---
kind: "section"
citation: "7 C.F.R. § 636.12"
title: "7"
number: "636.12"
heading: "Termination of cost-share agreements."
url: "https://uscodex.org/cfr/7/636.12"
---

# §636.12. Termination of cost-share agreements.

- (a) The State Conservationist may, independently or by mutual agreement with the parties to the cost-share agreement, terminate the cost-share agreement where:
  - (1) The parties to the cost-share agreement are unable to comply with the terms of the cost-share agreement as the result of conditions beyond their control;
  - (2) Termination of the cost-share agreement would, as determined by the State Conservationist, be in the public interest; or
  - (3) A participant fails to correct a violation of a cost-share agreement within the period provided by NRCS in accordance with [§ 636.13](/cfr/7/636.13.md).
- (b) If NRCS terminates a cost-share agreement, in accordance with the provisions of paragraphs [(a)(1)](#a-1) and [(a)(2)](#a-2) of this section the State Conservationist may allow the participant to retain a portion of any payments received appropriate to the effort the participant has made to comply with the contract.
  - (1) NRCS may require a participant to provide only a partial refund of the payments received if a previously implemented conservation activity can function independently, and is not adversely affected by the violation or the absence of other conservation activities that would have been implemented under the cost-share agreement; and
  - (2) The State Conservationist will have the option to waive all or part of the liquidated damages assessed, depending upon the circumstances of the case.
- (c) When making termination decisions, NRCS may reduce the amount of money owed by the participant by a proportion that reflects:
  - (1) The good faith effort of the participant to comply with the cost-share agreement; or
  - (2) **The existence of hardships beyond the participant's control that have prevented compliance.** If a participant claims hardship, that claim must be documented and cannot have existed when the applicant applied for participation in the program.

## Notes

### Authority

Authority: 16 U.S.C. 3839bb-1.

### Source

Source: 75 FR 71338, Nov. 23, 2010, unless otherwise noted.