§390ii Disposition of Excess Lands

Summary

Irrigation water from federal reclamation projects must not be given to land owned beyond the federal ownership limits unless the landowner signs a recordable contract with the Secretary to sell the extra land within a deadline the Secretary sets. For contracts signed before October 12, 1982, that deadline cannot be more than ten years after the Secretary signs. For contracts signed after October 12, 1982, the deadline cannot be more than five years after the Secretary signs, except as allowed by section 390rr. Land that exceeded limits on October 12, 1982 and could get project water may only receive water if an existing recorded contract already requires disposal or if the owner has asked for such a contract. Contracts in place on October 12, 1982 can be changed at the owner’s request to meet the ownership limits, but the time to sell cannot be lengthened except as described below. Each contract must give the Secretary a power to sell any excess land the owner does not sell in time. The Secretary must sell fairly to qualified buyers under reasonable rules and must pay the owner the fair market value of the land not tied to irrigation water plus the value of any improvements. If the Secretary previously stopped processing a sale (for example by court order) and later restarts, the owner gets an extension equal to the time left when processing stopped. Land disposed of under the law cannot get project water unless a nonexcess owner holds it and, for sales after October 12, 1982, the title carries a covenant for ten years limiting resale value gains to the value of new improvements plus market gains unrelated to water; after ten years those resale limits end and any rules under section 423e no longer apply.