OCR Text |
Show ability of water. Under the 1939 act, the 40- year period may commence on conclusion of a maximum development period of 10 years. In 1922, use of irrigation districts was author- ized as a medium for effecting repayment, with district responsibility replacing individual liens. General obligation repayment contracts with dis- tricts became mandatory in 1926. As an alter- native to repayment in 40 annual installments, the 1939 act authorizes a variable repayment plan based on the percentage of normal crop returns by which annual returns exceed or are less than normal returns. Excepting repayment for dis- tribution works, a further alternative under the 1939 act permits water-service contracts for not exceeding 40 years, at prescribed rates and with- out assumption by the water users of a capital cost allocation. Initially, irrigation water users were required to assume all reimbursable project costs. But project revenues from other water uses and some other sources were credited to the benefit of the irrigation water users. With the principle of al- locations under the 1939 act, the irrigation water users' cost burden as to new projects is limited to whatever may be the allocation to irrigation. Also, reimbursable costs allocated to municipal water supply and other purposes are recoverable either by capital-cost, debt-assumption contracts payable in 40 years, or by contracts of maximum duration of 40 years for furnishing water at rates fixed by the Secretary according to prescribed standards. Power revenues are used to repay costs allocated to power together with any part of irrigation cost allocations assigned by the Sec- retary for return from power sales. Rates for power used for irrigation purposes may differ from those for commercial power, both being fixed under prescribed standards. Many la.ws have dealt with varied problems of operation and maintenance and have presented changing patterns of treatment of operation and maintenance charges. Generally, project water users are required to pay such charges in advance under Government operation. But many proj- ects have been turned over to irrigation districts for operation. Recent supplementing statutes authorize c'rehabilitation and betterment" con- tracts. These provide a basis for payment in installments based on ability to pay for major re- pairs and replacement or reconstruction which water users cannot finance currently. Provision has been made for settlement of public lands on projects under supplemental laws covering such matters as land withdrawal; open- ing to entry by public notice; screening of appli- cants for entries as to industry, experience, charac- ter and needed capital; drawings for entries; and preferences to veterans. Statutes aiding settle- ment include provision for land withdrawal for parks, playgrounds, community centers, and project towns; and provision for giving informa- tion and advice to settlers concerning land selec- tion, equipment, livestock, land classification, land preparation, crop selection, and irrigation practices. Such information and advice are furnished through cooperation with State agri- cultural colleges and agencies of the Department of Agriculture. Sources of revenue for the Reclamation Fund under the 1902 act have been supplemented from time to time. The 1938 Hayden-O'Mahoney amendment enables transfers to that fund of designated revenues from certain naval petroleum reserve lands, less prior advances. With certain exceptions, it also provides for placing in the fund all monies received from any irrigation project constructed by the Secretary through the Bureau of Reclamation, including incidental power revenues. Basic policy expressed in the 1902 Reclamation Act limits irrigable land holdings on projects to 160 acres for any one landowner. This has been construed to permit 320 irrigable acres to be held jointly by man and wife. Moreover, the law does not preclude cooperative farming endeavor by any number of owners, members of a family or otherwise, so long as each owns no more than the acreage limit for any one owner. On public lands, the limitation is effectuated by control of size of entries, and on private lands by limiting the irrigable area for which project water will be delivered. It should be noted here that a private land- owner, whose project water right was acquired under the 1902 act, must be an "actual bona fide 288 |