Branch of Operation and laintenance ver 2, Colorado STATES THE INTERIOR ECLAMAT1ON coLo. L. BUSINESS
11
Mr. W. E. CodeIrri etion Ene;ineer, Colorado State Col ege Fort Collins, Colorado
PENALTY FOR PRIVATE USE TO AVOID PAYMENT or POSTAGE, $300
UNITED STATES
DEPARTMENT
OF THE INTERIOR
BUREAU OF RECLAMATION BRANCH OF OPERATION AND MAINTENANCE
Customhouse Denver 2, Colorado
JUN 2
3 1944
Mr. W. E. Code
Irrigation Engineer, Colorado State College Fort Collins, Colorado
Dear Mr. Code:
Your letter of June 16 regarding Bureau contracts with water users, covering payment for irrigation water, hac been referred to this office for reply.
The present policy of the Bureau is to make blanket contracts with irrigation districts or water users associations, rather than separate contracts with individual water users. The contracting organization collects charges from the water users. On a few projects individual con-tracts are made in the form of water right application There is also an arrangement whereby temporary water service may be obtained by individuals.
I am enclosing copies of contracts which are avaJlable and will serve as samples of the general requirements of the Bureau in connection with the operation and maintenance of projects and the repayment of construction costs. These contracts are with the Yuma County Water Users Association, Arizona; Westland Irrigation District, Oregon; and the Newton Water Users Association, Utah. There is also enclosed a copy of Form 7-289 "Applica-tion for Temporary Water Service."
If you care to visit this office sometime when in Denver, we will be glad to discuss the various phases of our contracts for water service.
Very truly yours,
4
/41-tr
Acting Director Enclosures
11r-635
UNITED STATES
DEPARTMENT OF THE INTERIOR BURRAU OF RECLAMATION
Yuma Project
CONTRACT BETWEEN THE UNITED STATES OF AYERICA AND THE YUMA COUNTY WATER US:2S' ASSOCIATION PROVIDING FOR THE PAYMENT OF PROJECT
CONSTRUCTION COSTS AND ANAUAL OPERATION AND MAINTAANCE COSTS BY THE ASSOCIATION
(1) THIS CONTRACT, made this 5th day of February, nineteen hundred thirty-one, pursuant to the Act of Congress approved June 17, 1902 (32 Stat. 388), and acts amendatory thereof or supplementary thereto, all of which acts are oommonly known and referred to as the Reclamation Law, and particularly pursuant to the Act of Congress approved May 25, 1926
(44
Stat. 636), between THE UNITED STATES OF AMERICA, hereinafter referred to as the United States, acting for this purpose by Ray Lyman Wilbur, Secretary of the Interior, here-inafter styled the Secretary, and the YUMA COUNTY WATER USERS'ASSOCIATION, a corporation created, organized and existing under and by virtue of the laws of the State of Arizona, with its principal place of business at Yuma, Arizona, hereinafter referred to as the Association;
WITNESSET;:
fillgara?21121TELI
(2) WHEREAS, under and in pursuance of the Reclamation Law, the United States has heretofore constructed and is now operating
and maintaining that certain irrigation project known as and designated the Yuma project, situate primarily in the State of Arizona, but situate also as to a part or portion thereof in the State of California; and
(3) WHEREAS, the Association has heretofore entered into an agreement with the United States, of date May 31, 1906, whereby the Association, among other things, guaranteed the payments for that part of the cost of irrigation works of said Yuma project apportioned by the Secretary to its shareholders, and agreed also that it would promptly collect or require prompt payment thereof in such manner as the Seoretary may direct; and
(Li) WHEREAS, many of the shareholders of the Association, water users of the Valley Division of the YUMA project, are delinquent in the payment of construction and operation and maintenance charges, and the iqisociation has requested the deferment of such charges as wall as an extension of time for the payment of unaccrued construction charges; and
(5) MaREAS, the Act of Congress approved May 25, 1926 (44 Stat. 636)4 authori,es an extension of time for the payment of unaocrued
construction charges, and the deferment of accrued construction, and annual operation and maintenance charges;
(6)
NOW, THEREFORE, in consideration of the promises and ot thecovenants herein contained, it is mutually agreed by and between the parties hereto as follows, to-wit:
(7)
Payments by Association to United States
The Association shall and hereby agrees to pay to the United States delinquent and unaocrued construction and supplemental construction charges, operation and maintenance and water rental charges due or to become due from lands of the Valley Division of the Yuma project, as determined by the Secretary, in the manner and at the times hereinafter set forth, to-wit:
(a) All construction and supplemental construction charges in accordance with existing and subsequent water right applications, to become due after the year 1930. Said charges shall be due and payable to the United States on December first of each year in such number of equal annual instalments that there shall be allowed for the repayment of construction and supplemental construction charges in each instance not more than thirty (30) years from and including the date the first payment matured or matures under original water right applications; provided, however, that supplemental construction charges announced by public notice of date november 11, 1925, shall be due and payable as therein provided.
(b) Due and uncollected construction charges as of December 31, 1930, plus penalties and interest -ID December 31, 1930, as determined by the Secretary, whose determination thereof shall be final and
in ten (10) equal annual instalments, with the first instalment due on December 1, 1936, and subsequent instalments due on December 1 of each year thereafter until paid. The charges so extended shall bear interest annually at the rate of six per centum
(6A)
per annum until paid, which annual interest shall be due and payable on December 1 of each year, beginning with the year 1931.
) The ?ssociation shall not be liable for the payment of unaccrued construction charges upon lands declared unproductive and temporarily suspended by the Secretary, until such temporarily suspended and unproductive lands or any of them are declared by the Secretary to be possessed of sufficient productivity properly to be placed in a paying class, whereupon the 4sociation shall become liable for the construction charges therefor, with the first
instalment due on December 1 of the year in which declared productive and a subsequent instalment due on December 1 of each year there-after until thirty (30) annual instalments have been paid, less
such number of instalments as shall represent the accrued instalments of the construction charge at the date said land was declared
un-productive and temporarily suspended.
(d) All due and uncollected operation and maintenance and
water rental charges, plus penalties and interest to December 31, 1930, and including also operation and maintenance charges which are treated and considered as an advance payment on account of operation and
maintenance for the calendar year 1931, as hereinafter stated, shall be due and payable to the United States in five (5) annual instal-ments, with the first instalment due and payable on December 1, 1931, and subsequent instalments due and payable on December 1 of each
year thereafter until paid in accordance with the following schedules: 10 per oentum December 1, 1931.
15 per centum December 1, 1932. 25 per oentum December
1, 1933.
25 per centum December 1, 1934. 25 per centum December 1,1935.
The charges so extended shall bear interest at the rate of six per centum (6%) per annum until paid, which annual interest shall be due and payable on December let of each year; provided, however, that the public notice of annual water charges for the calendar year 1930, in so far as it relates to water users of the Wiley Division who consent to the provisions of this contract, is hereby recalled and declared to be of no force or effect.
Operation and Maintenance Payable in Advance
(B) (a) Beginning with the calendar year 1931, the estimated cost of operating and maintaining irrigation and drainage works, and all other appurtenant structures, for the benefit of the lands in
the Valley Division of the Yuma project, as determined by the Secretary, shall be payable by the Association to the United States semiannually in advance. The first half thereof shall be due and payable on or before January 1st of each year, and the second half thereof on or before July let of each year, and (1) no water shall be delivered to
any lands in the Valley Division of the project until advance payment of the first half of the estimated operation and maintenance cost is made, and (2) the delivery of water after the date fixed for
payment of the second half of the estimated operation and maintenance cost will not be continued unless and until the second half of the estimated operation and maintenance cost is paid in full. The total of said estimated annual operation and maintenance cost shall be set forth in a statement to be furnished the Association by the
Secretary on or before September let of the year next preceding the year for which such estimate is furnished. Any excess resulting from the estimate for the previous year being too high will be
credited on the second half of the estimated cost for the succeeding year. Should the estimated cost of operation and maintenance for any year prove to be too small, the Association shall advance
additional amounts estimated to be needed by the Secretary to finance the operation and maintenance cost during the then current calendar year, payment of such amounts to be made by the Association to the United States within thirty (30) days from and after the date of notice from the Secretary.
(b) All payments heretofore made to the United States of operation and maintenance charges due Yarch 1, 1930 (being the 1929 operation and maintenance charges), exclusive of any penalties and discounts, and all payments made to the United States subsequent
to January 1, 1930, of operation and maintenance charges for prior years, will be treated and considered as paid by the Association as the advance payment of 1931 operation and maintenance; provided, that where a water user has made payment of more than one year's
charges, only the latest year's charge shall be treated and considered as paid by the Association as advance payment of 1931 estimated
operation and maintenance cost. If the total payments as herein provided for do not equal the Valley Division's pro rata share of the estimated cost of operation and maintenance of the entire Yuma project for the calendar year 1931, as determined by the Secretary the pro rata share of the net power revenue from Syphon Drop power plant accumulated during the period July 1, 1929, to June 30, 1930, creditable to the water users in the Valley Division, as may be necessary, will be diverted and credited to the Valley Division's share of the estimated operation and maintenance cost for the calendar year 1931; provided, however, that if the payments and power credits as herein provided for do not equal the estimated cost of operation and maintenance for the calendar year 1931, the Association shall make payment of the deficiency within thirty (30) days after date of the Secretary's notice that such deficiency exists; and provided further, that if the payments and power credits as herein provided for are more than sufficient to cover the estimated operation and maintenance cost for the calendar year 1931, the excess shall be supplied to the estimated operation and maintenance c'sst for the
(c) Net power profits during the fiscal period July 1, 1930, to June 30, 1931, shall be applied (1) to the liquidation of the annual interest and instalment of deferred operation and maintenance charges next coming due after the close of the period stated, and (2) the balance, if any, shall be applied to the estimated coat of
operation and maintenance for the calendar year 1932. Net power profits for the fiscal year 1932, and each fiscal year thereafter (a fiscal year being defined as the period from July 1 of one year
to and including June 30 of the next succeeding year), shall be applied (1) to the interest and instalments of deferred construction charges, and (2) to the annual instalments of construction charges next coming due and payable after the close of each fiscal year.
(d) The pro rata share of collections from the Imperial
Irrigation District under contract of date October 23, 1918, applicable to the water users of the Valley Division, not set aside and not
distributed to construction charges for 1929 and prior years will not be applied to construction charges due and payable December 1, 1930, but such pro rata share will be added to the Valley Division's pro rata share of any collections made prior to July 1, 1930, and the total will be applied (1) to the annual interest payable
December 1, 1931, on deferred construction charges, and (2) on the annual instalment of regular construction charges due and payable December 1, 1931. The excess, if any, will be added to the Valley Division's pro rata share of any collections during the period
July 1, 1930, to June 30, 1931, and applied (1) to the annual interest payable December 1, 1932, on deferred construction charges, and (2) on the instalment of regular construction charges due and payable December 1, 1932. Thereafter, the Valley Division's pro rata share of such collections prior to July 1 of eaoh year (July 1 to June 30, inclusive), shall be applied (1) to the annual interest and annual instalment of deferred construction charges, and (2) on the annual instalment of regular construction charges.
(e) Pursuant to the provisions of Section
3
of the Act of August 13, 1914 (38 Stat. 686), no water shall be delivered to or for any tract of land in the Valley Division of the Yuma project, as determined by the Secretary, the owners or holders of which shall be in arrears more than one year for the payment of any annualconstruction charge and penalties, or any assessment levied by the Association for the purpose of paying such construction charges to the United States, or who, after the effective date of this agreement shall fail to pay in advance the annual operation and maintenance charges as required by subsection "N" of the Act of December
5, 1924
(43 Stat. 672), or any assessment levied by the Association for the purpose of paying such operation and maintenance charges to the Government.
Duties of the Association
(9) The Association shall, among other things, (a) install and maintain a modern set of books of account, to be acceptable to the Secretary, showing all financial transactions of the Association, and furnish such financial reports and statements as may be required from time to time by the Secretary, and (b) keep and report such
other records as the Secretary may require in the manner and form prescribed by him.
Association to Act as Fiscal Agent
(10) The Association is hereby designated by the United States as fiscal agent of the United States for the Valley Division of the Yuma project, as determined by the Secretary, for the purpose of collecting under contracts with non-consenting landowners and con-tractors not members of the Association, and as such fiscal agents shall also collect any and all sums due the United States under any contracts (including water right ap7dications) heretofore and here-after entered into upon the project by the United States pursuant to reclamation law when necessary to do so either by reason of failure to collect under assessments levied by the NBsociation, or otherwise. Any and all sums collected as such fiscal agent for the United States
shall be paid to the United States within ten (10) days after collection. As such fiscal agent, the Assocation shall indemnify the United States against loss with a bond in amount and form satisfactory to the Secretary.
Association to Use all ?ewers to Collect Charges
(11) The Association agrees that it will cause to be made and collected all necessary assessments, including Aisessments to make up for the defaults of those wno do not pay consLruction or other charges to the United States or assessments levied by the Asslciation, and will use all powers and resources of the Association, including the power of the Association to levy and collect assessments against its shares of stock, and to collect and pay to the United States all charges or sums provided in this contract in full on or before the day that the same become due. The debts due the United States hereunder are prior to all other obligations of the Association, and from any moneys coming into the possession of the ssooiation and apolicable to the payment of its obligations, the United States shall be paid prior to all other claiments, except that, in case the :ssociation borrows any money for the purpose of meeti_c, when due and payalle, under any of the terms or conditions of this agreement, any of the payments due the United States, and makes such payments, it shall be permitted to levy and collect a special assessment at any time for the sole and only purpose of raising
an amount of money sufficient to repay the creditors so lending said money and which would otherwise be delinquent indebtedness of the Association.
Interest for Delingency in Payment
(12) All charges or moneys provided to be paid by the
Association to the United States und,Jr this contract and remaining unpaid after the same shall have become due shall bear interest at the rate of six per centum (6%) per annum so lonp• as such default shall continue, and the Association agrees to pay such interest.
Association may Enforce Liens of 7-citor Right Contracts
(13) In the event of a delinquency of any water user within the Valley Division of the Yuma project in the payment of any operation and maintenance chare under ariy individual water right oontruct or water right application, the Association is hereby authorized and empowered to enforce the lien created by the water right contract or water right application aKainst the land covered thereby.
Access to Books and Reoords
',/141/11.•••
(14) The proper officer or agent of the tssociation shall have full and free access at all reasonalle tImes to the project books and official records of the United States relating to the
construction, care, operation and maintenance of the project, with the right at any tilue during office hours to make copies of and from the same, or any of them, and the proper representatives of the United states shall have similar rights in respect of the Looks and records
or
the Association.Rules and Re,7ulations of the United States
(15) The United States reserves the right, so far as the pur-port thereof may be consistent ,vith the provisions of this contract, to make reasonaLle rules and regulstions, and to add to or modify them as may be deemed proper p.nd necessary to carry out the true intent and meaning of the law and of this contract.
Aoceptanoe of Contract by Water Rirht Applicants (16) All landowners within the Willey Division of the Yuma
project, as determined by the Secretary, shall be given an opportunity to accept this contract, by complying with the terms and conditions hereof. Land, the owners of which do not, within sixty (60) days from and after the date this contract becones effective, aocept this contract by the execution of an instrument in writing, In form attached hereto and marked Dchibit "A," by this reference made a cart hereof, will be referred to a non-consenting land, and the owners thereof as non-consenting landowners. Non-consenting landowners will retain their present contract obligations and will be allowed to make
payment of their construction charges as provided in their respective contracts. No non-consenting landowner shall be allowed any benefits
of this contract.
Agreed Charges a General Obligation of the Association
(17) The Association is obligated to pay the United States the full amounts herein agreed upon according to the terms stated regardless of the individual default in the payment of (a) any assessments levied by the Association or (b) any payments due under any contract.
Supplementary to Prior Contract
(18) This contract is supplementary to that certain contract between- the United -tates and the Association, bearing date May 31, 1906, but except as expressly modified hereby the said agree-ment of May 31, 1906, shall be and remain in full force and effect.
Rights Reserved under Section
3737
Revised Statutes(19) All rights of action for breach of any of the provisions of this contract are reserved to the United States as provided in Section
3737
of the Revised Statutes of the United States.Remedies under Contract not Exclusive
(20) Nothing contained in this contract shall be construed as in any manner abridging, limiting or depriving the United States of any means of enforcing any remedy either at law or in equity for the breach of any of the provisions hereof which it mould otherwise have. The waiver of a breach of any of the provisions
of this contract shall not be deemed to be a waiver of any other provision hereof or of a subsequent breach of such yrovision.
Interest in Contract not Transferable
(21) No interest in this contract is transferable by the Association to any other party, and any such attempted transfer shall cause this contract to becoue subject to annulment at the option of the United titates.
Member of Congress Clause
(22) No Uember of or Delegate to Congress or Resident Commissioner, shall be admitted to any share or part of this contract, or to any benefit that may arise therefrom. Nothing, however, herein contained shall be construed to extend to this contract if made with a corporation for its general benefit.
Contract jubject to Appropriations by Conzress
(23) There the onerations of this contract extend beyond the current fisoal year it is understood that the ,.lontract is made continent upon Congress making the necessary appropriations for expenditures hereunder after such current year has expired. In event suoh appropriation as may be necessary to carry out this contract is not wade, the Association hereby raleases the United States, its officers, agents and employees, from all liability due to the failure of Congress to mske such expropriation.
Successors and Assigns Obligated
(24) The provisions of this contract shall apply to and be binding upon the successors and assigns of the respective parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the day and year first above written.
(Seal) ATTEST:
J. 0. Power Secretary
THE UNITED STATES OF AMERICA
By is,/ Jos. M. Dixon May 19, 1931 First Asst. Secretary of the Interior
YUMA COUNTY WATER USERS'ASSOCI,_TION By J. . Corey
hr. - 808
UNITED STATES
DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION
This Agreement made this 29th day of July, 1935, in pursuance of the act of June 17, 1502 (32 Stat. 366) and acts amendatory thereof or suisi lementary thereto,
between the UNIT:. D STATES OF AIERICA, herein styled the United States, by the officer executing this contract, and the WESTLAND IRRIGATION DISTRI:T, hereinafter styled the Westland District, and the STANFIEE, I:IeATION DISTRICT,
hereinafter styled the Stanfield District, both being irritLation districts organized under the laws of the State of Oregon,
WITNESETH:
2. WHEREAS, the Westland and Stanfield districts lave contracted with the United States for the purchase and rental of rceservoir capacity in the e.ci.ay Reservolr, and the payment to the United States of rental, construc-tion and operaconstruc-tion and maintenance charges in connection with said reservoir and related works, all as in aaid contracts r..ovided and w ,ich said contracts &Ian be nereinafter referred to as prior contracts; and
3. lifF,REAS, the water supplied to the two districts under the provisions of aaid prior contracts is insufficient
for the irrigation requireisents of the lands of the two districts during the irrigation season of 1935, and an wnergency exists; and
4. WF1T AS, there is water in said reservoir during the calendar year 1935 to the extent of five thousand (5,00C) acre-feet for which the United States is not obligated to make delivery for the irrigation season of 1965, and which is available for use of the Westland and Stanfield Districts;
NUit, TI:i2;-'YORT.', It is agreed between the United States and the Westland and :tanfield districts, as follows:
5. The ;yestland and Stanfield districts will, upon execution of this contract, pay to the United State in addition to the ,payments required under
prior contracts, the sum of Five Eunared Dollars (500). G. The United Status will deliver and measure to the districts at the outlet of -cNay reservoir upon order as hereinafter provided, uurin6 the irrigation season of 1935 only, in addition to the water in storage capacity to Which the said districts are ntitled under the p-ovisions of prior contracts, a ,Luantity of storage in kaay reservoir not to exceed five thousand (5,000) acre-feet.
7. Both districts shall give joint notice in
writing to the Superintendent of the keKey reservoir as to the needs of each aistrict for water and the amount which each district desires to nave released for its use, at least two (2) days Irier to the time that the water is desired at the headgates of tne said districts; it being understood that the aistricts and each of them shall be responsible for the carriage of such reservoir drafts to their respective headgates; for the equitable division thereof between them; and for all losses which occur afteT the release ice such storage from the reservoir.
8. The irrieation season herein referred to is defined as ending on September 1, 1935.
9. flothing herein contained shall be construed as affecting the terms of the prior contracts between the said districts end the United States.
10. It is understood that this contract is temporary and that its provisions do not entitle the districts to have any of the store herein agreed to be delivered after the dose of the irrigation season of 1935, as herein defined, nor to a eermanent right to any storage or storage capacity in VcKay reservoir.
11. No member of or delegate to Congress or re ideat comTissioner shall be admitted to any snare or fart of this contract or to any benefit that may arise herefrom, but this restriction shall not be ce.sri:ed to extend to this contract if _Lade witn a cort.oriJtion or comit.ny for its ?;eneral benefit.
IN ':iITtiLz,S MERi:OF, the parties }:eve hereto sic,Led their names the day and year first above written.
UNITLZ STATFS OF AkERICA
(corporate seal) ATTLST: J. W. R "ecretary (corporate seal) ATT:.r: F. A. BA14,ER Secretary By Plwood !'ead 8/20/35 Commissioner
ii. FSTLAND IPRIGi.TION DISTRICT By HAWLEY J. BNAN
President
STANFIELD TRRIG.e.TION DISTRICT By, R. J.
CERTIFICATE
At a regular meeting of the Board of Directors of the "ivestland Irrigation District, regularly called and attended by a quorum of the board, it was duly :,oved and seconded and carried that the President of the district, Fawley J. Bean, be authorized and instructed to sign on behalf of the said district, a contract with the
United States of America for the temporary rental of cKay reservoir water for the irrigation season of 1935.
J. 7,4, MESSNER
(corporate seal) Secretary of the Westland Irrigation District
* * * • * * * *41 • * * * * * * • -41 * • * • * * 4t * • * * *
CERTIFICATE
At a regular meeting of the Board of Directors of the STANFIELD IRRIGATION DISTR.!. T, regularly called and attended by a quorum of the board, it was duly moved and seconded and carried, that the President of the district,
R. J. Rueber
be authorized and instructed to sign, on behalf of the said district, a contract with the United States of America for the temporary rental of cKay Reservoir water for the
irrigation season of 1935.
(corporate seal)
4•111•1101.m.
F. A. BAKER
Secretary of the Stanfield Irrigation District
CERTIFICATE
At a regular meeting of the Board of Directors of the Westland Irrigation District, regularly called
and attended by a quorum of the board, it was duly
:roved and seconded and carried that the President of
the district, Bawled J. Bean, be authorized and instructed to sign on behalf of the said district, a contract
with the United States of America for the temporary rental
of McKay reservoir water for the irrigation season
of 1935.
J. .
(corporate seal) Secretary of the Westland
Irrigation District
* * * * * * * *
* * * * * * * * * * * * * *
CSRTIFICATE
At a regular meeting of the Board of Directors
of the STANFIELD IRRIGATION DISTRI T, regularly
called and attended by a quorum of the board, it was duly moved and
seconded and carried, that the Prsident of the district,
R. J. Rueber
be authorized and instructed to sign, on behalf of the said district, a contract with the United States
of America for the temporary rental of cKay Reservoir water
for the irrigation season of 1935.
(corporate seal)
F. A. BAKER
Secretary of the Stanfield Irrigation District
Symbol hr 1358
UNITED STATES
DE2YRTI7NT OF THE INTERIOR BUREAU OF RECLAMATION
NnETON PRJECT
CONTRACT WITH NFNTON WATER USERS, AqoCIATION
THIS CCNTRACT Made this 2v -th day of August , 1941, pursuant to the Act of August 11, 1939 (53 Stat. 1418), and acts amendatory thereof and supplementary thereto, herein collectively referred to as the "Act," and specifically the Act of October 14, LAO (54 Stat. 1119), herein referred to as the "Amendatory Act," between
the UNITED STATES OF AMERIGA, herein styled the United States, acting by and through the Secrttary of the Interior, herein styled the
Secretary, and the Tu WT.R USERS' ASOCIATION, osrtin styled the Association, a corporation organized and existing under and by virtue of the Laws of the State of Utah;
WITUF.SSETH,
2. WHEREAS, the Association has be n organized for the purpose, among others, of owning, operating and maintaining an irrigation system for the irrigation of lands in the vicinity of No ton, Cache County, Utah; and
5. WHEREAS, the Association desired the United States to
construct a certain water conservation and utilization project herein,-after described, in order to increase the supply of water available for the use of the Association and its stockholders; and
4. WHEREAS, pursuant to the Act and Amendatory Act, the President of the United States has approved of the construction of said water
conservation and utilization project at a total estimated cost of 1395,000; and
5. WHEREAS, the amount of the reimbursable conztruction costs of said water conservation and utilization project has been fixed, pursuant to the provisions of the Amendatory Act, at :350,000;
6. NOW, TH7RYFCRE, in consideration of the mutual covenants hereinafter stated, it is hereby agreed by and between the United States and the Association as follows:
DESCRIPTION OF PROJFCT VVORKS
7. The water conservation and utilization project to be constructed by the United States consists, without limitations by retson of this enumeration, of a storuge reservoir with an active capacity of approximately 5,200 acre-feet, the site of the dam for which is in Section 5, Township 15, North, Range I West, Salt Lake Base and Meridian, Cache County, Utah, a canal or conduit exten,ing in a south and westerly direction from said dam, of approximately 16 second-feet capacity, and approximately 4,000 feet long, and works incidental thereto, all of which, together with lands aria rights of way therefor, are roferred to hereinafter us the "Project Works."
EXPF.DITURES FOR CONSTRUCTION OP PROPCT
Subject to the performance of the conditions precedent hereinafter enumerated, the United States will commence construction
of the Project Works: Provided, That, to the extent the operations of this contract extend beyond the Fiscal Year in which this contract is exectIted, the oblizations of the United States under this contract after the expiration of such Fiscal Year are contingent on Congress making the necessary aipropriat;.ons for the fulfilment of such obliations: Provided further, That the United States shall not be obligated to expend toward the construction of the Project 7;orks in any cne Fiscal Year, out of funds appropriated by the Congress iursuant to the Act and the Amendatory Act, an amount exceeding the sum determined by the Secretary as the limit of exi,enditures from said funus for said Project norKs in such Fiscud Year.
DI:TRICT TO ACQUIRT. AND CONVEY CERTAIN PROPERTIES -COL-DITIONS PRIC:jINT
TO THE CO1UENCEVENT OF CAS RUCTICIii
9. (a) The Association shall acquire, transfer and convey or cause to bc transferred and conveyed to the United States, in manner and form satisfactory to the Secretary, and to the extent that tho Secretary may determine the same to be necessary or useful in connection with the construction, operation and maintenance of the Project Works:
)
So much of the stock of the Newton Irrigation Company, a corporation heretofore organized under the laws of the ;tate of Utah, as, in the det.rmiaasion ofthe Secrotary, it zay be practicable for the Association so to ac,uire and transfer or cause to be transferred to the United States as afore-said, but in no event less than 96 iercent ther_of; and
(ii) All of the right, title and interest of the Newton Irrigation Company in and to all of the property in the State of Utah, exclusive of canals and ditches, including, without limitation by reason of this enumeration, lands, interest in lands,
premises, easements, water rights, water filings, water appropriations, rights of way, dams, re ervoirs and reservoir rights owned, used, occupied, enjoyed or beneficially held, as of October 17, 1940, or thereafter acquired by the said Newton Irrigation Comrany or by its stockholders incident to the ownership of stock in the said Newton Irrigation Company or by the successors in interest of said Company and said stockholders;
(b) The United States shall be under no obligation to
comrence, or having commenced to continue to prosecute the construc-tion of the Project Works until, to the satisfacconstruc-tion of the Secretary:
(1) Rights of way and other interests in land deemed by the Secretary to bo necessary for the construction and operation of the major features of the Project Works have been secured, with titles and at prices satisfactory to the Secretary; and
(2) The Secretary has found (i) that water rights adequate for the purposes of the Project have been acquired wit ri titles and at prices satisfactory to him, or have been initiated and can be 1.., rfected in conformity with State law and any applicable inter-state agreements and in a manner satisfactory to the Secretary; and (ii) that such water rights can be utilized for the purposes of the Project in conformity with State law and any applicable interstate agreements and in a manner satisfactory to him;
(3)
Sufficient progres2, in the opinion of thc3eorotary, h-s been made by the Association toward compliance by the Association with the provisions of. subdivision (a) of t) is Article to justify com-cncing or continuing such construction.
TTRI:S OF PAYMENT
10. The Association shall pay to the United States the gum of $350,000, which has been fixed as the amount of the reimbursable
construction costs of the Project Works, in forty successive, equal, annual instalments of t8,750 each, the first of which shall become due and payable on December 31 of the year next following the last year of the development period fixed in Article 11 hereof: Provided, That, if construction of the Project Works is abanconed prior to the completion of such Works by reason of lack of funds, failure of the Association to perform those things on its part to lot, performed under the terms of this Contract, or for any reason which, in the judgment of the Secretary, require that construction of the iroject Works be abandoned, then the Association shall pay to the Yjnited States the reimbursable portion of the amount expended by the United States in the partial construction of the Project 7ork3 in forty equal annual instalments, the first of which shall become due and payable on December 31 of the year following the year in which construction of the Project Works is abandoned: Provided further, That in such case, the reimbursable portien of the amount so expended by the United States from whatever source sail not exceed sixty (60) percent of the amount so expended, exclusive of the administrative expenses
incurred in the District of Columbia in connection with the investigation or construction of the Project Works.
DFITELONT ,TPIOD
11. There is hereby established a development period of two calendar years, herein called the "Development Period," commencing
with the calendar year next succeeding that in which the Secretary gives to the Association the development period notice, ue provided herein. When, in the determination of the Secretary, water will be available in the newt ensuine calendar year for r3lease from the Project ITorks for delivery by the Association to the lands to be served with w ter from the I-reject 71orks, the Secretary will give to the Association a notice thereof, herir called the "Development Period Notice." During the Development FAriod, the United 'tates will release water from the Project Works for delivery by the
Assoeiation to lands to b served with water from the iroject 4orks upon payment in advance, a:, h rein provided, of such per acre foot or other charge or charges, herein culled the "Development Period Charges," es the same may be fixed by the ecretary (a) for the first year of the Development etriod; in suid Development Period Notice, and (b) for the second year of said Development Period: in. a notice to be given to the Association by the C‘ecretary within one year from the data of the said Development Period Notice. The Development Period Charges shall include, as a minimum, an amount sufficient to return to the United States the cost of operating and maintaining the Project Works during said Development Period, and the Association agrees to pay in advance, on or before December 31 of eace year of the Development Period, said Development Period Cherces in acLordance with the stutement cf the amount thereof as in this Article provided.
In case the amyunt collected on account of the Deviopment Period Charges exceeds, in the determinatien of the Secretary, the cost of operati,n and maintenance of the Project Works during the Developnent Period such excess will be credited as a p yment on account of the first instalment of the reinbursable construction costs becoming due from the Association as provided in Article 10
OPERATION AND MAINTENANCE
12. The United States will retain possession of and operate and maintain the 7Teject Works as long as is deemed necessary by the Secretary and the Association hereby agrees to pay annually in advance in the manner herein provided the cost of such operation and maintenance, 48 determined by the Secretary.
Beginning with the calendar year immediately following
the Development Period provided for in irticle 11 hereof, and each calendar year thereafter during the time the Project Aorks or any part thereof are being operated by the United States, the Association will pay, in advance, operation and maintenance costs of the Project Works being operated by the United States. Payments shall be made
on the basis of annual estimates made by the Secretary, statements of such estimates being herein styled the "Operation and Maintenance Charge Sotice." Such statements shall be furnished to the Association on or before ilgust 1 of the last year of the Development Period and
of each calendar year thereafter. The A.;sociatien hereby agrees to pay the amount specified in the Operation and Maintenance Charge Notice on or before December 15 of the year in which the same is given to the Association. ahenever, in the opinion of the Secrotary, funas so advanced will be inaaequate properly to oierute and maintain the Project eorks to the end of any calendar year, he may givo a supple-mental 6peretion and Luintenunce Charge Notice, stating therein the amount of the actAitiJnal advances re,uired, and the association shall aavance the amount thereof on or before the date specified in such supplemental notice. If funds advanced by the fitisociation under this Article exceed the actual cost of operation and maintenance for the calendar year for which advanced, the excess will be credited as a payment on account of the amount becoming due pursuant to the
Operation and Maintenance Charge Notice given for the calendar year immediately succeeding that in which the amount of such excess has been determined.
In the event the Operation and Maintenance Charges or
Development Period Charges provided for in this contract are not paid when due, the United States may, at its election, suspend operations in whole or in part by refusing to release water from the Project Works or Ly reducing the amount of water to be released therefrom, as determined by the Secretary.
COMPUTATION OF COSTS
13. The costs, which shall be the basis of determining the charges to be paid y the Association to the United states, as
provided in Articles 11 and 12 hereof, shall embrace all expenditures of whatsoever kind, other than those for constructing the i-roject Works, made by the United States from and after the cour_encement of
the Development Period provided for in Article 11 hereof, including the cost of labor, material and equipment, engineer..ng and legal work, superiatendence, aainistration, overhead, general expense and special services, rights of way, land appraisal, property and damage of all kinds; inspection of the Project Works, inei)ection of the books, records and pa -ors of the Aseociatieu, so far as the same lily be determined by the secretary to be necessary to ascertain whether the terms of this contract are being faithfully executed by the Association; surveys and investigations in connection with the irrigation of project lands, and soil investgations, if any; but shall in no event, include administrative expenses incurred by the tnited States in the District of Columbia in cennection with any investigation of or for operation and maintenance of the Project Works. The Secretary's deterndnation of what costs are properly chargeable under this Article, and of the amount thereof, shall be conclusive.
TO USE ALL MYERS TO COLLFCT CFARGES
necessary assessments, including assessments to make up for deficiencies Arising from the defaults of those who de not pay assessmentb levied by the Association to meet the Association's obligation to the United States hereunder, and shall use all the powers and resources of the Association, including the power of the Association to levy and collect assessments and/or calls against its shares of stock and to sell and dispose of stock against which there exist delinquent chlls or assess-ments, anu the power to withhold delivery of water, to collect and pay to the United states ell charges or sums provided in tL:is contract in full on or befcre the day the SILM6 become due. The uebta aue the
United States hereunder are prior to all other obligations of the Association, and, from any moneys coming into the possession of the Association and applicable to the peyment of its obligations, the United States shall be paid prior to all other claimants whomsoever.
WATER TO BE WITHHELD ON ACCOUNT OF DFLINQUENT PAYMENTS 15. No water shall be released from the Project Works while the Association is in arrears in the advance payment of Operation end Maintenance Charges or Development Period Charges or more than twelve months in arrears in the payment of any instalment of the Reimbursable Construction Costs; nor stall any water be delivered to or for any land or party while said land or 'Arty is in arrears in the advance layment of Operation and laintenance Charges or Development
Period Charges or of assessments or calls made on stock of the Association to pay suoh charges, or in arrears for more than twelve months in the payment of any assessment or charge made by the Association to meet instalments of the Reimbursable Construction Costa aue to the United States, or not entitled to receive water
under the provisions of this contract.
The provisions of this Article are not exclusive and
shall not in any manner hinder the United States from exercising any other remedy to enforce collection of any amount due hereumier.
RIGHTS OF WAY
16. The Association shall negotiate for the purchase of all rights of way, using in connection therewith such forms of contracts, deeas and other necessary papers as may be reeuired by the United States, and purchases shall be only at proces that are satisfectory to the Secretary. Title shall be taken in the mire of the United States, and, on procuring execution of the necessary contracts, deeds and other papers, they snail be transmitted by the Association to the United States 1; whom payment will be made, after title has
been found satisfactory in the opinion of the Secretary.
Where rights of way can not be purchased by agreement, the Association will, unless otherwise directed by the secretary, procure them by condemnation. Immediately after title is vested in the
will convey titles so acquired to the United States and will be paid therefor such an amount up to the amount of the award as the Secretary shall determine as being satisfactory to him.
Expenser incurred by the Association in connection with
the acquisition above provided for shall, to the extent approved by the Secretary, be i.aid to the Association by the United States and
eeall constitute a pert of the costs of constructing the Project works.
-V7 63., ANT: T3FAFIIT OF R7S;TRVOIR
17. So long as the Association pays without default all amounts becoming ,-iue eo the United 3tates as herein provided and complied with
the terms and conditions of this contract, and, ssbject to the provi-sions of Article 18 hereof, the United States will allow the Association the use and benefit for irrigation purposes of the water supply available through and by means of the Project i:orks, delivered at the turnouts of the reservoir, the said water to be conveyed through the canals of the Association without cost or expense to the United States: Provided, however, That, with the approvel of the Secretary, the Pden and Taldlife Service may establish an meiresein bird reeerves or wildlife refuges on the land acquired for the Newton Dam and Reservoir and may make whatever regulations in connection therewith, governing the use of such reserves or refuges not inconsistent with the rights of the Association under this contract, and that the United States retains the right to use or permit the use of said Works for any other purpose not inconsistent with any
rights of the Association under the provisions of this contract. The water level in the Newton Reservoir shall not be drawn dawn below a content of fifty acre feet without the consent of the Secretary. Title to the Project Works shall be and remain in the United States until otherwise provided by the Congress.
CATROL OF WAnR BY ASSOCIATIA1
18. Upon release of water from the Project Works pursuant to this contract, the Association shall be responsible, without cost to the Unit3d States, for the carriage, distribution and delivery to the lands entitled to receive the same of the water so rvleased and shall and hereby does assume full responsibility for the control and Pandling of said water so released and for any damage for which there is legal liability, including damage, without excluding damage of the same or of a different class, arising from personal injury or ueatn that may result therefrom or in connection therewith, and shall save the United States harmless on account of any such damage.
UNITED STATES NOT LIABLE FOR NAT R S'LORTAGE
12. On account of drouth, inaccuracy in distribution, or other causes, it is expected that there will occur at times a shortage in the quantity of water which will be made available through and by means of Project Works. In no event sLall any liability accrue
against the United States, or any of its officers, agents or employees for any damage, direct or indirect, arising from such anortage, an the
payments to the United F.tates provided for herein shall not be reducted because of any such shortage or cU,mage.
WkSTE WATER, SEEPAGE WATrR AND R.7.TURN FLOW
20. The United States does not ab.,adon or relinquish any of the waste or seepage water or return flow watercomin; from the lands irritated with water supplied from the seid Project Works, but the same in reserved and intended to be retained for the use and benefit of the lands entitled to receive water from, through or by means of the Project -iorks.
SUBSTITUTION OF RF.:TURN FLOI FOR STORAG: WATT1R
21. If draina6e or return flow water from any of the lands receiving water from, through or by means of the Project Works shall later become available at points where the s me c,n be used on other portions of the project lands and if, (as conclusively determined by the Secr.tary in case of dispute) SUCh water is of 600d quality for irrigation, the United States and the Association, or either of them, may substitute, in lieu of stored water from the :reject Works, an equal. amount of such drainage or return floe, eater: Provided, That such water can be delivered by the Association into the ditches su elying the said ltenLis at iioints where the same can be used thereon and is available at the times that water is needed. The landowners who accept the benefits of this contract hereby consent to such substitution.
DRAINAGE
22. If any drainage should be reciuired in connection with the irrigation of lands from, through, or by means of the Project Works, the necessary drainage works are to be provided either by the
United States; and the United states, its agents, servants, and employees, shall be in no way responsible for such drainage or for any damage or claim of damaee for 3e page, whether resulting from the
use of the stored waters of said reservoir or otherwise: Provided, That no drainage works shall be constructed without the prior aeiroval of alt: Secretar or his duly authorized representative.
LIMIT CP IRRIC6BU LANDS IN SL4GLE OhRSiIP 23. Pursuant to the provisions of the emendatory Act the Secrttary has established the site of a falet unit of irrieeble lend which may be entitled to receive water from the i'roject eors at not
to exceed one hundred sixty (100) irrigable acres. No water shall be delivered tvIrouth and by means cf the Project Works eo or for more than the said ferm unit area of irrigable lands in the project owned by a single landowner; Provided, That the trovisions of this 4,rticle and of Article 24, hereof shall not al:ply to the United States or any ageticy or instrumentality thereof.
DITqFOSAL OF
un
AT NOT MOW MAN APIRAISED VaLUF24. No water shall be delivered from, through, or by means of the Project Works to or for any land (through such land would otherwise be entitled thereto) tr nsferred or disposed of on or subse tient to
October 17, 194C, and within three year.) from the date upon which water becomes available for release from the Projeot Works, unless and until it has been shown to the satisfaction of the secretary or his duly
authorized representative that such land has been, disposed of at a price not exceeding the ap,raised value thereof and of the improvemeats thereon as of October 17, 1940, together with the appraised velue of any
improve-transfer or disposal, all as det rmined by the Secretary or his duly authorized representative. Upon proof of fraudulent representation as to the true consideration involved in any such transfer or disposition during the period commencing on October 17, 1. 110 and ending within three years from the date upon which water becomes available for release
from the Project Works, the Secretary may cancel the water right attacling to or used upon the land involved. Nothing her-2in shall be construed
to create authority to interfere with the delivery of water under prior rights.
PENALTY FOR DFLINQUENCY
25. Delinquencies in any payments due to the United 5tates under this centract wilA be penalized by a penalty of not less tan one-half of one percent per month.
CROP REPORTS, ACCOUNTING AND OTHvR LTASURFS
26. The Association shall take such measures as it may be advised by the Secretary are deemed proper to secure the adoption of proper accounting, to protect the condition of the Project Works, and to provide for the proper use thereof, and to protect lands to be irrigated against deterioration due to improper use of water.
The Association shall install and maintain in a manner satis-factory to the Secretary a modern set of books of account showing all financial transactions of the Association, and shall furnish such financial reports and statements as may be required from time to time by the Secretary.
The Association ;nail keep u reasonably accurate record of all crops raised and agricultural or livestock products produced on
Lends
under
the irrigation system of the Association and shalllfurnish the Secretary on or before December 31 of each year a crop report, including the aforesaid data, in form prescribed by the Secretary.RULES AND R'7GULATIONS
27. The Secretary reserves the right, so far as the purport thereof may be co sistent with the provisions of this contract, to make reasonable rules and regulations and to add to or to modify them as he may deem proper and necessary to carry out the true intent end meaning of the Act, the Amendatory Act, and tLis centract.
CR TARY ARBITER OF DISPUTES INVOLVING ',UESTI:e4L OF FACT
28. In the event of disputes between the parties hereto arising out of this contract involving questions of fact, and, in so far as the provisions hereof require a determination of fat to be made, the Secretary is hereby designated as the arbiter of such questions and as the one required to make such determination of facts and his
decision thereon shall be conclusive and binding upon the parties hereto. ASSURANCES OF VALIDITY OF CONTRACT TO BE FURNISHED
B r AFSOCatION
29. The Association agrees that promptly there shall be brought and prosecuted with diligence such actions or proceedings satisfactory to the Secretary as will result in findings of the legality and
validity of this contract and of the articles of incorporation of the Association. If any action or proceeding is not promptly filed, as required by this Article, or having been filed, shall not be
may terminate this contract, or, in his discretion, may discontinue expenditures hereunder toward the construction of the Project Works, and may call upon the Associatien to make payment to the United States of any expenditures therotoforo made toward the construction
of the Project Works, as provided in Article 10 hereof. If the Court in any such action or proceedings should find this contract not binding
because of the failure of the ASSOCiuti'n or its officers or
stookholders to take any steps reeuired by the laws of Utah or of the United States or if the Associati ,n or its officers or stockholders should fail, within a reasonable time as determined by the :;ecretary, to cure such defective precedure, the Secretary may, in his discretion,
discontinue expenditures toward the construction of the Project Works and take any available mensures to recover the expenditures of the said funds theretofore made, es provided in Article 10 hereof. If the Court in any action or proceeding should find the articles of.
incorporation of the Assooiation or any material c art of said articles invalid or defective, and the Association is unable to remedy such i11e6ality, or does not remedy such illegality within a reasonable tins, as determined by the Secretary, the Secretary may discontinue the expenditure of funds in the construction of the Project Works and take any availeble meesures to recover the expenditures theretofore made, es provided in Article 10 hereof;
The Association shall furnish the United States with certified copies of (a) the Articles of Incorporation of the Association; (b) the proceedings in confirmation of the organization of the Association
and its Articles of Incorporation, including the decree entered in said confirmation proceedings; and (c) the proceedings in
confirmation of this contract, including the decree entered in said confirmation proceedings;
The Association shall bring to the attention of the
Legislatur, of the State of Utah at its next sea ion, the need for any au.endatory legislathn which the Association may be advised is, in the opinion of the Secretary, necessary in order fully to empower the Association to enter into and carry out the provisions of this contract;
Ihe United ..tates shall b. under no obligation to initiate or thereafter prosecute the construction of the Project Works so long as the provisions of this Article have not beLn compiled with 1) the Association or in the event of the failum or enactment of said anendatory State legislation.
OFFICIALS NOT TO BPNFFIT
30. No Member of or Delegate to Congress or Resident
Commissioner shall be admitted to any share or part of this contract or to any benefit that may arise herefrom, but this restriction shall not be construed to extend to this contract if made with a corporation or company for its general benefit.
SUCCESSORS AND ASSIGNS OBLIGATED
51. The provisions of this agreement shall apply to and bind the successors and assigns of the respectivu parties.
IN WITNES 4HT--,,REOF, the parties hereto have executed this contract as of the day and year first above written.
THE UNITED STATES OF AkERICA
(Sgd) J. J. Larsen Secretary
By (Sgd) John J. Dempsey Under Secretary of the Interior
, Dept.
NEWTON WAT'R USERS' ASSOCIATION By t4arcus Cooley (Sgd.)
Form 7-289
Form approved by Department Feb. 24, 1922 (Reprint April 1936)
UNITED STATES
DEPARTMENT OF THE INTERIOR
BUREAU OF RECLAMATION
APPLICATION FOR TEMPORARY WATER
SERVICE
(Project) (Date)
1. APPLICATION is hereby made to THE UNITED STATES OF AMERICA, herein styled United States, by the
UNDER-SIGNED, herein styled Applicant, for irrigation water under the above-named project, for the current irrigation season
and for subsequent irrigation seasons, from the
(Source of supply)
subject to the conditions named herein, for the irrigation of land not under public notice, having a total irrigable area of acres, described as follows:
2. Quantity of water.—The water furnished hereunder shall be limited to the quantity which may be used bene-ficially upon said land, or such part thereof, to be determined by the Project Superintendent, as shall constitute a
pro-portionate share per acre of the water supply actually available at any time for all of the area being at that time watered
from said source of supply.
3. Shortage of water.—On account of drought, inaccuracy in distribution, or other cause, there may occur at times
a shortage in the quantity of water provided for herein, and while the United States will use all reasonable means to guard against such shortages, in no event shall any liability accrue against the United States, its officers, agents or
employees, for any damage, direct or indirect, arising therefrom.
4. Delivery and use of water.—No water will be delivered to an Applicant who is owing the United States a water
charge of a prior season. The United States shall have full control over all ditches, gates, and other structures required
to deliver water hereunder. When water is desired, the Applicant shall give to the United States reasonable notice of
amount wanted and date when needed, and the United States reserves the right to deliver all water under similar
appli-cations in the order in which requests are received, or follow an approved plan of rotation. The water shall be delivered
by the United States to the Applicant at said source of supply or some lateral thereof, and shall there be received by Applicant and conveyed at Applicant's expense to said land. If a measuring device is not installed at the point of delivery to the Applicant the amount of water delivered shall be determined by the Project Superintendent. The water so delivered shall be used exclusively upon said land and shall not be permitted to collect or run upon other land or be
wasted in any manner.
5. Water supply to be temporary only.—The furnishing of water hereunder shall not be construed as binding the United States to furnish water to said land or any part thereof after the termination of this application, nor shall it under
any circumstances become the basis of a permanent water right.
6. Waste and seepage water.—The United States reserves the right to collect for use on said project all waste and seepage water coming from the land above described. The Applicant releases the United States, its officers, agents, and
employees from every claim for damage, direct or indirect, arising by reason of the presence of waste or seepage water
on said land.
7. Payment for water service.—The Applicant shall pay the United States for water service hereunder, such amounts,
at such times, and with such penalties for delinquency, as shall be prescribed by the Secretary of the Interior for lands
of said project receiving similar temporary water service: Provided, That the annual payment under this application shall in no event be less than $5.
8. Rules and regulations.—All notices, orders, rules, and regulations now or hereafter established by the United States affecting water service hereunder shall be observed by the Applicant.
9. Termination of application.—This application shall be terminated and water service hereunder shall cease (a) at the option of the United States at any time, upon failure of Applicant to abide by any notice, order, rule, or regulation of the United States now or hereafter established affecting water service hereunder, (b) if Applicant is a tenant upon
said land automatically upon his removal therefrom, (c) automatically, when water is made available under public notice
announcing the construction charge for said land, or (d) at the option of either the United States or the Applicant, at any time between irrigation seasons by giving 30 days' written notice to that effect.
Applicant Approved
