AZ vs. CA:15 California Exhibits, Vol. XV; Nos. 2101-2174; 2200-2217; 2250-2253; 2301; 2401-24032401-2403

page 3

incurred by the United States and the repayment within fifty years from the date of the completion of such works of all amounts advanced for such purposes to the fund under subdivision (b) of section 2, together with interest thereon reimbursable under this Act; and before any money is appropriated for the canals and appurtenant structures authorized by this Act or any construction work thereon done or contracted for the said Secretary shall make provision for revenues, by contracts conforming to the provisions of the reclamation law, adequate in his judgment to insure payment of all expenses of operation and maintenance of said canal and appurtenant structures incurred by the United States and the repayment, under the terms and provisions of the reclamation law, of all amounts advanced for such purposes to the fund under said subdivision (b) of section 2. If the Secretary of the Interior shall receive revenues during the period of amortization in excess of the amount necessary to meet the periodical payments to the United States, as provided in the contract or contracts, executed in accordance with the requirements of this Act, then he shall, immediately after the settlement of such periodical payments, divide and pay any excess revenues as follows, to wit: To the State of Arizona, 40 per centum; to the State of Nevada, 40 per centum; and the remaining 20 per centum of such excess revenues shall be held by the Secretary as a reserve fund to meet emergencies or to be applied on successive contractual payments to the United States as in his discretion may be considered proper. After the United States has been fully paid in accordance with this Act, and the contracts executed thereunder, then all net revenue shall be divided as follows, to wit: To Arizona, 45 per centum; to Nevada, 45 per centum; and to the contractee or contractees, 10 per centum."