Title 43 — Public LandsRelease 119-73
§501 Disposition of profits of project taken over by water users
Title 43 › Chapter CHAPTER 12— - RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT › Subchapter SUBCHAPTER XI— - MAINTENANCE AND OPERATION OF WORKS GENERALLY › § 501
Summary
When water users take over a project or part, the Secretary must total net profits from power, leased lands, and town sites and credit them to the construction charge. Then yearly profits go first to construction, then to operation and maintenance, then as users direct; no individual payments until government obligations are paid.
Full Legal Text
Title 43, §501
Public Lands — Source: USLM XML via OLRC
Whenever the water users take over the care, operation, and maintenance of a project, or a division of a project, the total accumulated net profits, as determined by the Secretary, derived from the operation of project power plants, leasing of project grazing and farm lands, and the sale or use of town sites shall be credited to the construction charge of the project, or a division thereof, and thereafter the net profits from such sources may be used by the water users to be credited annually, first, on account of project construction charge, second, on account of project operation and maintenance charge, and third, as the water users may direct. No distribution to individual water users shall be made out of any such profits before all obligations to the Government shall have been fully paid.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Definitions The definitions in section 371 of this title apply to this section.
Reference
Citations & Metadata
Citation
43 U.S.C. § 501
Title 43 — Public Lands
Last Updated
Apr 6, 2026
Release point: 119-73