-~ ~ —~

‘F aT , a. ~1 o 244 / Wednesday, December 18 4996 1 Rules and iRegu1ati6n~’668

(

rules do nothave a significantimpact ~ 426.6 Leasingand full-cost.pricing. equalto the established full-cost rate

on Federalism as described by ~ 426.7~TrUsts. .=‘ ...‘ that would apply to the landholder if

12612. ~...-~i426.8 Nonresident aliens and foreign•. the landholderwasto receive irrigatioi

entities.

Executive 6s~iez 12630, 426.~ Religiousor zharitable water’on.land that exceeded a nonfullTakings organizations. cost entitlemenL- - -.

These rules do not result ~ 426.10; Public entities. Contractmeans any repayment or 426.11 Class.1 ~quiValency~ . waterservice contract o

impositionof undu~additional .fl~cal 42612 gxcess land.

burdenson the public.:These rules do~ 42613 ‘:ExcesS4and appraisals between-the United Statesend adxsti~

not resultiii physicalduvasion or -~V~’ 426 14 Involuntary acquisition ofland. providingfar the payment 40 the Unite

occupancy.ofprivate’~property~ ~ 426 15A Commingling ‘ Statesbf construction chai~ges and

substantially affect its value or~se~.-~’ 42616 YSxeml)tions and exclusions; ~ normal operation,~maintenance,-and

Specifically, these rules do not result m 426 17 Small reclamation projects. replacement co~ts underFederal

the taking of contractualiights to ~ 426.18 Landholder information - ‘• reclamation’law, evenif the contract

storage water-in Reclamation reservoirs 4z6~ ponsibilities does not specifically identi1~r the

or water rights established underState 426 20

law. In summary,these finalrules do 426.21 Assessment ofadministrative costs. -portion~ofthe paymentthatis tobe- Intereston underpayments. attributedto operation andmaintenanc

not have significant taldngs - - 426:22 Public participation. and that portion that istobe aftributed

implications. - - 426.23 Recovery ofoperation and to construction. This definition incluck

UnfundedMandates ReformAct of. ‘ maintenance (O&M) costs. - contracts made in accordance withthe 426.24 Reclamation-decisions and appeals. Distribution SystemLoans Act, as 1995 ~•.. 426.25 Reclamation audits. amended (43 U.S.C.421).

This statute directs agencies to assess. 426.26 Severability. - - Contractratemeansthe assessment,

the effects of Federalregulatory actions. Authority: 5 U.S.C. 301:5 U.S.C. 553; 16- asset forth in a contract, that istobe

• on State, local,and tribal governments. : U.S.C. 590z—11; 31 U.S.C. 9701; and 32 Stat. . paid by a districtto the United-States,

and the privatesector, whenthose . -388 and all acts amendatory thereofor and recompute4~if necessary on a per

actions may result in the expenditure by supplementary thereto including, butnot acre or r acre foot basis

State, local, or tribal 418.43 U.S.C. 423 to425b, 43 U.S.C. nt means any person

aggregate, orby the private governments, sector, inthe limited 431,434,to.4403 U.S.C. 43 jJ5~3QOaa 451toto390zz—1.43 -.- wi~~~e~aning the of thenatural term

$100,000,000 more inany 1 year.. U.S.C. 462. 43U.S.C.485 to485k, 43 u.s.c. dependentin the Internal RevenueCod

These finalrules will notresult inthe 491 to505,43 U.S.C. 511 to513, and 43 of 1954(26 U.S.C. 152) and any -

expeiiditure of $100,000,000 as do U.S.C. ~ -- subsequent amendments.

• described by this statute. These - Directwhen used inconnection with

not constitute art unfunded mandate §426.1 PUrPOSO. the term~ landholder, landowner, lessef

within the meaning of the Unfunded.’. These rules and regulations• ‘~ lessor, or bwner, means that the party li

MandatesReform Act of 1995.. -~- - implement certain provisions of Federal - the owner of record or holder of title, ax

Authorship: These final regulations were . - reclamation law that addressthe - the lessee of a land parcel, as -

written by RRA imd water conservatiob staff’ ownership and leasing of land on ‘~‘ appropriate. However; landholdingsof

underthe administrstive direction of the —- - FederalReclamation irrigation projects joint tenants and tenants-in-cammon~

Director,Program AhalysisOffice,lJenver.- and the priciixg ofFederalReclamation~ will not 1

3e considered direct under.

Colorado; and the policy direction of the --. projectirrigation water, and establish these regulations.-~

Director,Office of Policy-and External - terms and conditions fo the deliveryof - .. Discr~tjonary provisionsrefer to.

Affairs, Washlngtozrfl.C.i. ‘. ‘~<‘ ‘~- ‘J FederalR~clariiatibn project irrigation ‘‘ Sectioni390cc through 390hh, ex’cept

List 427-.’ofSubjects -

-

in43 ax Parts - 426- •-•and- , water. § . •- --

- -~ - - Act for‘390cc(b), of 1982 (43~US.C. of the Reclamation 390aaet seqlV. Reform

Dis~trictmeans any individualor.any’

- -Admir~istrative practice and - - — - - -As-used inthese rules: ‘~ -~ - legal ehtUy established under St~tejaw

procedure,Irrigation, Reclamation, ‘~i--~-~ Acreage limitation-entitlementsmean that has entered into a contract or can

Reporting and record keeping - - ,, - - -- the ownership and nonfull~cost - -~ potentially enter into acoiitract withth~

requirements. - -.. -~ entitlements. - - •-, - —--- United States for irrigation~watersarvic

- DatedD~cernbe~I1, 1996. ~ •~ Acreage’limitation provisionsmean ~ troughfederallydevel6ped or /

- Patricia J. Deijelce, • the ownership limitations and pricing. - improved ‘waterstorage audlor

Assistant andSciene~e. restnctionsspecified in Federal’ ~ distributi6h1aTcilhies~ - -

Secretary—Water reclamation law, including butnot Eligible,’~cePtwhere otharwiso For the reasonsset forth inthe •. limited to, Sections 203(b), 204. and 205’ iWo ided;nie~ns l=ennittedtoreceive an

preamble, 43 CFR chapter 1 is amended ‘ of the Reclamation ReformAct of~~98~~: irrigation water si4i~ply froni a -

as fqllows~ ~ -~ . — (43 U $.C..~390aaetseq;).~ u:-: :v:- ~ Reclamatioxf~roject under applicable -

Ameiidi~eistsE~ective January 1,-1998~. Acreage limitation statusmearis~ ‘i’- Federal reclamation law.

1. Part 426 isrevised to reid as: whether a landholderisa qualified -~ Entity, see definition of )egal entity; -

f6ll6’ws~ - - recipient, limited recipient,or priorlaw Excesslandm~ans nonexernpt land-’-

- it: f~- . . . redpient~ ,-~ •~ that isin excess of h land6wner’s

PART 426—)~CREAQE LIMITATION’-. Commissionermeansthe- -~ - -- maxiinun oWnership entitismeiit under

RULESAND REGULATIONS ‘ - Commissionerof theB~u’eau~of ~ the applimb rcisionsofFedeial -

ReclamationU.S. Department ofthe reclainatibn law. - -

Sec. ~ Interior. ~ a’-; ~ - ~‘ Exempt, except where otherwise -

426.1 Purpose. ,

- 426.2;JJefinitions.. Compensatlon’rate’means aWater.rate provided, meanis not subjectto the

426.3’ Conformance tothe discretion~r~ - applied incertain situations, to water; - - provisions. -----‘ -‘

-. , 6~J6i~.-~. - - - - deliveryt’oinMigible land thatis not ~ - •-‘ Extended ordiabfrcontractmeans-a

426.PAttributi0n of land,- disc~veied uhtil aftertliedeliveryhas ~recordablecoiitr~i&twhose term wa~ cv

426.5 Ownership entitlement ~- :-~ - -~ tacen~pla The t~omp~ns4tia~i)~ate isp:. extended due to moratoriums

- (

I

F

I.

i

1K
-‘ I- ~ -t- -.

I —• I— — -4 --

66806 Federal R.~i~ter PVol. 61,’ N& 2441 Wednesday, D’ecember~ 18, r1996 I Rules and ‘Regulations

~stab1jshedin 1976 and 1977 on theaale - Irrevocable electionmeans the

excess land. - -‘ • executionof the legal Instrument that a -

‘bll cost ox full-costrate means an landholdersubject topriorlaw

.iual rate’edtablished by Reclamation ‘-provisions submitsto become subject to

.iat amortizesthe expenditures for ‘. the discreti~nary pr~lgons ofFederal

construction properly allocable to reclamation law. - • -

irrigatlon’facilitiesin service, including IrreVocable electoim~eixs a • --

all-operation andmaintehance deficits landholderwho makes anir~eyocable 2:

- funded,’less payments, 6versuch w~ electionW.conformtothe discretionary

periods~&may be required uiider provisions ofFederalteclamation law. --

Federalreclamation la~ ox~ applicable ~— Irrigabloland means land so classified

- - contract provisions. Interestwill accrue ~ by Reclamation-under a specific project

on boththe construction expenditures plan forwhich Irrigationwater is, can

arid funded operationandmaintenance ‘v be, or is planned tobe provided, and for

- defidts’~trom October 12,1982, on costs ,- which facilitie* nec~saary forsustained~

outstaiiding at that date, or from-the irrigation are provided or are planned t

9

date incurred in the case of costs arising, be providdd.’-

aubsequentto October 12, -1982~The - Irrigation land means any land

full-costrate includes actualoperation, receiving water from aReclamation

maintenance, and replacement costs - project facility forirrigation purposes in

-required underFederalreclamation law a given water year, except forland that

Full-cost charge means the full-cost hasbeen specifically exemptedby -

ratela.~s ‘the actual operation, - statute or administrative action from the

maintenance,- end replacement costs acreage limitationprovisions ofFederal

zequired.underFederal reclamation law. reclamation law. - -

Indirect~ whenusectin connection Irrigation water means water made

with thetermslandholder, landowner, - avail~ble.for-agricultural purposes fromlessee, lessor or owner,means that such the operation of Reclamation project

party isnotthe ownerof record or facilities pursuantto a contract with

holder of title, or the lesseeof a land Reclamation. ~-. - Landholdermeans a party that parcel,butthat such party has a directly or indirectly owns or leases

beneficiahnterestin the legal entity’that nonexemptland. -

‘he owner of record orholder oftitle, lndholding meansthe totaf acreageie tes~ of alaiuf parcel.

idlioldings of joint tenants and of noiiexemptland directly or indirectly ownedor laased.by a landholder. mts-In-coinmon will be considered Leasemeans any arrangement

~ect underthese regulations.A , between pjandholder(the lessor) and

secuiity

1inferestheld bylenders, who’ anoiherparty (the lessee) underwhich

are not otherwiseconsidered a the economicrisk and the use or

landholder of the land in question, ina possessionpfthe lessor~sland is - -

- legal entitybr in aland parcel will not parttallyor.whbllytransferred,to the

be considered an indirect interest or a - • lessee. Ifa management arrangement or

-. bkneficialinterest forpurposes of these consulting agreementis one inwhich

regulatI~ns2 the manager or consultant performs a

• ‘< ‘I&llvuidzidlninans axiy-natural ~ieisdn, service for2the landholderfor a fee,but

.—: including his or harspouse, and’ - does not assume the economicrisk in

•ii~cludi~go~herdependentp; provided the farming-opbration, and the

-- that, ~mder~priorlaw,the term>~-, landholder~retainsthe rightto the use

Ix~dfvidual d6es notinclud&a natural - and possession of the land,is -

person’s spouseordependents. - -‘ responslblelor payment of the operating

‘-I-n - - eligible, except where otherwise - expenses,~and is entitled to receive the -

~ permitte~l to‘K profits‘fromthe farming opei~ation, then

receive ap irrigatio~water;supply wider the agreeriient orarrangement will not

~ayplii~bl~F’ederalreclamation law be considered tobe-a lease.

‘regardl~shehte’p~id forsuch Legal entity orentityforthe purpose

water ‘~‘~‘ - of establishingapplication of the

I-ntermediat~ entity,nieans an entity acreage limitationentitlements means, -‘

‘thatis apart ownef of another entity - butIs notlimited-to,corporations,

- and inturn is qwnedby others,either - partnerships, organlzations, and any

• anot1iei’~entity or indivi4uals.~.. business or property-ownership

Involuntaryacquisition means land arrangements such asjointtenancies

thatI~acqixired through an jnvoluntary and tenancies-in.~common.‘For purposes

foreclosureor similarinvoluntary. of the information iequirements -

processof law conveyance in •- - - - specified in § 426.18 only, ttusts will be

-faction,~f~4ebt (including, but not considered tobe‘legal entities. -

ad to, a mortgage, real estate Limited recipient means any legal.-’

~act ‘oi-d~edoftrust) inheritance, or entity established-under State or Federal

- aevise -- ‘ law benefiting more than 25 natu±al

persons. In order to become limited

recipients, legal entities must be subject

to the discretionary provisionsthrough

either district contract action or

irrevocabld el&~ti6n. -

Nondiscretionaryprovisionsmeans

sections 390oc(b) end 39011 through

390zz—1 ~f the l~RA. -

Nonexemptlandrneans either -

irrigation land orirrigable land that is

subjecttothe acreage limitation

provisions. -Areas used for field roads,

farm ditches and drains,tafiwater- -

ponds~ temporary equipmentstorage,

and otherimprovements subject to

change at will bythe landowner, are

included in the nonexempt acreage.

Areas occupied by and currently used

for homesites, farmstead buildings, and

corollary permanentstructures such as

feediots,equipmentstorageyards.

permanent roads, permanent ponds, and

similar facilities, togetherwith roads

open for unrestricted use by the public

are excluded-fromnonexempt acreage.

Nonfull-cosi’ entitlement means the

maximum. acreage a landholdermay - -

irrigate withirrigation Water at a

nonfull-costrate. - -

Nonfull-costrate means any water

rateother than the full-cost rate.

Nonfull-costrates are paidifor irrigation

water made available to land in a

landholder’s nonttill-cost entitlement.

Nonproject watermeans water from

sourcesother than Reclamation project

facilities.

Nonresident alienmeans any natural

personwho is neither a citizen nor a

resident alien of the United States.

- Operation andmaintenance costs or

08-Al costs meanall direct charges and

overheadcosts incurred by the United

States after the date that Reclaiiiatidn -.

has declared a project, or a partthereof,

substantially complete .to operate.

maintain, provide’replacerneits of,

administer, iiienage and oversee projectfacilities and lands. -

Ownershipentitlement meansthe

ma~dmum acreage a landholder may

directly or indirectly oWn and irrigate

with irrigation water.

Part owner means ah individual or

legal entity that has a beneficialinterest

ma legal entity, but does notown 100

percent of tb,at legal entity. A lender,

who is not otherwise considered a 2

landholder of the landin question, with

a security interestin a legal entity or

land bwnedb~ alegalentity shall not>’

be considered a pert owner underthese -

regulations.’

Priorlawmeans the Reclamation Act

of 1902, and acts amendatoryand.

supplementary thereto (43 U.S.C. 371 et

seq.) that were ine~feci priortothe

enactment of the RHA, and as amended

bytheRRA. ‘. - 0
i

244~ FWednes4ay*Dece~ber ‘18, :1996 d Rules’ -

- - antI ~Regulati6ns~8O7

PriorIawzet~ipientmeans an between Reclamation and the districtor -(C) Substantially modifies contract

individual or~legal entity that-has not -‘~ - through some other agreement between pa~ents-due the -United States; and - -

become subjectto the discretionary Reclamation and-the district. - (iii) Forpurposesof application of the

provisions. - -, — -~ .~- - -Westwide means the 17 Western acreage limitationprovisions -

Project meansahy Irrigation project -, States whereReclamalion projects are Reclamation .does not-considerthe

authorized by Federalreclamation law, located, namely: Arizona, California, following contract actions as providing

or constructed by the United States ‘ Colorado, Idaho, Kansas, Montana, additional or supplemental benefits:. - - - -

pursuantto such law, or in connection -: Nebraska, Nevada, New Mexico, North (A) The, constniction of facilities. fQr-

- witha repayment or waterservice - Dakota, Oklahoma, Oregon, South conveyance o~irrigation water for which

contract executed by the United States . Dakota, Texas, Utah, Washington, and districts contracted ~n or before October

pursuanttosuch law, or any project Wyoming. 12, 1982; - - -

- - (B) Minor drainage and construction

- - constructed -by the United States -- § 426.3 Confomiance to the dlscmtlonary work contracted under a prior -, -

through Reclamation forthe reclamation provisions. - - repayment or water service contract; -

oflands. The term projectincludes any (a) Districtsthat are subject to the (C~Operation-and maintenance -

incidental features of an irrigation discretionaiyprovisions.’Unless an (08cM) amendments; -

project. - ““ exemption in § 426.16 applies; a district (D) The deferral ofpayments provided

Public entitymeans States, political -

subdivisions or~gencies thereof, and - isf:Aubject - to the - discretionary provisions - the or less; deferral - is- -.for a period of 12 months-

.agenciesof the Federal Government.. - - - (1) The districtexecutes a newor Qualifiedrecipientmeans an - - - A temporary

individualwho is a citizen or a r~sident renewed contract with Reclamation afier (E) supply of irrigation

water as set forth in § 426.16(d);

- alien of the United States or any legal October 12, 1982. The discretionary -- (F) The transfer of water on an annual

entity established underState or Federal provisions-apply as of the execution basis from one districtto another, date of the new or renewed contract; provided that: - -

law that benefits 25 natural persons or - - (2)The district amendsits contractto (1) Both districts have contracts with

less. A married couple may become a conform to the - provisions, the United States discretional3T

qualified recipientifeither spouse is a - (i) A district may ask Rec amation to (2) The rate ~d

- United States citizen or resident allah. amend its contract toconform to the pai by the district

In order tobecome qualified recipients, discretionary provisions; - receiving the transferred water:

individuals and legal entitiesmust be (ii) The district’s request to - (i) Isthe higher of the applicable

subjectto the discretionary provisions Reclaniation must be accompanied by a water rate for either district;

through either district contract action or duly adopted resolution datedand (ii) Does not resultin any increased

irrevocable election. -- signed by the governing board of the - operatinglosses to tha United States

Reclamation means the Bureau of district obligating the districtto take, in above th6se that would have existed in

- the absence of the transfer; and - -

Reclamation, U.S.Department cithe: - -‘ a timaly manner, actions required b

Interior. -- - --- ‘ - - applicable State law toamend its y - (iii) Does notresult in any decrease in

Reclamation fund means a special contract; and - - - capital repaymentto the-United States

- - fund- established by the Congress under - (iii) Ifthe requirements of paragraphs below what would have existed in the

the Reclamation Act of 1902, as - - (a)~2)(i) and (ii) of thissection are met absence of the transfer; and

amended, forthe receipts from-thesale~- then Reclamation will amendthe - - (3) The recipientsof the transferred

of public lands and timber, proceeds - contract, and the districtbecomes - water pay a rate forthe water that is at -

from the Mineral Leasing Act, and - - subject tothe discretionary provisions least equal to the actual08cM costs or

certain’other revenues.. - -‘ - - from the date the Ais ict’s requestwas the full-costrate inthose cases where; -

• Recordable contract means a written submitted to Reclamation;. - - - -- for whateverreas6n, the recipients -

• contractbetween Reclamation and a -- (iv) Ifthe districtonly wantsto. amend would :hsve beensubjectto such costs

landowner capable ofbeing recorded- its contracts tobecome subject to the haAth~ ~fer~ii6i beenc~n~idere& -

underState law, providingforthe discretionary provisions. the” ‘ ‘ transferr6d’water-~ ~ ‘ -- - -

disposition of land held by that - - amendments need bnlybe to the extent -- (G)C6utr~’cft ~ to the -

- - - landowner in excess ofthe ownership - requiredto conform to the discretionary - as ~ah-~d Safety of Dams Act of 1978,

limitations ofFederal reclamation law; :- provisions; or t43-U.~S;C. 506); or -

Resident alien means any natural - - (3) The district amendsits

5ontract —~“ (H) Other cbntractections that

- - - person within the meaning of the term after Octoberl2, 1982, toprovide the ‘ Reclamation determines do notprovide

as definedin the Internal RevenueActY. district-withadditional orsupplemental additional orsupplemental benefits. -

of 1954 (26 U.S.C. 7701) as it maybe -~ :- ben~fits. The amendmentmust also C~)iJistricts that are’subject toprior

amended.~ - - :,. - - include the district’s conformance to the law. Any district which-ha&a-contract

BRA m8ans the ReclaniationReform - - - discretionary provisions: - - - -‘ in force on October 12,1982, that -

-. - - — Act of 1982, PublicLaw 97—293,’Title II, - (i) The discretionary -provisions apply’ required landholdersto comply withthe

96 Stat. 1263, (43 U~S.C. 390aa et seq.)— as of the datethat Reclamation executes ownership limitationsof Federal

as amended. - -- -- - the contract amendment- - - - ‘ r8claiiiationi law remains subject to prior

- - ‘-Secretarymeans Secretaryof the U.S. (ii) For~purposes ~f application of the law unles’s’and until the district: -

Department of the Interior. ‘ acrea~’limitatlon~~rovisions’ - - (1) Enter~’into aneW ~r7renewed

Standaid certification orreporting -: Reclamation considers a contract fl; contracti~equiring ittoconforin tothe~’

formsmean forms on which landholders amendmebt as providing additional or discretionary provisions, as provided in

provide complete information aboutthe supplemental benefit~if that ‘. paragraph(a)(1) ofthis section;

directly and indirectly owned and - amendnient: .> ~ -? - - - (2) Makes a contract action requiring -

leasednonexempt landsintheir - -~- (A)Requiresthe United Statesto I conformance to thediscretionary

landholdings. - -‘ - - - e~end significant funds; - -- - provisions,-as provided in paragraphs

Wateryearmeans a 365-day period B R uirestheUnited States to-’ - (a)(2) nr (3) of,thissection; or ~

) (or 366~days-during leap years) whose - commitsignifi6antadditipnal water- - -‘: - (3) Becomes exqmpt,-as provided in

start dateisspecifiedwithinacontract. supplies; oro -~-!‘-4~ ‘-~.:. :‘‘. ‘, §426.16. ~~r~:~--:- .:~‘: -i~:T;/ -

-I

I’-
‘- . — ‘ -

668O8~Federa1 Register hiVol. 61,~No. 244~ibWedffesdayiJ)ecember 18,’ 19961 Rules ~nd~’Rd~ulations

(c) Standard BRAxontract article. (1) apply in any districtinwhich the. - (i) The elector’s originalirrevocable

‘

Tqworrenewed contracts-executed - landholde~ holds land; or . election form must be filed by the - -

tr October 12,1982, or contracts that (ii) Only an indirect landholder in districtwithReclamation and must be

amended to conform-tothe — - - that and all other discretionary - accompaniedby a completed - -

~cretionaryprovisions before or on the provisions districts, then the - - - -- certification form, as apecified in

effective date of these rules must - landholdei’s acreage lii~iitation statusis - § 426.18; - -

include the followingclause: - - - - -- not affected. Such a-landholder can - (ii) The ele~ctor mustfile copies of the

Th~iarfies agree thai ~ of -) receive irrigation water ns a-prior-lawJ -; irrevocable election and certification

irrigation water oruse of Federalfhcflitfes - recipient on:indirectly held landsin - - ‘ forms concurrently.with each district

pursuantto this conti-actisviibjecffo ~‘‘ ‘- ~-~‘- districtsthat conform to the -- - - where the elector holdsnonexempt

reclamation law, as amended-and - discretion~ provisions. - - - - - land;

supplemented, including but notlimited to (~) A nonresident alien, or legal entity-. - (iii) Reclamation will prepare a-letter

the Reclamation Reform Act of1982 (43~ - not establi~hed tinder State or Federal 9 advising the-recipient of-the approval or

- U.S.C. 390aa -etseq.).-. --- - -, - law, and the landholderis~ - - ‘ disapproval of the election. Reclamation

oi~’fhet~dcoixtrticls - (i) A direct landholder, then since - - - will base approval upon-whether the -

executed after the effective date of these such a l~ndholder cannot become, - election form andIhe accompanying

ules,or bontractsthat are amended to subje’ctto, and has no eligibilityunder certification form(s) indicate the -

conform tothe discretionary provisions the discretionary provisions: - - elector’s satisfaction of the various

after the effectivedate of these rules 9 -(A) All directlandholdings in districts requirements ofFederal reclamation law

mustinclude the following clause: that conform tothe discretionary - and these regulations;--- - - -

-The parties agree that the delivery ~ - provisions become ineligible; and- - (iv) Ifthe election is approved, the

irrigation water or use of Federalfacilities (B) Directlyheld land that b6~brnes letter of approval, with a copy of the

pursuanttothis contract is subjecttoFederal ineligible as a result -of the district’s irrevocable election form and the

reclamation law, including but not limited to action to conformto t1i~discretionary - original certification form(s),will be

the Reclamation Reform Act of 1982 (43 provisionsmay be placed under sent by Reclamation to each district

U.S.C. 390aa at seq.), as amended and, - recordable contract assubject to the where the elector holds land;

supplemented, and the rules and regulations conditions specified in § 426.12; or (vJ The district(s)shall retain the

promulgated by the Secretary of the Interior - 5; and (ii) An indirectlandholder, then such form -‘ under Federal reclamation law,, - a landholdermay receive irrigation (vi) If the irrevocable election is

Cd) The effect of~ii master contractor’s water on land indirectly-held in districts disapproved, the landholder and the

and subcontractor’s actionst

- - to the discretionary provisions. o~onform If a provisions, conformingwith to thethediscretiona4-- entitlements -for- with district thewill reasons be advised-by for disapproval. letter along

districtProvidesirrigation water to - such landholder determined as - (3) A-landholderthat on y holds land

‘r district~ through subcontractsand specified in § 426.8. - indirectly in.a districtthat has

ntercontracting districtissubject (I) Landholder actions to conform to conformed to the discretionary -

:.-~‘u, ~ - .. the discretion aryprovisions.- (1) In the provisions, other than a nonresident -

-) The discretionary provisions, then absence of a district’s action to conform - alien or a legal-entity not established

subcontracting districtswho are - to the dis~iretionary provisions;~United - - under State or Federallaw, may make

entitled io receive water must States citizens, resident aliens~ or an irrevocable election also by simply

frrigution legal submit~ certificati forms to all

- -- provisions; also~pox~ormt~ or -the discretionary - -- -- -- - Federal entities law, established canlect under to confo~mto State or the districtswhere g the landholder holds

(~) Prior law. th~ ~- -- -. -~ : -- - -~ ---.-. - . land subject tothe acreage limitation

district -~ amend ~ subcontract subcor~tracting to - discretionary irrevocable election: provisions Uponbyexecution executingofan provisions. An electionmade in this

- c~nformio the discretion~ry provisions -ahiIre~~bl&~l8vti6nY”----- -- - - - manneris binding in all-districts in

landholding in; - which such elector hblds land. without subjecting the mister colitractor, - (i) The elector’s entire (g) Districtreliance on irrevocable

or any other subcontractor of the inaster all dfstricts.sh~ll be subject to the :. election forminformation•? The district

contract6rto’thediscretionary - dis6i~f~ii~x#PE6irisioiis; - - - - is entitled torely-on the information -

provisions. If a subcontract that does not (ii) The election shallbe binding on containedin the irrgvocable election

in’clude the -United States as a party is-’ the elector and his or herlandholding, form. The district does not needto make

amendad to conformto the - - . - but will notbe binding on subsequent an independentinvestigntionofthe

discretionary provisions, or the - landholders of that land; - - information.- --. - - ‘ ‘ - -

_subcontractis a-new or renewed - - .~ - (iii)An ihe~oc~bIe election by a legal - (h) Time limitsfor amendmentsor

contract e~cecuted after October 12, - - - - entity is binding only upon that entity -‘ elections toconform to the discretionary

1982, then the amended,new, or -- --“ and not on’th~ parl~ owners of that - - provisions. Reclamation will allow at -

-renewed subcontract mustinclude they. entity; - ~~§f:~J, - anytime a landholder toelect or-a - -

United S~tes as a party~~ - - - - (iv) An irrevocableelection by a-part districttoamenid its contract t~ conform

(e),The effect on a landholder’sstatus o’~vrier of a legal eiiiftybindsonly the - to the discretionary provisions; An -- -

when a di~trict becomes subjectto the part ownermaking the election and not irrevocable clection that was-madeafter

discret~ori{nyprovisions.Ifa district the entity or ot~ier part ownersof the April 12, —1987, but on or beforeMay 13, -

conforms tothe 4iscretionary provisions entity; and -~ —~ - -‘ - - ‘-~ - - - -- - 1987, shall be consideredeffective-as6f

and the ¶an(lholderis;; - - — (v) An irrev cable election by a lessor - ‘April-12,-1987.- - - - -

(1) Otherthan a nonresident alien or does not affectthe status of a lessee, and . - -

a legal entity that-is not established vice versa. However, the eligibilityan& - - § 426.4 AttributIon of land. -

underState orFederallaw, and is entitlementofneither a lessor nora ;- - (a) Prohibition anIncreasing acreage

Ci) A directlandholder inthat district lessee may be enhancedthroughiensing. -- limitation entitlements. Except as

the landholderbecomessubjectto (2) Alandholder snakes anirravocable specifically provided inthese rules, a

scre.tionary.provisions and the election by completing-aReclamation landholder caniiotincrease acreage

.aated acreage limitation status will issued irrevocableelection form: ‘- - limitationentitl~tnent~ ~r eligibility by

III

C)

Q

0
‘4

-1

p

S -.- — —

December 18, 4996, / -Rules 5and Regulations 66809

acquJrin~ QrI~olding a beneficMlinterest entitled toreceive irrigation Water.on a on or before Decepiber 6, 1979. For land

ina legalientity. Similarly,the acreage ~- maximum of 960 acres of owned - acquired by the current owner on or

limitationstatus of an individual or~. nonexemptland, or the Class I before-that date, priorlaw ownership -

legal entity thai holdsor has acquired ~ equivalentthereof. Thisentitlement , entitlementsapply on a district-bybeneficial Interest in.another legal ~entity applies on a westwidebasis. — district basis

will notbe permitted to enlarge the -. (c) Limited recipientOwnership (3) Forthose%ntities where an equal

latter legal entity’s acreage liinitation~ entitlement. A limited recipientis - interest held by the part owners would

entitlements or ellgibility.. ~- .~ entitled to receive irrigation water on a resultin a 160-acre perpart owner

(b) Attribution ofowned 1and..For. ~- maximum of 640 acres ofowned entitlement for the entity, ifthe part

purposes of~ietarinlningacreage to be nonexemptland, or the ClassI - - -- -- ownersinterests are’not equalthen the

counted againAt acreage limitation - ~. equivalentthereof. This entitlement. entitlement ofthe entitywill be

entitlements; acreage will be attributed applies on a westwidebasis. determined by the relative interest held -

toall: ~ - - - ~- - -.~ - (d) Priorlawrecipient ownership - in~he entity by each part owner.

(1) Directlandowners inproportion to. entitlement. (1) Ownership entitlements - -

the direct beneficial interestthe for priorlaw recipients are determined § 426.6 LeasIng and tuII-cost pricing.

landowners own inthe land; and - by whether the recipientis one - (a) C6nditiohs that a leasemust meet.

(2.) Indirect landownersin proportion individtial or-a married couple, ~d j~ Di~trlcts canmake irrigation water

to the indirect beneficial interestthey - entitiesby the type of entity, as-follows: available toleased land onlyif the lease

own in the land. - (i) An individualsubject to prior law meets the fAldwing requirements. Land

(c) Attribution ofleased land. Leased is entitled to receive irrigation water an that isleasedunder a lease instrument

land will be attributed to the direct and a maximum of 160 acres of owned - - that does not meet the following

indirectlandowners as well asto the nonexempt land; requirements will be ineligible to

direct and indirect lessees inthe same (ii) Married couples who hold equal - receive irrigation Water untilthe lease

manjier as described inparagraphs (b) interests are entitled to receive irrigation agreement isterminated or modified to

and (d) of this section. water on a ma~dmum of 320 acres of satisfy these requirements. -

Cd) Attribution oflandheld through jointly owned nonexemptland; - --: - - (1)The lease is inwriting;

intermediate entities. Ifland is held by (iii) Surviving spouses until (2)The lease includesthe effective

a direct landholderand a series of remarriage are entitled toreceive date and term of the lease, the length of

indirectlandholders, Reclamation will irrigation water on that land owned- which must be:

attribute thatland tothe acreage - - , jointly inmarriage up to a maximum of - (i) 10 years or less, including any

limitation entitlements of the (iir~4-~t - ~20 acres of owned nonexemptland. If exercisable options; however, for

landholderand each indirect landholder any of that land shouldbe sold, the perennial cropswith an average life

in proportion to each landholder’s applicable ownership entitlement longerthan 10 years, the term may be

beneficialinterest inthe entity that - would be reduced accordingly,but not equalto the average life of the crop as

directly holdsthe land. - - - to less than 160 acres of owned - determinedby Reclamation, and

(e) Leasebacks. Any land a landholder nonexempt land; -- e~ (ii) inno case may the term of a lease

directly or indirectly owns and that is (iv) Children are each entitled to xceed 25 years, including any

receive irrigation water on a maximum exercisable options; directly or indirectly leased back will -(3) The lease includes a legal onlycountonce against that particular - of 160 acres of owned nonexempt land,: - description, that is at least as detailed as

landholder’s nonfull-cost entitlement. regardless of whetherthey are whatis required on the standard

(fi Effecton an entity ofattribution to- independent or dependent; - . - certification and reporting forms, of the

part owners.- For-purposes of- -- - -~ ‘- - -- -- (v)Jpint tenancies and tenancies-rn- land subject tothe lease; -

determining eligibility, the entire common subject to priorlaw are entitled (4) Signatures ox-au parties to the

- landholdingwill be attributed toall-the - to receive irrigation 1V5tOI~ Ofl~ ~ -~- lease-are included;

direct ahd~iiidirect landholders. Ifth~ maximum of 160 acres of owned - (5)The lease includes the date(s) or -

interests in~legalentityare: ~- - -~ rtonexempt land pertenant, provided- con~difio~nd\~heii’ lanse Paymentsare due

(1) Undivided, a of the indirect each tenant holds an equal interest in kind the amounts or the method of - -

part owners must be eligible in order for the tenancy; - computing the payments due;

the entityto be eligible; or - ‘ 4vi) Partnerships subject to prior law - (6 -The ease is available for -- -

- (2) Divided, in such a manner that are entitled to receive irrigatiop water Reclamati6n’s insifection and

specific parcels are attributable to each on a maximum of 160 acres of owned - Reclamation reviews and apprOves all

indirectlandholder, then the entity may nonexemptland perpartner if the - - -. leases forterms-longer than 10 years;

qualify foreligibilit3i on those portions -- partners have separable and equal and:’ — ~ ~:--- - - -. -~ - --

ofthe landholding not attributable to: interests in te partnership and the right -- - (7) If eitherthe lessor or the lessee is -

any part ownerwho is ineligible.- - to alienate that interest. Partnerships subject to the discretionary provisions,

entitlement. - - where each~artner does not have a - the lease providesfor agreed upon -

§ 426.5 Ownerstiip - - separable interest and the rightto - - paymentsthat reflect the reasonable

- (a) ‘Ceiieial. Except as provided in alienate thatinterest are entitled to - - valueof the irrigation Water tothe

§§ 426.12 and 426.14, all nonexempt receive irrigation water on a ma,dmunr productivif~of the land; except -

land directly or indirectly ownedby a of-160 acres ofnonexempt land owned -(8)Leases in effect as-ofthe effective

landholder counts against that by the partnership; and - -- date of these regulations do-not needtolandholder’sownership entitlement.In - (vii) AlLaorporations subjectto prior meet the criteria specified tinder -

addition, land owned or controlled by a law are entitled to receive irrigation - paragraphs (a) (3) and -(4) of this section,

public entity thatis leasedto another water on a ma,dmum of160 acres of unless and until such leases are - -

party counts againstthe lessee’s- - owned nonexemptlaiid.=- , - renewed. - -. - -- - -

ownership ‘entitlement, as specified in - - - (2) Prior lawyecipient oi~nership - - (b) Nonfull-cosLentitlements. (1) The

§ 426.10. - - -,, - - -~ entitleipentsspecified inthissection,, nonMl-c~ostentitlement fo~ qualified

(b) Qualifiedrecipient ownership — apply ona westwideliasis unlpssthe•~ -, re

entitlqzi~nt.54qualified recipientis land was acquired i~t)iecurrent -- - cipients is 960 acres, or the Class 1, -. -

- owner equivalent thereof. ~ .- -
—- -~-,

~ — —

65ThYei~i~FR~er%/W~1Y~Y~No~244 We~nesday,~ D:V~ber 18; 1996~ / ~Ru1~s~dR~giiWions

— ~ ~ I —

(2)The nonfull-cost entitleiie’nt for -- - recipients, regafdless of thedatebf. - - (4) Ifthere are additional construction

~nlfedrecipients that received - acquisition -y - -‘ -- expenditures,or ifthe cost allocated to

igationiv~feron or before October 1, (e) Selection ofnonfull-cost-land.(1) irrigation changes, then a new full-cost

p81, is 320 acres or the Class 1 - A landholderthat has exceeded his or chargewill be determined. I 4quivalentthereof. The nonfiill-cost ‘- - her nonfull-cost entitlement may select (5) Reclamation willnotify the -

entitlement for limited recipientsthat in each water year,- from his or her respective districts of changes inthe

didn~ot receive irrigation water’on or directly held irrigation land, the land full-cost charge at the timethe district

prior toOctober 1, 1981, is zero. that canbe’irri~ated it a nonfiill-cost - is notified of other payments due the

- - - - (3)Thenoiifull-cost entitlement for rate and’*he’Thnd that can’be irritated - United States

prior law recipients is equaltoth’e onlyatthelull-cost rate.-Selections for (6)In determining full-cost charges, -

recipient’s maximum o*nershij’ full-cost’6r nonfull-costland may -~ the followingfactors will be considered:

- 9xititlement asset forth in § 426.5(d).’~. - include: c’ - -. -- - (i) Amortization period.The

However, forthe ~purpdseof computing (i) Leasgd ‘land; - - - - amortization period for calculating the

the acreage subjecttofull cost, ~ - - - ~(ii) Nonexcess owned land; “ - full-cost charge isthe remaining balance

-ownedand leasedirrigation land (iii) Land underrecordable contract~ of: - - - -‘ -

westwidemust be included in the unless that land is already subject to (A) Forcontracts entered into before

computation. - - applicalionofthe full-costrateunder an October 12, 1982, the contract

(c) Application ofthe nonfull-cost and extended recordable contract; or repayment period as of October 12,

full-costrates. (1) A landholdermay (lv) A combination ‘of allthree. 1982;

- r irrigate at the nonfull-cost rate(ib~tly (2) Once a kandholderhas received (B) Forcontracts entered into on or

and indirectly held acreage equalto his irrigation water on a given land parcel - after October 12,1982, the contract

or her nonfull-cost entitlement. — -- - during a water year, the selection of that re a ent period;

(2) Ifa landholding exceeds the - - parcel as’fullcost or nonfull-cost is ~CjForwaterservice contracts, the -

landholder’s nonfull-cost entitlement, binding until the landholderhas period from October 12, 1982, or the

the landholdermust pay the appropriate completed receiving irrigation water - execution date of the contract, -

full-costrateforirrigation water westwide forthat water year. whichever-is later, to the anticipated A licabii o a 11-costselection date of projectrepaymeut;and delivered to acreage that equals the (~ PP 4’ f fu

amount of leased land that exceedsthat to an owner orlessee. If a landowner or (D) In cases where water services rates

entitlement. lessee should select land assubject to are designed tocompletely repay

In the case of limited recipients, a full-cost pricing, then that land ~ applicable Federal expendituresin a

landholder dces nothave to lease land cost rate, regardless of eligibility of the may be used as the amortization period

- to exceeda nonfull-:oste:titlement, - receive irrigation water only atThe Ml.. specific-time period, thattime period

-~nce the nonfull-cost entitlementis less other party toreceive the irrigation forfull-cost calculations related tothese water atthe nonfull-cost rate.” expenditures; but, inno case willthe

n the ownership (g) Subleased land. Land thatis - amortization period exceedthe project

erefore, limited recipientsmust pay subleased (the lessee transfers - payback period authorized by the

e appropriate full-costratefor posse~on of the land to a sublessee) Con~ss; - - -‘

that rigation exceeds water theirdelivered nonfull-cos~t to any acreage will the subless~ be attributed and tonotthe~

landholding the lessee. -of determining (Wi Construction full cost, costs. construction For costs 0 - - - entitlement. (h) Calculatingfull-cost charges - properly allocable to irrigation are those

(d) Types oflands that count against Reclamationwill calculate a district’s - Federalproject costs for facilitiesin

- the nonJull-cost entitlement. (1) All - full-co~tcliargeusing accepted service that havebeen assigned to

directly and indirectly ownedirrigation accountingprocedures ahd underthe irrigation within the overall allocation

land and irrigation land directly 01K - ,Iollowing conditions. - of total projectconstruction costs.Total

- indfr~ctly leased for any period oftime (1) The full-c6st charg~ does not projectconstruction costs include all

—during 1-water year counts towards a recoverliitire~tretroai~tiirely before direct expenditures necessarytoinstall

landholder’s nonfull-cost entitlement, October 12-1982. But interest on the - orimplementa project, such as:

except unpaid balance does accrue from (A)Planning;

- - (i) In-vohuuitarily acquii

3ed land, as~’ - Octoben12,~i982Ywhe~re th&iinpaid - - (B) Desk; - - -

(C) Lan - -

provided in §§ 426.12 and 426.14; and’ balance &qtials the irrigation allocated (D) Rights-of-way;

-~ (ii) Land thatisleasedfor incidental -- construction costs forfacilities ~ (E) Water-rights acquisitions; - -

grazingorsiinilar purposes during service plus cumulative federally (F) Construction expenditures;

- - periods wheii~ the land is-not receiving funded O&Mdeficits, less payments. (G) interest~during construction; and

- ,irrigationwater. - --- (2) The full-cost charge will be (H) Whenappropriate, transfer costs

- (2) Reclamation’sprocess for determinedi associated with services provided from

. determining if axionfull-cost - - - - (i) As ofOctober 12, 1982, for - - other projects;.

entitlement has been-exceeded is as - contracts entered into before that date (iii) Facilitiesin service. Facilities in

follows:’~ ~ -- - - - - - - - - regardles~of amendments toconform to service are th6s~ facilitiesthat are in

(i) Allland -counted towarda - - - the discretionary provisions; and - operation and pi~oviding irrigation —

landholder’snonfull-c~st entitlement - - - (ii) At-the timeof contract execution - services~, -

will be counted on a cuniixlativnbasis - for newand renewed contracts entered (iv) Opeiation and maintenance

-: - durin~any~1-wateryear-~ - - -i inte on dr’Ofter October 12, 19B2~- - - (09M) deficitsfunded. O&M deficits -

--(ii) Once a landholder’s nonfull-cosf (3) Forfepayment contracts,the full- - fu~~ded are the annual O&M costs -

entitlementismet ina given water year, cost charge willfix equal annual - - - - - including project-use piiniping power -

any additicrnLal eligible land may be payments Over the amortization peridd. allocated to irrigation that have been -- -

-..rigated’oiilyit ihO full-costrate;and Forwater service contracts,the full-cost federally funded and that havenot been

- westwide

iii)

~ardsiionftill-c6st’entitlements

Irrigation

basis,

land

even

will

forpriorlaw

be counted

an- -a -

-

foot the

chaig~

ax~iortiz~tion’period.’ of

will

projected

fix e4nial

water

payments

deliveries~over -

per acre-s

--- - -

paid

the p&yments

b~

a

the

en~s

district;~

that received. h~rebeen In calculating reccived,

- 0

- -
iauay, Deceinberila, ~~996~I‘Rules -and ~R~gulations66811

all ~li~dto- repay - - - dholders who were prior law- - theix~ entirety, and will ndt be credited

or ,~, on re ~ and become subjecttothe . toward any contractual obligation; or

cons~c n tiostsin accordancewithy discretionary-provisions after April12, O&Mor repayment account of the - -

Federal reclamation law,policy, and - - - 1987, are eligible fortie full-cost district or project. Forpurposes of these -

- applicable contract provisions will be - interestrate specified l~i paragraph regulations only, this does notinclude

consldere&-Thesemay include: - (h)(6)(vi)(A) of this section,unless they revenues from any chargesthat may be -

-: - - (A) Directrepayment contract are limited recipientsthat did not - :: - assessedby the districtto cover district

revenues; .,; receive irrigation water on or before - operation, maintenance, and

(B) Netwaterservice’ contract incQrne;. October 1,1981, in that case they - admJni~trative expenses. -

(C) Contributions; - - remain subjectto the lull-cost interest - - -

(I)) Ad valorem taxes; and - - rate speqified inparagraph(h)(6)(vi)(B) 1426.7 Tnists) -

XE) Othermlscellniieous revenues and of this section. - (a) Defihitiozisforpurposes ofthis

credits excludiiigpower and municipal (i) Direct andproportional chargesfor section: C ~ ~- -

and industrial (M&I)revenues; full-cost water. In situations where Grantorrevo&xble trust means a trust

(vi) Interestrates. Interest ratestobe water delivery charges are contractually that hol4s irrigable land or irrigation

used in calculating full-cost charges will or customarily levied on a per-acre, land th~tmay be revoked ~t the -

be4eterjiilned by the Secretary of the basis, full-cost assessments will be made - discretion of the grantor(s), or

Treasury as follows: - on a per-acrebasis. In situations where terminatedby the terms of the trust, and

(A) Forirrigation water delivered to - water delivery. charges are contractually revocation or termination results intitle

qualified recipients. limited recipients - - or customarily levied on a per acre-foot tothe land held in trustreverting either -

receiving water on or before October 1, basis, one of the following methods - directly or indfrectly to the grantor(s).

1981, and extended recordable contract must beused tomake full-cost Irrevocable trust means a trustthat

land ownedby prior law recipients, the assessments: holdsirrigable land or irrigation land

interest rate for expenditures made on (1) Assessments will be based on the - and does not allow any individual,

or before October 12, 1982, will be the actual amountsof water used in including the grantor or beneficiaries,

greaterof 7.5 percent per annum or the situations where measuring devices ~-‘~ the discretion to decide whep or under

weighted average yield of all interest- inuse, tothe satisfa~on of what conditionsthe trustterminates,

bearing marketable issues sold by the Reclamation, toreasonably determine and that upon termination the title to

Treasury during the fiscal year whenthe the amounts of irrigation water being the land held in trusttransfers either -

expenditures were madeby the United delivered to full-costand nonfull-cost directly or indirectly to a person(s) or

States. The interestrate for expenditures land; or- - - - entity(ies) otherthan the grantor(s).

made after October 12, 1982, will be the (2)In situations where, as’determined Otherwise revocable tr~ist means a

arithmetic average of: - by Reclamation, measuring devices ~ - trustthat holds irrigable land or

(1) The computed average interest rate not a reliablemethod for determining - irrigation land and that may be revoked

- -payable by the Treasury upon its - the amounts of water being delivered to at the discretion of the grantor(s) or

outstanding marketable public full-cost and nonfull-cost land, then - other parties, or terminatedby the terms

obligations-that are neitherdue nor - water chargesmust be based on the - of the trust, and revocation or

callable forredemption for 15 years assumption that equal amounts of water termination results in the title to the

from the date of issuanceat the - - per acre are being delivered toboth land held intrusttransferring either

beginning of the fiscal year whenthe - types of land during periods whenboth directly or indirectly to a person(s) or 2 -

exen p ditures are made; and - types ofland are actually being- entity(ies) otherthan the grantor(s), -

— (2)The weightedaverage yield on ~ irriRated. > - .i” - - (b)Attribution ofland held bya trust,

interest-bearing marketable issues sold - (jJ Disposition ofrevenues obtained The acreage lunitation entitlements of a

by the Treasury during the fiscal year - throughfill-cost wpter pricing.-- - tare onl limited b the acrea e -

preceding the fiscal year the ‘ 11) LegaldeliveriesA a on- water t~is y y g 2 -

expenditures are made; -s - - - has beendelivered in compliance with -- - limitation entitlementspf the trustees,

- (B) For irrigation water delivered to Federalreclamation law and these grantors, or beneficiaries to whom land

limited recipientsnot receiving - - regulations,then: - - - - - held l~ihe trust must be attributed as

irrigation water on or before October 1, :- ~{i)-That portion ofthe full-cost rate ~‘• provided forin~§426:4, The

1981, and priorlaw recipients, except - that would havebeencollected ifthe entitlements of the parties to whom -

forland owned subjectto extended - - land bad not beensubject to fullcost — trusted land is attributed are determined

recordable contract, the interest rate will will be credited to the annual payments according to §§ 426.5,426.6, and 426.8,

be determinedas ofThe fiscal year - dueunder the district’s contractual -- - - and~other~pplicable provisions of,

preceding tie fiscal year the obligatiort; - - - - Federal reclamation law and these’

expenditures are made, except thatthe (if)Any O&M revenues collected over - regulations.Reclamation attributes

interestratefor expenditures made and above thQse required underthe -- - nonexemptland held by a trustto the

beforeOctober12, 1982, will be - district’s contract will be credited tothe - following parties: , - : -

determinedas ofOctober 12, 1982. The projectO&Maccount; and -- - -- -- — - (1) Forjand held inan irrevocable

interestratewill be based on the - (lii) The remaining full-cost revenues trust, the land is attributed tothe

VI- arithmetic average-of: - - will be creditedto the.Reclamation fund bene~ciaries inproportion totheir -

- - (1-) The computed average interestrate unless otherwiseprovided by law,with- beneficialinterestin the trust: However,

payable by the Treasury upon its - any capital component ofthe full-cost; - this atiiib~ i~6nly~made ifthe -

outstandingmarketable public - rate credited to project repayment,-if-w;2- criteria-listed inparagraphs (b)(1) (i) and

obligationsthat are neitherdue nor applicable. - -. -i - - ~- (ii)ofthis~section are met. Ifthe trust

callable.forredemption for 15 years - (2)lilegal deliveijjes. Revenues - - - ~- failsto meet any portion ofAhese

from the date of issuance; and - resulting from the as~es~ment of .~; - criteria, Reclamation attributes the land

(2)~heweighted average yield on all - compensation charge~for illegal~:~ ~ ~i!- - - held intie trustto the trustee.

inter~st-jpring marketable issuessold - - deliveries of irrl~ationwater wifl:be -: - “(i) The trustis inwritten form an4

byth~ Tr6asury. - — -- - - - - deposited intu~he:l~eclamaUon fund in~ approved by Reclamation; and a-’ -

2~ p

V
-~ ~ .~- -- -

—I, -s~ ~±—-‘---

— - -‘ ‘5 -I - --

y~2~Dec~inbei~18,L1996 ‘I ~Ru1~sarM Xegiirdtlons - -

668I~2 (ii) TheFederal bene~ciaries ‘Register of the7’-Vol. trust and61, No “244’~1 (1)Attribution during aiijr’~ivenwater - - (d)Exception toprior-lawentitlement I

beijaliciaries’ respective interests are year wiftbe provided onlyto class - - application. (1) If a nonresident alien Is

mntified within the trust document. - beneficiariesthat are natural persons - a citizen of ora foreignentity is ‘

(2) Forland held in a grantor - - and establish&l legal entities~ For - established in a countijrthat has-one of

revocable trust, the landis attributed to purpo’ses pf administering the acreage the followingtreaties with the United

the grantor according to the grantor’s - limitation j~ovisions, attribution to States orisa memberof the listed - W

acreage limitation’status and the land’s unborn or deceased persons, or entities organization, then that nonresident

eligibilityimmediately prior toits - - not yet established, will notbe allowed. alien or foreignentitywill notbe

- tran~fer tothe tr~ist-However, this -. - (2) Ifa trust~ui~clu7des a class of - restricted to priorlaw entitlements, j

attribution is onlymade if the criteria - benefi~ries towEich land subjectto - provided the-eligible landholding

Z listed and trust(iv) fails inofparagraphs tothismeet section any{b)(2) portion are (i), met(ii), ofIfthese the (iii), - th&attributed, beneficiarjes acreagethelimitaticfn will trustee’and be required provisions eachtoofsubmit will the be~ subject provisionsis (i) Friendship,tomnierce totheheld acreage indirectly: ljniitation and-- 21

- ciiteria, the la~id-heldin trustwill be standaM ~eitification or reporting forms NavigationTreaty; -

ineligibleto receive irrigation water annually The ~ubmittalof verification (ii) Bilateralinvestment Treaty;-~

- until all of the criteria aremet. The only forms, as provided in § 426.18(1),will - (iii) North,Am~ican Free Trade

- - exception isifthe trust’s and grantor’s -notbe applicable to such tusts. Agreement; - -

standardceftification or reporting forms - (d) Application offull-costrote to (iv) Canada—United States Free Trade

indicate thatthe land held by the trust landheld bygrantor revocable trusts. If Agreement; or

has been attributed tothe trust’s a grantorrevocable trustthatmeets the (v) Organization for Economic

grantor(s). specified (i) The trust in- paragraph meetsthe(b)(t) criteria of this this criteria amanner section ~jecified that Isrevised precludes in paragraph byattribution the grantor (b)(2) ofof in - -Cooperation entities (2) Nonresident that meet and Development. the aliens criteria and foreign listedin I

section; - - the land held in trustto the grantor: paragraph (d)(1) of thissection will be (ii) The grantor(s) of allland held by (1)Before April 20, 1988, Reclamation required toprovide proofof citizenship

the trustis (are) identified within the will not assess full-cost rates for the or documentation certifying the country

trustdocument; - - - - land held by the revisedtrust for the inwhich the entity in questionwas

- (iii) The conditions underwhich the penodbefore itwas revised; or established. Districtswillretain such

trust may be revoked or terminated ~ (2) On oi~After April 20, 1988, documentation in the landholder’s file.

identified within the trust document; - Reclamation will chai~e the fulbcost - (3) If a nonresident alien or foreign

and - - - - - rate forirrigation water delivered to any entitymeets the criteria listedin -

(iv) The recipient(s) ofthe trustland land held by the trustthat exceeds the paragraph (d)(1) ofthis section, and

‘on revocation oi~termination Is ~ grantor’s noiifiill~Ost entitlement, onlyholds eligible land subjectto‘the

stifled within the trust document. - commenciui~ December 23, 1987, until -- acreage limitationprovisions indirectly,

t3) Forland held in an othenvise the trust agreementisrevised to make thenthe nonresident alienmay be

vodabk trust,the land is attributed to it an irre~rocabletrust or an otherwise treated as a United States citizen or the~~

the beneficiaries inproportion to their revocable,~st -~ v — foreignentitymay be treated as a --

~beneficia1interestsin the trust. § 426.8 Nonresidentaliens and foreign - domestic entity for purposes of

However, this attribution is onlymade entities. - - application of the acreage-limitation

-~ - - if the trustmeets the criteria specified (a) Definitionsfor (i) The nonresidexit hlien or foreign

- - inpaf~raph (bXl) of thissection and - section: - - purposes ofthis provisions fortl~e land held indirectly. 1

the trustmeets the additional criteria Domestic entity means a legal entity entitymay submit an irrevocable

-- specified in paragraph (b)(2) ofthis - - - established underState or Federallaw. - election ~o.conform~o’the:discretionary-~m ~)

-. section.—. -~ — Foreign-ez~tityJneans a legal entity not provisions as provid~edforin§ 426.3W. -;l*~~,~I

- (i) IfRe5laniation’cannbt determine establishedunderState or Federallaw. Conformance to the discretionary-

‘who will holdthe-land iiitrust upon’ - (b) Restriction on’receivingirrigation provi~lonsthrough the submittal of a

- termination or revocation of the trust, or water.-Notwithstanding any other‘.- - a- - certification formwill-not;be allowed as

who isthe grantor(s) o~the land held in’ provisionof Federal reclamation law or specified in§ 426.3(fX3)~ 3-~•~~ ‘- - .-:. ~

trust,~ then lrrlgatinn water will not be these tegulations, a nonresident alien or (ii) Upon Reclamation’s approval of -

made available tothe land heldin trust - - foreignentity that directly holdslaud in the irrevocable election, a nonresiden

- ~.. untilthe trustsatisfies the additional a districtthatis subjecttothe -~ -. - alien will be treated as having the - -

criteri&listed in paragiaph (b)(2) of this discr~tionaryprovisionsisnot eligible - ownership entitlemeiit of a qualified

section-~-’- - - * toreceive irrigation wate~on such land.- recipient as described In § 426.5(b), for

(ii) Ifthe Th~t failsto meetthe-criteria Nonresident aliens and foreignentities any’land held indirectly. A foreign

-li~tedinparagraph (b)(1~ of this section, may hold land indirectly in - entitywillbe treated asaqualified ~‘

but do~s meetthe additional criteria -I - discretionary districts and both directly recipient or a limited recipient as

listed in’paragraphs(b)(2) (ii) through and indirectly in-priorlaw districts and - determinedby the number of natural -.

- (lv) of this section, then the land is receive irrigation water on such land, - persons who are beneficiaries- of the -

attributed tothe trustee. ‘~ -- subject t~ their acreage limitation ‘~ — entity as specified by the definitions ~

- ~(cy~Id~ficiaries~4F*purposesK enititlementsJ 9” - -~; - ‘- -- foundin§ 426.2; and the subsequent’ A

ofldentifyingbeneficCarie5,aCla~S of - -‘ (c) EntitlementsfornonrAident aliens~ entitlement as provided in § 426.

beneficJinl~s specified ‘~arithin the trust - andforeignentities. Except as-provided - (c), for any.land held indirectly. The -

- — documenti~,ill be acceptable aslong as - inparagraph (d) of thissection, all - -, - applicable nonfull-cost entitlements

the trust doobinentisspeciflcas toth~ nonresident ~liens~Iudforeignentities - will be determinedas described in

-‘nefidalIliteresttowhich each - - - will be considered pri~r law recipients, § 426.6(b). z)ri~ - -

mber of~h~’class will beeiiti~led and and shallhai~e entitlements’and~ -.-~ - (iii) Reclamationwill not

a ineml~i.~’ofthe4ass are - ‘ eligibilitj3~ only as priorlaw recipients as irre.tocable elections

-. identiftable.~ ;~ ~ ~- -“ - specified in§§ 426.5(d) &iud’426.6(b)(3). nonresident alien or a Ioreugn ei

w

--ii
I-

~ember48, c1996 I- Rules ~nd~-Re~ulati6ns66813

‘in any priorlaw every ~ubdivision underthat- -‘ acreage of land with lowerproductive -: organization as,a single legal entitywith> potential (Classes 2,3, and 4) that

tivi ~j not approve a limited recipientstatus; or -;- - - would be equivalentinproductive --

irrevocabli ~issubmitted bya - -- (B) 25 me~~ers~or less, theu :-~ potentialto the most suitable land

nonresideL. Is not a citizen of Reclamationtreats that organizationand (Class 1) inthe local agricultural - -

or forel entlty has notbeen - - - everysubdivision-under that economicsetting.

estab a cquntry that has a treaty organization as a single legal y (1)Reclamation pstablishes

Or intem&tlon&~ membership a~, . a qualified recipientstatus.--- - - equivalency factQrs by comparing the - -

specified in,paragrsph (d)(1) of this (c) Acreage limitation status ofprior - weighted average farm size required to

section.~;-~.’>,.~;-- - - - - - lawreligious orcharitable-organizations produce a given level of income on each

I426.9’~Reiigi8us ‘~ or charitable - - - charitable orSubdivisions, organizations (1) Religious and each or -of - of farmthesize lower.nlasses required toofproduce land withthatthe

r erganizati~~ns. - -- theirsubdivisions are treated as separate income level on Class 1 land.

(a2D~fi~tionsforpurpOses oft-his prior law corporations, if neitherthe . - (2) Forequivalency purposes, -

section: --

Central organFzationmeans the - - district northat religious or charitable Reclamation‘will classify all irrigable

orgahization to which ~ll subdivisions, organization or its subdivisions electto land-as Class 1,-2,or 3; no other -

such as conformtothe discretiona~t-~rovisions. - classiflcations~are permissiblefor -

parishes,-congregations, (2) Reclamationwill a e entire- irrigable land.Class 4 and special-use

chapters, etc;, ultimately report. organization, including all subdivisions, land classes will be allocated to one of

Rellgidus6rcharitableorganization

means an organization or each - as a single priorlaw corporation, ifthe these three classes,on a case-by-case

congregation, chapter, parish, school, central organization or any subdivisions basis. -- - - - - -- -

ward, orsimilar subdivision of a do notmeet the criteria specified in - (3) Once the Class 1 equivalency -

religious ot charitable organization that paragraph (b)(1) of thissection; - - determinations have beenmade,

is exemptfrom paying Federaltaxes (d) Affiliated turin management individual landowners\vith -land

under § 501 of the Internal Revenue - between a religious or charitable - - classifiedas.2 or 3 for equivalency

Code of 1954. as amended. organization and a more central - purposes will have the right toadjust

(b) Acreage limitation status of organization ofthe same affiliation, their actuallandholding acreage to.its

religious or charitable organizations Reclamation permits a subdivl%ion of a -- Class 1 equivalent acreage.

that are subjectto the discretionary - - -- religious or charitable organizationto (4) In a districtsubject to priorlaw,

provisions. (1) Religious or charitable retain its status as an individual entity Class 1 equivalency canbe applied only

organizations or theirsubdivisions that while cooperating with a more central tolandholders who are subject to the

are subject to the discretionary - organization of the same affiliation-in - discretionary provisions. -

provisions have qualified recipient farm operation andmanagement. (5) Requests for,equivalency

status, if: - Reclamation permits affiliated farm determinations will be scheduledby -

(i) The organization’s or subdivision’s management regardless of whether the region, ~th-the regional director of

~ the sales ofsuch produce are i~sed only - being operated. - responsibilityforsuch scheduling. -

agricultural produce and proceeds from subdivision isthe owner of the land each Reclamation region having -

for charitable purposes; Generally, requestswill be honored on

(ii) -The organizationor subdivision, - - §426.10 -Public entities. - - a first-come-first-served basis. However,

itself, operates the land; and - - (a) Application ofthe acreage if requests exceedthe region’s ability to

(iii) No part of the net earnings ofthe limitation provisionsto public entities. - fulfilIthem expeditiously, priority will

organization orsubdivision accrues to- Reclamation-does notsubject public ~--~ - be given on the basis of greatest ~- - -

the benefitof any privateshareholder or entitiesto the acreage limitation - - inmiediate need. -

individual. -: - - - - - provisions ofFederal reclamation law - (b) Who mayrequest a Class I

-‘(2) IfReclamation determines that a — - withresp~cttoland thatReclamation’ equivalency determination? Only -- --

religiousor-charitable organization or determines public entities farm - ~ districts-may request Class-i --- - s - -

any of its subdivisions does not meet4 primarily for nonrevenue producing - equivalency determinations. Up,on the

the criteria listed inparagraph (bXi) of functions. However, public entities are requestiinf any district subjectto the

this’section, then:~ -: - - - -- required tomeet certification and - -- --i -- acreage limitatioii provisions, - •~- -- -

(i) Ifthe central organizationhas not - reportingrequirements as specifledin~ - Reclamation willmake a Classi-- --

metthe criteria, Reclamationwilltreat - § 426.18.- - - - - ‘~ - equivalency determination forthat - --

the entiie organization, including all (b) Sale ofpublic land. Reclamation district.’Equivalencydeterminations can -

subdivisions, asa singleentity; or does not require public entities to seek- be’made-qnlyon a’district-wide basis. -

(ii) If & subdivision has notmetthe priceapprovalbefore they selL - - - - (c) Definitioh ofClass 1 land. (1) Class

t criteria,onlythat subdivision and any - - nonexempt lands.Once’sold, - - — - - -- - -- I land is defined and will be classified

subdivisions o( it will be treated as a Reclamation canmake irrigation water asthat irrigableland within‘a particular

I - singleentity and riotRIle central - — available -to such -land-if-the purchaser ~:.- agricult~iralbconomlc setting that: --

- organizationor othersubdivisions of the - meets RRA eligibilityrequirements: ~- -, •(i) Most completely meets the various

central organization;-and - - - - - (c) Leasing ofpublicland. Public - -. parameters and specifications - -

(iii) In order to ascertain the acreage entities canlease irrigation land that’ -, ‘ established byReclamation for-Irrigable

limitation stptus,Reclamation - they own or control to eligible. - land classes; ~ ~- ~- - -- - -

deterxnines’the total number of members landholders. Land leased from a public - (ii) Has-the -relatively highest level’6f -

inboth the’organization that has notmet entity counts towardsthe lessee’s - - - suitability-Ior-continuous, successful> -

the c~iteria an&in any subdivisions that ownership and nonfull-cost entitlement. irrigation farming; and. - ~

~ -ux~der that organization. If -- -. - (iii) Is estimatedto the highest

Reclamation3determinpsthattotal § 426.11 Ciasel equivaiency. -K relativeProductive potential measured

nimiber equal~:. - (a) Genera) application. (lass 1. - - in terms of net incolne per acre. ..,. - -

j -- (A)Mor~ thai~ 25 members, then equivalency determinations wiR~- (reflectingboth productivity and costs

Reclamation treatsthat qrganizationand establish, on a district-wide basis, the : - - of production). The equivalency.. -; -
- ~ ‘— — --

66514 Federal AIiji~tei~ /eVdl. ~O1Pt.1o. ~~~44,eSay— f8, ~)1~96‘I ‘kiile’s ~d~R~ulatioi~s

analysis will establish the acreage of - - - -

ii ofthe lower classes of land which

qual in productive potential

-~asured interms of net farmincome) -

~facreofC1ass1land.-- --

(2) All land that Reclamation has not -

classified, or for whichReclamation has

not y6tperformed the necessary - -

economicstudies, will be- considered

Class 1 land forthe purposes of

deternibting entitlements underthese -

rules until-such timeaJthe-necessary -

- classificationsor studieshave beei~~~.

completed. -~ ~;-! - - - - 2~ - -

(d)Determination oflandclasses. The

- extent and location of Class I land and

land in lowerland classes in a district -

havebeeii,-orwill be, determinedby

Reclamation. - -

(1) Reclamation will take-into account

the influence of economic and physical

- factors upon the productive potential of

the land lying within the district~ These

factors willinclude, but are notlimited

- to the followingand their effect on

agricultural practices: - - -

(i) The physical and chemical -

characteristics ofthe soil; - -

(ii) Topography;

(iii) Drainage status; -

- (iv) Costs of production; --

(v) Land development costs; -

(vi) Water quality and adequacy;

cvii)Elevation; - - - - : - - -

~riii)Crop adaptability; and- - - --

-ix) Length of growing season.

2) Acceptable levels of detail forland

~assificatiou studies tobe utilized in

making Class 1-equivalency- -

determinations for a given district will

- - - be evaluated an the basis of the physical

and agriculturaleconomic —~-~ - - -;-- - -

- characteristics of the area.-For districts

where the sole-purpose. of the land

classification studyis for a Class 1

- equivalency determination,-the level of

detailof the land classification to be: -

- - made -will never be greater thanthat

reqiiiied tomakft aClasii equivalency

determination. - - - -

(3) Reclamation will pay for atleast a

- -,=portion~ofthe costs associated with the

land classification study.:The amountto

be paid by Reclamation-will be - - -

determined asfollows:-. ~— -

(i) Reclamation has prcMded basic

land classification data as part of the -

projectdevelopment, processsince 1924.

Accordingly, ifReclamation determines

that-acceptable land classification data

are not available for~makingrequested

- Class~1’e4uivalency determinations and

if the projectwas.authdrized-for -- - - --

constructiolisince 1924, such data will

be made~railable at Reclamation’s - - -

-xpense~ 01’- !V-~r-s’ - -n- ~ -

ii) Foreachdistrict located in - -.

- - - o1~ts authorized lorconstniction’ -

prior to 1924;RedlBmation will-pay 50.

percent of the costs and the- district Reclamation coiicerxiluig’the district’s

must pay 50 percent ofihe- costs of new requestfor equivalency. -

land classification studie&requiredto (i) Reclamation will protectexcess

make accurate Class I equivalency - landowners’ propertyinterests by

determinations. C... . - ‘ - - ensuring that equivalency - - -

(4) Whenbasicland classification determinations are completed in -

data ire dirailable far a ~listrict,butthe advance of-maturity dateson recordable

distiict doesnot agree-withthe accuracy contracts, provided the district-requests

or assertsthatthe -datahave become an equivalency determination at least 6

outdated;thedi~trictmay request, and -‘ months priorto the maturity of the -

Reclamation-may perform, a - recordable contract,the district fulfills

reclassiftciti6n underthe authority - its obligatiori~ under thissection,. and -

containedinthe ReclamationProject - the district notifies Reclamation ~

Act of 1939(43 U.S.C. 485),with the monthsin advanceof the maturitydates

followingconditions: - forthe need for-an expedited review.

(i) The requesting district will pay 50 (ii) Once the determination hasbeen

percent of the costs ofperforming such made, owners oflind s~ibject to -

reclassifications and 100 percent of the recordable contracTh may withdraw land

costs ofall other studies involved inthe from such recordable contractsin order

equivalency process; and - to rea~h their ownership entitlement in

(ii) The results ofsuch ~- - Class I equivalent acreage. - -

reclassifications will be binding upon (iii) The requirementthat-land under

the requesting district andReclamation, recordable contract be-sold at a price -

(a) Additional studiesrequired for approved by Reclamation does not

Class I equivalency determinations, apply to land which is withdrawn from

Economic studiesrelated to Class 1 a recordable contract and included as

equivalency determinationswill part of a landowner’s nimexcess

measure n~t farmincome-by land landholding as a result of an

classes within the- district, equivalency determination. -

(1) Net farm income will be (iv) In cases of equivalency -

determinedby considering the determination disputes, Reclamation

disposable income accruing to the farm will not undertake the sale of the

operator’slabor, management, and reasonable increment of the excessland

equity from -the sale of farmcrops and under a matured recordable contract

livestock produced on irrigated land, which could be affected by a

after all fixed and variable costs of reclassification, provided the dispute is

production, includingcosts of irrigation determinedby Reclamation nottobe an

service, are accounted for. attempt -to thwart the sale of excess

(2) Net farmincom&ivillbe the land. -

measure of productivitytoestablish (2) Forpurposes of nonfull-cost

equivalency factors reflecting the - - entitlement, Class 1 equivalency will

acreage of each of the lower-classesof~ notbe-applied until a final -

land which is equalinproductive- determinationhas been madeby -

potential to.1 ~acreof Class 1land. - -- - Reclamation on a district’s request for

(3) The~ c6st 6f performingnew or equivaloncy. 4 -

additional-ecdnomic studies and - - - - (i) During the timewhen such

computations inherentinthe-. - - -~ -- - ~- -- determinations are pending, the fullequivalency process, will be the - - - - cost rate will~be assessedbased on a

re-sponsibility-of th&re-qiiesting district. landholder’s noiifull-costentitlement as -

(1) Use ofClass I equivalencywith the determinedliYthe absence of Class 1

acreage limitationprovisions. Class .1 equivalency~ - -, ‘- - - - - - - -- - - -

land hand land inlower classeswill be - (ii) Following Reclamation’sfinal -~

identifled on-adistrictbasis by - - - - determination, Reclaniation will -

Reclamation using a-standard approach reimburse the district for any full-cost

inwhich the land classificationfor the chargesthat would notha~ been’ - -- -

e-ntiredistrfctis considered. . .~ assessed hadClass I equivalency been -

Equivalency factors’will then be- - - in place from the cfate afthe district’s - -

computed forthe district and applied to re4uest. DistiCicts’will reThrn such

specific fractswithin individual.—‘~- - reimbursementstothe appropriate

landholdings~ If adequate land ---- - - -, landhblders -. ~‘~‘ -~ — -

classification‘dath are not available, they (3) A landholder with holdings in

willbe developed asspecified in - - more than’onedistrictis entitled to -~

paragraph (d) ofthis ~ectionusing- - equivalency onlyinthose 4irtricts

standardprocedures established by - - whichhave- requested-equlvalency-(or -

Reclamation. - - ‘- - are already subjectto equivaleniy).-That

(1) Forpurpoies ~fown~ersbip part of the landholding in a district or - -

entitlement, Class 1 aquivalency will districts notrequesting equivalency will

not be apPlied -until a final -, - - ‘K’ (~ be counted as-Class I land for purposes

determination has heenmadeby’~ ‘ ‘ of overall entitlemenit- - -

0

0
-5

RO

4

~p

A

-~ termjnation&,,’ (l)The e ~sssand becomqs eligible to (i) Places such excess land undera

alpncy~yasa ~ receive Irrigation water be-cause the .~ recofdable contract, provided the period

-- these. landoivne-r becomessubject to the -.. - - — - for executingrecordable contracts under

will discretionary provisions as provided in the district’s contract has not expired;

calculated F - § 426.3 - - - (ii) S~lls or-transfers such excess land -

-‘ requests a - (ii) A recor~iable contract is amended to an eligible buyer at a pnce and on

- - toremove excess land when the- ? terms approved by Reclamation; or

r - - landowner’s entitle-me-fit increases (ill) Redesignate-s the land as -

because~thelaidowne-r becomessubject , nonexcess,with Reclamation’s approval - -

ngexcess -to the discretionaiy provisions as - ~ as provided,forinparagraph (bX2) of

owner prpvided inparagraph (j)(5) of this , this section - -

landown&r’s - section; or - ~ ,, (d) Land acquired into excess afterthe

- all of the (iii) The excess land becomes eligible district h~~s ~ilready~onfracted with

it land must be to receive- irrigation water as aresult of Reclaniation. (1) If a landowner acquires

— - I as ex~ss aiid nonexcess aS - Class 1 equivalency determinat,i~pns, as-~. land ~ftei~the date the districtfirst

follows: ~, — - - - - provided in§ 426;i1., - - - ~ -- - -~ entered into a repayment or -Water

11)The~landownei~ designates which- - (2) No other,redesignation of excess - service coiitract that was nonexcess to

land Is excess and which is nonexcess land is allowable withoutthe approval~~ the- previous ownerand is excess to the

inaccordance withthe instructions on ofReclamation in accordancewith - - - acquiringlandowner, the first

the appiopriate certification or reporting established Reclamation procedures. - repayment or water service contract was

- forms; or - Reclamation will not approve ~ executed on or before October 12, 1982,

(2) If a landowner fails to designate re-designation requestif: - - and: - - - -

his or her land as excess or nonexcess (i) The purpose of the redesignation is (i) Irrigation water was physically -

on the appropriate certification or for achieving,through repeated -, available whenthe landowner acquires

reporting forms: - redesignation, an effective farm size in such land, then the land is ineligible to

(i) And all of the landowner’s excess of that permitted by Federal receive such water until:

nonexempt land is in only one district: reclamation law; or - (A) The landowner becomes subjectto

(A) Ifthe district’s contract with (ii) The landowner sells some or all of - the discretionary provisions and the

Reclamation includes designation his or her land thatis currently landowner designates the excess land,

procedures, then the land is designated classified as nonexcess. - up-to his or her ownership entitlement,

according to those procedures; or - (3) Whena redesignation involyes an as nonexcess as provided for in-

(B) Ifthe district’s contract with - exchange of nonexcess land for excess - paragraph(b)(1)(i) of this section;

Reclamation does notinclude land, a landowner mustmake an equal - - (B) The landowner sells or transfers

designation procedures, then: exchange of acreage (or Class 1 such land to an eligible buyer at a price

(1) Reclamationwill notifythe —equivalent-acreage) through the - - ~- aiid on terms approved by Reclamation;: -

landowner and the districtthat the - redesignation. - (C) The sale from the,previous

landowner must designate the land as (c) Land that becomes excess when a, landowneris canceled; or

excess and nonexcess on the districtfirst contracts with Reclamaficin; (D) The landowner redesignate-s the

appropriate certification or reporting - (1) If a-landowner owned irrigable land, land as nonexcess withReclamation’s

forms within 30-calendar days of the on the executiondate of the district’s - approval as provided for inparagraph -

notification; - - - first water service or repayment - - -- - -: (bX2) ofthis section; or

(2) Ifthe-landowner fails tomake the contract, and the execution date was on - (ii) Irijgation water was notphysically

designation iwithin 30-calendar days of or before-October 12, 1982, the - - - - - -~ a~ilablewhenthe -landowner acquired -

notification, the district willmake the landowner’s excess land is ineligible - - - the land, then the land is ineligible to

designation within 30-calen

th~?eaffer;or - dardays untiltheiandowner: (i) Becomes subject to the - ~- ---~-~, - ~- receiye~w&ter~until:~.:~ (A)T~e 1ando~merbecomes 1—. ~-::.~,—-=-~g~ sukject~.‘.tothe districtd~oesnot make the - - - discretionary provisions and the the discretionary provisions and the

designation within its 30-calendar days, landowner designatesthe excess land, -~ landowner designates the excess land,- -

- Reclamation will make the-designation; up to his or her ownership entitlement, up to~i~s~oj~herQWnership entitlement, -~

or - - - as nonexcess as provided forin~ -. -,a as nondxcess as provided forin -}

(ii) Iftiie’landowiierowns nonexempi — paragraph (b)(1)(i) ofthis section; - paragraph(b)(1)(i) of this section; -

land inmore than one district, then - - (ii) Placessuch excess land under a - (B)T~e landowner sellsor transfers - -

Reclamation will notifythe landowner - - recordable contract,-provided the period the lan&to an eligible buyer at a price

and t.he districtsthatthe landowner has for executingrecordable contracts under and on terms approvedby Reclamation

6Q-cale-ndardays frQm the date of - the district’s contracthas not expired; (C)/r~esalefrom.the previous

notification tomake the designation. If - (iii) Sells or transferssuch excess land landowneris canceled; -~- ‘- - - -

the-landowner does notmake-the -- - to ~n eligible buyerat a price and pn -- - .(D) Th~ ndow~iplaces thejand

~designationin the 60-calendar days; terms approved by Reclamation; or - ~ under .~q.i~tract~yhen water

Reclafn~ti6n willmake the- designation. (iv) Redesignates the land as. ~ b~cJnie~s~iailable;or . -

(b)fhin ging~excess and nonexcess nonexcess with Reclamation’sapproval (EjT~heKandownerredesignates the -

land designations. (1) Landownersmust as provided for inparagraph-(b)(2) of -, land as nonexcess withReclamation’s

~le withthe district(s) inwhich the - this section. - - - - -~. apprdv~las~pioyide-,d foi:inparagraph - -

landisI~catedand-with Reclamation - (2) Ifthe landowner ownedirrigable r (b)(Z),of tHis section.; - -

the designation of excess and nonexcess land on the executiondate of the~. ~ (i) ~ land after

land The4esignation of land as excess district’s first water s,ervice- or - the i1a~(etlie distnct first entered into a.~,

is bindin~’oii1he land However, the - - repayment contract andthe-exe-c~ztion re-~3~4e4~or wger service contract that

landowner ~naychange the de~gastion date isafterOctober 12, 19~Z, le b~’ ~) - Was~loneXcess tothe previous owner

under the followingcircumstan*~es landowner’s excess land is ineligible- ~ ‘ and is e)~Ce~sto;the acqui~ing~1~~ l~n n~i, die- firstrepayment orwale without l~clamation a approvalif: ~.< uitilthe landowirer: - ~,‘-‘. ~- .~ , - - - - - — - - - - -~
A -~ -, r

- 66816 Federal Re~i~ter P’Vol. ~i~i~lo. ~-244~ ‘18,4996 ~/ Rule~ rid e~u~lati6n~ -

service contract was executed after (3)11 the district firstentered a ‘ December 18,1996, and the land in

‘ctober 12, 1982; and: - - - - - -‘ contract withRe-claknation after October questionis otherwiseeligible- toreceive

i) Irrigation water was physically - 12, 1982, and land would havebeen irrigation water; -

iilablewhen the landowner acquired eligible before- October 12,1982, butis- -‘ (2) Such, land be-comes exemptfrom

ch land,then the land isineligible - now ineligible-because the landowner f~ - the acreage -limitations of Federal

until: -~ - - - — a directlandholder and uithe-r a - reclamation law; - -

(A) The- lando*nersells or transfers nonresident alien or al~gal~ntity not (3) The-landholder pays the full-cost

the land toe-n eligible buyer ~t a price: established underState or -Federallaw, -- rate for any irrigation wat~r delivered-to

and on terms a proved byReclamation;’ then suchland that would havebeen the- landholder’s formerly e-)ccess land -

(B) ThdsMe- mthe- revia-us eligible remains in~ligibleuiitil: - -~ thatis bthe-rw~i~ eligible- toreceive

).andown~r is canceled; or- - - - - (I) Ifthe landowner acquired such~~ irrigation water. If a landholderis-a part

(C) The-landownerredesignate-s the land liafore the date of the district’s owner of a legal entity that becomesthe

land as none-~~cess withReclamation’s contra~t: ‘ — - direct orindirectlandh6lde-r ofthe land

approval as provided fdr in-paragraph - - (A) The- lajidownei~ placessuch land - In question, the-n the- full-cost rate will

(b)(2) of this section; or under a rec6rdabte contract requiring- - be appflcable- to the proportionalshare

(ii) Irrigation water was not physically Reclamation sales price approval;or of irrigation water delivered to the land

available- when the landowner acquired - (B) Se or ersthe land to an that reflects the’~art owfler’s interestin

such land,then the land isineligible to eligible buyersubjectto Reclamation thatlegal entity; or -

receivewater until: -- - - -- - sales price approval; or — (4) The deedcove-nant associated with

(A) The-landowner sells or transfers (ii) lithe landowner acquired such the sale- has expired as provided forin

the land to an eligible buyer at a price - land after the date of the district’s paragraph (i) of thissection.

and on terms approvedby Reclamation; contract, the landowner sells or -: (h)Application ofthe compensation -

(B) The sale from the previous transfers such-landtban eligible buyer ~rateforfri~igatingineligibleexcessland

landowneris canceled; subjectto Reclamation sale-s price with irrigation water. Reclamationwill

(C) The landowner redesignate-s the approval.----- - - charge the following for irrigation water

land as nonexcess with Reclamation’s - (4) Eligible nonexcess land thatis delivered to ineligible excess land in

approval as provided for inparagraph indirectly, owned on or before December violation ofFederal reclamation law and

(b)(2) of this section; or - 18, 1996 by a nonresident alien or a - these regulations: - - -

(D) The landowner placesthe land legal entity not established under State (1) The appropriate compensation rate

under recordable contract when water or Federallaw, and that becomes for irrigation water delivered; and

becomes available. -- ineligible-because of § 426.8 is ineligible - (2) any other applicable fees as -

- - Ce) Ifthe status oflandis changed by until: - - - - -- specified in § 426.20: -

law orregulations. (1) Ifthe district had (i) The landowner placessuch land (i) Deed covenants. (1) All land that

contract with Reclamation on or before underrecordable contract. The is acquired from excess status after

tober 12, 1982, and eligible land recordable contract does n6t need to - October 12, 1982, must have the

came- excess because the landowner’s include the sales price approvalclause following covenant (that runs with the

titlement changed from-being based -- and application of the -deed covenant - land) place-din the deedtransferring the

westwide

n a district-by-district

basis, then such

basis

formerly

toa

- -

provision

(ii)’The

will

landowner

notbe required;

sells~ or:transfers

or

-

land

the land

to the

tobe

acquiring

eligible

party

to receive

inorder for 8

eligible land isineligible until: such land to an eligible buyer. The sales irrigation water except as otherwise

(i) The landowner placessuch land price- does notneed Redamsti6n’s~ specified inthese regulations. The- - -

— under recordable contract. The ~- ‘- ~- - approval.’ - - - - - - - —- -- covenant must be in the deedregardless

recordable conti-act does-not nee-dto - (I)Excess land that-is acquired -~ of whether or notthe land was under

include-the sales price approvalclause- - without price approval. If a landowner ~recordable-coiitiact. -.

and application of the-deed coveijant acqidresland that i~ subjectto This covenant isto satisfy the requirements

~provision-will notbe required;-or Reclamation price approval, without in209(t)(2) of Pub. L~ 97—293 (43 U.S.C 390. - - - -

(ii) The landownersellsor transfers obtainingsuch approval, the land is e-tseq.).-Thiscoyenant expire-son (date). - - - -,‘

such land t&an eligible buyer. The- sales - ineligible to receive- Water until: Until the- expiration date specified herein,

pricedoesnot need Reclamation’s- - - - - (1) The’sale-s~iride- is’-i~e-formed to sa1~li~e-iipprovallsr&piiiedonAhis land. -

- - - approval. ‘~‘~ ~ - - - - -- “ - - -- coiiform to the price approved by Sale by the landowner and his or her assigns - - - -

(2) Ifthe districth~d a contract with - Reclamation and-is eligible to receive- of theselands for any vahw that exceedsthe

- Reclamation-an or before October 12, ‘ irrigation water inthe landowner’s sum of th~ value of newly added1982, and the--landowner was owndrship entitlement; or - - provements plusthe value-ofthe land as - N

nonresideiit alien ore legal entity not (2) Such landowner sellsor transfers- - increased by-the market appreciation

established ulider State or Federallaw, the- land toan eligible buyer at a price unrelated willresulttohithethedelivery ~nellgibility of irrigation of this land watet —

who directly held eligibl&l~andand such rovedby Reclamation ~ oweve~e-de-~ projectwater, Provided —

land i~ no~longereligible- toreceive- - Excess land.thatis disposed ofand receive h

‘~ wat~r,the-~n such formerly eligible- laud iubsequently reacquired Districts may - (i) The terni~ of this covenantrequiring

- isineligible- until:. ---- -~ — - not make available- irrigation wateito priceapproval-shall not apply tothis land if

- - - (i) The land6wnerjAa~e-s ~uchland excess land diAposed of by a landholder itis acquired into excess status pursi ant

under record&ble-contract.iThe ‘-J ~; - at a price approvedby Reclamation - a bone fide involuntary foreclosureorsumlar

re-coidablb contract does not needto- - whether or notunder a recordable ,inv6limtary~rocess of law,-conveyance in

include-the salesyrice ~~proval cliuse - - contrad, if the lauidholder subsequently ~ati~fa(~tionf a debt (including, but not - -

the deedcovenant - become-s a direct or indirect landholder deed -to, a.mortgage-,-real estate contract, or and-application of ofMust), inherita:nce, or devise --

- ; provisionwill notbe~reqi.iired; or - - of that land througif either a voluntary (hereinafter Involuntar r Conveyance).

(ii) The landQ~er~se-lls or transfers-- — or involuntary action, unless: The-ye-after:this land may be sold toa

oh laTnd toan~eligible buyer. The sale-s - (1) The-landholder becanie or landholde-ratits fairmarketvalue- without

ice does notiieedRe-cThmation’s - - - - --- -contractedtobeciome a direct or indirect regard to an~oil er provision ofthe

dpproVaI~ ~A~’~-’-~ - =- ~-: -- -~ landholder of that land priortb ReclamationReform Act of 1982 en&cted o
6

‘~l estate contract, or deed of uiat tioesnot cover full operation and

ance, or de-vis~,-and isnot maintenance fO&M) costs; -

whose excess oirnership - (ii) Ifeitherlandowner or any lessee -

origmaily~required place-me-nt of the - issubje-ctto th&discretionary

deedcovenant,then Reclamationmust’, provisions, the water rate-applicable to

a from teiminate -the deed~cove-iiantupon the - the recordable contract must cover, at a

-- ~ or landholder’s request. The, provisions in minimum, all O&Mcosts; or -

deed ~ der isrecorded paragraph (i)(1)(v) of this section and - - (iii) If a landholderleases land subject

and 0’ acquired by a §426.14(e) addresstermination of deed; - t~ a recdrdabla contract and,is. rn excess

- be-na ..aiveyanceby reason covenants fodandholders whose excess ofhis or-her nonfull-cost entitle-me~t,

-! ofa duua ,aide,~that loan, thisland may ownership originallyrequired - - - - ‘~ - the- lesseemay selectsuch land as the -

-thereupon or thereafter be sold toa ~- placement of the deed covenant - - land on whicih the full-costrate will be-

- - - landholder at Itafair marketvalue; - - -

— (Ill) Thetermsofthis covenant requiring (j) Recordable contracts.(1) - ~‘ - - diarged for the deliveryof irrigation

price approval shall not apply tothe sales Qualifications forrecordable contracts. - water, unless the land is already subject

priceobtained at the time ofthe Involuntary A landowner canmake excess land - tothe full-cost ratebecause of an- -

Conveyances described In subparagraphs (i) eligible- toreceive irrigation watex by’ extended recordable contract. - -

and (ii], nor toany subsequent voluntary entering into a recordab~e- contract with (5)AThendinga recordable contract to

sales by a landholder of this land after the the United Statesif the- landowner - - include less acreage. (i) Reclamation

Involuntary Conveyances or any subsequent qualifies under applicable provisions of: permits a landowner toamend a

Involuntary Conveyance; - (i) The district’s contract with recordable- contract to transferland out

(iv) Upon the completion of an Involuntary Reclamation; - of a recordable contract to nonexcess

Conveyance, Reclamation shallraconvey or

otherwise terminate this covenant ofrecord; (ii) Federal reclamation law; and status, if:~ - - -

(v) However, the deed covenant shall not (iii) The-se regulations. - (A) The landowner has an increased

be reconveyed or otherwise terminated if the (2) Clauses tobe included in ownership entitlement because of

involuntarily acquiringlandowner is the recordablecontracts. A recordable - becoming subjectto the- discretionary

landownerwho sold this land from excess contractmust include: provisions; or- - - -

status, unless that landowner is afinancial (i) A clause whereby the landowner (B) Laid becomes eligible by

institution as definedin § 426.14(a) of the- ~th implementation of Class 1 equivalency,

Acreage Limitation Rules and Regulations (43 agreesto dispose o e excess ianu to if th

CFR Part 426);axid - an eligible buyer, excluding mineral - - - - - e landowner amendsthe recordable

(vi) The- party whose excess ownership rights and easements, underterms and contract priorto performance of appraisal. -

originally requiredthe placementof this, conditions of the sale, in accordance ‘~‘ Landholders mustreceive -

covenant may notreceive Federal with § 426.13; and within theperiod iiij

reclamation projectirrigation wateron the allowed for the disposition of excess - Reclamation’s approvalto amend

covenant as a direct or land, that must be within 5 years from - recordable contracts. -

land subject tothis (A) The- disposition period for any

- indirect landowneror lessee, unless an the date that the recordable contract is land ~

exceptionprovided for in § 426.12(g) is met. executed by Reclamation (exceptfor the -remainingunder a recordable -

- - - t chaxi~e- because ofan Ne-ta: 1. Clauses(v) and (vi) of this Central Arizona Project wherein-the - contract will no

shall only be required on those time period is 10 years from the date- - amendmentto remove some land. covenant (B) Forland removedfrom a -

covenantsplaced in deeds transferring land water becomes available to the land); - recordable contract based on paragraph

— - afterJanuary 1, 1998.

- Note: 2. Thedate that the covenant expires and -- - - (j)(5)(i) of tiais section, any requirement

- - shall be 10 years from the- date the land was (ii) A clause- granting powerof le-~d -for application of ~ deedcovenant will

— ‘ firsttransferred from excess to nonexcess - attorney bo Reclamation to sell tEe- - nO’ longer be- applicable. - -- - -

status. - held underthe recordable contract, if ~ - (6) Sale oflandby Reclairzation. Ifthe

— - - ~:(2) A landholder may purchase or ~ the landholder has not already sold The ~ ~¶isjios&oft1i~ --

- otherwise voluntarilyacquire into land by the recordable contract’s

nonexcess status, land subjectto a deed maturation. -~ - - con ss~~~d theunder piodrecordable. specified~—in

covenant,-atiaprice approved by (3) Date )Ieclamatidn can’rnake “‘ ~ the- r&~ordabl~ontract, Reclamation

Reclamation if the land iswithin the irrigation water available.- Reclamation ‘ wi11~e~1thatland. Re’clamationwill not’

-‘ - landholder’s ownership entitlement. - canmake available iriigationwater to . selltlie-iand’lfthe landowner complies

- - (3) Upon expiration of the- terms of the land thatthe- landowner plans to place - ~ f&s~le of e-xcess -

deedcovenant, a landowner may resell under a recordable contract on the day~T l~jj&-~~ - the- period

such land at fair market value. A - that Reclamation receive-s the~ ‘~r- ,~ - ,~inderhese - ‘ru1e~within -‘~- IfRec - ~‘lamation’-’ -

landowner may notsell more of such - - landowners written requestto execute - -. fir’ a v~l’of~th~Me-i~,fthjn’,

land inhis or herlifetime than an a recordabl~ c6ntr~t.Th&laridoi~n~r-~ giy~ that p~ or-afi”er.7~.. ‘~‘ -~

amount equalto hi~ or her ownership - - has 20-working days~inwhich to’ - -~ ~- . Wd~ii~)ieh a,

e-ntitle-ment. Once the landowner - execute-the- recordable- ~oritractfr~inthe ~&ore~h~2~n1atured.

reaches -thislimit~-sny additional-excess date Reclamation sends the- recoi~lable ~Re-clamation ban d~i~ilable

- - land or land subject to a deedcovenant contractto the landowner. Reclamation~- -lrrigati~n i~d~i ~tAUie- current applicable

the-landowner acquires isineligible- to inits dis~tionmay~exten4 this period - rate~,piii~i4-tf6~pq~a~iaph (j)(4) of this

receive irrigation-water, until such land upon the- landowne-r’dr~qi~st~>~ ~ ~ed~o~’t~ex~e~sland held under a - —

is sold toan eligible buyer at a price (4) Wale te.’The-t~te-fd~fr ~ti~6ii‘%iitu~d reco~dab1e‘contract uiltil -~ -

- - — approved by Reclamation. - - --.--w§ater4elive-red~olandplaced hind I~cl~ii~l6n~elJs the-land. ~- - - -- -, - -

{4)If a landholder acquires land ‘ - recordable cdntrai±i.~jll bede-termih . )Pibtedwes Reclamation followsin

- “ ~‘~~‘i sel1iil~~cessland.IfReclamationmust

- -burdene-dbysuclj ~deed covenant - as ~ ~ the- ~

tbroui~h~liivoluntary~oreclosure- -- (i) Ifbiitbjl’eiandowner an any

- arinvolun recess - - - P

4. .~ ~OC~iIres willbe used:~. ~

- simil of or - ~ - - ,. xCe~Ts ~nd

conveyance inchiding,butii~ not satisfaction -s--.-- limited to~,af debt, -(

--

.~ -place4 ~ a ,~r ~t4a~ontractr~tp ‘(i)MR~claiiiation kipcessary,a qualifiedeterminesit’Io,~ -surve-yor~Will~i~~ ~V7k

- - --. ~ -

F
— —

— - J- -~

~B---- ~. — - ~- ‘- -t $

I-. ~ -

66818 Federal—Register’-I ~V~l.k6~i, No.244 t~Weane-sday, pec~p~be ,A99&~V 2I~u1~s aK~ Regul~tion~ -

make a land surv~y. The United State-s the- maturity date of arecordible - -

vill pay forthe-survey initially, but - contract’Re-clamation, inIts discretion,

uch costs will be- added tothe can initiateihe- appraisal.

- -pprove-d sale-s pricefor the- land. The (b)Procedures Reclamation usesto

United Stateswill be reimbursed for determine the saleprice ofexcessland

these costs from the sale of the- land;: ‘or laud burdenJdby a deed c6i”enant.

(ii) Reclamationwill appraise the- Reclamation c?omplies withthe- -

‘value-ofthe excess land, inthe manner followingp i~dur~sto determine- the

prescri~ed by;§4262~3, to determine- the sale priceof ~~Cces.ilandand land -

appropriate- sale-s ~ri6e-.The United I burdened by a ~leedcove-uiaiit, exceyt if

States tvill,pay for the appraisal - - - -- a landholderownsland subjectto a

- initially, but such costs will be added to recoidablecohti~act thatwasin force-on

the a~i~rove-d sale-s pric~ forthe land. October 12,1982, or other’pertine-nt

The United States will be reimbursed contiactth~t was in force on that date, -

- forthese costs from the- sale of the land; and these regulations would be

and - - inconsistentwith pro~u-isions in such a

(iii) Reclamationwill adve-rti~ the contract:

- -sale of the propertyinfarm journals and (1)Appraisols ofland. Reclamation

innewspapers within the county in will base all apprdisals of land on the

which the land lies, and by other public fairmarket value- ofthe land at the time

notices as deemed advisable. The- of appraisal without reference to the

United States will pay forthe - - construction of the irrigation works.

advertisements and noticesinitially, but Reclamationmust use stahdard

such costs will be addedto the - - appraisal procedure-s including: the

approved sales price- for the land. The- income-, comparable sales, and cost

United State-s willbe reimbursedfor methods, as applicable. Reclamation

these- costs from the sale ofthe land. will considernonprojectwater supply

The notices must state: factors as provided inparagraph (c)(1) of

(A) Theminimum acceptable sale-s thissection as appropriate; and

pricefor the- property (which equals the (2)Appraisal ofimprovementsto

- - ‘appraised value plus the cost of the- land. -Reclamation will assess the

appraisal, survey, and advertising); contributory fairmarket value of

(B) That Reclamationwill sellthe- - improvementsto land, as of the date of

- - ml by auction for cash, or~bn terms appraisal, using-standard appraisal

.ceptable to the landowner, to the - procedures. -

ighest eligible--bidder whosebid equals -j (c) Appraisals ofnonproject water - -

- - r exceeds the minimum acceptable -! -- supplies. (1) The- appraiserwill consider

— sales price-; and - - - -- - - nonprojectwatersupply factors; where

(C) The date of the sale (whichmust appropriate, including:

— not exceed 90 calendar daysfrom the (i) Ground water pumping’lift;

date of th~ advertisement and notices); (ii) Surface water,supply;

(iv) The- proceeds from the sale of the- (iii) Water-quality; and

land will be paid: - (iv) Trends associated with

(A) First,to the- landowner lithe- - - paragraphi(c)(1) (I)thiwigh (lii) of this

~amount of the aP&raise-dvaluer. section, whereftppropriate. -- . -

- - (B) Second,to e United for - (2)Raclamatieq~willdevelop the

co~ts of the suri~y,appraisal,~- -- nonproject water ~upply and trend

-, ~- advertising, etc.; and -; information withhe assistance- of: - -

- i~(C) j7~ any remaining proceeds (i) The dis ctin which the land is

will be credited~o the Reclamation fund located, itthe district desiresto - -

- — otbther funds as pre6ciibed by law; ajid participate; - - - ‘~ -

- -- ? (v) Reclamationwill close the sale of~~ -(ii) Landowne-rs~of excess land or land

- the e*~s’laiid’when partie-~complete- - burdened by a de-~d coven~ni and

- all salesirr~ngements:Reclamationwill prospectiv~ buye-rswho submit

execute- a deed conveying the-land to information eitherto the distActor

the purchaser Reclamation v~Till not Reclamation;ind: - - - -

require the- purchaser to include a (iii) Publicmeetings and forums, at

covenant inthe deed, as specified in the discretion of Reclamation. -

- - paragraph (i)ofthis section, that (3) Data submitted may include~-

resfricts~ny funlierresale~fth&lan& (i) Historic geologic data; -

- ~-‘‘~-- --‘ - - (ii) Changing crops and cropping

§426.13 -lExCessland appraIsals. patterns; and - - ‘ - - -

- ~- ‘:(a)~ *hen do’e~Reclamation appraise (ill) Otherfacfors associated i~itkthe

- - - the alzie~ofdlaiidoiriieu~’~ land? - nonproject water supply.

~clafoi~p~iiaise-s excess laud or (4) IfReclamation and the district

‘idburd6n~dby &,dded covenant upon cannot-reach agreement on the -‘

indowner’sxeqtisst”&-whei~ required nonproject water supplyinforniailon

i R~lamatld~Ma~lando-~viier doe-s not within 6(~-6alende-r days,Reclamation

requ~st aui ~p~ihisalWithin 6mdnths of will revieW and’u1idate thb tieiid -

infQrmation as it deems necessaryand

mflk~ ~ll final determinations -

considering the dat~ provided by

Reclamation and the district.

Reclamation will provide these- data to

the appraisers who must considerthe

data in the- appraisal process, and

clearIy~explain1iow-they used the- data

inthe-valuation of the ~land.’

~td)The~date ofThe appraisal.The dateof the appraisal will be- the date oflast

inspection by the appraiser(s) unless

there-isa prior-signed instrument, such

as an option, contract for sale,

agreementforsale, etc., affecting the

property. hith~se t~aaes,.thW date of- -

appraisal will be the-dateLof such -

instrument

(e) Cost ofappraisal. Ifthe- appraisal

is: - - - -

(1) The land’s first appraisal, the

United States willinitially pay the- costs

of appraising tha value of the land,but -

such costs willbe addedto the

approved sale price- forthe land. The

United Stateswill reimburseitself for

these- costs from the sale of the land;

- (2) Not the land’sfirst appraisal,thelandowner requesting the- appraisal

must pay any costs associated with the

reappraisal, unless the value set by the

reappraisal differs by more than 10

percent,in which case the United States

will pay forthe reappraisal; or

(3) Asso~iated witha sale-s price

reformation asspecified in -

§ 426,12(f)(1), the landowner requ~sting

the appraisal must pay any costs

associated with the- apPraisal. -

(I) Appraiserselection. Reclamation

will select a qualified appraiserto

appraise the excess land or land

burdened by a deedcovenant, except as

specified within paragraph (g) of this

section. -

(g) Appraisal dispute resolution. The

landowner who requested-the- appraisal

may requestthat the United States -

conduct a a~cond appraisal of the excess

land or land burdened by a deed

covenantifthe landowner disagrees

withthe first appraisal. The second

appraisal will be prepared by a panelof

three qualified appraisers, one - -‘

designated by~theiJulted States, onedesignated by the district, and the third

designated jointly by the- firsttwo. The- --

appraisal madeby the--panel will fix the

maximum value 6f the eicess land and

will be binding on both~parties after

review and approval as provided in

paragraph (h) ofthis section. - -

(h) Revlawofappraisalsofeiicess - -

land or landburdened by a deed

covenant. Reclamationwill review all

appraisalsof excess land or land -

- burdened by a deedcovenant for’~ --

()
- -- --, -,-,‘-

er 18,~19964 R~ules nd R~gtlations 66819, -

md remainoer of the- recordable contract (A) The-land becomessubjectto fulland period. The-sale- of this land shallbe cost pricing through leasing; or

underterms and conditions set forth in (BIIfthe- in’~oluntarily acquired land

-~nf the the- recordable contract and must be is eligible to receive irrigation water

rds for satisfactory to and at a price approved onlybecause § 426.12(g)(3) applies and

-“~ Fech on~interagency by Reclamation, the deed covenant has not expired;

LanaA Lerence 1973,” as (d) Mortgaged land. Reclamation - (ii) The newlandowner may not placerevised .- - -. - - treats mortgaged land that changed from- such land unde-r’a recordable contract;

- -.(3) Reczamauoxi~6licy; and - nonexcess statustoexcess status after - - (iii) The newlandowner may request

(4) Any detailed instructions provided the mertgage- wasrecorded, and which that Reclamatioh remove a deed

by Reclanation setting conditions issubsequently acquired by a lender covenantas provided in § 426.12(i114),

applicable- toan in~dividual appraisal. - - through an involuntary foreclosure or ‘ andmay hell such land at any time -

- - - similarprocess of law, or by a bona fide- without price approval and withoutthe

§426.14 involuntary acquisition of land. conveyance- insatisfaction of a; deed covenant. ~iowever,~.hedeed

(a) Definitionsfor purposes ofthis - mortgage, in the following manner: covenant will notbe removedand the

section.

- Financialinstitution means a (1) Ifthe newlandowner designates - terms of the deed covenant will be fully the land as excess in his or her holding, appliec~ ifthe new landowneris the-

- ‘ landowner who sold the land m commercial bank or trust company, a the-n’ - - -

privatebank, an agency or branch of a

- (i) The land is eligible toreceive question from excess status, except for: -

foreignbank in the United States, a imgation water for a pe~odof 5 ye&s (A) Financial institutions; or -

thrift institution, an insurance company, or until - - (B] Landownersfor which

a loan or finance company, or the Farm transfeiTed toan eligible- §§ 426.12(g) (1) or{2) apply; and

Credit System. landowner, whichever occurs first; (iv) Such land will become- ineligible

Involuntarily acquired landmeans (ii) During the 5-year period - to receive irrigation water 5 years after

land that’is acquired through an Reclamation will charge a rate- for - itwas acquired and will remain

involuntary foreclosure or similar irrigation water equalto the rate paid by ineligiblauntil sold to an eligible buyer

involuntary process of law, conveyance the former owner, unless the- land, or redesignated as provided for in

in satisfaction of a debt (including, but becomes subject to full-cost pricing paragraph (I) of thissection. —

notlimited to, a mortgage, realestate Through leasing; and (I) Redesignation of excess landto

contract or deed of trust), iiihe-ritance, or (iii) The land is eligible for sale at its nonexcess. -Landholders who designate

devise-, fairmarket valuewithout a deed involuntarily acquired land as excess as

(b) Ineligible excessland thatis covenant restricting its future~ sales provided forin paragraphs (d)(1) and

involuntarily acquired. Reclamation price; or (eXI) of thissection and want to

cannot make available irrigation water (2) Ifthe new landowner is eligible to redesignate the land asnonexcess, must

to landthat was ineligibleexcess land - designate- the land as nonexcess an4 he utilize the--redesignation process -

before the newlandowner involuntarilu he designate-s the land as nonexcess, specified uiider § 426.12(b)(2). - -

acquired it, unless: - - - “ tha land will be treated in the same (1) However, such redesignations will

(1) The land becomesnonexcess ~ - - manner as any other nonexcess land and notbe approved if the water rate -

fairmarket f —--““‘ the-new landowner’s ownership; and will be eligible for sale at its - - - specified in par~graphs (d)(1)(ii) or (2) The- deedto the landcontaihs the value without a deedcovenant — - - (e)(2)(i) of thissection isless than what

10-year covenant requiring Reclamation restricting its future sales price. - - - would have beencharged forwater

saleprice approval, and that deed (e) Nonexcessland that becomes deliveriestothelan’d in questionif the

commeifoeswhenthe laud,becomes excess when acquired involuntaii1y~ (1) -- lan~3holdd~ th~tinvolmiiaAly acqiilred

eligible- toreceive- irrigation water. Reclamation canmake- irrigation water the- landjiad originally designatedthe

- ~~—(3) Ifuither ‘ofihe-se conditions is not avail bje -for-a period of 5 yearstoa - ~ land as ponexcess.— - - ~K’-. - -

met, the- jand remainsineligible. excess landowner who involunte-4~acqui~s - . (2~ Su ~44~1¶ildersmayutilize the

untilsold to’an eligible- buyer at an — - land that become-s excesS in the re4e-sig~ation process’.if the& rer~itto

approved price, and the sellei plac~s the- involuntarily acquiringiandowner’s Reclamatioii th&~iiffere e’b&ti.,ree-n the-

‘10-yearcovenant requiringReclamation holding provided the land was -- - ~- - ratepaid and the ratethat would have

- price approval, asspecified i~ nonexcess~d-the previous pwne-r and: beenpaid,WtheJ~ndihadbeen -

- - - ~426.12(1), n the deedtransferring title (i) The acquiringlandowner never,. ---~ c-designated as nonexcess when: -

tothe- t~nd’to the-buyer. previously held such land as ‘ineligible - lnvoluiit~rily acquired.for all irrigation

--- (c)lAnd-thatwas held under a excess-land or under a recordable- ~, - water deliie-redt6flie-land in-question

‘recordable contract and is acquired’ - - contract; - ~- - -. - -- - - while the land was designatede~s -excess.

*nvoluntarlly.Reclamatioii cansnake (ii) The acquiringlandholderisa ;. ~, (g) Effect ofinvoluntarilyacquiring

av~ilable irrigation watertoland held 8nancialIii~titution; or <- - - landsubj~ct 16 the dis&etionazy - -

un4~er~i~cordable contii’ct~thatis liii) The- a~qu1ringlandowner - provi~ions.~A landowner does not -

invo1untai~ly acquired trader the terms previouslyheld -the land as ineligible automaticallybe-dome subjecttothe - -

- ofthe recordable colflracttothe extent excess or under a recordable contract discretiohery~royisio~isifthe

the-landdohtintiesto be excessin his or and §§ 426.12(g)(1), (3), or (4) applies. ,, landowner acquires irrigation land

herlandholding,if the landowner: - (2) The-followingwill be applicable in involunt~arily~vhlchwasformer1y -- -

‘(1) assumesthe recordable contract; situationsthat meettl~e criteria - subjecttothe- discretionaryjprovisions.

- and “~ ~ ‘ sectie-ir - - - e)(1) of this However, h1en~lholderthat issubject to

— - - (2) e~e-cutes an assumption agreement specified wider paragraph ~ -the- priorla’v krovisions will become

provided by Reclamation. - - (i) geclainatiba ll~haige a ratefor subject tothe discretionary provisions

-“ (3) Thisland willremain eligible to irrigation waterdelivered to such land - upon ~nvo1iint~rilyacquiring land if: -

/‘~ rec~1v9Irrigation water for the lcingarof equaltothe rate, paid by the former - - - - (1) The- land islocated in a district

5 years from the date thatthe land was owner, except Reclamationwill charge that- is-.~j- bie-t ~-. lnv

1iiitrlly acquiredor for the th&fullcostrateif: provisions; 1theit7J
~erujZZ~~ i~yzl. ~ ~ - - ~ P~c~.e~nber~‘~‘ 18, ~- 6 /~u1es ana~‘Regtilations - — r.%—.~-----~-.----- —~

- - ‘(2)11andh’old~ inquestion willi~e- ~ (I) and (ii) of (2) If a, districthas a contract with the

lie directlandowner of ~helahd; and this se~tioxiare met,:th-e peovisi~fis df United States providingfor individual

(3)The lahdholde-r in question -‘ Fedei~j ~edairi~tio~iflaw and thes~ landowner repayment of construction

~claresthe land as nonexcess.- - .. - regulaticirks,:~rillb ~plicab1etQQnly— charge-s allocated toland, and the U~U

- - -‘ (h) Land acquired by inheiltance or — tho~e l~idholde-r~ who receive irrigation landowner hasrepaid a11 obligateddevise. If a landowner receivesirrigation water.Accordingly, the provisidus of consti,ict~on costs allocated forthat -

- land through inheritance or devise, the- - Fede-ra~i~eclainatioAVlawand these-’ - landownei’s land, that landowner will

5-year~eligibllityperiod forreceiving - regul~tion~willnot be applicable to — - - he-come exempt fromn,the acreage - -

rri~aticn ‘~te-r on th~Aewly ac~iiired landholder~ho receive- nomiproje-ct -- - Urnitation provisions~ -. --- -

land per.paragrajhs (c)(3) and fe) of this wat4’de1iir~red th~oiigh facilities~ - - (3) Upon payout Re-c~amation will:

section begins on~ the- date of the fundedwith miionl’esmade availab~le (i) Notify the- district, and individual

previouslandowner~ death. -- -. pursuanti&Federedemmilaw~if landowner in cases of individual --

§426.5~,Cotnmingiing. ~ - - - -those par~gr~phs are-inet 2 - landowner pay’out, of the exemption -

(a) (d) WhenFedert~ilreclamation law - from the acreage limitation provisions;

ojthis - ndtregnJ:ti~nsdonptpppjy. — - - (ii)Notify the- district or individual

CommIngledwatermeans irrigation ;i--. -

water and nonprojectWater that use the- regulations donot apply tolandholders relieve th~ di~trict orindividual

-same facilities.~ - - receiving irrigation ~waterfrom federally landowner of the obligation to continue-

(b)Application ofFederalreclamation financed facilities ifthe irrigation water to pay, on an annual basis, O&Mcosts is acquired by an exchange and that - applicable- to the- district or landowner; uestby the- law and these regulotionstb prior exchangeresults inno materi~tbenefit on owner of

comminglingprovisionsin contracts. If to the recipientof the irrigation water. land for which repayment has occurred,

a district entered into a contract with - - — - - provide a certificate from Reclamation

Reclamation priortoOctober 1, 1981, - §426.16 ExemptIons and exclusions. acknowledging thatthe land is free of

and that contract has provisions - (a) ArmyCorps ofEngineers (Corps) the acreage mutation provisions of

addressing commingled water projects. (I) IfReclamation determines Federalreclamation law;

situations, those provisions stay in - thatland receives its agricultural water (iv) Except as provided for in

effect forthe- term of that contract and - from aCorps project, Reclamation will § 426.19(e), no longerapply the

- - commingling exempt that land from specific certification and reporting reqmrements

provision incontracts. of ~ amended, provisions includingthe- of Federal RRA,unless: reclamation -- --law, toexempt, the district, or toexempt if the entire landowners districtasi

re-ne-wed contracts may provide that (i) Federallaw explicitlydesignates, - specified in paragraph (b)(2) of this

irrigation water canbe commingled integrates, or incorporatesthatland into section; and.

~th nonproject water as follows: - a Federal Reclamation project; or (v) Consider ona case-by-case basis

1 Ifthe facilities-used forthe (ii) ~fteclainationprovides project - continuation of t1i~ exemption if

imingling ofirrigation w~t~r and~ wor~ forthe con~il or cbnveyanceof additional constriction fundsfor the

nproject water are constructed ~ the agriculti ral water supply from the project are requested.

Athoutfunds made available pursuant Corps prbjedtCAhat-land. - - - - - (c)Rehal1flitation and Betterpient e

~to Fedgiral’reclamation law,the - - - loansQlfRedarmationmgkes a

z~provisions ofFederal reclamation law (2) Upon such determination,

~d thes~ ~egiilationswill apply onlyto- - Reclamation N~A thwill: d,istrict - -~of- its- ex&mption - - - Re-habilit~t~on (pursuant ot andRehabilitation Betterment loan and

- -- ~tjia~landholderswho receive irrigation - (i) e-’~~ e- - BettermentAa of October 7, 1949, as

~ter, provided: - -- - - status; - - -

(i) Thatthe- water .e-quiiements for - - -~ ((U Require the district’s agricuiiurai amended, 43 U.S.C. 504) to a project

-- - ~li ~bla-la~idscan be established; arid - water under n~tr’~~’ at w~s autho jiiid~ Federal - - me quantity of irrigation-waterto madewith use~~I~ontinue, Reclamation, reclamation law priortothe submittal of torepay the-fr - the- loan request, by or forthe- district,

•-beusedisj~e~sthan or equalto the - - share of construction, operationand - Reclamation:

qiianti~y~iecess~ry,to irr~gate - administra’tion mainte-nande,andco~t&’of con~ct th’~ ~ --.~ (i) Conside-r~th~’Joan as a loan for - -

- ‘~useci for e-iigible allocat~d to ins~iijation oi~irrigation rnaintena~ice-, including replacements

- conmingl~nghri~tionikater and - ~5tOrage~]id~ - - ‘(2)Does notdonsidar the loan in

- - noxiprojectwater are funded with (ill) At the- request of the-district determining whether the districthas

monie-s Aiade av lal~le- -pure-auntto - - deleteprovisions of th~ (ti5tflCt’s discharged its obligation torep&y the

__ ml,~reclama law,, landholders repayn2nt orwater service- contractthat construction cd~t~if jrdjectfacilities

- who receivenonproject water willbe imposed~creagelimitation,fo~ those - used to make irrigation wate~r available

- ~subjectt6~eder~al re-diamation law’and~ landsserved by Corps ~Oje-~ts<~ - - - - - for deliverytolah~d ih’thd~districi; and

• - :~‘~e-re~ul~tiops~rnle~s~and p~js totlie- - (b) Repayment of~ohstructiQn - ~. (3) Will xiot~lloWsuch a loan to-serve

i’hedisirict collgcts~ obligations.The acreage-limitation asthe basis forreinsta1ing~acreage -

United States~n indemental fee which provisiond do not apply toland in a - Iin~u in a districtthat

reasou’4hl~ ~~6cts’an airpropriate share- district’afterthe districthas repald, in has co~npl~k& of ii~”t - - -,

• ofthe costtothe Federal Government, accordancewith the district’s contract~~ donstitionobligati6~i,~,x~orserve as the

indu”di lieie-~t, ofstoring or - with Reclamation, all obligated - ‘ basis fo’rincr~asing the construction -

):-delfvering’th’e’nohjpi~ojectwater, and - construction costs foi, project facilities. ~ obligation ofthe district and thereby {u)’fl~e-fe-~ 1— establishe-dby . (1) Payments~hyperiodic installments extending the pdiiod ddring which - , april

/ Reclainatj~iii avid ~llbe in additionto - overthe contract epaymentterm’. as- - - acreage-IluliLaLLon ,provisions will y.

•hedi’~ib1i~$i~ih,iopay for. - - - well aslumpsum and a&e-leratdd K (~d) -Temporary suppIi~s-ofwater. If

‘~j~iion, maintenance, and paymentS,:ifaflowed by,thedistiict’sj Reclamation announqes availability of

~Me~fd~iate-d with the contraawith Reclamation, will qu~lify~, temporary supplies of water resulting

ilti.~’requl~i¶ t&provide tli~service. the districttobecome exempt.~ -- - from an unusually la±~e--wate-rsupply,

- - - S -

~—- Y~X’j4~l -V~ - -
--“-C

‘66821k

hototherwlsebtorable for project the SRPA as amended by section 307 of exceptas provided in p8ragraph (1) of

Purpo~es~6r~m infrequent and - --- Pub. L 99—546; - - this section. ‘- - -: -, -

-~ otherwiseumnnnaged floodflow~ of (ii) Amendedthe loan contract to (2) Landholderswho make an

short du~tCona districtmay request - conform tothe SRPA, as amended by irrevocable- electionmust submit the

that Re~lgniation make such supplies Section 223 of the- RRA, prior toOctober standard certification forms with their

available toexcessland. However, such 27; 1986, the- contractis subject tothe- - - irrevocable election in the ye-ar that they

waterdeliveriesmust not have an increasedacreage- provisions provided S make the election.- -

adversq effecit on other authorized - - - in Sedion 223 of the- RRA. Reclamation-- (3) Lax~dholders who are subject to ‘ -

- ses. Upon~approval of the -‘ cannot alter, modify or amend any other priorlawmust annually submit -

t,$ R’eclamatidn will - provision ofthe SRPA loan contract - standardreporting forms, except as

stiuig district ofthe -- withoutthe-consent of the- non-Fe-dera

the temporary supply of - party. - - 1 provided - - (4) iLa~idholde-rs inparagraph who(1) qualify of this:section. under an

water underthe- following conditions: (b):Oth~rsectionioftheseregiiJations - exemption as specified inparagraph (g)

(1) The-contract for’the temporary - that apply to SRPA loans No-other ‘ of thissection neednot submit any

supplyof water will be for 1 year or less sections of the-se regulations apply to - forms.’ - - -

inaccordance with prior policies and - SRPA loans, except as specified in --: (d) Required information.

pra~tices; - . § 426.3(a)(3)(ii) and paragraph (d)-of this Landholdersmust declareon the

(2) The acreage limitation provisions - section. - - - appropriate certiflcation or reporting

will notbe applicable to the- temporQrr (c) Effectof SRPA loansin forms all nonexempt land that they hold

supply of water; - determining whether a district has directly or indirectly westwide and

(3) An applicable price forthe water, repaid its construction obligations on-a - other information pertinent totheir

if any, will be established; and water service or repayment contract. If compliance with Federal reclamation

(4) Such other conditions as a districthas a waterservice or - law. - -

Reclamation may include.

(e) Isolated tracts. Ifa landowner repayment contract in addition toan - (e) District receipt offorms and

requests that Reclamation determine SRPA contract,Reclamation does not - information. Landholders mustsubmit nsiderthe S

that portions of his or her owned land co RPA loan: the appropriate, completed form(s) to

are isolated tracts that can be farmed (1) In determining whether the district each districtinwhich they directly or y-u

economicallyonly ifincluded ina has discharged its construction cost indirectly hold irrigation land.

farming operation that already exceeds obligation for the project facilities; (1) Certification or reporting-formsfor

the landowners ownership entitlement, (2) As a basis forreinstating acreage whollyowned subsidiaries. The limitation provisions ina districtthat - ultimate and Reclamation make-s such a - has completed payment of its - - parent legal entity of awholly owned -

determination, then Reclamation: subsidiary or of a series of wholly

(1) Will exempt such land from the construction cost obligation(s); or - ~ owned subsidiaries must file- the

ownership limitations ofFederal (3) As a basis forincreasing the • -~- required certification or reporting forms.

j

reclamation law; and construction obligation of the district The ultimate pare-nt legal antitymust

(2) Will assessthe full-cost ratefor - and extending the period during which disclose all direct and indirect ‘

any irrigation water delivered to the - acreage limitationprovisions will apply landholdingsof its subsidiaries as

isolated tractthat exceeds the to that district. - required on such forms. -

landowner’s nonfull-cost entitlement. ~ -> - Cd) Districtsthat have an SRPA loan -~ (g) Exemptipnsfrom submitting

(1) Indian trust orrestricted lands. - contract and a contract as defined in certification and reportingforms, (1) A.

-~(1) Indian trusttor restricted lands are - 5426.2. If a district has an SRPA loan luidh~lae-~ i~~xe-~nptfrom submitting

excluded from application of the -‘ contract and a contract as defined in the certification and reporting forms~ ~-

acreage limitationprovisions. - § 426.2, the SRPA contract does not. - - - only ~ -

(2) Indian tribes and tribal entities supersede the RRA requirements - (i) has> --

‘operating on indian trust or restricted applicable-to such con~cts.- - -‘ j Category 1 status, ass

5Pecifled in

lands are excluded from application of §42~.1s.~~ndholderinto~aUon paragraph (h) 6tthigsection, and the

the water conservation provisions. - ~uIrien~ - - - - landhold~r isa; -

- ‘A. - -

I— Definfitionfor purposes ofthis- (A) Qualified x~cipient who holds a -

- - §426.17-- Small Reclamationprojects. - (a)

- (a) Effectofthe RRA on loan d,ntracts section:- - -- - -- — -~ total of 240 acres westwide- or le~s;or --

made underthe SmallReclamation Irrigation season meansthe- period ~ (B) Limitedreli~ient or a prior law,

Pi9bJectsAct. (1)-Ifa district entered into time- between the district’s first and last recipient whoholdsatotalof4oacres- -

a loan~coritiact underthe Small - - water delivery inany Water year. we-stwide- or le-s~ -

Reclamation~ProjectsActof 1956 (43 (b) Who mustprovide information to (ii) The landholdei~’s district has

U.S.C.’~422) (SRPA) on or after October Reclamation? All landholders and other CategQry 2 status, as specifie-d in- -, -

12, 1982;the contract issubject tothe partiesinvolved in the ownership or paragraph(Ii) of thissection, and the

provisions of the SRPA, a amended by - operation of nonexenipt land must -. - landholder is a: - -. -

Section 223 ofthe RRA and as amended provideReclamation, asrequired by (A) Qualified recipient who holds a

by Tjtle m2ofPub;-L; 99—546. the-se regulations or.upon request, any total of 80 acre-s we-stwide- or less; or -

(2) Ifa districtentered into an SRPA records or information, in a form-. - - - (B) Limited recipientor apriorlaw

- loan contract prior to October 12, 1982, suitable to Reclamation, deemed recipientwho holds a totalof 40 acres

a~id the district: ,-~- ‘~ - reasonably necessarytoimplement the westwide or less. - -

(i) Did’notamend the loan contractto RRA or other provisions of Federal -, . (2) A wholly ownedsubsidiary is - -

confornitd the SRPA, as amended by reclamation law exempted fromsubmitting-certification

Section’223 of the RRA, priorto October (c)R6qiiii4fo5submissions. (1) A or repotting forms,if its ultimate parant

27,-’1986,then-the- acresge provisions of - Landholderswho are s~bjectto the,, ~, legal entity hasprdpe-rly filed such -,

the~ohtract continue in effect, unless - - discretionary provisionsmust annually--< forms disclosing the landholdings of

the-i~ontractis amended to conformto- - submit-standard certification forms, :- each of its’subsidiaries. - - ‘ ~‘ “~

..I ‘
- -‘- . — — ~ C- — - A — — ~ ~ X~{ J— —~ — A -

, A - —- - .-r A’

~- 66822 FederaU~egi~ter hVol. B1~No.~244 aWedne~dayi~Dec~biber ~8,1996 4 ROles and~Iegulations

(3) In detemlining whether -, - -~ -- - - - (ii) Submit new-forms to all districts — agencyofthe UnitedStates-any false or’

certification or-reporting isrequired for - in which the landholderholds -- fraudulent state-me-nt(s) astoany matter - -

nuxposes-ofthis ~ection:9- - - nonexempt land,within.60-calendar - - within statements the agency’s by the landowner jurisdiction. or lessee False will

(ii Class t equivalency factors as days ofthe iige-.. - -- - - - ‘-~ ‘ - also result In loss ofeligibility:Eligibility can

- - -determined in §426.11 shallnot be - ~2(2)Outside ofthe iirig~tion season, onlybe regained ‘updnthe-approval of th~ -

used; and’ — the-n the- landholderrnuptsubmit new, Commissioner. ‘ - . -

(ii) Indirect landholders ne-ed not - standa~d certification or reporting forms -~ -- -- -

- countinvoluntarilyAcquired acreage to all distz~cts in which none-xemptland (o) Informationrequirements (2nd -

dosignate4as excess-bythe ditect is held priorto any Irrigation water - - Office ofMdnag~&nent andBudget -

landowner. deliveriesfollowingsuch changes. approvaLTheinformation collection —

- (hi District categorization. ()For (1) Notificationrequirementsfor ,. require- elils cohtaii~d inthis ~ection

purposes of thissection each district has landholderswhose o~’ner.~hip orleasing haveb~i~ ~pproir&LbytheOffice of

Category 2 status, unless the- following - ari~2ngements have-notchanged.IfaA, MahagemeI~t and,Budge-t under 44 -.

criteria havebeen met. U-the districthas landhold~r’s ~ivnersh{porje-asing-, - -: - U.S.C. 3501 etseq. and assigned control

met beth criteria, it will be granted arrange-niexii~ have not changed since , numbers 1006—000Sand 1006—0006.

Category 1 statna. - lastsubmitting a stan4ardcertifications The-iAf&mation’is being collected to-‘

(i) The district has conformed by orreportingform, th~ landholder can comply withSEdtions 206, 224(c), and

contracttothe discretionary provisions; satisfy the- annual certification or - 228 oftheRRA.These sections require

and - me- districtis currentin its- reporting requirements by submitting a that, as a condition tothe receipt of

(ii) verification forminstead of a standard irrigation water, each landholder in a

financial obligationsto Reclamation, form. On that form the landholder must district~whichissubjectto the acreage

(2) Reclamation considers a district - verifythat the information contained on limitation provisions of Feder~l

currentin its financial obligation if as of the- last submitted stand~rd certification reclamation law, as amended and

September30, the- districtis current in or reportingform remains accurate and supplementedby the- ERA, willfurnish

its: - corn~lete. - to his or her district annually a

- (i) Financial obligationsspecified ~ -- (m Actions taken if~equired certificate/report which indicates that

its contract(s) withReclamation; and -- submission(s) is notmade. - - he orshe- isin compliance with the

(ii) Payment obligatiox~s established (1) U a landholderdoes not submit provisions of Federalreclamation law.

by the ERA, and these rules. required certification or reporting - - Completion of these forms is required to form(s), the-n: - - obtain the be-ne-fit of irrigation water. (i) Application ofCategory 1 status. (i) The districtmust not deliver, and The- information dollected on each

Onc&adistrict achieves Category 1 the landholder is not eligible to receive - landholding will be summarized b~ the

status,itwill onlybe withdiawn if the

Regional Director determines the district and must not accept deliveryof, districtand submitted toReclamation in

~ not currentin its ~ irrigation-water inany water year prior — a form prescribed b Reclamation..

specifiedin paragraphancial (h)(2) obligations ofthis tocertification submissionof orfep6rtin’g the- required form(s) forthat Privacy (p) Protection Act of 1974. The pursuant Privacy Actto ofthe

ction.The withdrawal of Category 1 water ye-an-and ‘- -- - - 1974 (5 U.S.C.--552)protectsthe -

atus will be effective atthe, end of the (ii) Eligibilitywill be regained only information submitted in accordance

~urrentwater ye-ar and can be restored after all required certification or - - - - - with bertificatiort and reporting

onlyas provided under paragraph ~) of reporting forms are submitted by the- requirements. As a condition to

thissection. With the withdrawal of - landholderto the district. - e-xecuti~n-bf a contract,-Reclamation

- Category 1 status, the districi will have

a Category 2 status: - - - — (2) If one or more part owners-of a - requ sthe-inclusion-of a standard

(j) Submissions by lanSholders - - - - legal entity do not submit certification contract articlewhich provides for

in both a Category 1 - or reporting forms asrequired: - district compI~iance with the PrivacyAct • holdingland -. (i)The entire-eiititywillbeineligible - of 1974afid 43 CFR Part 2, Subpart D, district ~nidd C6t~goi~y 2 district.’ If a

- --- qualified recipient holds1~d ~- -- - to receive- irrigation-water untilsuch “- - in maintainingthe landholder. -

Category 1 district, then the 240-acre- forms (ii) Ifarethe~docume-nts submitted; orforming the~ - certiflcationand repdrtingforms.

forms threshold will be applicable-in entity provi4e for the- part owners’ ‘A § 426.19 DIstrict respensibllltles:

~de-t~iiiiningifthe’landhbldermust - - - interest ~obe separable and alienable, A distrWt that~delivers irrigation -- -

submit Ta certifidatibuTforin tothat ‘~ - then onlythat portion of the land -- wate-rtolionexe-mpt land under a; -

Category VdistrictiIfthe~am’e-qtialifted a¶tributable tothe iioncomplying~Sart contract with the -United State-smust:

recipientalio holdsland in aCategory owners‘will be ineligible toreceiv& - - (a) Provide- informatiofito landholders

2 district, then the 80.acre forms - irrigationwater. -‘ ~ ‘ -: - - A - -; — concemingthe requirements of Federal

threshold-will be applicable- in (n)Actions taken by-Reclamation ifa reclatn&ti~nlai~and these- regulations;

-- determining if the landholdermust lapdholdermakesfalsestatements bn - (b) Provide Reclamation,”as required

siibmit’a~certifidation form tothe- the appropriate-certification orreporting by the-se regulations-or upon-request,

Category 2 district. - - - ‘- - - - -‘-‘-~ forms. Ifa landholdermakes afals~ :- ‘-- and in-a -formsuitable-to Reclamation,

- ‘- - - (k) &otiflcationrequirementsfor - - - state-me-ni on the- appropriate-- - - - - X~ -“ r~cords and information asReclamation

landholderswhose ownership orleasing’ certification or reporting form(s) - - may deem reasoriabi~inecessary;to - -

arrangements changeaftersubmitting~ Reclamation can-prosecute the- -o -~ imi%lainent the ERA and other -

forms.-If a landholder’s ownership or- - - - landholde-tpuniuanCto-the following: provisions of Federalreclamation law;

leasing arrangements change in any ~ - state-me-ntwhich is b~cluded in-ill --‘ (c) Be responsible-for paymentsto

way:’-i-~ ‘-‘‘ ~-~- ~“ - - - - - certification and rep6rting-forms~ - - ‘~ -st -‘ Reclamation ofall appropriate charges

-. - -(1) Dung the-irnigation season, the- - -

- - -iandb6lderinixst: i~ ~j ~ - ~ - -- - Under the provIsions of 18 .S.C2i06i ir spe-~ifidd4n the-se regulations. Districts

- (i) the- ~snict - isacrimepunishable by 5~e-e-~~- - -- - must collectthe appx5opriate charge-s- Notify of~ce~ either -- imprisonlnentora BuS ofupt6slo,oOO,orL frbm each landh9lder based cm the -

~allyOrJn3V~’itiUgWithin 30- - both~ foi~-a~iyp~rson knowingly and willfully, landholder’sacne-age liiiiitation status,---i~

~ndar’daysof the chang~and - - to submitor cause to be submitted toany ~- landholdings, and entitlements, and -- -

-A/~’ - - --
4 ‘~.Z ~ -

- - - ts over the’- §426.18,— or for eachlandholder that -‘ —~ underpayhtan~tho —. difference ti~- 6~z

-JnL ..t irrigation water on line ,-~rem the responsible - land as specified above-. -. — deliveryof irrigation water under -

la A- - (2) In applying the asse-ssme-nt tolegal Federalreclamation law and what that

ilte-, collect, and review - entitie-s,compliaiice- by an entitywill be landholderpaid. - -

lanunoiner~e~tification treated Independently from compliance (b) Collection ofinterest on

forms; .~ -~ - - by its part owners or beneficiaries. - - underpayments. If a landholder has

(e)Fil~nd retain la~dholder forms. - - (3) The-assessmentin paragraph (a) of incurred an underpayment, Reclamation -

certification and reporting thissection will be applied- - - - - - will collect from the appropriate district

Disti-Ictixiiust retain superseded independently of the- assessment - such underpayment with interest.

landholdercertification and reportiuig specified in paragraph (b) of this- - InterestAccrue-s from the original --

forms for 6 years;thereafter, districts section: - -- -- - - - - - -~ payment due d~te until the districtpays

may destroy such superseded forms, (b)Assessment ofadministrativecosts the amount due; The original payment

- except: - ~mustkeep when form corrections are notmade, due date is the date the- district should

(i) Districts on file the last Reclamation will assess a district for the havepaid the I§Jnited-Statesfor water

fully completed standard certification or administrative costs described in —- - delivered to the landholder.

reportingform, inaddition to the paragraph (e) of this section,unless the (c) Und~pajymentinterest rate. The

current verification form; or - district providesReclamation iQith - Secretary 6f the-Treasury determines the-

(2) IfReclamation specifically requested reportingor certification form interestrate charged-the district based

requests a districttore-tain superseded corrections within 60-calendar days of on the weighted-average yield of all

forms beyond 6 years. the- date of Reclamation’swritten interest-bearingmarketable issues sold

(f) Comply with the- requirements of request. IfReclamation receives the - by the Department of the- Treasury -

thePrivacy Act of 1974. withrespectto required corrections within thi~ 60- - during the period of underpayment.

landholdercertification and reporting calendar day time period, Reclamation - § 42622 Public participation.

forms; - will considerthe requirements of (a) Notification of contract actions.

- (g) Annually summarize information § 426.18 satisfied.

provided on landholdercertification (i)Reclamation will apply the- Except for proposed contracts having a

and reportingforms cn separate assessment on a yearlybasis in each duration of 1 year or less forthe sale of

summary forms provided by - - district for each landholder tiiat - - surplus water or Interim irrigation

forms to received irrigation water and forwhom water,Reclamation will: Reclamation and submit these (1) Provide notic Reclamation on or before the date the districtdoes notprovide corrected -- e of proposed -

established by the appropriate regional forms within the applicable 60-calendar irrigation or amendatory irrigation

director; da time period, contract actions 60-calendar days prior Y to contract executionby publishing ppyingthe asses -- (h) Withhold deliveries of irrigation 2 In a 1 sine-ntto legal announcements in

-water to any landholder not eligible to entities, compliance, by an entity will be- news - general circulation

receive irrigation water underthe treated indep.endently from compliance- ~~apersi-” ~e- ~ area; A (2) ssue announdements in the form ~u certification or reportingrequirements.. - by its part owners or beneficiaries. of news releases,,legal notices, official j or any other provision ofFederal (3) The assessment in paragrapI~ (b) ~ letters, memoranda, or other forms of

reclamation law and these regulations; -- this section will be applied -- -- - written mate-ijal; and - - —

and inddpeiidentlyof the assessment - - (~j Dire-bUyii6tify individuals and

(i) Return to Reclamation, for deposit specified inparagraph (a) of this — entitieswho made a timelywritten

as a general credit to the Reclamation section. -- -

fl~d,~llr~veniies received from tli~ -‘ - (c) Pdilyresponsiblefor paying - - - - re-quest forsuch notice to the

de-liver~.6f water toineligible land. For - assessments. Districts are responsible - ~local office. regional o~ -

- -

‘purpbsesrofthe-se regulations only;thi~ for payment of Reclamation-assessinetits (b)Notification ofmodification of a

doe-snot include revenues from any - - - described under paragraphs (a) and (~) propased cohtract.-In the ev&at that

ch~r~ at may b~ assessedby the - - of this section. - - -- - modfflc~il~r~i~dei6a prop6sed

distiid tocover distrkt operation, - - (d)-Dispdsition of assessments ~ ~ must:

maintenance, and administrative - Reclamation will depositto the- general -- - (1) Pr~v~d~ copies of-revised proposed

fund of the- United-States Treasury~s - coiitt~Wt6 all parti swho”requested

§426.20~s - Assessment - of administrative - - miscellaneous costs assessed receipts, and collected admimsirative- under copies responseof totheproposed- theinitial notice;- contractand’ in

Assessment ‘ - ~paragraphs(a) and (b) of this section - - (2) Determine whether ornotto

(a) of administrative-costs (e-) Arriount ofthe assessment The - -~ ie-pirblish the-notice or~to extend the

for delivery ofwaterlo ineligible land, administrative- cOsts assessment - - -- - comment period. The regional4irector -

Reclamatid~will assess adistrict required inder pai~a~raphs(a)id (b) of must consider, among otherfactors:

adxii~lnistiitive costs asdescribed i-ti this section is set at $260:Reclaanation’ -- (i) The significance of the impact(s) of

Para~ik(~) ofthisse-ctionif the- - - willrevi~w the-’ associated costs atleast the modification to possible- affected di~frlci deliyers irrigation water to land once- ev~ry5ye~, and ~ll adjustthe parties; and X~~- ‘- - - — -

Ihht ~AT2A~ineh’gible because the - :- - assessment amount;if needed, toreflect - (ii) The interest expressed by the

landli6ldersdid not submit certification new cost’data. Notice ofthe- revised - ‘ public ove-i~ tke- course- of contract -

br reporting~forms priortothe receipt of assessinenifor administrative costs will ne~otiations.- - - - - - -

ir(~atlbIrwate-r in accordaiice with be- publishedinthe FederalRegister in ~tc)Information that Reclamation will

§ 42618 jlrto ineligible excess land as De-cemberofthe- year the data are -- include inpublished anhouncements. - -

provided ln?§ 426.12. - reviewed. - - Eachpublished axuioiinc6ment will: -

~1) Reclamationwill apply the- ‘- - - - include, a~appropriate~‘-~ I - - -

asse~m~iton n yearlybasis ineach • 426.21 Interest an underpayments - (1) A brie-f description of the proposed J dilct~ore-ach landholder that (a) Definition ofunderpayment For - contractterms and conditions being

re-ce-fired irrigation water in violation of the- purposes of this section. - - - - - -~- negotiated; -‘ -
- --a ~ -- ~-‘~ ~ ~ ~ ~

- ‘ 6(~8Z4 Federal ~Register-P-V,.d ~ bd-9Qd.Ri~les axjA RegIi1~tianE

- ‘(2)4)ate, time and place-ofmeetings,. (b)Afnouiit-ofI)&Mcosts a di~tri6t A- agree-mg to provide the- districtwith -

workshops, or hearings; - - mustpay ifit executesa new orrenewed supplemental and additional benefits.

(3) The- address and telephone - contract. Ifa district.executesa new or -- ~ Am~unt of OFJ-Ma distridtpays

uniber to-whichinquiries and renewedcontract afte-rOctober 12, 1982, under a prior contract.Fora district

omments may be addressed to r A then that district must-pay all of the ~ - - whose ~pridrcontradiwas executed-prior

Reclamation; and - ~ - - O&M costs that ReclamaUon allocatesto to Octobef 12,1982, the- districtmust

(4) The-period of timeduring which irrigation. ~

Reclamatioii will accept commei~ts. (c) AmountofO&Mcostsa district --pay all of the O&Mcosts allocated byA

- (dl Public ayailability ofproposed - - - mustpayifit aeiends ~ts contract to - -Reclamatioiito irr4~ation-unle-ssthe

contracis~-Aiiyoner.an get copies of a -- - conform2(1 qie4isckgonaryprovisions,~ contractsp~dflc~flyjrovide-s ~ontrary

proposed contract from the-appropriate - - If a distrietixas a contract executed prior - terI~i§. - -

regional director or his or her - — - - ---- - -: to October12, 1982, and the district >- (f)Amount ofO&MthatReclamation

- -designate-apublic contaciwhen the amendsthe- contract after October 12,- charges an irrevocable elector. (i)

- proposed contracts become-Available for 1982,ssprovide-d forin.§ 426.3(aX2) to ~- Regardlessof any terms to the contrary

review and comment; as specified in the conform tothe-discretionary provisions, within a prior contract -with a district,

publishedannounce-me-nt. - the-n the following applie-s~ - - a landholder, who makes an irrevocable

- - (e-) Opportunitiesfor public (1) The district-must pay all of the- - e-le-ction,as provided for in § 426.3(1)

participation. ~1) Reclamation can O&M costs that Reclamation allo6ate-sto must pay, annually,his or her - -

provide; as appropriate-: meetings, irrigation; -‘ - -proportionate-share of all O&M costs -

workshops; or hearings toprovide local (2) Ifinthe year the amendment is - allocated by Reclamation

information. Advance notice of executed, the district’s-contract - ratewas The irrevocable elector’s proportionate to g

meetings, workshops, or hearings will more than the- O&M costs allocated to - share is based upon the ratio of: —

be provided tothose parties who make- the districtin that ye-ar Ui~n that -

timely written request forsuch notice, positive difference atthe timeof the- - h fi) The amount of land in the district

Request for notice of meetings, contract amendment must continue to eld by the- irrevocable- elector that

workshops, or hearingsshould be sent - - be factoredinto the contract rate and re&ive-d irrigation water to the total

to the- appropriate Reclamation regional annually paid to the-United States. This amount of land inth~ districtthat

or local office. - would be inaddition to any adjusted received irrigation water; or

(2) Reclamation or the district can O&M costthat results from paragraph (ii) The amount of irrigation water in

invite the public to observe any contract (c)(1) of this section. The positive- the districtreceivedby the irrevocable

proceedings. - differencewould be factored into the - elector to the totalamount of irrigation

- (3) All public parilcipatioh contract rate forthe- remainder of the water thatthe- district delivered.

procedures will be coordinated with term of the- contract; and (2) The district(s) where the

those involved withNational ~ (3) The- district will not be required to ~evocable elector’s landholding is

‘vironme-ntal Policy Act compliance, pay an increasedamount towardthe - locatedmust collect from -the

leclamation determines that the- - construction costs of a proje~t as a irrevocable elector an amount equal to

‘ntract action or a

~nxfi environmental may will have- effects: - contract conditionamendment of the, district’s pursuant agreeing to to the shareirrevocable- of all Q&Melector’s costs allocated proportionate by

Individuals authorized to negotiate p,~r;agr~ph.(c) ofthi~section. -~ Reclamation to irrigation and the

- the terms pf contract proposals. Ouly Q~J’Aniount of.O&M cost a district

persons authorized toact on behalfof mustpaylilt amendsits contract to- - following apply:

- the districfmay negotiate the terms and provide supplemental oradditional -- - (i) Ifinth-e- ye-ar the- election is - -

- ~conditionsofa specifi~c6n~ra5t - benefits. Ifa• districtamendsits contract executed, hedistiict’s coiitract ratewas

osal. - - - - - - ~- after Odober 12, 1982, toprovide- - more- thin theCI&Mvosts allocated to

..Lg%gencyuseofpomznents - A - ~upp1e-ment~1pradditional benefits, as the districtin that year, the-n that

- submittedduring the periodprovided provided forin §426.3(a)(3)~ then the -- positive- differerce ~tthe- tixie.ofthe

-- forcoiiiment~orniade at hearings. (1) f6llowing must be complied with: ~ to

Reclamationwill review and summarize (1) The districtmust pay all of the be facto~ediii(othe contract rate-. This - -

- - for use-by t.he contract approving O&M cost~ that l~ecl~n~ationaIlocate-s~to would be-in a4ditiontoan~adfusted

authority, testimonypresented at any -- - ~ - -~ - - A Q&M cost ihatresults froni par~graph

public heariiig br any written comments (2)11in tiieA~earthe- ~me-~idmenlis (t)(1) of thissection. The positive

submitted tothe appropriate--~ - - executed, district’s,contractrate wa~ -difference would be factoredinto the

Reclamation officials at locations and - more4hanthe O&lvLcpsts allocated to -- contract rate-forthe- remainder of thewithin the- comment period, as specified the- districtinthatye-arthen that~ term-ofthe-contract; and

.-in the advance- published w :~ - - - positive difference atthe time of the - - - (ii) Si~ch ~o1le-~ticzf~must beannounce-me-nt. - - - -- - contract amendmentmust continue- to forwarded t~ th tJd S

(2) Re-c~amation will make available--to be factoreilinto the contract rate~d annually o e mte- tate-s.

the- publi~ all written correspondence - annually paid to the ,United States. This~• (~) AmQunt9f OS-fYI thatReclamation

- regardiuig proposed contracts underthe- would be- in additionto any adjusted - cl-iarges ifa lahdholderis subject tofullterms and procedures of the- Freedom,~f O&M costthat results from paragraph - costpflcg.lnaldistrict sibjecttoprior

Information Act (5 U.s.c. 552), as - (d)(i) ofthis section.The positive - law, if a landhcilde-r issubjectto fullamended. - - - - - -. differencewould be-factored into the-, cost pricing th~e- districtmust ensure that

~~. ~ ~ -~ - contract rate I thexemainde-rof the- all O&M costs are included inanyfull-

• 426.23~Recevery of eperation and - A term ofthe contract: and. —~ -, cost assessment, regardless of whether

- - maintenan~e(O&M) costs, - A 7 - - - ,- - (3) The- districtmust pay any TA- - the landholderis subjectto the --

(a) GeneraL-All new, amended, and increases in the amount paid annually discretionary provisions. The re-venues -

~ne*~dcouCract~e-hall provide for ~ towardtheConstruction costs of a - from such full-cast assessments must be

-rife-ntof O&M costs as specified in - proje~tthat the- United (Ti~ - section. - -. - - —- - - - - - -.- - the- distriattQpayas - a conditiouof- States requires - - collected States. - and- - submitted - - -tothe- -~ United -- - —~
~ma~dMa S - k~4~4¶4~

— —

— . - -‘ I — - — -

- - ~wn w916.’JfiS and - (B) Demonstrates that the harmthat a director auu apj

- - A- districtor landholder would suffer ‘ifthe pending on appeal as .. ire

allan 4eclsions. (1) - - - Commissioner doe-s not grantthe- stay date of these regulation- - -

~~Reclamation’sfinal outwe-igh’sthe- interest of the- United processe-~i and decided in accordance

appropriate - States inhaving the final determination with the regulations ineffect -

r ~nrmares any final take effectpending appeal. - immediately priorto the- effective- date

these- regulations (ii) A decision, or a ortionofthe- of these-regulations. - - - - -

- ,,.~ze. IfReclamation’s de-cisioii, fit which a stay is not ~ante& - (g) Addresses. All requests forstavsl

• nis likely toinvolve will become- effective- inimediate-ly after appeals, ordffier communicationsto theinn rujolders with - the Commissioner denies or partially United States under thThseciion must be

2ated in more than one deni&s the petition for stay-oi failsto addre-gse-d as folloW~ -- -

tIcdnietde-~ignates actw$thiiiJ3o ‘days after receiving.t]~e- -- (1] Commissioner, Bureau of -

make that final - - request. - -- - - - - Reclftmati6n*1849 CStreet N.W., MS—

di - (iii) A Commissioner’frThcisjon on a 7o6o.*uB; W&~hington, D.C. 20240,

LW~ w affected pArties. The petition-for a stay Jr any oth§r -- tele~hon~ (262) 208--4157. -

appropriate regional director will Coriuiission~r decision is appealable. . (2) Directtr, Office ofI earings and -

transmit hiiy final determination to any (c) Appeal ofComiitissioner~ - Appeals, Dejrnrtme-nt of the lnteriorj -

district and landholder, as appropriate, decision. (1) Appealto the Office of 4015 WilsonBoule-vdrd, Room 1103;

whose rights and interests are directly Hearing and Appeals. A p~y r~n - Ballston ToWer No. 3; Arlington, VA

affected. appealthe- Commissioner’s decision to 22203.

(3) Effective date for regional - the Secretary by writing tothe Director, -

director’s final determinations. A Office of Hearings and Appeals (OHA), § 426.25 Reclamation audits.

regionaldirector’s decisions willtake U.S. Department of the Interior.-For an Reclamation will condud reviews of

effectthe day after the expiration of the appealtobe- timely, OHAmustreceive a district’s administration and

period during which a personadversely the appeal witjiin 3okalendar days from enforce-me-nt of and landholder -

affected may file anotice of appeal the date of mailing ofthe -- compliance with Federalreclamation

unless a petition for stay is filed Commissioner’s decision. law and these regulations. These

- - togetherwith a timely notice of appeal. (2) Rules,thatgovern appeals to OHA. reviewsmay include, but are not limited

{b) Appeal offinal determinations. (1) 43 CFRPart 4, Subpart C, and other to:

Appeal Submittal. Any district or provisions of 43 CFR Part 4, where (a) Water districtreviews;

landholderwhose rights and interests - applicable, govem the OHA appeal (b) in-depth reviews; and

are directly affectedby a regional process, except for the accrualof - (c) Audits.

director’s final determination can underpayment interest as specified in

submit a written notice of appeal. Such paragraph (el of this section. § 426.26 SeverabilIty. --

notice of appeal must be submitted to (dlEffective date of an appeal If any provision of the-se regulations

j

the Commissioner-of Reclamation - decision. Reclamation will apply- or the- application ofthe-se- rules to any

within -30-calendar days from the dateof decisionsinadeby the Commissioner or person or circumstance is held invalid,

the regional director’sfinal by OHA wider paragraphs (b) and (c) of then the sections of these rules or their

determination. - - this section as of the date of the applications-which are not held invalid

(2) Submittal ofsupporting - - violation or other problem that was will not be- affected.

-- . information. The affected party will addressed in the regionaldirector’s final 2. Part 427 isadded as follows:

- hdv~BO-calendar-days from the date that determination. If, during the appeal

A - - thete-gional director issues a final process, irrigatibn water has been PART427—WATER CONSERVATION

-r - -; detenuilnation to submit a supporting - delivered to land subsequently found to RULES AND REGULATIONS

brieforhThmorandum tothe - -‘ - be-ineligible-, for other th-an -RRA forms-+ ~j ~e ~ m’ - ~

>Conimlssioner.-TheCommissioner may submittal- violations, the compens#on

-extendthe-lime forsubmitting a - -- raternay~be~pplied tosuch deliveries - ~ (&) iiVgeneiol. The- Secretary shall

supporting briefor memorandum, if: retroactively. r -: - - - - v encourage the fullconsideration and

(I) the- ected party submits a re-quest (e) -Accrualofinterest on - wcoFPPratioi ofprudent and

toth6 CJmmissioner in atimely underpayment duringappeal. Interest responsible wat6r consenation

manner; - - - - on any underpayments, as provided in measures in all districts and for the

- - (ii) the request includesthe- reason 7 § 426.21, cbntinues to accrue during an operationsty non-Federalrecipients of

why additionaltime is needed; and - appeal of a regional director’s final irrigation andmunicipal and industrial

4iii)the Commissioner determines the- determination, an appeal of the - I (M&l) water from FederalReclamation

akpe-ll~iit hasshown good cause for - Commissioner’s decision, or judicial projects. -

such an extension and the extension - re-view of final agency action; (b) Development ofa plan. Districts

-- wrnild-not prejudice Reclamation. K Underpaymentinterest accrualwill that have entered Into repayment

(3)Requestsfor stay ofthe final - - continue eve-n during a stay under contracts or waterservice contracts

detetmijzation pending appeaL (i) The paiigraphs (b)(4) or (c)(3) of thissection. according to Fedeialreckmation law or

Conjinissloner will determine- whether (I) Status ofappeals madepriorto the the- Water SuppljAct of 1958, as

‘do Stay asegional director’sfinal effective4ate ofthese regulations. (1) amended (43 U.S.C~390b), shalldave-lop

det&mlMtion within 30 days after - Appeals tothe Commissioner of a and submit tothe Bureauof -

receiving ajiroperly filed petition for regional director’s final &termination Reclamation a water con..servation plan

_ stayifthe- requesting party: which we-re decided by the which containsAe-finite objectives

-jA)submits a requestfor stay in Commissidner or his or her delegate which are economically feasible and a

writing~o the Commissioner, with, or in priortothe effective da& of the§e time schedule for nie-e-tin~ thoseJ

advonce of,the notice of appeal, and regulations are- hereby validated. - objectives! In the ev-6ntthe- contractor

statesthe- grounds upon which the party ‘ (2)Appe-~ tothe Commissioner of also ha~ provisions for the supply of

re-quests the stay and - final determinations inadbby a regional 3⁄4 Msa water tinder -t the authority of,the