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<br />48048
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<br />o () 177 5
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<br />the contracting officer, redeslllrlate other
<br />lands as nonexcess: Provided~ .That: A
<br />like acreage becomes excess under the
<br />same terms and conditions as if such
<br />land had been excess at the time of the
<br />original designation and either (1) the
<br />land was acquired from nonexcess status
<br />or (ii) the land was acquired from excess
<br />status in an approved sale.
<br />(b) Period for which price approval is
<br />required faT nonexcess land acquired
<br />from excess status.-Nonexcess land
<br />acquired from excess status for an ap-
<br />proved priCe must be sold at a price ap-
<br />proved by the Secretary as not reflecting
<br />project benefits if resold within 10 years
<br />from the date of acquisition into nOll-
<br />excess status to retain its eligibility to
<br />receive project water. For a period after
<br />10 years and until one-half of _ the total
<br />conStruction costs allocated to irrigation
<br />have been paid in regularly scheduled
<br />installments on the total construction
<br />obligation in which the lands are situR
<br />ateel, the Secretary shaD: monitor any
<br />resale to prevent unreasonable profit
<br />from accruing to the seller.
<br />
<br />f:i 426.10 Disposition of excess lands.
<br />
<br />(a) Excess lands must be disposed of
<br />to an eligible nonexcess owner, at a price
<br />approved by the Sooretary, based on thei~
<br />bon.afide value at date of appraisal with-
<br />out reference to the enhancement atR
<br />tributable to. the construction of project
<br />works, to become eligible to receive proj-
<br />ect water in the hands of the purchaser.
<br />(1) Price approval for all exceSs lands
<br />Will be required until oneRhalf of the
<br />total construction costs allocated to irri_ -
<br />gation have been paid in regulariy sched-
<br />LQed installments on the_ total construc-
<br />tion obligation of the project in which
<br />the lands are situated. (2) Price approval
<br />will be required for all land under re-
<br />cordable contract, regardless of the
<br />status of payment of construction
<br />charges.
<br />
<br />(b). The excess landowner shall, no
<br />later than one year before power of at-
<br />torney vests in the Secretary, divide his
<br />land under recordable contract into par-
<br />cels of no more than 160 acres. If he or
<br />she fails to do so, the District shall, and
<br />if it faUs to do so, the Sooretary shall
<br />divide the land. (1) When the excess
<br />landowner desires to sell, and in no event
<br />less than six months befoTe the power of
<br />attorney vests in the Secretary as pro-
<br />vided in the recordable contract, the Sec-
<br />retary shall publish widely a notice of
<br />availability of such land, which describes
<br />the land and its possible uses, and which
<br />includes the expiration date of the re-
<br />oordable contract. (2) All prospective
<br />eligible nonexcess owners interested in
<br />purchasing a particular parcel shall file
<br />with the Regional Director a formal ex-
<br />pression of interest which will describe
<br />. their financial and other -capacity to"- own
<br />and farm the land. (3) When the owner
<br />of the particular parcel under recordable
<br />contract desires to sell theJand, or"when
<br />power of .attorney vests in the Secretary
<br />under the recordable contract, the Bu-
<br />reau shall select, by lottery or other im-
<br />partial means from' those expressing an
<br />interest, a purchaser of the land at the
<br />
<br />PROPOSED RULES
<br />
<br />approved price; Provided, That a person
<br />in a family relationship with the excess
<br />land sell-er shall have a preference to buy
<br />the land offered. (4) The prospective
<br />purchaser shall have ninety days to ob-
<br />tain" financing. Extension of this period
<br />may be granted upon good cause. Such
<br />financing must comply with reasonable
<br />terms established by the owner, or, if
<br />power of attorney has vested, with the
<br />terms of the district contract with the
<br />United States.
<br />(c) When several purchasers obtain
<br />financing under a- single loan instru-
<br />ment, the instrument, must provide - a
<br />partial release upon payment in full on
<br />the part of any single landowner.
<br />(d) Lands may not be obIlgated for
<br />the indebtedness of another.
<br />(e) The seller will not be permitted to
<br />lease the land back from the purchaser.
<br />The seller must not retain any interest in
<br />the land sold other than a purchase
<br />money mortgage or other equivalent pur-
<br />chase money security instrument.
<br />(!) Personal and nonfixture farm
<br />property must be sold separately. _The
<br />purchaser shall not be required to pur-
<br />chase personal and nonfixture farm
<br />property as a condition to purchasing the
<br />land.
<br />(g) Appraisals will be made in accord-
<br />ance with the guidelines and prinCiples
<br />set forth in the controlling water service
<br />or repayment contract or as prescribed
<br />in ! 426.12.
<br />(h) To be eligible to receive project
<br />water, lands disposed of by gift deed
<br />must be submitted for approval in the
<br />same manner as though the disposition
<br />was made in a bona fide sale.
<br />(t) 'A contract Wlder which the owner
<br />of land agrees to sell the land to another
<br />person is an acceptable meal1& of trans-
<br />ferring the beneficial interest of land
<br />only if the contract is recorded and made
<br />a part of the official records in the county
<br />in which the land lies.
<br />(j) An individual may accumulatively
<br />purchase or- hold excess lands up to a full
<br />entitlement only once.
<br />~ 426.11 Commingling.
<br />(a) Project water may be stored In
<br />or transported from, through, or by
<br />means of nonfederally constru-cted facili-
<br />-ties used to convey nonproject water if,
<br />in the opinion of the Secretary, such
<br />mingling is necessary to avoid duplica-
<br />tion of faciUties. The prOVisions of Rec-
<br />lamation law and of these regulations
<br />shall be applicable only to the quantity
<br />of project water thus involved. (1) When
<br />mingling of project water with non-
<br />project water is permitted, the contrac-
<br />tor shall be reqUired to take such actions,
<br />keep such records, and install and main-
<br />tain such measuring devices as in the
<br />opinion of the Secretary are necessary
<br />to ensure that at no time is the quantity
<br />of water delivered to, or removed as
<br />drainage water from, lands ineligible for
<br />project irrigation benefits under Rec-
<br />lamation law greater than the quantity
<br />introduced from nonproject sources.
<br />(b) The provisions of paragraph (,;,)
<br />of this section shall apply to -any irriga-
<br />tion facUity constructed jointly by Fed-
<br />
<br />eral and State interests, unless specif-
<br />ically exempted by Congress.
<br />
<br />~ 426.12 Appraisal. of exces.land.
<br />
<br />All appraisals of excess land shall be
<br />. made consistent with the following pro-
<br />visions :
<br />(a) Such appraisals shall be based on
<br />fair market value of the land at the ttnie
<br />of appraisal, not including the irtcrement
<br />resulting from the construction of a
<br />project.
<br />(b) Appraisals of excess land will .be
<br />made upOn request of the landowner or
<br />a prospective buyer, or when power of
<br />attorney, provided for in a recordable
<br />contract, vests in the Secretary.
<br />(c) All appraisals of excess land shall
<br />be made by an appraiser or panel of
<br />three appraisers designated by the - Sec-
<br />retary. The party or parties requesting
<br />the appraisal may determine whether
<br />the appraisal is to be made by a single
<br />appraiser or a panel of appraisers. The
<br />cost of the first appraisal, if requested
<br />by the landoWner or determined neces-
<br />sary by the Secretary, shall be paid by
<br />the United states. The cost of all other
<br />appraisals shall be paid by the party or
<br />parties requesting the appraisal and shall
<br />be paid for Wlder terms and conditions
<br />-determined' by the Secretary.
<br />(d) The value of all improvements on
<br />excess land such as structures, _wells.
<br />pwnps, permanent plantings and other
<br />property that may be included with a
<br />sale of excess land consistent with ~ 426.-
<br />10(f) shall be appraised on the basis of
<br />its fair market value in accordance with
<br />standard- appraisal procedures.
<br />(e) The Secretary shall determine the
<br />amOWlt- of nonproject water supply
<br />'avanable to the designated property giv-
<br />ing consideration to any riparian, ad-
<br />judicated, or appropriated water rights.
<br />If an Wladjudicated underground water
<br />supply is involved, an allocation will be
<br />made of the total available nonproject
<br />water in the aqUifer as of the date of
<br />flrst water delivery to the district re...
<br />-dnced by the quantity that would have
<br />been used. on the basis _ of preproject
<br />crops and cropping patterns to an
<br />amount that WOUld have been available
<br />on the d~te of appraisal, and supple-
<br />mented by an allocation from the an-
<br />nual nonproject recharge to the aquifer
<br />from all locally available sources. The
<br />value of the designated property will re-
<br />flect, among other things, the projected
<br />remaining economic life of the nonproj _ .
<br />ect water supply, on the date of apprais-
<br />al, as determined by the secretary con-
<br />sidering preproject crops and .cropping
<br />patterns and annual nonproject re-
<br />charge.
<br />(!) Appraisals of excess lands that are
<br />requested after the sale has been con-
<br />swnated_ will not be approved by the
<br />Secretary. Excess lands sold without re-
<br />ceiving prior price approval will not be
<br />eligible to receive project water lll1tll
<br />sold in accordance with procedures es-
<br />tablished by these regulations:
<br />
<br />~ 426.13 Class 1 "equivalency.
<br />
<br />(a) Class I land as defined in ! 426.-
<br />4(p) and irrigable lands in lower land
<br />classes wlll be detennined in accordance
<br />
<br />f:EDERAL REGISTER, VOL. 42, NO. 165-THURSDAY~ AUGUST 25, 1977
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