43 U.S.C. § 485h–1: Administration of…

Summary

The Secretary of the Interior must put certain rules into long-term water and repayment contracts. Contracts can include an option to renew if the other party asks, with agreed terms that let charges go up or down to match changes in construction, operation, and maintenance costs or the party’s ability to repay. Contracts can also include an option to convert a long-term deal to a repayment contract when, after crediting amounts already returned, the remaining repayable construction cost can likely be paid off in the repayment term. Each year the Secretary must credit any payments that exceed the party’s share of operation and maintenance costs toward the repayable construction amount, and must set up credits for past payments as soon after July 2, 1956 as is feasible. When credits equal the amount the Secretary would have required under a repayment contract (set when the project is completed or earlier), no construction charge will be included in water rates. Contracts must give the party first priority to a stated share of available water during the contract and on renewal, and a permanent right to that share after full repayment, subject to paying their share of future operation and maintenance costs. Rates may be billed in advance on an annual, semiannual, bimonthly, or monthly basis, and may include a reasonable construction charge until the repayable construction cost is amortized.

Title 43, §485h–1

Public Lands, Source: USLM XML via OLRC

In administering subsections (d) and (e) of section 485h of this title, the Secretary of the Interior shall—

(1)include in any long-term contract hereafter entered into under subsection (e) of section 485h of this title provision, if the other contracting party so requests, for renewal thereof under stated terms and conditions mutually agreeable to the parties. Such terms and conditions shall provide for an increase or decrease in the charges set forth in the contract to reflect, among other things, increases or decreases in construction, operation, and maintenance costs and improvement or deterioration in the party’s repayment capacity. Any right of renewal shall be exercised within such reasonable time prior to the expiration of the contract as the parties shall have agreed upon and set forth therein;

(2)include in any long-term contract hereafter entered into under subsection (e) of section 485h of this title with a contracting organization provision, if the organization so requests, for conversion of said contract, under stated terms and conditions mutually agreeable to the parties, to a contract under subsection (d) of section 485h of this title at such time as, account being taken of the amount credited to return by the organization as hereinafter provided, the remaining amount of construction cost which is properly assignable for ultimate return by it can probably be repaid to the United States within the term of a contract under subsection (d) of section 485h of this title;

(3)credit each year to every party which has entered into or which shall enter into a long-term contract pursuant to subsection (e) of section 485h of this title so much of the amount paid by said party on or before the due date as is in excess of the share of the operation and maintenance costs of the project which the Secretary finds is properly chargeable to that party. Credit for payments heretofore made under any such contract shall be established by the Secretary as soon after July 2, 1956 as it is feasible for him to do so. After the sum of such credits is equal to the amount which would have been for repayment by the party if a repayment contract under subsection (d) of section 485h of this title had been entered into, which amount shall be established by the Secretary upon completion of the project concerned or as far in advance thereof as is feasible, no construction component shall be included in any charges made for the furnishing of water to the contracting party and any charges theretofore fixed by contract or otherwise shall be reduced accordingly;

(4)provide that the other party to any contract entered into pursuant to subsection (d) of section 485h of this title or to any long-term contract entered into pursuant to subsection (e) of section 485h of this title shall, during the term of the contract and of any renewal thereof and subject to fulfillment of all obligations thereunder, have a first right (to which right the rights of the holders of any other type of irrigation water contract shall be subordinate) to a stated share or quantity of the project’s available water supply for beneficial use on the irrigable lands within the boundaries of, or owned by, the party and a permanent right to such share or quantity upon completion of payment of the amount assigned for ultimate return by the party subject to payment of an appropriate share of such costs, if any, as may thereafter be incurred by the United States in its operation and maintenance of the project works; and

(5)Provide for payment of rates under any contract entered into pursuant to said subsection (e) in advance of delivery of water on an annual, semiannual, bimonthly, or monthly basis as specified in the contract.

(6)include a reasonable construction component in the rates set out in any long-term contract hereafter entered into under subsection (e) of section 485h of this title prior to amortization of that part of the cost of constructing the project which is assigned to be repaid by the contracting party.

Editorial Notes

Codification Section was not enacted as part of the Reclamation Project Act of 1939 which comprises this subchapter.

Amendments

1980—Cl. (5). Pub. L. 96–375 authorized payments on a bimonthly and monthly basis.

§485h–1 Administration of Repayment Contracts and Long-term Contracts to Furnish Water; Renewal and Conversion; Credit for Payments; Right to Available Water Supply; Rates; Construction Component

Summary

Title 43, §485h–1

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata