§501 Disposition of Profits of Project Taken Over by Water Users

Summary

When water users take over the care, operation, and maintenance of a whole project or part of it, all past net profits from project power plants, leases of grazing and farm lands, and from sale or use of town sites must be applied to the project's construction charge. After that, each year net profits may be used in this order: first toward the construction charge, second toward operation and maintenance costs, and third as the water users decide. No money can be given to individual water users from these profits until all obligations to the Government are fully paid.