§485f Negotiation of Equitable Contracts by Secretary

Summary

The Secretary must look into repayment troubles for any existing project unit when making a new contract under sections 485b or 485c would not be practical or make economic sense. He may then negotiate a fair repayment contract. For projects that were under construction on August 4, 1939, or had money already appropriated but had no repayment contract, cost shares can be set under section 485h and a repayment contract can be negotiated either under the authority above or as close as possible to the rules in 485h(d) or 485h(e). If most of the lands are U.S. public lands, the Secretary may set a development period for each irrigation block of up to ten years starting with the first year water is delivered. If a development period is set before a contract is signed, the contract must be signed before water is delivered after the development period ends. During a development period water is sold on a toll basis, charged per acre-foot each year and paid in advance. Pending a contract, water may be delivered for up to five years from August 4, 1939, on the same toll basis. Any tolls that exceed operation and maintenance costs during that time will be applied to the project’s construction cost as the Secretary decides. The Secretary must report proposed contracts made under those authorities to Congress, and may only sign such contracts for the United States after Congress approves them by law. Once Congress approves a contract, the parties may amend it by mutual agreement without new Congressional approval if the changes are within the Secretary’s legal authority granted before or after April 24, 1945. But any amendment that extends repayment over more years than this subchapter allows must be approved by Congress.