period probably should be ``; and''.
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(6) include a reasonable construction component in the rates set
out in any long-term contract hereafter entered into under
subsection (e) of section 485h of this title prior to amortization
of that part of the cost of constructing the project which is
assigned to be repaid by the contracting party.
(July 2, 1956, ch. 492, Sec. 1, 70 Stat. 483; Pub. L. 96-375, Sec. 8,
Oct. 3, 1980, 94 Stat. 1507.)
Codification
Section was not enacted as part of the Reclamation Project Act of
1939 which comprises this subchapter.
Amendments
1980--Cl. (5). Pub. L. 96-375 authorized payments on a bimonthly and
monthly basis.
Section Referred to in Other Sections
This section is referred to in sections 485h-2, 485h-3, 485h-4,
485h-5 of this title.
