634 RECLAMATION PROJECT ACT OF 1939 An act to provide a feasible and comprehensive plan for the variable payment of construction charges on United States reclamation projects, to protect the investment of the United States in such projects, and for other purposes. (Act of August 4, 1939, ch. 418, 53 Stat. 1187) [Sec. 1. Repayment problems-Variable payments of construction charges— Revision of obligation to pay construction charges.]-For the purpose of providing for United States reclamation projects a feasible and comprehensive plan for an economical and equitable treatment of repayment problems and for variable payments of construction charges which can be met regularly and fully from year to year during periods of decline in agricultural income and unsatisfactory conditions of agriculture as well as during periods of prosperity and good prices for agricultural products, and which will protect adequately the financial interest of the United States in said projects, obligations to pay construction charges may be revised or undertaken pursuant to the provisions of this Act. (53 Stat. 1187; 43 U.S.C. § 485) 1. Purpose NOTE OF OPINION A principal purpose of the Reclamation Project Act of 1939 was to place water users repayment on a basis of payment ability rather than to burden them with all costs. Solicitor Barry Opinion, 68 I.D. 305, 310 (1961), in re Columbia Basin repayment problems. Sec. 2. [Definitions of terminology employed.]—As used in this Act(a) The term "Federal reclamation laws” shall mean the Act of June 17, 1902 (32 Stat. 388), and all Acts amendatory thereof or supplementary thereto. (b) The term "Secretary" shall mean the Secretary of the Interior. (c) The term "project" shall mean any reclamation or irrigation project, including incidental features thereof, authorized by the Federal reclamation laws, or constructed by the United States pursuant to said laws, or in connection with which there is a repayment contract executed by the United States, pursuant to said laws, or any project constructed or operated and maintained by the Secretary through the Bureau of Reclamation for the reclamation of arid lands or other purposes. (d) The term "construction charges" shall mean the amounts of principal obligations payable to the United States under water-right applications, repayment contracts, orders of the Secretary, or other forms of obligation entered into pursuant to the Federal reclamation laws, excepting amounts payable for water rental or power charges, operation and maintenance and other yearly service charges, and excepting also any other operation and maintenance, interest, or other charges which are not covered into the principal sums of the construction accounts of the Bureau of Reclamation. (e) The term "repayment contract" shall mean any contract providing for payment of construction charges to the United States. 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 |