§390ii Disposition of Excess Lands

Summary

Irrigation water cannot be sent to land that a person owns beyond the federal ownership limits unless the owner signs a recordable contract with the Secretary to sell the excess land within a set time. For contracts signed before October 12, 1982, that time cannot be more than ten years after the contract is signed. For contracts signed after October 12, 1982, the time cannot be more than five years after signing, except as allowed by section 390rr. Land that on October 12, 1982 was getting or could get project water may only keep getting water if a contract already requires the owner to dispose of the excess land or if the owner has asked for such a contract. Existing contracts can be changed at the owner’s request to match the ownership limits, but the disposal time cannot be extended except as described below. Contracts must give the Secretary a power of attorney to sell any excess land the owner has not sold in time. The Secretary must sell by a fair process to qualified buyers and must pay the owner the land’s fair market value that is not tied to water plus the value of improvements. If the Secretary previously stopped processing a sale and that prevented the owner from selling, the owner’s deadline is extended by the amount of time still left when the stoppage began, starting when processing resumes. Land sold under these rules can get project water only if held by nonexcess owners; disposals after October 12, 1982 must carry a 10-year covenant limiting resale gains above new improvements and market gains not due to water. After that covenant ends, the title is freed of sale-value limits that might otherwise apply under section 423e.