--- kind: "range" citation: "43 U.S.C. §§ 423–423g" title: "43" from: "423" to: "423g" count: 8 release: "119-102" url: "https://uscodex.org/usc/43/423..423g" --- # §423. Permanently unproductive lands; exclusion from project; disposition of water right All lands found by the classification made under the supervision of the Board of [Survey](/usc/43/31b.md?p=10) and Adjustments (House Document 201, 69th Congress, 1st Session, checked and modified as outlined in General Recommendations numbered 2 and 4, Page 60 of said document), to be permanently unproductive shall be excluded from the project and no water shall be delivered to them after the date of such exclusion unless and until they are restored to the project. Except as herein otherwise provided, the water right formerly appurtenant to such permanently unproductive lands shall be disposed of by the United States under the reclamation law: Provided, That the water users on the proj­ects shall have a preference right to the use of the water: And provided further, That any surplus water temporarily available may be furnished upon a rental basis for use on lands excluded from the project under this section, on terms and conditions to be approved by the [Secretary](/usc/43/31b.md?p=7) of the Interior. # §423a. Construction charges on permanently unproductive lands already paid; disposition The construction charges prior to May 25, 1926, paid on permanently unproductive lands excluded from the project shall be applied as a credit on charges due or to become due on any remaining irrigable land covered by the same water-right contract or land taken in exchange as provided in [section 423c of this title](/usc/43/423c.md). If the charges so paid exceed the amount of all water-right charges due and unpaid, plus the construction charges not yet due, the balance shall be paid in cash to the holder of the water-right contract covering the land so excluded or to the irrigation [district](/usc/43/316a.md?p=2) affected; which in turn shall be charged with the responsibility of making suitable adjustment with the landowners involved. Should all the irrigable lands of a water-right applicant be excluded from the project as permanently unproductive, and no exchange be made as provided in said section, the total construction charges paid before May 25, 1926, less any accrued charges on account of operation and maintenance, shall be refunded in cash, the water-right contract shall be canceled, and all liens on account of water-right charges shall be released. # §423b. Suspension of payment of construction charges against areas temporarily unproductive The payment of all construction charges against said areas temporarily unproductive shall remain suspended until the [Secretary](/usc/43/31b.md?p=7) of the Interior shall declare them to be possessed of sufficient productive power properly to be placed in a paying class, whereupon payment of construction charges against such areas shall be resumed or shall begin, as the case may be. Any payments made on such areas shall be credited to the unpaid balance of the construction charge on the productive area of each unit. Such credit shall be applied on and after April 23, 1930, which shall not be construed to require revision of accounts adjusted before April 23, 1930, under the provisions of this section as originally enacted. While said lands so classified as temporarily unproductive and the construction charges against them are suspended, water for irrigation purposes may be furnished upon payment of the usual operation and maintenance charges, or such other charges as may be fixed by the [Secretary](/usc/43/31b.md?p=7) of the Interior the advance payment of which may be required, in the discretion of the said [Secretary](/usc/43/31b.md?p=7). Should said lands temporarily classed as unproductive, or any of them, in the future be found by the [Secretary](/usc/43/31b.md?p=7) of the Interior to be permanently unproductive, the charges against them shall be charged off as a permanent loss to the reclamation [fund](/usc/43/1602.md?p=k) and they shall thereupon be treated in the same manner as other permanently unproductive lands as provided in sections [423 to 423g](/usc/43/423..423g.md) and 610 of this title except that no refund shall be made of the construction charges paid on such unproductive areas and applied as a credit on productive areas as herein authorized. # §423c. Exchange of unpatented entries; entries, farms or private lands, eliminated from project; rights not assignable; rights of lienholders; preference to ex-service men Settlers who have unpatented entries under any of the [public land](/usc/43/1748c.md?p=a-3) laws embracing lands which have been eliminated from the project, or whose entries under water rights have been so reduced that the remaining area is insufficient to support a family, shall be entitled to exchange their entries for other [public lands](/usc/43/155.md?p=1) within the same project or any other existing Federal reclamation project, with credit under the homestead laws for residence, improvement, and cultivation made or performed by them upon their original entries and with credit upon the new entry for any construction charges paid upon or in connection with the original entry: Provided, That when satisfactory final proof has been made on the original entry it shall not be necessary to submit final proof upon the lieu entry. Any entryman whose entry or farm unit is reduced by the elimination of permanently unproductive land shall be entitled to enter an equal amount of available [public land](/usc/43/1748c.md?p=a-3) on the same project contiguous to or in the vicinity of the farm unit reduced by elimination, with all credits in this section hereinbefore specified in lieu of the lands eliminated. Owners of private lands so eliminated from the project may, subject to the approval of the [Secretary](/usc/43/31b.md?p=7) of the Interior, and free from all encumbrances, relinquish and convey to the United States lands so owned and held by them, not exceeding an area of one hundred and sixty acres, and select an equal area of vacant [public land](/usc/43/1748c.md?p=a-3) within the irrigable area of the same or any other Federal reclamation project, with credit upon the construction costs of the lands selected to the extent and in the amount paid upon or in connection with their relinquished lands, and the [Secretary](/usc/43/31b.md?p=7) of the Interior is authorized to revise and consolidate farm units, so far as this may be made necessary or advisable, with a view to carrying out the provisions of this section: Provided further, That the rights extended under this section shall not be assignable: And provided further, That in administering the provisions of this section and [section 423a of this title](/usc/43/423a.md), the [Secretary](/usc/43/31b.md?p=7) of the Interior shall take into consideration the rights and interests of lien holders, as to him may seem just and equitable: Provided further, That where two entrymen apply for the same farm unit under the exchange provisions of this section, only one whom[^1] is an ex-service man, as defined by [section 438](/usc/43/438.md)[^2] of this title, the ex-service man shall have a preference in making such exchange. # §423d. Amendment of existing water right contracts by Secretary of the Interior The [Secretary](/usc/43/31b.md?p=7) of the Interior is authorized, in his discretion, to amend any existing water-right contract to the extent necessary to carry out the provisions of sections [423 to 423g](/usc/43/423..423g.md) and 610 of this title, upon request of the holder of such contract. The [Secretary](/usc/43/31b.md?p=7) of the Interior, as a condition precedent to the amendment of any existing water-right contract, shall require the execution of a contract by a water-users’ [association](/usc/43/31b.md?p=2) or irrigation [district](/usc/43/316a.md?p=2) whereby such [association](/usc/43/31b.md?p=2) or irrigation [district](/usc/43/316a.md?p=2) shall be required to pay to the United States, without regard to default in the payment of charges against any individual farm unit or tract of irrigable land, the entire charges against all productive lands remaining in the project after the permanently unproductive lands shall have been eliminated and the charges against temporarily unproductive areas shall have been suspended in the manner and to the extent authorized and directed by sections [423 to 423g](/usc/43/423..423g.md) and 610 of this title. The [Secretary](/usc/43/31b.md?p=7) is authorized, in his discretion, upon request of individual water users or [districts](/usc/43/316a.md?p=2), and upon performance of the condition precedent above set forth, to amend any existing water-right contract to provide for increase in the time for payment of construction charges, which have not been accrued, to the extent that may be necessary under the conditions in each case, subject to the limitation that there shall be allowed for repayment not more than forty years from the date the first payment matured under the original contract, and also to extend the time for payment of operation and maintenance or water-rental charges due and unpaid for such period as in his judgment may be necessary not exceeding five years, the charges so extended to bear interest payable annually at the rate of 6 per centum per annum until paid, and to contract for the payment of the construction charges then due and unpaid within such term of years as the [Secretary](/usc/43/31b.md?p=7) may find to be necessary, with interest payable annually at the rate of 6 per centum per annum until paid. The [Secretary](/usc/43/31b.md?p=7) of the Interior is authorized to complete and execute the supplemental contract, being negotiated on May 25, 1926, and which had, on that date, been approved as to form by the [Secretary](/usc/43/31b.md?p=7), between the United States and the Belle Fourche Irrigation [District](/usc/43/316a.md?p=2) and at the expiration of said supplemental contract to enter into a permanent contract on behalf of the United States with said [District](/usc/43/316a.md?p=2) in accordance with the terms of said supplemental contract. # §423e. Completion of new projects or new division; execution of contract with district as condition precedent to delivery of water; contents of contract; cooperation of States with United States; limitations on sale of land No water shall be delivered upon the completion of any new project or new division of a project until a contract or contracts in form approved by the [Secretary](/usc/43/31b.md?p=7) of the Interior shall have been made with an irrigation [district](/usc/43/316a.md?p=2) or irrigation [districts](/usc/43/316a.md?p=2) organized under [State](/usc/43/31b.md?p=8) law providing for payment by the [district](/usc/43/316a.md?p=2) or [districts](/usc/43/316a.md?p=2) of the cost of constructing, operating, and maintaining the works during the time they are in control of the United States, such cost of constructing to be repaid within such terms of years as the [Secretary](/usc/43/31b.md?p=7) may find to be necessary, in any event not more than forty years from the date of public notice hereinafter referred to, and the execution of said contract or contracts shall have been confirmed by a decree of a court of competent jurisdiction. Prior to or in connection with the settlement and development of each of these projects, the [Secretary](/usc/43/31b.md?p=7) of the Interior is authorized in his discretion to enter into agreement with the proper authorities of the [State](/usc/43/31b.md?p=8) or [States](/usc/43/31b.md?p=8) wherein said projects or divisions are located whereby such [State](/usc/43/31b.md?p=8) or [States](/usc/43/31b.md?p=8) shall cooperate with the United States in promoting the settlement of the projects or divisions after completion and in the securing and selecting of settlers. Such contract or contracts with irrigation [districts](/usc/43/316a.md?p=2) hereinbefore referred to shall further provide that all irrigable land held in private ownership by any one owner in excess of one hundred and sixty irrigable acres shall be appraised in a manner to be prescribed by the [Secretary](/usc/43/31b.md?p=7) of the Interior and the sale prices thereof fixed by the [Secretary](/usc/43/31b.md?p=7) on the basis of its actual bona fide value at the date of appraisal without reference to the proposed construction of the irrigation works; and that no such excess lands so held shall receive water from any project or division if the owners thereof shall refuse to execute valid recordable contracts for the sale of such lands under terms and conditions satisfactory to the [Secretary](/usc/43/31b.md?p=7) of the Interior and at prices not to exceed those fixed by the [Secretary](/usc/43/31b.md?p=7) of the Interior; and that until one-half the construction charges against said lands shall have been fully paid no sale of any such lands shall carry the right to receive water unless and until the purchase price involved in such sale is approved by the [Secretary](/usc/43/31b.md?p=7) of the Interior and that upon proof of fraudulent representation as to the true consideration involved in such sales the [Secretary](/usc/43/31b.md?p=7) of the Interior is authorized to cancel the water right attaching to the land involved in such fraudulent sales: Provided, however, That if excess land is acquired by foreclosure or other process of law, by conveyance in satisfaction of mortgages, by inheritance, or by devise, water therefor may be furnished temporarily for a period not exceeding five years from the effective date of such acquisition, delivery of water thereafter ceasing until the transfer thereof to a landowner duly qualified to secure water therefor: Provided further, That the operation and maintenance charges on account of lands in said projects and divisions shall be paid annually in advance not later than March 1. It shall be the duty of the [Secretary](/usc/43/31b.md?p=7) of the Interior to give public notice when water is actually available, and the operation and maintenance charges payable to the United States for the first year after such public notice shall be transferred to and paid as a part of the construction payment. # §423f. Purpose of sections 423 to 423g and 610 The purpose of sections [423 to 423g](/usc/43/423..423g.md) and 610 of this title is the rehabilitation of the several reclamation projects and the insuring of their future success by placing them upon a sound operative and business basis, and the [Secretary](/usc/43/31b.md?p=7) of the Interior is directed to administer said sections to those ends. # §423g. Adjustment of water right charges as final adjudication on projects and divisions named The adjustments under [sections 1 to 40](/usc/43/1..40.md), inclusive, of the Act of Congress of May 25, 1926, 44 Statutes 636, are declared to be an incident of the operation of the “reclamation law,” a final adjudication on the projects and divisions named in such sections under the authority contained in [section 466 of this title](/usc/43/466.md), and shall not after May 25, 1926, be construed to be the basis of reimbursement to the “reclamation [fund](/usc/43/1602.md?p=k)” from the general [fund](/usc/43/1602.md?p=k) of the Treasury or by the diversion to the “reclamation [fund](/usc/43/1602.md?p=k)” of revenue of the United States not on May 25, 1926, required by law to be credited to such “reclamation [fund](/usc/43/1602.md?p=k).”