43 U.S.C. § 485f — Negotiation of equitable contracts by Sec-

Page 164 TITLE 43—PUBLIC LANDS § 485e 1 See References in Text note below. Statutory Notes and Related Subsidiaries EXTENSION OF SECRETARY’S AUTHORITY TO ENTER INTO AMENDATORY CONTRACTS Secretary’s authority extended through Dec. 31, 1960, see section 485b–1 of this title. § 485e. Maintenance and operation of project works; delinquency penalties In connection with any contract, relating to construction charges, entered into pursuant to the authority of this subchapter, the Secretary is authorized to require such provisions as he 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 deteriora- tion due to improper use of water. Any such con- tract shall require advance payment of adequate operation and maintenance charges. The Sec- retary is further authorized, in his discretion, to require such provisions as he deems proper to penalize delinquencies in payments of construc- tion charges or operation and maintenance charges: Provided, That in any event there shall be penalties imposed on account of delin- quencies of not less than one-half of 1 per cen- tum per month of the delinquent charge from and after the date when such charge becomes due and payable: Provided further, That any such contract shall require that no water shall be de- livered to lands or parties which are in arrears in the advance payment of operation and main- tenance or toll charges, or to lands or parties which are in arrears for more than twelve months in the payment of construction charges due from such lands or parties to the United States or to the organization in which the lands or parties are included, or to any lands or par- ties included in an organization which is in ar- rears in the advance payment of operation and maintenance or toll charges or in arrears more than twelve months in the payment of construc- tion charges due from such organization to the United States. (Aug. 4, 1939, ch. 418, § 6, 53 Stat. 1191.) § 485f. Negotiation of equitable contracts by Sec- retary (a) Existing project contract unit The Secretary is authorized and directed to in- vestigate the repayment problems of any exist- ing project contract unit in connection with which, in his judgment, a contract under section 485b or 485c 1 of this title would not be prac- ticable nor provide an economically sound ad- justment, and to negotiate a contract which, in his judgment, both would provide fair and equi- table treatment of the repayment problems in- volved and would be in keeping with the general purpose of this subchapter. (b) New projects or projects under construction; public lands; development periods For any project, division of a project, develop- ment unit of a project, or supplemental works on a project, under construction on August 4, 1939, or for which appropriations had been made, and in connection with which a repayment con- tract had not been executed, allocations of costs may be made in accordance with the provisions of section 485h of this title and a repayment con- tract may be negotiated, in the discretion of the Secretary, (1) pursuant to the authority of sub- section (a) of this section or (2) in accordance, as near as may be, with the provisions in section 485h(d) or 485h(e) of this title. In connection with any such project, division, or development unit, on which the majority of the lands in- volved are public lands of the United States, the Secretary, prior to entering into a repayment contract, may fix a development period for each irrigation block, if any, of not to exceed ten years from and including the first year in which water is delivered for the lands in said block: Provided, That in the event a development pe- riod is fixed prior to execution of a repayment contract, execution thereof shall be a condition precedent to delivery of water after the close of the development period. During any such devel- opment period water shall be delivered to the lands in the irrigation block involved only on a toll-charge basis, at a charge per annum per acre-foot to be fixed by the Secretary each year and to be collected in advance of delivery of water. Pending negotiation and execution of a repayment contract for any other such project, division, or development unit, water may be de- livered for a period of not more than five years from August 4, 1939, on the same toll-charge basis. Any such toll charges collected and which the Secretary determines to be in excess of the cost of operation and maintenance during the toll-charge period shall be credited to the con- struction cost of the project in the manner de- termined by the Secretary. (c) Report of proposed contracts to Congress; ap- proval; amendment after approval The Secretary from time to time shall report to the Congress on any proposed contracts nego- tiated pursuant to the authority of subsection (a) or (b)(1) of this section, and he may execute any such contract on behalf of the United States only after approval thereof has been given by Act of Congress. Contracts, so approved, how- ever, may be amended from time to time by mu- tual agreement and without further approval by Congress if such amendments are within the scope of authority granted prior to or after April 24, 1945, to the Secretary under any Act, except that amendments providing for repayment of construction charges in a period of years longer than authorized by this subchapter, as it may be amended, shall be effective only when approved by Congress. (Aug. 4, 1939, ch. 418, § 7, 53 Stat. 1192; Apr. 24, 1945, ch. 94, § 2, 59 Stat. 76.) Editorial Notes REFERENCES IN TEXT Section 485c of this title, referred to in subsec. (a), was repealed by Pub. L. 85–611, § 3, Aug. 8, 1958, 72 Stat. 543. AMENDMENTS 1945—Subsec. (c). Act Apr. 24, 1945, added second sen- tence. Page 165 TITLE 43—PUBLIC LANDS § 485h 1 See References in Text note below. EXTENSION OF SECRETARY’S AUTHORITY TO ENTER INTO AMENDATORY CONTRACTS Secretary’s authority extended through Dec. 31, 1960, see section 485b–1 of this title. § 485g. Classification of lands (a) Generally The Secretary is authorized and directed in the manner hereinafter provided to classify or to reclassify, from time to time but not more often than at five-year intervals, as to irrigability and productivity those lands which have been, are, or may be included within any project. (b) Necessity for request No classification or reclassification pursuant to the authority of this subchapter shall be un- dertaken unless a request therefor, by an organi- zation or duly authorized representatives of the water users, in the form required by subsection (c) of this section has been made of the Sec- retary. The Secretary shall plan the classifica- tion work, undertaken pursuant to the author- ity of this section, in such manner as in his judgment will result in the most expeditious completion of the work. (c) Furnishing data In any request made to the Secretary for a land classification or reclassification under this section, the organization or representatives of the water users shall furnish a list of those lands which are considered to be of comparatively low productivity or to be nonproductive, and of those lands which are considered to be of greater or lesser productivity than indicated by existing classifications, if any, made pursuant to the Federal reclamation laws, and shall furnish also such data relating thereto as the Secretary by regulation may require. (d) Primary determination Upon receipt of any such request the Sec- retary shall make a preliminary determination whether the requested land classification or re- classification probably is justified by reason of the conditions of the lands involved and other pertinent conditions of the project, including its contractual relations with the United States. (e) Probable justification If the Secretary finds probable justification and if the advance to the United States herein- after required is made, he shall undertake as soon as practicable the classification or reclassi- fication of the lands listed in the request, and of any other lands which have been, are, or may be included within the project involved and which in his judgment should be classified or reclassi- fied. (f) Expenses One-half of the expense involved in any classi- fication work undertaken pursuant to this sec- tion shall be charged to operation and mainte- nance administration nonreimbursable; and one- half shall be paid in advance by the organization involved. On determining probable justification for the requested classification or reclassifica- tion as provided in this section, the Secretary shall estimate the cost of the work involved and shall submit a statement of the estimated cost to said organization. Said organization, before commencement of the work, shall advance to the United States one-half of the amount set forth in said statement and also shall advance one-half of the amount of supplementary esti- mates of costs which the Secretary may find it necessary to make from time to time during the progress of the work; and said amounts shall be and remain available for expenditure by the Sec- retary for the purposes for which they are ad- vanced, until the work is completed or aban- doned. After completion or abandonment of the work, the Secretary, shall determine the actual costs thereof; and said organization shall pay any additional amount required to make its total payments hereunder equal to one-half of the actual cost or shall be credited with any amount by which advances made by it exceed one-half of said actual cost, as the case may be. (g) Classification as prerequisite to contract If in the judgment of the Secretary a classi- fication or reclassification pursuant to the pro- visions of this section is a necessary preliminary to entering into a contract under section 485b or 485c 1 of this title, he may require the same as a condition precedent to entering into such a con- tract. (h) Modification of existing obligations No modification of any existing obligation to pay construction charges on any project shall be made by reason of any classification or reclassi- fication undertaken pursuant to this section without express authority therefor granted by Congress upon recommendations of the Sec- retary made in a report under subsection (f) of this section. (Aug. 4, 1939, ch. 418, § 8, 53 Stat. 1192; Pub. L. 93–608, § 1(18), Jan. 2, 1975, 88 Stat. 1970.) Editorial Notes REFERENCES IN TEXT The Federal reclamation laws, referred to in subsec. (c), are defined in section 485a of this title. Section 485c of this title, referred to in subsec. (g), was repealed by Pub. L. 85–611, § 3, Aug. 8, 1958, 72 Stat. 543. AMENDMENTS 1975—Subsecs. (f) to (i). Pub. L. 93–608 redesignated subsecs. (g) to (i) as (f) to (h), respectively. Former sub- sec. (f), which required a report to Congress by the Sec- retary on classifications and reclassifications or project lands, was struck out. § 485h. New projects; sale of water and electric power; lease of power privileges (a) Findings of Secretary No expenditures for the construction of any new project, new division of a project, or new supplemental works on a project shall be made, nor shall estimates be submitted therefor, by the Secretary until after he has made an inves- tigation thereof and has submitted to the Presi- dent and to the Congress his report and findings on— (1) the engineering feasibility of the pro- posed construction;