Title 43 — Public LandsRelease 119-73not60

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

Title 43 › Chapter 12— RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT › Subchapter XI— MAINTENANCE AND OPERATION OF WORKS GENERALLY › § 501

Last updated Apr 5, 2026|Official source

Summary

When water users take over a project or a division, the Secretary must put the accumulated net profits from project power, leased lands, and town-site sales against the project's construction charge. After that, profits are applied each year: first to the construction charge, second to operation and maintenance, and third as the water users direct; no individual payments can be made until all obligations to the Government are fully paid.

Full Legal Text

Title 43, §501

Public Lands — Source: USLM XML via OLRC

Whenever the water users take over the care, operation, and maintenance of a project, or a division of a project, the total accumulated net profits, as determined by the Secretary, derived from the operation of project power plants, leasing of project grazing and farm lands, and the sale or use of town sites shall be credited to the construction charge of the project, or a division thereof, and thereafter the net profits from such sources may be used by the water users to be credited annually, first, on account of project construction charge, second, on account of project operation and maintenance charge, and third, as the water users may direct. No distribution to individual water users shall be made out of any such profits before all obligations to the Government shall have been fully paid.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Definitions The definitions in section 371 of this title apply to this section.

Reference

Citations & Metadata

Citation

43 U.S.C. § 501

Title 43 — Public Lands

Last Updated

Apr 5, 2026

Release point: 119-73not60