§485f Negotiation of equitable contracts by Secretary

Summary

The Secretary must look into repayment problems for existing project units and try to make a fair repayment contract when a standard contract under sections 485b or 485c would not work or would not be economically sensible. For projects that were under construction on August 4, 1939, or that had funding approved but no repayment contract, cost allocations can follow section 485h and the Secretary may negotiate a repayment contract either under the authority above or as close as possible to the rules in section 485h(d) or 485h(e). If most of the lands are public, the Secretary may set a development period for each irrigation block of up to ten years from the first year water is delivered. If a development period is set before a contract is signed, the contract must be in place before water is supplied after that period ends. During a development period, water is sold only on a toll-charge basis, charged per acre-foot each year and collected in advance. For other such projects, water may be delivered for up to five years from August 4, 1939, on the same toll-charge basis. Any tolls collected that are more than the operation and maintenance costs must be applied to the project’s construction costs as the Secretary decides. The Secretary must report to Congress on proposed contracts made under the investigation authority or the special authority above, and may sign those contracts only after Congress approves them by law. After Congress approves a contract, the parties may amend it by mutual agreement without more Congressional approval if the changes fall within the Secretary’s legal authority before or after April 24, 1945. Any amendment that lengthens the allowed repayment period beyond what this subchapter permits must be approved by Congress.