Collapse to view only § 390tt. Contract required

§ 390aa. Congressional declaration of purpose; short title

This subchapter shall amend and supplement the Act of June 17, 1902, and Acts supplementary thereto and amendatory thereof (43 U.S.C. 371), hereinafter referred to as “Federal reclamation law”. This subchapter may be referred to as the “Reclamation Reform Act of 1982”.

(Pub. L. 97–293, title II, § 201, Oct. 12, 1982, 96 Stat. 1263.)
§ 390bb. DefinitionsAs used in this subchapter:
(1) The term “contract” means any repayment or water service contract between the United States and a district providing for the payment of construction charges to the United States including normal operation, maintenance, and replacement costs pursuant to Federal reclamation law.
(2) The term “district” means any individual or any legal entity established under State law which has entered into a contract or is eligible to contract with the Secretary for irrigation water.
(3)
(A) The term “full cost” means an annual rate as determined by the Secretary that shall amortize the expenditures for construction properly allocable to irrigation facilities in service, including all operation and maintenance deficits funded, less payments, over such periods as may be required under Federal reclamation law or applicable contract provisions, with interest on both accruing from October 12, 1982, on costs outstanding at that date, or from the date incurred in the case of costs arising subsequent to October 12, 1982: Provided, That operation, maintenance, and replacement charges required under Federal reclamation law, including this subchapter, shall be collected in addition to the full cost charge.
(B) The interest rate used for expenditures made on or before October 12, 1982, shall be determined by the Secretary of the Treasury on the basis of the weighted average yield of all interest bearing, marketable issues sold by the Treasury during the fiscal year in which the expenditures by the United States were made, but shall not be less than 7½ per centum per annum.
(C) The interest rate used for expenditures made after October 12, 1982, shall be determined by the Secretary of the Treasury on the basis of the arithmetic average of—
(i) the rate as of the beginning of the fiscal year in which expenditures are made on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations which are neither due nor callable for redemption for fifteen years from the date of issuance; and
(ii) the weighted average yield on all interest-bearing, marketable issues sold by the Treasury during the fiscal year preceding the fiscal year in which the expenditures are made.
(4) The term “individual” means any natural person, including his or her spouse, and including other dependents thereof within the meaning of the Internal Revenue Code of 1986 (26 U.S.C. 152).
(5) The term “irrigation water” means water made available for agricultural purposes from the operation of reclamation project facilities pursuant to a contract with the Secretary.
(6) The term “landholding” means total irrigable acreage of one or more tracts of land situated in one or more districts owned or operated under a lease which is served with irrigation water pursuant to a contract with the Secretary. In determining the extent of a landholding the Secretary shall add to any landholding held directly by a qualified or limited recipient that portion of any landholding held indirectly by such qualified or limited recipient which benefits that qualified or limited recipient in proportion to that landholding.
(7) The term “limited recipient” means any legal entity established under State or Federal law benefiting more than twenty-five natural persons.
(8) The term “project” means any reclamation or irrigation project, including incidental features thereof, authorized by Federal reclamation law, or constructed by the United States pursuant to such law, or in connection with which there is a repayment or water service contract executed by the United States pursuant to such law, or any project constructed by the Secretary through the Bureau of Reclamation for the reclamation of lands.
(9) The term “qualified recipient” means an individual who is a citizen of the United States or a resident alien thereof or any legal entity established under State or Federal law which benefits twenty-five natural persons or less.
(10) The term “recordable contract” means a contract between the Secretary and a landowner in writing capable of being recorded under State law providing for the sale or disposition of lands held in excess of the ownership limitations of Federal reclamation law including this subchapter.
(11) The term “Secretary” means the Secretary of the Interior.
(Pub. L. 97–293, title II, § 202, Oct. 12, 1982, 96 Stat. 1263; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.)
§ 390cc. New or amended contracts
(a) Generally
The provisions of this subchapter shall be applicable to any district which—
(1) enters into a contract with the Secretary subsequent to October 12, 1982;
(2) enters into any amendment of its contract with the Secretary subsequent to October 12, 1982, which enables the district to receive supplemental or additional benefits; or
(3) which amends its contract for the purpose of conforming to the provisions of this subchapter.
(b) Amendment of existing contracts
(c) Election by qualified or limited recipients in absence of amendment to contract
(d) Consent of non-Federal party
(Pub. L. 97–293, title II, § 203, Oct. 12, 1982, 96 Stat. 1264.)
§ 390dd. Limitation on ownership
Except as provided in section 390ii of this title, irrigation water may not be delivered to—
(1) a qualified recipient for use in the irrigation of lands owned by such qualified recipient in excess of nine hundred and sixty acres of class I lands or the equivalent thereof; or
(2) a limited recipient for the use in the irrigation of lands owned by such limited recipient in excess of six hundred and forty acres of class I lands or the equivalent thereof;
whether situated in one or more districts.
(Pub. L. 97–293, title II, § 204, Oct. 12, 1982, 96 Stat. 1265.)
§ 390ee. Pricing
(a) Delivery of irrigation water at full costNotwithstanding any other provision of law, any contract with a district entered into by the Secretary as specified in section 390cc of this title, shall provide for the delivery of irrigation water at full cost as defined in section 390bb(3) of this title to:
(1) a landholding in excess of nine hundred and sixty acres of class I lands or the equivalent thereof for a qualified recipient,1
1 So in original. The comma probably should be a semicolon.
(2) a landholding in excess of three hundred and twenty acres of class I land or the equivalent thereof for a limited recipient receiving irrigation water on or before October 1, 1981; and
(3) the entire landholding of a limited recipient not receiving irrigation water on or before October 1, 1981: Provided, That the interest rate used in computing full cost under this paragraph shall be determined by the Secretary of the Treasury on the basis of the arithmetic average of—
(A) the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations which are neither due nor callable for redemption for fifteen years from the date of issuance; and
(B) the weighted average of market yields on all interest-bearing, marketable issues sold by the Treasury
during the fiscal year preceding the fiscal year in which the expenditures are made, or October 12, 1982, for expenditures made before October 12, 1982.
(b) Delivery of irrigation water at prior terms and conditions
(c) Delivery of irrigation water to lands under recordable contracts
(Pub. L. 97–293, title II, § 205, Oct. 12, 1982, 96 Stat. 1265.)
§ 390ff. Certification of compliance

As a condition to the receipt of irrigation water for lands in a district which has a contract as specified in section 390cc of this title, each landowner and lessee within such district shall furnish the district, in a form prescribed by the Secretary, a certificate that they are in compliance with the provisions of this subchapter including a statement of the number of acres leased, the term of any lease, and a certification that the rent paid reflects the reasonable value of the irrigation water to the productivity of the land. The Secretary may require any lessee to submit to him, for his examination, a complete copy of any such lease executed by each of the parties thereto.

(Pub. L. 97–293, title II, § 206, Oct. 12, 1982, 96 Stat. 1266.)
§ 390gg. Equivalency

Upon the request of any district, the ownership and pricing limitations imposed by this subchapter shall apply to the irrigable lands classified within such district by the Secretary as having class I productive potential or the equivalent thereof in larger acreage of less productive potential, as determined by the Secretary, taking into account all factors which significantly affect productivity, including but not limited to topography, soil characteristics, length of growing season, elevation, adequacy of water supply, and crop adaptability.

(Pub. L. 97–293, title II, § 207, Oct. 12, 1982, 96 Stat. 1266.)
§ 390hh. Operation and maintenance charges
(a) Price adequate to recover charges
(b) Modification of price
(c) Districts not operating from Federal funds
(Pub. L. 97–293, title II, § 208, Oct. 12, 1982, 96 Stat. 1267.)
§ 390ii. Disposition of excess lands
(a) Disposal of lands in excess of ownership limitations within reasonable time
(b) Continued delivery of irrigation water to lands held in excess of ownership limitations
Lands held in excess of the ownership limitations imposed by Federal reclamation law, including this subchapter, which, on October 12, 1982, are, or are capable of, receiving delivery of irrigation water made available by the operation of existing reclamation project facilities may receive such deliveries only—
(1) if the disposal of the owner’s interest in such lands is required by an existing recordable contract with the Secretary, or
(2) if the owners of such lands have requested that a recordable contract be executed by the Secretary.
(c) Amendment of existing recordable contracts
(d) Power of attorney requirement in contracts; exercise of power by Secretary
(e) Extension of time for disposal of excess lands
(f) Eligibility of excess lands for irrigation water after disposition
Excess lands which have been or may be disposed of in compliance with Federal reclamation law, including this subchapter, shall not be considered eligible to receive irrigation water unless—
(1) they are held by nonexcess owners; and
(2) in the case of disposals made after October 12, 1982, their title is burdened by a covenant prohibiting their sale, for a period of ten years after their original disposal to comply with Federal reclamation law, including this subchapter, for values exceeding the sum of the value of newly added improvements and the value of the land as increased by market appreciation unrelated to the delivery of irrigation water. Upon expiration of the terms of such covenant, the title to such lands shall be freed of the burden of any limitations on subsequent sale values which might otherwise be imposed by the operation of section 423e of this title.
(Pub. L. 97–293, title II, § 209, Oct. 12, 1982, 96 Stat. 1267.)
§ 390jj. Water conservation
(a) Implementation of program by non-Federal recipients
(b) Development of plan
(c) Coordination of ongoing programs; full public participation
(Pub. L. 97–293, title II, § 210, Oct. 12, 1982, 96 Stat. 1268.)
§ 390kk. Residency not required

Notwithstanding any other provision of law, irrigation water made available from the operation of reclamation project facilities shall not be withheld from delivery to any project lands for the reason that the owners, lessees, or operators do not live on or near them.

(Pub. L. 97–293, title II, § 211, Oct. 12, 1982, 96 Stat. 1269.)
§ 390ll. Corps of Engineers projects
(a) Applicability of Federal reclamation laws
Notwithstanding any other provision of law, neither the ownership or pricing limitation provisions nor the other provisions of Federal reclamation law, including this subchapter, shall be applicable to lands receiving benefits from Federal water resources projects constructed by the United States Army Corps of Engineers, unless—
(1) the project has, by Federal statute, explicitly been designated, made a part of, or integrated with a Federal reclamation project; or
(2) the Secretary, pursuant to his authority under Federal reclamation law, has provided project works for the control or conveyance of an agricultural water supply for the lands involved.
(b) Payment of construction, operation, maintenance and administrative costs allocated to conservation or irrigation storage
(Pub. L. 97–293, title II, § 212, Oct. 12, 1982, 96 Stat. 1269.)
§ 390mm. Repayment of construction charges
(a) Ownership and pricing limitations inapplicable when repayment obligation has been discharged
(b) Certification of freedom from ownership and pricing limitations
(1) The Secretary shall provide, upon request of any owner of a landholding for which repayment has occurred, a certificate acknowledging that the landholding is free of the ownership or full cost pricing limitation of Federal reclamation law. Such certificate shall be in a form suitable for entry in the land records of the county in which such landholding is located.
(2) Any certificate issued by the Secretary prior to October 12, 1982, acknowledging that the landholding is free of the acreage limitation of Federal reclamation law is hereby ratified.
(c) Lump sum or accelerated repayment of construction costs
(Pub. L. 97–293, title II, § 213, Oct. 12, 1982, 96 Stat. 1269.)
§ 390nn. Trusts
(a) The ownership and full cost pricing limitations of this subchapter and the ownership limitations provided in any other provision of Federal reclamation law shall not apply to lands in a district which are held by an individual or corporate trustee in a fiduciary capacity for a beneficiary or beneficiaries whose interests in the lands served do not exceed the ownership and pricing limitations imposed by Federal reclamation law, including this subchapter.
(b) Lands placed in a revocable trust shall be attributable to the grantor if—
(1) the trust is revocable at the discretion of the grantor and revocation results in the title to such lands reverting either directly or indirectly to the grantor; or
(2) the trust is revoked or terminated by its terms upon the expiration of a specified period of time and the revocation or termination results in the title to such lands reverting either directly or indirectly to the grantor.
(Pub. L. 97–293, title II, § 214, Oct. 12, 1982, 96 Stat. 1270; Pub. L. 100–203, title V, § 5302(b), Dec. 22, 1987, 101 Stat. 1330–269.)
§ 390oo. Temporary supplies of water
(a) Limitations inapplicable
Neither the ownership limitations of this subchapter nor the ownership limitations of any other provision of Federal reclamation law shall apply to lands which receive only a temporary, not to exceed one year, supply of water made possible as a result of—
(1) an unusually large water supply not otherwise storable for project purposes; or
(2) infrequent and otherwise unmanaged flood flows of short duration.
(b) Waiver of payment for temporary water supplies
(Pub. L. 97–293, title II, § 215, Oct. 12, 1982, 96 Stat. 1270.)
§ 390pp. Involuntary foreclosure

Neither the ownership limitations of this subchapter nor the ownership limitations of any other provision of Federal reclamation law shall apply to lands when the lands are acquired by involuntary foreclosure, or similar involuntary process of law, by bona fide conveyance in satisfaction of a debt (including, but not limited to, a mortgage, real estate contract, or deed of trust), by inheritance, or by devise: Provided, That such lands were eligible to receive irrigation water prior to such transfer of title or the mortgaged lands became ineligible to receive water after the mortgage is recorded but before it is acquired by involuntary foreclosure or similar involuntary process of law or by bona fide conveyance in satisfaction of mortgage: Provided further, That if, after acquisition, such lands are not qualified under Federal reclamation law, including this subchapter, they shall be furnished temporarily with an irrigation water supply for a period not exceeding five years from the effective date of such an acquisition, delivery of irrigation water thereafter ceasing until the transfer thereof to a landowner qualified under such laws: Provided further, That the provisions of section 390ee of this title shall be applicable separately to each acquisition under this section if the lands are otherwise subject to the provisions of section 390ee of this title.

(Pub. L. 97–293, title II, § 216, Oct. 12, 1982, 96 Stat. 1270.)
§ 390qq. Isolated tracts

Neither the ownership limitations of this subchapter nor the ownership limitations of any other provision of Federal reclamation law shall apply to lands which are isolated tracts found by the Secretary to be economically farmable only if they are included in a larger farming operation but which may, as a result of their inclusion in that operation, cause it to exceed such ownership limitations.

(Pub. L. 97–293, title II, § 217, Oct. 12, 1982, 96 Stat. 1270.)
§ 390rr. Central Arizona Project

Lands receiving irrigation water pursuant to a contract with the Secretary as authorized under title III of the Colorado River Basin Project Act (82 Stat. 887; 43 U.S.C. 1521 et seq.) which are placed under recordable contract shall be eligible to receive irrigation water upon terms and conditions related to pricing established by the Secretary pursuant to Federal reclamation law in effect immediately prior to October 12, 1982, for a period of time not to exceed ten years from the date such lands are capable of being served with irrigation water, as determined by the Secretary.

(Pub. L. 97–293, title II, § 218, Oct. 12, 1982, 96 Stat. 1271.)
§ 390ss. Religious or charitable organizations
An individual religious or charitable entity or organization (including but not limited to a congregation, parish, school, ward, or chapter) which is exempt from taxation under section 501 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 501), and which owns, operates, or leases any lands within a district shall be treated as an individual under the provisions of this subchapter regardless of such entity or organization’s affiliation with a central organization or its subjugation to a hierarchical authority of the same faith and regardless of whether or not the individual entity is the owner of record if—
(1) the agricultural produce and the proceeds of sales of such produce are directly used only for charitable purposes;
(2) said land is operated by said individual religious or charitable entity or organization (or subdivisions thereof); and
(3) no part of the net earnings of such religious or charitable entity or organization (or subdivision thereof) shall inure to the benefit of any private shareholder or individual.
(Pub. L. 97–293, title II, § 219, Oct. 12, 1982, 96 Stat. 1271; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.)
§ 390tt. Contract required

Irrigation water temporarily made available from reclamation facilities in excess of ordinary quantities not otherwise storable for project purposes or at times when such irrigation water would not have been available without the operations of those facilities, may be used for irrigation, municipal, or industrial purposes only to the extent covered by a contract requiring payment for the use of such irrigation water, executed in accordance with the Reclamation Project Act of 1939 [43 U.S.C. 485 et seq.], or other applicable provisions of Federal reclamation law.

(Pub. L. 97–293, title II, § 220, Oct. 12, 1982, 96 Stat. 1271.)
§ 390uu. Waiver of sovereign immunity

Consent is given to join the United States as a necessary party defendant in any suit to adjudicate, confirm, validate, or decree the contractual rights of a contracting entity and the United States regarding any contract executed pursuant to Federal reclamation law. The United States, when a party to any suit, shall be deemed to have waived any right to plead that it is not amenable thereto by reason of its sovereignty, and shall be subject to judgments, orders, and decrees of the court having jurisdiction, and may obtain review thereof, in the same manner and to the same extent as a private individual under like circumstances. Any suit pursuant to this section may be brought in any United States district court in the State in which the land involved is situated.

(Pub. L. 97–293, title II, § 221, Oct. 12, 1982, 96 Stat. 1271.)
§ 390vv. Excess crop restrictions
(a) Report to Congress on production of surplus crops on acreage served by irrigation water
Within one year of October 12, 1982, the Secretary of Agriculture, with the cooperation of the Secretary of the Interior, shall transmit to the Congress a report on the production of surplus crops on acreage served by irrigation water. The report shall include—
(1) data delineating the production of surplus crops on lands served by irrigation water;
(2) the percentage of participation of farms served by irrigation water in set-aside programs, by acreage, crop, and State;
(3) the feasibility and appropriateness of requiring the participation in acreage set-aside programs of farms served by irrigation water and the costs of such a requirement; and
(4) any recommendations concerning how to coordinate national reclamation policy with agriculture policy to help alleviate recurring problems of surplus crops and low commodity prices.
(b) Restrictions prohibiting delivery of irrigation water for production of excess basic agricultural commodities
(Pub. L. 97–293, title II, § 222, Oct. 12, 1982, 96 Stat. 1272.)
§ 390ww. Administrative provisions
(a) Existing Federal reclamation law
(b) Existing statutory exemptions from ownership or pricing limitations of Federal reclamation law
(c) Regulations; collection of necessary data
(d) Omitted
(e) Sale of nonexcess land acquired into excess status pursuant to involuntary process of law, etc.
(f) Omitted
(g) Annual audit of compliance with reclamation laws
(h) Recordable contracts executed prior to October 12, 1982
(i) Collection of underpayment with interest for irrigation water
(Pub. L. 97–293, title II, § 224, Oct. 12, 1982, 96 Stat. 1272; Pub. L. 100–203, title V, § 5302(a), Dec. 22, 1987, 101 Stat. 1330–268; Pub. L. 103–437, § 16(a)(3), Nov. 2, 1994, 108 Stat. 4594; Pub. L. 104–66, title I, § 1081(d), Dec. 21, 1995, 109 Stat. 721.)
§ 390xx. Validation of contracts entered into prior to October 1, 1981

The provisions of any contract entered into prior to October 1, 1981, by the Secretary with a district, which define project or nonproject water, or describe the delivery of project water through nonproject facilities or nonproject water through project facilities to lands within the district, are hereby authorized and validated on the part of the United States.

(Pub. L. 97–293, title II, § 225, Oct. 12, 1982, 96 Stat. 1273.)
§ 390yy. Leasing requirements
Notwithstanding any other provision of Federal reclamation law, including this subchapter, lands which receive irrigation water may be leased only if the lease instrument is—
(1) written; and
(2) for a term not to exceed ten years, including any exercisable options: Provided, however, That leases of lands for the production of perennial crops having an average life of more than ten years may be for periods of time equal to the average life of the perennial crop but in any event not to exceed twenty-five years.
(Pub. L. 97–293, title II, § 227, Oct. 12, 1982, 96 Stat. 1273.)
§ 390zz. Reporting

Any contracting entity subject to the ownership or pricing limitations of Federal reclamation law shall compile and maintain such records and information as the Secretary deems reasonably necessary to implement this subchapter and Federal reclamation law. On a date set by the Secretary following October 12, 1982, and annually thereafter, every such contracting entity shall provide in a form suitable to the Secretary such reports on the above matters as the Secretary may require.

(Pub. L. 97–293, title II, § 228, Oct. 12, 1982, 96 Stat. 1274.)
§ 390zz–1. Severability

If any provision of this subchapter or the applicability thereof to any person or circumstances is held invalid, the remainder of this subchapter and the application of such provision to other persons or circumstances shall not be affected thereby.

(Pub. L. 97–293, title II, § 230, Oct. 12, 1982, 96 Stat. 1274.)