
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
