RECLAMATION PROJECT ACT OF 1939-SEC. 2 635 (f) The term "project contract unit" shall mean a project or any substantial area of a project which is covered or is proposed to be covered by a repayment contract. On any project where two or more repayment contracts in part cover the same area and in part different areas, the area covered by each such repayment contract shall be a separate project contract unit. On any project where there are either two or more repayment contracts on a single project contract unit or two or more project contract units, the repayment contract or project contract units may be merged by agreements in form satisfactory to the Secretary. (g) The term "organization" shall mean any conservancy district, irrigation district, water users' association, or other organization, which is organized under State law and which has capacity to enter into contracts with the United States pursuant to the Federal reclamation laws. (h) The term “division of a project” shall mean any part of a project designated as a division by order of the Secretary or any phase or feature of project operations given a separate designation as a division by order of the Secretary for the purposes of orderly and efficient administration. (i) The term "development unit" shall mean a part of a project which, for purposes of orderly engineering or reclamation development, is designated as a development unit by order of the Secretary. (j) The term "irrigation block" shall mean an area of arid or semiarid lands in a project in which, in the judgment of the Secretary, the irrigable lands should be reclaimed and put under irrigation at substantially the same time, and which is designated as an irrigation block by order of the Secretary. (53 Stat. 1187; Act of August 8, 1958, 72 Stat. 543; 43 U.S.C. § 485a) 636 RECLAMATION PROJECT ACT OF 1939-SEC. 3 repayment contract, is no longer valid, for section 2(g) of the Reclamation Project Act of 1939 defines "organization" in a broader sense; and a still broader definition is given in section 2(c) of the Small Reclamation Projects Act. Memorandum of Associate Sec. 3. [Secretary authorized to amend contracts for repayment of construction charges-Period of repayment not to exceed forty years from date when first installment was due.]-In connection with any repayment contract or other form of obligation, existing on the date of this Act, to pay construction charges, providing for repayment on the basis of a definite period, the Secretary is hereby authorized, upon request by the water users involved or their duly authorized representatives for amendment under this section of said contract or other form of obligation, and if in the Secretary's judgment such amendment is both practicable and in keeping with the general purpose of this Act, to amend said contract or other form of obligation so as to provide that the construction charges remaining unaccrued on the date of the amendment, or any later date agreed upon, shall be spread in definite annual installments on the basis of a longer definite period fixed in each case by the Secretary: Provided, That for any construction charges said longer period shall not exceed forty years, exclusive of 1931 and subsequent years to the extent of moratoria or deferments of construction charges due and payable for such years effected pursuant to Acts of Congress, from the date when the first installment of said construction charges became due and payable under the original obligation to pay said construction charges and in no event shall the unexpired part of said longer period exceed double the number of remaining years, as of the date of the amendment made pursuant to this Act, in which installments of said construction charges would become due and payable under said existing repayment contract or other form of obligation to pay construction charges. (53 Stat. 1188; 43 U.S.C. § 485b) EXPLANATORY NOTE Supplementary Provisions: Extension of Time for Modification of Repayment Contracts-Repeal of Section 4. The Act of March 6, 1952, 66 Stat. 16, provided that the authority vested in the Secretary of the Interior by sections 3, 4 and 7 of this Act be extended through December 31, 1954. The Act of August 31, 1954, 68 Stat. 1044, amended the 1952 Act by inserting "1957" in place of "1954." The 1954 Act was in turn amended by the Act of August 21, 1957, 71 Stat. 390, which replaced "1957" with "1960." The authority vested in the Secretary by sections 3, 4 and 7 of this Act thus being extended through December 31, 1960. The Act of August 8, 1958, 72 Stat. 542, repealed section 4 of this Act and amended the 1952 Act referred to in this note by deleting the reference in it to section 4. Each of these Acts appears herein in chronological order. Sec. 4. [Normal and percentages plan.]—Repealed. EXPLANATORY NOTE Section Repealed. The Act of August 8, 1958, which is found herein in chronological order, repealed section 4, as amended. The same Act amended paragraph (3) of section 9, subsection (d), thus authorizing a variable repayment plan in place of the "normal and percentage plan" provided for in section 4. The repealed section read as follows: RECLAMATION PROJECT ACT OF 1939-SEC. 4 637 Sec. 4(a). In connection with any existing project on which construction charges are payable to the United States, the Secretary is hereby authorized to negotiate and enter into a contract or an amendatory contract, in a form satisfactory to him, with an organization, satisfactory in form and powers to him, representing the water users of the project contract unit involved, which contract shall provide for the payment of construction charges on said project contract unit in the manner hereinafter provided in this section. The negotiation and execution of such a contract shall be undertaken only upon request by duly authorized representatives of the water users involved for such a contract and upon a determination by the Secretary that, in his judgment, such a contract is both practicable and in keeping with the general purpose of this Act. (b) All of the construction charges for the project contract unit remaining unaccrued on the date of the contract entered into pursuant to this section or on any later date agreed upon shall be merged in a total and general repayment obligation of the organization. Said repayment obligation of said organization shall be scheduled in such annual installments as, in the judgment of the Secretary, constitute an equitable, practicable, and definite consolidated schedule of the existing obligations in said project contract unit to pay construction charges: Provided, That said schedule of installments shall be so arranged that in the judgment of the Secretary it does not involve for any of said construction charges merged into said general obligation an extension of the time permitted under the existing obligations for payment of said charges excepting the adjustment of the repayment period permitted for certain charges by the last sentence of this subsection. For the purpose of scheduling said installments of said general obligation in accordance with this subsection, in connection with each project contract unit under an existing contract made pursuant to section 4 of the Act of December 5, 1924 (43 Stat. 672, 701), the Secretary shall fix a weighted average gross crop return per acre, of which 5 per centum shall be the measure for determining the schedule of the unaccrued construction charges in a definite number of annual installments. In the event the said existing obligations to pay construction charges in said project contract unit or units are based in part on section 4 of the Act of December 5, 1924 (43 Stat. 672, 701), and in part on other Acts of the Federal reclamation laws, said charges may be consolidated into two general repayment contract obligations of said organization, each of which shall be scheduled in such installments as, in the judgment of the Secretary, constitute an equitable, practicable, and definite consolidated schedule of all of the respective parts of said existing obligations to pay construction charges. Any of said unaccrued construction charges, which under said existing obligations are payable on the basis of a definite period, first may be adjusted by the Secretary, if in his judgment such adjustment is both practicable and in keeping with the general purpose of this Act, to a repayment basis of a longer definite period fixed in each case by him: Provided, That for any such construction charges said longer period shall not exceed the limitations contained in the proviso of section 3 of this Act. (c) For each project contract unit where a repayment contract is entered into pursuant to this section, a census of annual returns shall be taken each year. The normal returns each year, for each such project contract unit, shall be determined by the Secretary: Provided, That in any year, if the Secretary deems it necessary, an estimate of the annual returns of that year, in lieu of a final determination thereof, shall be considered with the annual returns of the preceding twelve years: Provided further, That in the event records of annual returns of the lands involved are not available for twelve preceding years, the Secretary, until such records for twelve preceding years have been established, in his discretion may consider established annual returns of other and similar lands in other and similar project contract units for the purpose of determining each year the normal returns. The estimates and final determinations of annual returns and the determinations of normal returns provided for in this Act shall be made by the Secretary with such assistance from the water users and organization involved as he requests, and said estimates and determinations made by him shall be conclusive. (d) For each project contract unit where a repayment contract is entered into pursuant to this section, each year the percent of the normal returns for said year by which the annual returns of said year exceed or are less than said normal returns shall be determined by the Secretary. For each unit or major fraction of a unit of said percentage of said increase or decrease there shall be an increase or decrease, respectively, of 2 per centum in the amount or amounts of the installment or installments for said year under the organization's obligation or obligations as determined under subsections (b) and (e) of this section. Said latter amount or amounts as thus increased or decreased shall be the payment or payments of construction charges due and payable for said year, except 638 RECLAMATION PROJECT ACT OF 1939-SEC. 4 that in no event shall the amount of the said payment or payments due and payable for any year be less than 15 per centum nor, as determined by the Secretary, more than from 150 to 200 per centum, inclusive, of the amount or amounts of the installment or installments for said year under the organization's obligation or obligations as determined under subsections (b) and (e) of this section. The Secretary is hereby authorized to amend any repayment contracts heretofore or hereafter entered into pursuant to the provisions of this section to conform to the provisions of this amendment. (e) In each contract entered into pursuant to this section, there shall be such provisions as the Secretary deems equitable, necessary, and proper to provide that any part of the amount of any installment of an organization's obligation, as determined under subsection (b) of this section, which, in the year for which said installment is designated under said subsection (b) does not, by reason of the operation of subsection (d) of this section, become due and payable as construction charges for said year, shall be added to an installment or installments of subsequent years for which installments are designated under said subsection (b) or shall be established as an installment or installments or parts thereof of years subsequent to the last year for which an installment is designated under said subsection (b), or both; and there shall be similar provisions respecting any such part of the amount of any installment modified or established under this subsection: Provided, That under this subsection no installment may be revised to or established in an amount exceeding the amount of the largest installment as determined under said subsection (b), and there shall be included in the contract such provisions as the Secretary deems proper for offsetting the increases and decreases in annual installments which result from the operation of said subsection (d). (f) In any contract entered into pursuant to the authority of this section, it shall be provided that from and after the date of the last installment of the organization's repayment contract obligation or obligations as determined under subsection (b) of this section, a charge of 3 per centum per annum shall be payable by the organization on any balance or balances of said organization's obligation or obligations which have not become due and payable by reason of the operation of subsection (d) of this section, until the same have become due and payable as construction charges under said subsection (d), and said charge of 3 per centum shall be payable by the organization to the United States on the same dates as, and in addition to, the annual payments otherwise required under this section. (g) There may be included in any contract entered into pursuant to the authority of this section provisions requiring the organization to vary its distribution of construction charges in a manner that takes into account the productivity of the various classes of lands and the benefits accruing to the lands by reason of the irrigation thereof: Provided, That no distribution of construction charges over the lands included in the organization shall in any manner be deemed to relieve the organization, or any party or any land therein, of the organization's general obligation to repay to the United States in full the total amount of the organization's repayment contract obligation or obligations as determined under subsection (b) of this section. EXPLANATORY NOTES 1945 Amendment. Section 1 of the Act of April 24, 1945, 59 Stat. 75, amended subsection 4(d) by adding after the words "15 per centum", the phrase "nor, as determined by the Secretary, more than from 150 to 200 per centum, inclusive," and by adding the last sentence in the subsection. The 1954 amendment thus put a ceiling of 150-200 per centum on the increase of the annual installment over the normal installment. The 1945 Act appears herein in chronological order. Supplementary Provisions: Extension of Time for Modification of Repayment Contracts-Repeal of Section 4. The Act of March 6, 1952, 66 Stat. 16, provided that the authority vested in the Secretary of the Interior by sections 3, 4 and 7 of this Act be extended through December 31, 1954. The Act of August 31, 1954, 68 Stat. 1044, amended the 1952 Act by inserting “1957" in place of "1954." The 1954 Act was in turn amended by the Act of August 21, 1957, 71 Stat. 390, which replaced "1957" with "1960." The authority vested in the Secretary by sections 3, 4 and 7 of this Act thus being extended through December 31, 1960. The Act of August 8, 1958, 72 Stat. 542, repealed section 4 of this Act and amended the 1952 Act referred to in this note by deleting the reference in it to sec tion 4. Each of these Acts appears herein in chronological order. Reference in the Text. Section 4 of the Act of December 5, 1924 (43 Stat. 672, 701), referred to in the text of subsection 4(b), is the Fact Finders' Act. The Act appears herein in chronological order. Sec. 5. [Payments to be due contemporaneous with receipt of crop returns― Assessment to be made prior to dates of payment to United States-Secretary may provide deferments to prevent inequitable pyramiding of charges.]—The Secretary in his discretion may require, in connection with any contract entered into pursuant to the authority of this Act, that the contract provide (1) that the payments for each year to be made to the United States shall become due and payable on such date or dates, not exceeding two, in each year as the Secretary determines will be substantially contemporaneous with the time or times in each year when water users receive crop returns and (2) if the contract be with an organization, that assessments or levies for the purpose of obtaining moneys sufficient to meet the organization's payments under said contract shall be made and shall become due and payable within a certain period or periods of time prior to the date or dates on which the organization's payments to the United States are due and payable, said period or periods of time to be agreed upon in each said contract. The Secretary may provide such deferments of construction charges as in his judgment are necessary to prevent said requirements from resulting in inequitable pyramiding of payments of said charges. (53 Stat. 1191; 43 U.S.C. § 485d) Sec. 6. [Secretary to require proper accounting, protection of project lands against improper use of water, advance payment operation and maintenance charges, and penalize delinquencies in payment construction or operation and maintenance charges-No water to lands in arrears operation and maintenance or to lands in arrears more than 12 months construction charges.]—In connection with any contract, relating to construction charges, entered into pursuant to the authority of this Act, the Secretary is hereby authorized to require such provisions as he deems proper to secure the adoption of proper accounting, to protect the condition of project works and to provide for the proper use thereof, and to protect project lands against deterioration due to improper use of water. Any such contract shall require advance payment of adequate operation and maintenance charges. The Secretary is further authorized, in his discretion, to require such provisions as he deems proper to penalize delinquencies in payments of construction charges or operation and maintenance charges: Provided, That in any event there shall be penalties imposed on account of delinquencies of not less than one-half of 1 per centum per month of the delinquent charge from and after the date when such charge becomes due and payable: Provided further, That any such contract shall require that no water shall be delivered to lands or parties which are in arrears in the advance payment of operation and maintenance or toll charges, or to lands or parties which are in arrears for more than twelve months in the payment of construction charges due from such lands |