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<br />I DEPARTMENT OF THE INTERIOR
<br />Bureau of Reclamation
<br />. [ 43 CfR Part 426 ]
<br />ACREAGE LIMITATION
<br />Reclamation Rules and Regulations
<br />AGENCY: Bureau of Reclamation, In-
<br />terior
<br />ACTION: Proposed rule
<br />SUM'MARY: The Bureau of Reclama-
<br />tion, Department of the In~rior, pro-
<br />poses to issue rules and regulatIOns estab-
<br />lishing policies and procedures to meet
<br />the Secretary's responsibilities in admin-
<br />istering the acreage limitation and other
<br />provisions of reclamation law. These
<br />proposed rules are issued in resp~nse to .
<br />the order of the United St~tes Dis~rict
<br />Court for the District of Columbia in the
<br />case of National Land for People, Inc. v.
<br />,The Bureau of Reclamation, et al., Civil
<br />Action No. 76-928. The Department be-
<br />lieves that these new regulations will en-
<br />able the Department to meet fully the
<br />mandates of reclam~tionlaw.
<br />DATES: Comment Period: November 23,
<br />1977.
<br />ADDRESS: Comments should be submit-
<br />ted to. the Commissioner, Bureau of Re-
<br />clamation, Department of the Il?-terior,
<br />18th and C Streets NW., Washmgton,
<br />D.C. 20240, Attention: Code 410.
<br />FOR FURTHER INFORMATION CON-
<br />TACT:
<br />Mr. Vernon S. Cooper, Special Projects
<br />Officer, Division of Water and Land,
<br />Bureau of Reclamation (202) 343-
<br />5104.
<br />SUPPLEMENTAL lNFORMATION: It is
<br />the policy 'of the Department ,of the
<br />Interior to afford the public an oppor-
<br />. tunity to participate In the rulemaklng
<br />process. Accordingly, interested persons
<br />may submit written comments, sugges-
<br />tions, or objections regarding the pro-
<br />posed regulations to the Bureau of Rec-
<br />lamation. Comments must be received on
<br />or before November 23, 1977. Public
<br />hearings on the proposed regulations will
<br />be scheduled as demand warrants. The
<br />Department requests that those inter-
<br />ested in pUblic hearings ~mediately no-
<br />tify in writing the Commissioner of the
<br />Bureau of Reclamation or the nearest
<br />Bureau of Reclamation office with sug-
<br />gestions for hearing places. The hearings
<br />will then be scheduled, and the public
<br />notified, in a later edition of the FEDERAL
<br />REGISTER.
<br />On August 13, 1976, the United States
<br />District Court, for the District of Colum-
<br />bia in the case of "National Land for
<br />People, Inc. v. The Bureau of Reclama-
<br />tion, et al.." Civil Action No. 76-928, or-
<br />dered . the Department of the Interior
<br />to "forthwith initiate pUblic rulemaklng
<br />proceedings . . . respecting the criteria
<br />and prOCedures to be used by the Bureau
<br />of Reclamation, Department of the In-
<br />terior, to approve 'excess lands' saleS Wl-
<br />der the Federal Reclamation Laws."
<br />These proposed rules are in response to
<br />this court order.
<br />
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<br />PROPOSED RULES
<br />
<br />The proposed regulations embody sev-
<br />eral important changes in current P!RC-
<br />tices to enforce the excess land (160 acre
<br />limitation) and other reclamation laws.
<br />They define more speciflcaIIy the proce-
<br />dures by which excess lands. should b~
<br />sold and who can qualify as purchasers,
<br />to fulfill the purpose of reclamation law
<br />that low-priced federal water be used
<br />as a means of encouraging the estab-
<br />lishment of genuine small family farms.
<br />The principal changes are as follows:
<br />(1) All new purchasers of excess land
<br />benefiting from low-priced federal water
<br />must live on or in the neighborhood of
<br />the land benefited. Becau$8 the regula-
<br />tions address only excess lands, they do
<br />not make residency a general require-
<br />ment for any land served with 10w-coE?t
<br />federal water pursuant to the reclama-
<br />tion laws. Residency is, however, believed
<br />to b~ a legally required condition of re-
<br />ceiving federally-subsidized water, and
<br />regulations spelling out how the resi-
<br />dency requirement will be reimple-
<br />mented across-the-board will be pre~
<br />pared as soon as practicable. These rnles
<br />will outline the procedure by which those
<br />landowners who now benefit from low-
<br />cost federal water, but who do not live
<br />on or in the neighborhOOd of their land,
<br />will be allowed a period of time to bring
<br />themselves into compliance while still
<br />receiving the low-cost federal water.
<br />SUch a period of adjustment is deemed
<br />appropriate because of the failure to en-
<br />force the requirement for many years.
<br />(2) The criteria for determining qu,ali-
<br />tied purchasers. of. excess land are tight-
<br />ened, to prohibit multiple ownerships
<br />(such ~ partnerships or thrusts) except
<br />where there is a family relationship
<br />among the owners.
<br />(3) The regulations discourage spec-
<br />ulation by allowing the Department to
<br />exercise continuing supervision over the
<br />sale price of land after it is sold into
<br />non-excess status. This reverses the cur-
<br />rent practice of allowing an excess land
<br />purchaser to realize the windfall profits
<br />represented by low-priced federal water
<br />in an immediate resale.
<br />I (4) The proposed regulations place
<br />some limitations on the leasing of both
<br />excess and nonexcess lands benefited by
<br />low-priced federal water, in order to
<br />promote fann operations by the actual
<br />owners.
<br />(5) The regulations alter the proce-
<br />dures by which excess lands are sold, to
<br />lB.llow a large number of prospective pur-
<br />chasers a better opportunity to partici-
<br />!pate in the reclamation program. For
<br />example. the past practice of allowing an
<br />excess .land seller to arrange privately
<br />for sale is abolished. The Department
<br />will annotulce the availability of such
<br />lands. and choose among prospective
<br />purchasers by lottery or other impartial
<br />means.
<br />In connection with these proposed reg-
<br />ulations, it should be noted that, pursu-
<br />ant to Pnb. L. 95-46, the Department has
<br />created. a Task Force to study the San
<br />Luis Unit of the Central Valley Project
<br />in California. The Task Force's report,
<br />due January 1. 1978, willlnclude among .,
<br />the other things a study of the excess
<br />
<br />land law's operation in that area, aud
<br />, may make recommendatio~. to the De-
<br />partment and to the Congress regarding
<br />. the excess land and residency portions
<br />~ of the reclamation law.
<br />The Department Intends to act
<br />promptly to promulgate final regulations
<br />once public comment has been received
<br />and digested and appropriate modiflca-
<br />tlons made. On June 27, 1977, the Sec-
<br />retary ordered a halt to the processmg of
<br />all excess land sales and the signing of
<br />new recordable contracts until final reg-
<br />ulations are promulgated, and the De-
<br />partment is also under a court order to
<br />promulgate such regulations "forth-
<br />with." Therefore, the Department in-
<br />tends to proceed as expeditiously as pos-
<br />sible once full opportnnity for public
<br />comment has been given. For this rea-
<br />son, the Department does not expect to
<br />grant any extensions beyond the already
<br />generous 90-day comment period.
<br />The primary authors of this document
<br />are: John D. Leshy, Associate Solicitor,
<br />~nergy and Resources, Washington,
<br />D.C. (202) 343-5757: John C. McDowell,
<br />Deputy Associate Solicitor, Energy and
<br />Resources, Washington, D.C. (202) 34~-
<br />4325; Nicholas P. Goschy, Attorney,
<br />Energy and ,Resources, Washington, D.C.
<br />(202) 343-4444; Vernon S. Cooper,Spe-
<br />cial Projects Officer, Division of Water
<br />and Land, Washington, D.C. (202) 343-
<br />5104; and Michael S. Hacskaylo; Realty
<br />Specialist (Excess Land), Division of
<br />Water arid Land, Washington. D.C.
<br />(202) 343-5104.
<br />It is hereby determined that the pUb-
<br />lication of this proposed regulation will
<br />not significantly affect the qualtty of the
<br />human environment and that no envi-
<br />ronment impact statement pursuant to
<br />section 102(2) (c) of the National En-
<br />vironmental POlicy Act, 42 U.S.C. sec-
<br />tion 4332(c) is required.
<br />NotE: The 'Departme.nt of the Interior
<br />has determined that thlB document does not
<br />contain a major proposal requiring prepara-
<br />tion of an. Economic Impact Statement un-
<br />der Executive Order 11821 as v.mended by
<br />Executive Order 11949 and OMB Circular
<br />A-I07.
<br />
<br />Dated: August 22. 1977,
<br />
<br />GUY R. MARTIN.
<br />Assistant Secretary of the Interior.
<br />
<br />Pursuant to the anthorlty of the Sec-
<br />retary of the Interior contained in the
<br />Administrative Procedure Act, 60 Stat.
<br />237, 5 U.S.C. 552, 553 and In the Recla-
<br />mation Act of 1902, .as amended and
<br />supplemented, 32 Stat. 388, 43 U.S.C. 371
<br />et seq., It is hereby proposed to establish
<br />a new Part 426 of Title 43 to read as
<br />follows:
<br />
<br />PART 426-RECLAMATION RULES AND
<br />REGULATIONS fOR ACREAGE LIMITATION
<br />
<br />Sec.
<br />426.1
<br />426.2
<br />426.3
<br />426.4
<br />426.5
<br />
<br />Objectives.
<br />Effective date, appl1cab1l1ty.
<br />Au'thorlty.
<br />Definitions.
<br />Dellveries of project water to excess
<br />land under special circumstances.
<br />Lands not eligible 't9 receive project
<br />benefits.
<br />Types Qf land ownershtp.
<br />
<br />426.6
<br />426.7
<br />
<br />FEDERAL REGISTER, VOL. 42, NO. 165-THURSDAY, AUGUST 25,,1977
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