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<br />000659 <br /> <br />3/13/00 USBR Staff Draft <br /> <br />outlined as follows: <br /> <br />A. The status of project contractors wder acreage limitation laws wiD, in most <br />cases, not be affected when they transfer project water to another entity. Possible <br />exceptions to this generality include: <br /> <br />1. Prior Law Sellers. Project contractors subject to "prior ReclamAtion <br />law" (the 160-acre limitation) will be required to conform to the discretionary <br />provisions of the RRA (~ limitation) i( in traDsferring.project water, sudl <br />project contractors receive an "additional or supplemental benefit" as set forth in <br />43CFR 426.3(aX~). <br /> <br />2. Exerqpt Sell~ Project contractors that are exempt ftom. acreage <br />limitation laws may be subjected :to the .discretionary provisions if they incur a. <br />. Project construction obligation through .the conti-actuaJ arrangements effeaiog <br />. their t:nmSfer of project water to another party. <br /> <br />B. Entities receiving project water via a transfei- may be subjected to the <br />discretionary provisions as follows: <br /> <br />1. Prior Law B~ers. If the recipient of the transferred. project water is <br />subject to prior Reclamation law, the recipient entity will be required to conform <br />to the discretionary provisions if the transfer is determined to provide the entity an <br />additional or supplemental benefit. Furtbennore, in situations whete prior law <br />entities receive transferred project water' from an entity that is subject 10 the <br />discretionary provisions, the discretionary provisions will 2q)ply to the transfeaecl <br />project water. <br /> <br />2. Exertq)t Buyers. If the recipient of the transferred project water is <br />exempt from acreage limitation Jaws, it win be required to conform to die <br />discretionary provisions if it incurs a project construction obligation through the <br />contractual arrangements effecting the transfer. ('Ibis assumes that the transferred <br />project water is used for irrigation, and that 1he project in which the project water <br />origjnS\te(f is not itself exempt from acreage limitations by statute.) Even if an <br />exempt recipient does not incur a construction obligation, the discretiODBry <br />provisions will apply to the transferred project water if the transferring (selling) <br />entity is subject to acreage limitations. <br /> <br />G. Compliance with Federal ~aw. In addition to complying with the Federal laws and <br />contracts applicable to project service frOm the project involved, transfers of project water must <br />. also be in accordance with all other applicable Federal laws, including, but not liIpited 10 the <br />~ational Environmental Policy Act and the Endangered Species Act. <br /> <br />8 <br />