OCR Text |
Show 604 limited to that part of the construction costs allocated to irriga- tion and assigned for repayment by them. Except as to distribution-system cost, the 1939 Act also pro- vides an alternative method for return to the United States of the construction cost connected with water supply and allo- cated to irrigation.592 Under this alternative, a short-term or long-term contract may be made to furnish water for irriga- tion purposes for periods not to exceed 40 years. Such a water- service contract must provide such rates as will produce reve- nues at least sufficient to cover: an appropriate share of the annual operation and main- tenance cost and an appropriate share of such fixed charges as the Secretary deems proper, due consideration being given to that part of the cost of construction of works connected with water supply and allocated to irrigation * * *. Payment must be made yearly in advance of delivery of water. With respect to existing projects on which construction charges are payable to the United States, the 1939 Act also provides an optional basis for calculating the annual install- ments on the repayment obligation. It is the "normal and percentages plan/' which permits variable payments based on the percentage of normal crop returns by which annual returns exceed or are less than normal returns.593 Significant here is the fact that the 1939 Act directs the Sec- retary of the Interior to investigate the repayment problems of existing projects where he deems a contract under the Act would not provide an economically sound adjustment.594 In such cases, he may negotiate a contract providing "fair and equitable treatment of the repayment problems" in keeping with the pur- poses of the Act. Such contracts become effective only after approval by Congress.595 592 § 9(e), 53 Stat. 1196, 43 U. S. C. 485h(e). 598 § 4, 53 Stat. 1189, as amended, 43 U. S. 0. 485c. For further details concerning this plan, see supra, pp. 205-206. 894 § 7(a), 53 Stat. 1192, 43 U. S. O. 485f (a). 895 §§ 7(a), 7(c), 53 Stat. 1192, as amended, 43 U. S. C. 485f (a), 485f (c). |