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U.S. Code as of:
01/19/04
Section 423e. Completion of new projects or new division; execution of contract with district as condition precedent to delivery of water; contents of contract; cooperation of States with United States; limitations on sale of land
No water shall be delivered upon the completion of any new
project or new division of a project until a contract or contracts
in form approved by the Secretary of the Interior shall have been
made with an irrigation district or irrigation districts organized
under State law providing for payment by the district or districts
of the cost of constructing, operating, and maintaining the works
during the time they are in control of the United States, such cost
of constructing to be repaid within such terms of years as the
Secretary may find to be necessary, in any event not more than
forty years from the date of public notice hereinafter referred to,
and the execution of said contract or contracts shall have been
confirmed by a decree of a court of competent jurisdiction. Prior
to or in connection with the settlement and development of each of
these projects, the Secretary of the Interior is authorized in his
discretion to enter into agreement with the proper authorities of
the State or States wherein said projects or divisions are located
whereby such State or States shall cooperate with the United States
in promoting the settlement of the projects or divisions after
completion and in the securing and selecting of settlers. Such
contract or contracts with irrigation districts hereinbefore
referred to shall further provide that all irrigable land held in
private ownership by any one owner in excess of one hundred and
sixty irrigable acres shall be appraised in a manner to be
prescribed by the Secretary of the Interior and the sale prices
thereof fixed by the Secretary on the basis of its actual bona fide
value at the date of appraisal without reference to the proposed
construction of the irrigation works; and that no such excess lands
so held shall receive water from any project or division if the
owners thereof shall refuse to execute valid recordable contracts
for the sale of such lands under terms and conditions satisfactory
to the Secretary of the Interior and at prices not to exceed those
fixed by the Secretary of the Interior; and that until one-half the
construction charges against said lands shall have been fully paid
no sale of any such lands shall carry the right to receive water
unless and until the purchase price involved in such sale is
approved by the Secretary of the Interior and that upon proof of
fraudulent representation as to the true consideration involved in
such sales the Secretary of the Interior is authorized to cancel
the water right attaching to the land involved in such fraudulent
sales: Provided, however, That if excess land is acquired by
foreclosure or other process of law, by conveyance in satisfaction
of mortgages, by inheritance, or by devise, water therefor may be
furnished temporarily for a period not exceeding five years from
the effective date of such acquisition, delivery of water
thereafter ceasing until the transfer thereof to a landowner duly
qualified to secure water therefor: Provided further, That the
operation and maintenance charges on account of lands in said
projects and divisions shall be paid annually in advance not later
than March 1. It shall be the duty of the Secretary of the Interior
to give public notice when water is actually available, and the
operation and maintenance charges payable to the United States for
the first year after such public notice shall be transferred to and
paid as a part of the construction payment.
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