SUBCHAPTER I–A—RECLAMATION REFORM
§390aa. Congressional declaration of purpose; short title
This subchapter shall amend and supplement the Act of June 17, 1902, and Acts supplementary thereto and amendatory thereof (
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Editorial Notes
References in Text
This subchapter, referred to in text, was in the original "this title", meaning title II (§§201–230) of
Act of June 17, 1902, referred to in text, is act June 17, 1902, ch. 1093,
§390bb. Definitions
As used in this subchapter:
(1) The term "contract" means any repayment or water service contract between the United States and a district providing for the payment of construction charges to the United States including normal operation, maintenance, and replacement costs pursuant to Federal reclamation law.
(2) The term "district" means any individual or any legal entity established under State law which has entered into a contract or is eligible to contract with the Secretary for irrigation water.
(3)(A) The term "full cost" means an annual rate as determined by the Secretary that shall amortize the expenditures for construction properly allocable to irrigation facilities in service, including all operation and maintenance deficits funded, less payments, over such periods as may be required under Federal reclamation law or applicable contract provisions, with interest on both accruing from October 12, 1982, on costs outstanding at that date, or from the date incurred in the case of costs arising subsequent to October 12, 1982: Provided, That operation, maintenance, and replacement charges required under Federal reclamation law, including this subchapter, shall be collected in addition to the full cost charge.
(B) The interest rate used for expenditures made on or before October 12, 1982, shall be determined by the Secretary of the Treasury on the basis of the weighted average yield of all interest bearing, marketable issues sold by the Treasury during the fiscal year in which the expenditures by the United States were made, but shall not be less than 7½ per centum per annum.
(C) The interest rate used for expenditures made after October 12, 1982, shall be determined by the Secretary of the Treasury on the basis of the arithmetic average of—
(i) the rate as of the beginning of the fiscal year in which expenditures are made on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations which are neither due nor callable for redemption for fifteen years from the date of issuance; and
(ii) the weighted average yield on all interest-bearing, marketable issues sold by the Treasury during the fiscal year preceding the fiscal year in which the expenditures are made.
(4) The term "individual" means any natural person, including his or her spouse, and including other dependents thereof within the meaning of the Internal Revenue Code of 1986 (
(5) The term "irrigation water" means water made available for agricultural purposes from the operation of reclamation project facilities pursuant to a contract with the Secretary.
(6) The term "landholding" means total irrigable acreage of one or more tracts of land situated in one or more districts owned or operated under a lease which is served with irrigation water pursuant to a contract with the Secretary. In determining the extent of a landholding the Secretary shall add to any landholding held directly by a qualified or limited recipient that portion of any landholding held indirectly by such qualified or limited recipient which benefits that qualified or limited recipient in proportion to that landholding.
(7) The term "limited recipient" means any legal entity established under State or Federal law benefiting more than twenty-five natural persons.
(8) The term "project" means any reclamation or irrigation project, including incidental features thereof, authorized by Federal reclamation law, or constructed by the United States pursuant to such law, or in connection with which there is a repayment or water service contract executed by the United States pursuant to such law, or any project constructed by the Secretary through the Bureau of Reclamation for the reclamation of lands.
(9) The term "qualified recipient" means an individual who is a citizen of the United States or a resident alien thereof or any legal entity established under State or Federal law which benefits twenty-five natural persons or less.
(10) The term "recordable contract" means a contract between the Secretary and a landowner in writing capable of being recorded under State law providing for the sale or disposition of lands held in excess of the ownership limitations of Federal reclamation law including this subchapter.
(11) The term "Secretary" means the Secretary of the Interior.
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Editorial Notes
References in Text
Federal reclamation law, referred to in pars. (1), (3)(A), (8), and (10), is defined in
Amendments
1986—Par. (4).
§390cc. New or amended contracts
(a) Generally
The provisions of this subchapter shall be applicable to any district which—
(1) enters into a contract with the Secretary subsequent to October 12, 1982;
(2) enters into any amendment of its contract with the Secretary subsequent to October 12, 1982, which enables the district to receive supplemental or additional benefits; or
(3) which amends its contract for the purpose of conforming to the provisions of this subchapter.
(b) Amendment of existing contracts
Any district which has an existing contract with the Secretary as of October 12, 1982, which does not enter into an amendment of such contract as specified in subsection (a) shall be subject to Federal reclamation law in effect immediately prior to October 12, 1982, as that law is amended or supplemented by
(c) Election by qualified or limited recipients in absence of amendment to contract
In the absence of an amendment to a contract, as specified in subsection (a), a qualified recipient or limited recipient may elect to be subject to the provisions of this subchapter by executing an irrevocable election in a form approved by the Secretary to comply with this subchapter. The district shall thereupon deliver irrigation water to and collect from such recipient, for the credit of the United States, the additional charges required by this subchapter and assignable to the recipient making the election.
(d) Consent of non-Federal party
Amendments to contracts which are not required by the provisions of this subchapter shall not be made without the consent of the non-Federal party.
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Editorial Notes
References in Text
Federal reclamation law, referred to in subsec. (b), is defined in
§390dd. Limitation on ownership
Except as provided in
(1) a qualified recipient for use in the irrigation of lands owned by such qualified recipient in excess of nine hundred and sixty acres of class I lands or the equivalent thereof; or
(2) a limited recipient for the use in the irrigation of lands owned by such limited recipient in excess of six hundred and forty acres of class I lands or the equivalent thereof;
whether situated in one or more districts.
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§390ee. Pricing
(a) Delivery of irrigation water at full cost
Notwithstanding any other provision of law, any contract with a district entered into by the Secretary as specified in
(1) a landholding in excess of nine hundred and sixty acres of class I lands or the equivalent thereof for a qualified recipient,1
(2) a landholding in excess of three hundred and twenty acres of class I land or the equivalent thereof for a limited recipient receiving irrigation water on or before October 1, 1981; and
(3) the entire landholding of a limited recipient not receiving irrigation water on or before October 1, 1981: Provided, That the interest rate used in computing full cost under this paragraph shall be determined by the Secretary of the Treasury on the basis of the arithmetic average of—
(A) the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations which are neither due nor callable for redemption for fifteen years from the date of issuance; and
(B) the weighted average of market yields on all interest-bearing, marketable issues sold by the Treasury
during the fiscal year preceding the fiscal year in which the expenditures are made, or October 12, 1982, for expenditures made before October 12, 1982.
(b) Delivery of irrigation water at prior terms and conditions
Any contract with a district entered into by the Secretary as specified in
(c) Delivery of irrigation water to lands under recordable contracts
Notwithstanding any extension of time of any recordable contract as provided in
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Editorial Notes
References in Text
Federal reclamation law, referred to in subsec. (b), is defined in
1 So in original. The comma probably should be a semicolon.
§390ff. Certification of compliance
As a condition to the receipt of irrigation water for lands in a district which has a contract as specified in
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§390gg. Equivalency
Upon the request of any district, the ownership and pricing limitations imposed by this subchapter shall apply to the irrigable lands classified within such district by the Secretary as having class I productive potential or the equivalent thereof in larger acreage of less productive potential, as determined by the Secretary, taking into account all factors which significantly affect productivity, including but not limited to topography, soil characteristics, length of growing season, elevation, adequacy of water supply, and crop adaptability.
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§390hh. Operation and maintenance charges
(a) Price adequate to recover charges
The price of irrigation water delivered by the Secretary pursuant to a contract or an amendment to a contract with a district, as specified in
(b) Modification of price
Whenever a district enters into a contract or requests that its contract be amended as specified in
(c) Districts not operating from Federal funds
This section shall not apply to districts which operate and maintain project facilities and finance the operation and maintenance thereof from non-Federal funds.
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§390ii. Disposition of excess lands
(a) Disposal of lands in excess of ownership limitations within reasonable time
Irrigation water made available in the operation of reclamation project facilities may not be delivered for use in the irrigation of lands held in excess of the ownership limitations imposed by Federal reclamation law, including this subchapter, unless and until the owners thereof shall have executed a recordable contract with the Secretary, in accordance with the terms and conditions required by Federal reclamation law, requiring the disposal of their interest in such excess lands within a reasonable time to be established by the Secretary. In the case of recordable contracts entered into prior to October 12, 1982, such reasonable time shall not exceed ten years after the recordable contract is executed by the Secretary. In the case of recordable contracts entered into after October 12, 1982, except as provided in
(b) Continued delivery of irrigation water to lands held in excess of ownership limitations
Lands held in excess of the ownership limitations imposed by Federal reclamation law, including this subchapter, which, on October 12, 1982, are, or are capable of, receiving delivery of irrigation water made available by the operation of existing reclamation project facilities may receive such deliveries only—
(1) if the disposal of the owner's interest in such lands is required by an existing recordable contract with the Secretary, or
(2) if the owners of such lands have requested that a recordable contract be executed by the Secretary.
(c) Amendment of existing recordable contracts
Recordable contracts existing on October 12, 1982, shall be amended at the request of the landowner to conform with the ownership limitations contained in this subchapter: Provided, That the time period for disposal of excess lands specified in the existing recordable contract shall not be extended except as provided in subsection (e).
(d) Power of attorney requirement in contracts; exercise of power by Secretary
Any recordable contract covering excess lands sales shall provide that a power of attorney shall vest in the Secretary to sell any excess lands not disposed of by the owners thereof within the period of time specified in the recordable contract. In the exercise of that power, the Secretary shall sell such lands through an impartial selection process only to qualified purchasers according to such reasonable rules and regulations as the Secretary may establish: Provided, That the Secretary shall recover for the owner the fair market value of the land unrelated to irrigation water deliveries plus the fair market value of improvements thereon.
(e) Extension of time for disposal of excess lands
In the event that the owner of any lands in excess of the ownership limitations of Federal reclamation law has heretofore entered into a recordable contract with the Secretary for the disposition of such excess lands and has been prevented from disposing of them because the Secretary may have withheld the processing or approval of the disposition of the lands (whether he may have been compelled to do so by court order or for other reasons), the period of time for the disposal of such lands by the owner thereof pursuant to the contract shall be extended from the date on which the Secretary again commences the processing or the approval of the disposition of such lands for a period which shall be equal to the remaining period of time under the recordable contract for the disposal thereof by the owner at the time the decision of the Secretary to withhold the processing or approval of such disposition first became effective.
(f) Eligibility of excess lands for irrigation water after disposition
Excess lands which have been or may be disposed of in compliance with Federal reclamation law, including this subchapter, shall not be considered eligible to receive irrigation water unless—
(1) they are held by nonexcess owners; and
(2) in the case of disposals made after October 12, 1982, their title is burdened by a covenant prohibiting their sale, for a period of ten years after their original disposal to comply with Federal reclamation law, including this subchapter, for values exceeding the sum of the value of newly added improvements and the value of the land as increased by market appreciation unrelated to the delivery of irrigation water. Upon expiration of the terms of such covenant, the title to such lands shall be freed of the burden of any limitations on subsequent sale values which might otherwise be imposed by the operation of
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Editorial Notes
References in Text
Federal reclamation law, referred to in subsecs. (a), (b), (e), and (f), is defined in
§390jj. Water conservation
(a) Implementation of program by non-Federal recipients
The Secretary shall, pursuant to his authorities under otherwise existing Federal reclamation law, encourage the full consideration and incorporation of prudent and responsible water conservation measures in the operations of non-Federal recipients of irrigation water from Federal reclamation projects, where such measures are shown to be economically feasible for such non-Federal recipients.
(b) Development of plan
Each district that has entered into a repayment contract or water service contract pursuant to Federal reclamation law or the Water Supply Act of 1958, as amended (
(c) Coordination of ongoing programs; full public participation
The Secretary is authorized and directed to enter into memorandums of agreement with those Federal agencies having capability to assist in implementing water conservation measures to assure coordination of ongoing programs. Such memorandums should provide for involvement of non-Federal entities such as States, Indian tribes, and water user organizations to assure full public participation in water conservation efforts.
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Editorial Notes
References in Text
Federal reclamation law, referred to in subsecs. (a) and (b), is defined in
The Water Supply Act of 1958, as amended, referred to in subsec. (b), is title III of
§390kk. Residency not required
Notwithstanding any other provision of law, irrigation water made available from the operation of reclamation project facilities shall not be withheld from delivery to any project lands for the reason that the owners, lessees, or operators do not live on or near them.
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§390ll. Corps of Engineers projects
(a) Applicability of Federal reclamation laws
Notwithstanding any other provision of law, neither the ownership or pricing limitation provisions nor the other provisions of Federal reclamation law, including this subchapter, shall be applicable to lands receiving benefits from Federal water resources projects constructed by the United States Army Corps of Engineers, unless—
(1) the project has, by Federal statute, explicitly been designated, made a part of, or integrated with a Federal reclamation project; or
(2) the Secretary, pursuant to his authority under Federal reclamation law, has provided project works for the control or conveyance of an agricultural water supply for the lands involved.
(b) Payment of construction, operation, maintenance and administrative costs allocated to conservation or irrigation storage
Notwithstanding any other provision of this section to the contrary, obligations that require water users, pursuant to contracts with the Secretary, to repay the share of construction costs and to pay the share of the operation and maintenance and contract administrative costs of a Corps of Engineers project which are allocated to conservation storage or irrigation storage shall remain in effect.
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Editorial Notes
References in Text
Federal reclamation law, referred to in subsec. (a), is defined in
§390mm. Repayment of construction charges
(a) Ownership and pricing limitations inapplicable when repayment obligation has been discharged
The ownership and full cost pricing limitations of this subchapter and the ownership limitations provided in any other provision of Federal reclamation law shall not apply to lands in a district after the obligation of a district for the repayment of the construction costs of the project facilities used to make project water available for delivery to such lands shall have been discharged by a district (or by a person within the district pursuant to a contract existing on October 12, 1982), by payment of periodic installments throughout a specified contract term, including individual or district accelerated payments where so provided in contracts existing on October 12, 1982.
(b) Certification of freedom from ownership and pricing limitations
(1) The Secretary shall provide, upon request of any owner of a landholding for which repayment has occurred, a certificate acknowledging that the landholding is free of the ownership or full cost pricing limitation of Federal reclamation law. Such certificate shall be in a form suitable for entry in the land records of the county in which such landholding is located.
(2) Any certificate issued by the Secretary prior to October 12, 1982, acknowledging that the landholding is free of the acreage limitation of Federal reclamation law is hereby ratified.
(c) Lump sum or accelerated repayment of construction costs
Nothing in this subchapter shall be construed as authorizing or permitting lump sum or accelerated repayment of construction costs, except in the case of a repayment contract which is in effect upon October 12, 1982, and which provides for such lump sum or accelerated repayment by an individual or district.
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Editorial Notes
References in Text
Federal reclamation law, referred to in subsecs. (a) and (b), is defined in
§390nn. Trusts
(a) The ownership and full cost pricing limitations of this subchapter and the ownership limitations provided in any other provision of Federal reclamation law shall not apply to lands in a district which are held by an individual or corporate trustee in a fiduciary capacity for a beneficiary or beneficiaries whose interests in the lands served do not exceed the ownership and pricing limitations imposed by Federal reclamation law, including this subchapter.
(b) Lands placed in a revocable trust shall be attributable to the grantor if—
(1) the trust is revocable at the discretion of the grantor and revocation results in the title to such lands reverting either directly or indirectly to the grantor; or
(2) the trust is revoked or terminated by its terms upon the expiration of a specified period of time and the revocation or termination results in the title to such lands reverting either directly or indirectly to the grantor.
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Editorial Notes
References in Text
Federal reclamation law, referred to in subsec. (a), is defined in
Amendments
1987—
§390oo. Temporary supplies of water
(a) Limitations inapplicable
Neither the ownership limitations of this subchapter nor the ownership limitations of any other provision of Federal reclamation law shall apply to lands which receive only a temporary, not to exceed one year, supply of water made possible as a result of—
(1) an unusually large water supply not otherwise storable for project purposes; or
(2) infrequent and otherwise unmanaged flood flows of short duration.
(b) Waiver of payment for temporary water supplies
The Secretary shall have the authority to waive payments for a supply of water described in subsection (a).
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Editorial Notes
References in Text
Federal reclamation law, referred to in subsec. (a), is defined in
§390pp. Involuntary foreclosure
Neither the ownership limitations of this subchapter nor the ownership limitations of any other provision of Federal reclamation law shall apply to lands when the lands are acquired by involuntary foreclosure, or similar involuntary process of law, by bona fide conveyance in satisfaction of a debt (including, but not limited to, a mortgage, real estate contract, or deed of trust), by inheritance, or by devise: Provided, That such lands were eligible to receive irrigation water prior to such transfer of title or the mortgaged lands became ineligible to receive water after the mortgage is recorded but before it is acquired by involuntary foreclosure or similar involuntary process of law or by bona fide conveyance in satisfaction of mortgage: Provided further, That if, after acquisition, such lands are not qualified under Federal reclamation law, including this subchapter, they shall be furnished temporarily with an irrigation water supply for a period not exceeding five years from the effective date of such an acquisition, delivery of irrigation water thereafter ceasing until the transfer thereof to a landowner qualified under such laws: Provided further, That the provisions of
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Editorial Notes
References in Text
Federal reclamation law, referred to in text, is defined in
§390qq. Isolated tracts
Neither the ownership limitations of this subchapter nor the ownership limitations of any other provision of Federal reclamation law shall apply to lands which are isolated tracts found by the Secretary to be economically farmable only if they are included in a larger farming operation but which may, as a result of their inclusion in that operation, cause it to exceed such ownership limitations.
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Editorial Notes
References in Text
Federal reclamation law, referred to in text, is defined in
§390rr. Central Arizona Project
Lands receiving irrigation water pursuant to a contract with the Secretary as authorized under title III of the Colorado River Basin Project Act (
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Editorial Notes
References in Text
The Colorado River Basin Project Act, referred to in text, is
Federal reclamation law, referred to in text, is defined in
§390ss. Religious or charitable organizations
An individual religious or charitable entity or organization (including but not limited to a congregation, parish, school, ward, or chapter) which is exempt from taxation under section 501 of the Internal Revenue Code of 1986, as amended (
(1) the agricultural produce and the proceeds of sales of such produce are directly used only for charitable purposes;
(2) said land is operated by said individual religious or charitable entity or organization (or subdivisions thereof); and
(3) no part of the net earnings of such religious or charitable entity or organization (or subdivision thereof) shall inure to the benefit of any private shareholder or individual.
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Editorial Notes
Amendments
1986—
§390tt. Contract required
Irrigation water temporarily made available from reclamation facilities in excess of ordinary quantities not otherwise storable for project purposes or at times when such irrigation water would not have been available without the operations of those facilities, may be used for irrigation, municipal, or industrial purposes only to the extent covered by a contract requiring payment for the use of such irrigation water, executed in accordance with the Reclamation Project Act of 1939 [
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Editorial Notes
References in Text
The Reclamation Project Act of 1939, referred to in text, is act Aug. 4, 1939, ch. 418,
Federal reclamation law, referred to in text, is defined in
§390uu. Waiver of sovereign immunity
Consent is given to join the United States as a necessary party defendant in any suit to adjudicate, confirm, validate, or decree the contractual rights of a contracting entity and the United States regarding any contract executed pursuant to Federal reclamation law. The United States, when a party to any suit, shall be deemed to have waived any right to plead that it is not amenable thereto by reason of its sovereignty, and shall be subject to judgments, orders, and decrees of the court having jurisdiction, and may obtain review thereof, in the same manner and to the same extent as a private individual under like circumstances. Any suit pursuant to this section may be brought in any United States district court in the State in which the land involved is situated.
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Editorial Notes
References in Text
Federal reclamation law, referred to in text, is defined in
§390vv. Excess crop restrictions
(a) Report to Congress on production of surplus crops on acreage served by irrigation water
Within one year of October 12, 1982, the Secretary of Agriculture, with the cooperation of the Secretary of the Interior, shall transmit to the Congress a report on the production of surplus crops on acreage served by irrigation water. The report shall include—
(1) data delineating the production of surplus crops on lands served by irrigation water;
(2) the percentage of participation of farms served by irrigation water in set-aside programs, by acreage, crop, and State;
(3) the feasibility and appropriateness of requiring the participation in acreage set-aside programs of farms served by irrigation water and the costs of such a requirement; and
(4) any recommendations concerning how to coordinate national reclamation policy with agriculture policy to help alleviate recurring problems of surplus crops and low commodity prices.
(b) Restrictions prohibiting delivery of irrigation water for production of excess basic agricultural commodities
In addition, notwithstanding any other provision of law, in the case of any Federal reclamation project authorized before October 12, 1982, any restriction prohibiting the delivery of irrigation water for the production of excess basic agricultural commodities shall extend for a period no longer than ten years after the date of the initial authorization of such project.
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§390ww. Administrative provisions
(a) Existing Federal reclamation law
The provisions of Federal reclamation law shall remain in full force and effect, except to the extent such law is amended by, or is inconsistent with, this subchapter.
(b) Existing statutory exemptions from ownership or pricing limitations of Federal reclamation law
Nothing in this subchapter shall repeal or amend any existing statutory exemptions from the ownership or pricing limitations of Federal reclamation law.
(c) Regulations; collection of necessary data
The Secretary may prescribe regulations and shall collect all data necessary to carry out the provisions of this subchapter and other provisions of Federal reclamation law.
(d) Omitted
(e) Sale of nonexcess land acquired into excess status pursuant to involuntary process of law, etc.
Any nonexcess land which is acquired into excess status pursuant to involuntary foreclosure or similar involuntary process of law, conveyance in satisfaction of a debt (including, but not limited to, a mortgage, real estate contract, or deed of trust), inheritance, or devise, may be sold at its fair market value without regard to any other provision of this subchapter or to
(f) Omitted
(g) Annual audit of compliance with reclamation laws
In addition to any other audit or compliance activities which may otherwise be undertaken, the Secretary of the Interior, or his designee, shall conduct a thorough audit of the compliance with the reclamation law of the United States, specifically including this subchapter, by legal entities and individuals subject to such law. At a minimum, the Secretary shall complete audits of those legal entities and individuals whose landholdings or operations exceed 960 acres within 3 years.
(h) Recordable contracts executed prior to October 12, 1982
The provisions of
(i) Collection of underpayment with interest for irrigation water
When the Secretary finds that any individual or legal entity subject to reclamation law, including this subchapter, has not paid the required amount for irrigation water delivered to a landholding pursuant to reclamation law, including this subchapter, he shall collect the amount of any underpayment with interest accruing from the date the required payment was due until paid. The interest rate shall be determined by the Secretary of the Treasury on the basis of the weighted average yield of all interest bearing marketable issues sold by the Treasury during the period of underpayment.
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Editorial Notes
References in Text
The Federal reclamation law, referred to in subsecs. (a) to (c), is defined in
This subchapter, referred to in subsecs. (a) to (c) and (e), was in the original "this title", meaning title II (§§201–230) of
This subchapter, referred to in subsecs. (g) and (i), was in the original "this Act" and was translated as reading "this title". See note above.
Codification
Section is comprised of section 224 of
Amendments
1995—Subsec. (g).
1994—Subsec. (g).
1987—Subsecs. (g) to (i).
§390xx. Validation of contracts entered into prior to October 1, 1981
The provisions of any contract entered into prior to October 1, 1981, by the Secretary with a district, which define project or nonproject water, or describe the delivery of project water through nonproject facilities or nonproject water through project facilities to lands within the district, are hereby authorized and validated on the part of the United States.
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§390yy. Leasing requirements
Notwithstanding any other provision of Federal reclamation law, including this subchapter, lands which receive irrigation water may be leased only if the lease instrument is—
(1) written; and
(2) for a term not to exceed ten years, including any exercisable options: Provided, however, That leases of lands for the production of perennial crops having an average life of more than ten years may be for periods of time equal to the average life of the perennial crop but in any event not to exceed twenty-five years.
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Editorial Notes
References in Text
Federal reclamation law, referred to in text, is defined in
§390zz. Reporting
Any contracting entity subject to the ownership or pricing limitations of Federal reclamation law shall compile and maintain such records and information as the Secretary deems reasonably necessary to implement this subchapter and Federal reclamation law. On a date set by the Secretary following October 12, 1982, and annually thereafter, every such contracting entity shall provide in a form suitable to the Secretary such reports on the above matters as the Secretary may require.
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Editorial Notes
References in Text
Federal reclamation law, referred to in text, is defined in
§390zz–1. Severability
If any provision of this subchapter or the applicability thereof to any person or circumstances is held invalid, the remainder of this subchapter and the application of such provision to other persons or circumstances shall not be affected thereby.
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Editorial Notes
References in Text
This subchapter, referred to in text, was in the original "this title", meaning title II (§§201–230) of