490 MORATORIUM ON CONSTRUCTION CHARGES FOR 1931 AND 1932 An act for the temporary relief of water users on irrigation projects constructed and operated under the reclamation law. (Act of April 1, 1932, ch. 95, 47 Stat. 75) [Sec. 1. Construction charges for 1931 suspended; for 1932, 50 percent of amount payable suspended-Interest and penalty-Rate for sale of power, season of 1931.]—Any irrigation district, water-users' association, or other waterusers organization under contract with the United States for payment of construction charges under the act of June 17, 1902 (32 Stat. 388), or acts amendatory thereof or supplementary thereto, including the act of February 21, 1911 (36 Stat. 925) (upon acceptance of this act by resolution of its board of directors or corresponding body), shall be required to make no payment on the regular construction charge for the calendar year 1931, and in lieu of the regular installment of construction charge provided for under existing contracts, may pay for the calendar year 1932 on the basis of 50 per centum of the amount which, but for this act, would be payable under said contracts such amount to be computed and determined for that year in the manner provided in said contracts and the law applicable thereto. Interest and penalty as now provided by law and contracts for nonpayments when due shall apply on all charges for 1932 adjusted as herein authorized; and otherwise the deferred payments herein authorized shall bear interest until paid at such rate, and shall be paid at such times, as the Secretary of the Interior shall determine: Provided, That in determining the rate for the sale of power during the irrigation season of 1931 to irrigation districts from any power plant operated by the Bureau of Reclamation, interest on the cost of the power system shall not be included as an element, but interest at the rate of 22 per centum per annum shall be included as an element of such rate for the sale of power to such districts during the irrigation season of 1932: And provided further, That the payments for construction charges and interest payments on the cost of the power systems referred to in this Act shall not be deemed waived, but only deferred, and shall be paid as provided in this Act. (47 Stat. 75) EXPLANATORY NOTES Supplemental Provision: Interest on Deferred Payments. Section 1 of the Act of March 3, 1933, which appears herein in chronological order, provides that deferred charges under the Act of April 1, 1932, shall bear interest at the rate of 3 percent per annum, which shall be paid at the same time as the principal is paid. The Secretary originally had fixed the interest rate at 5 percent. C.L. 1995; Assistant Secretary Edwards Opinion, 54 I.D. 86 (1932). References in the Text. The Act of June 17, 1902 (32 Stat. 388), referred to in the text, is the Reclamation Act. The Act of February 21, 1911 (36 Stat. 925), also referred to in the text, is the Warren Act, which authorizes the Government to contract for impounding, storing and carrying water, and in cooperation with water users' associations, irrigation districts, etc., to construct and use reservoirs, canals, etc., when advantageous to the Government and the water users' associations, irrigation districts, and other entities. Both Acts appear herein in chronological order. 3 MORATORIUM FOR 1931 AND 1932 Application 1 1. Application NOTES OF OPINIONS Under its contract of October 23, 1918 with the United States, the Imperial irrigation district received the right to use the Laguna Dam constructed with the Yuma project, agreeing to pay therefor the sum of $1,600,000. The Department held that this was a construction charge to which the 1932 Relief Act is applicable. Letter from Secretary to Hon. L. W. Douglas, M.C., April 15, 1932. The Secretary is without legal authority to grant the request of the Westland irrigation district, McKay Reservoir, Umatilla project that the payment made by the district for water rental during 1931 be considered a construction charge payment made for 1931 within the meaning of section 1 of the 1932 Relief Act. Memorandum of July 15, 1932, to Commissioner, in re Westland District, Umatilla project. 2. Time of payment The Department denied the petition of the Gem irrigation district, Owyhee project, that the charges to be deferred under the act be set over for repayment at the end of the 40-year period provided in the contract of October 14, 1926, relative to repayment of the district's proportionate share 491 of the cost of the project, and ruled that the deferred charges shall be paid over a term of 5 years after the last installment shall become due under the existing contract for furnishing electrical energy. Memorandum of July 25, 1932 to Commissioner. On June 1, 1933, the Salt River Valley Water Users' Association was notified that pursuant to the Acts of Congress of April 1, 1932 and March 3, 1933, and their acceptance of the provisions of these Acts by resolution dated April, 1, 1933, the Association's regular construction charges for the years 1931, 1932, and 1933 were extended to the years 1952, 1953 and 1954. 3. Power revenues Under the provisions of sections 1 and 8, there must be a determination of the new power revenues obtained by the Salt River Valley Water Users' Association from the operation of the power plants constructed by the United States and turned over to the association in 1917. If an estimate of net power revenues from the Governmentconstructed plants can be made that is satisfactory to the association and to the Secretary of the Interior, the extension can be granted. If this cannot be accomplished, the application must be rejected on the theory that the act involves conditions impossible of performance. Solicitor's Opinions, M-27184 (August 29, 1932). Sec. 2. [Individuals granted same relief as organizations, where no organization on project.]—On projects or divisions of projects where no irrigation district, water-users' association, or other water-users' organization has assumed joint obligation for payment of construction charges individual water-right applicants or entrymen upon acceptance of this act in a manner satisfactory to the Secretary of the Interior, shall be required to make no payment on the regular construction charge for the calendar year 1931, and in lieu of the installments payable under existing contracts, may pay their regular installments of construction charges for the calendar year 1932 on the same basis as that authorized in section 1 hereof for districts, associations, and other water-users' organizations. (47 Stat. 76) 1. Nonconsenting landowners NOTE OF OPINION The benefits of the 1932 moratorium act should be extended to nonconsenting landowners and entrymen, such as those on the Garland division of the Shoshone project, who elect to remain under their individual water-right applications rather than consenting to the contract with the irrigation district. Solicitor Finney Opinion, 54 I.D. 13 (1932). Sec. 3. [Uncompahgre project relief act of 1931, and Grand Valley project 1931 act relating to development of power amended.]-The act of Congress approved January 31, 1931, entitled "An act for the relief of the Uncompahgre 492 MORATORIUM FOR 1931 AND 1932 reclamation project, Colorado" (Private Numbered 300, Seventy-first Congress is hereby amended to extend for one year from and after January 1, 1932, the time for beginning construction of drainage system upon the Uncompahgre proj ect, and any and all construction charges accruing upon or for said project for or during the year 1932, shall be deferred and included in and made payable as a part of the project supplemental construction charge provided for in said act of January 31, 1931; and in order to afford opportunity to complete the construction authorized by the act of Congress approved February 21, 1931 (Public Numbered 708), relating to the Grand Valley reclamation project, Colorado, any and all construction charges, accruing upon or for said project for or during the year 1932 shall be deferred and shall be included in and made payable as project supplemental construction charges under the terms as provided in this act. (47 Stat. 76) EXPLANATORY NOTES Cross References, Extension of Provisions. The provisions of section 3 of the Act were extended and modified by the Acts of March 3, 1933, 47 Stat. 1427; March 27, 1934, 48 Stat. 500; June 13, 1935, 49 Stat. 337; and April 14, 1936, 49 Stat. 1206. The 1936 Act included the following proviso: "Provided, however, That where the construction charge for the Calendar Year 1936 is payable in two installments, the sum hereby extended shall be the amount due as the first of such installments. If payable in one installment, the due date for the 50 percent to be paid shall not be changed." Each of these Acts appears herein in chronological order. References in the Text. The Act of January 31, 1931, relating to the Uncompahgre project, and the Act of February 21, 1931, relating to the Grand Valley project's power development, referred to in the text, appear herein in chronological order. Sec. 4. [Resumption of payment of charges-Contracts pursuant to Warren Act, Extension Act, Adjustment Act, subsection F, section 4, Fact Finders' Act.]-At the expiration of the period for which deferment of charges is made under this act, all districts, water-users' associations, or other water-users' organizations, and all individuals accepting the provisions hereof shall resume payment of charges on the basis of and in accordance with existing contracts and shall continue payments thereafter until the entire indebtedness of said districts, waterusers' associations, or other water-users' organizations, and individuals to the United States shall have been fully paid. In the case of a district, water-users' association, or other water-users' organization, or individual having contracts executed pursuant to the act of February 21, 1911 (36 Stat. 925), the act of August 13, 1914 (38 Stat. 686), or the act of May 25, 1926 (44 Stat. 636), or any special act the deferred construction installment or installments for the calendar year 1931, and that portion of the 1932 installment or installments deferred, together with the installment or installments of deferred construction and or operation and maintenance for 1931 and 50 per centum of the installment and or installments of such deferred charges for 1932, shall be paid as an additional installment to be due and payable one year after the date the last installment under existing contracts shall become due, except in those cases in which the Secretary of the Interior, whose decision shall be final, shall find necessary additional installments, which he is hereby authorized to fix. In the case of any district, water-users' association, or other water-users' organization, or individual under contract for payment of construction charges pursuant to MORATORIUM FOR 1931 AND 1932 493 subsection F, section 4, act of December 5, 1924 (43 Stat. 702), construction z payments shall be continued on the basis of existing contracts until the entire indebtedness to the United States, including all charges deferred pursuant to this act, shall have been fully paid. Installments so carried over shall be subjected to the reductions provided for in section 8 hereof. (47 Stat. 76) EXPLANATORY NOTES References in the Text. The Act of February 21, 1911 (36 Stat. 925), referred to in the text, is the Warren Act. The Act of August 13, 1914 (38 Stat. 686), referred to in the text, is the Reclamation Extension Act. The Act of May 25, 1926 (44 Stat. 636), also referred to in the text, is the Omnibus Adjustment Act. Each of these Acts appears herein in chronological order. Reference in the Text. Subsection F, section 4, of the Act of December 5, 1924 (43 Stat. 702), referred to in the text, provides for construction charges to be paid in 1. Time of payment annual installments based on the productive power of the land. The Act is the Fact Finders' Act, which appears herein in chronological order. Cross Reference, Interest Rate. The Act of March 3, 1933, 47 Stat. 1427, provides that the deferred charges shall bear interest at the rate of 3 per centum per annum for the years specified in the Act, as amended by the said 1933 Act, which interest shall be paid at the same time the principal deferred is paid. NOTE OF OPINION The language "shall be paid" means "shall at the latest be paid". In other words, there is nothing in the statute which prohibits an earlier payment of such deferred amounts. Letter from the First Assistant Secretary to Senator Frederick Steiwer, April 11, 1932. Sec. 5. [Secretary may permit adjustment of charges.]-The Secretary of the Interior, in his discretion, and upon acceptance of the provisions of this section by the water users affected, in the manner provided in sections 1 and 2 hereof, may permit adjustment of construction and/or operation and maintenance charges heretofore deferred by contracts made pursuant to existing law to be made for the years 1931 and 1932 on the basis authorized in sections 1 and 2 hereof or on such other basis as the Secretary may find to be required in each case. (47 Stat. 77) Sec. 6. [Deferment of 1930 construction and O. and M. charges.]—The Secretary of the Interior, in his discretion, is further authorized to defer the payment to the United States from any water users' organization, as defined in section 1 hereof and from any individual water-right applicant or entryman of construction charges and installments of deferred construction and/or deferred operation and maintenance charges for the calendar year 1930 and prior thereto. Such deferred charges, together with penalty or interest to December 31, 1931, under existing laws and contracts shall be paid in such annual installments as the Secretary of the Interior may fix. (47 Stat. 77) Sec. 7. [Delivery of water by water users' organization to water users in arrears in payment of charges.]—Any irrigation district, water-users' association, or other water users' organization which has contracted to pay construction charges and which is not in arrears for more than one calendar year in the payment of any construction, operation, and maintenance, or other charge due by it to the United States may, at its option, deliver or authorize the delivery of water during the years 1932 and 1933 to water users who may be more than 494 MORATORIUM FOR 1931 AND 1932 one year in arrears in the payment of charges or assessments due from such landowner or water user to the district or association. (47 Stat. 77) 1. Application NOTE OF OPINION The Relief Act of March 27, 1934, in extending temporary relief on water charges, also extended relief from punishment for nonpayment of charges. Section 7 of the moratorium act of April 1, 1932, must be considered in granting moratorium under the relief act of March 27, 1934. Opinion of Acting Solicitor Fahey, April 17, 1934. Sec. 8. [Credits on account of power profits under subsections I and J, Fact Finders' Act, or other act.]—In the case of any irrigation district, water-users' organization, or individual, receiving credits on account of power profits or other revenues under the provisions of subsections I and/or J, section 4, act of December 5, 1924 (43 Stat. 703), or any other act of Congress, when any extension is granted as provided in section 1, 2, or 4 the amount of such credits shall be deducted from the amount of any payment so extended: Provided, That the provisions of this section shall not apply to power profits or other revenues derived from works not constructed at the expense of the United States. The credits, if any, in excess of the payment so extended shall be applied as now provided by law and contract. Acceptance of the provisions of this act shall operate as a waiver of any law and/or contract providing for application of credits different from that in this section prescribed. (47 Stat. 77) Sec. 9. [Collection of charges for 1931 to be credited upon succeeding payments as they become due.]—Collections of construction charges for the calendar year 1931 (which charges are subject to adjustment and are adjusted under sections 1, 2, and 4 of this act) and penalties and interest, if any, from water-users' organizations and individual water-right applications or landowners, heretofore made under existing contracts, shall be credited upon the succeeding payments as they become due, including operation and maintenance charges. (47 Stat. 78) |