§390ii Disposition of excess lands

Summary

Irrigation water from federal reclamation projects cannot be sent to lands that exceed the federal ownership limits unless the landowner signs a contract the government records. That contract must require the owner to sell the extra land within a time the Secretary sets. If the contract was made before October 12, 1982, the sale time cannot be more than ten years after the contract is signed by the Secretary. If the contract was made after October 12, 1982, the sale time cannot be more than five years after the Secretary signs it, except as allowed under section 390rr. Lands that could get water on October 12, 1982 may only receive water if there was already a recorded contract requiring sale or the owner has asked for such a contract. Recorded contracts in place on October 12, 1982 must be changed if the owner asks, so they match the ownership limits, but the sale deadline cannot be lengthened except as described below. Contracts must give the Secretary power to sell any extra land the owner still holds after the deadline. The Secretary must sell fairly to qualified buyers and must return to the owner the fair market value of the land not tied to the water plus the value of any improvements. If the Secretary previously stopped processing a sale (for example by court order), the owner’s time to sell is extended by the amount of time left when processing was stopped, starting when processing resumes. Land properly sold under these rules cannot get project water again unless it is held by owners within the limits, and sales made after October 12, 1982 must carry a 10-year deed covenant that limits resale price to the land’s value growth not caused by water plus new improvements; after ten years that covenant ends and limits under section 423e no longer apply.