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<br />obtained: Provided, That the operating organization, and, if differeIit, the repayment
<br />organization, has determined that such contraet is not detrimenral to (i) the water service for
<br />sueh irrigation project; (ii) the rights of prior appropriators under state law; and (iii) the
<br />authorizing legislation, and operating principles, where applicable, for the project. The term
<br />of such contracts shall be for that period of years requested by the contract beneficiary, subjeet
<br />to sueh reasonable limitation thereon as the seeretary may determine neeessary to ensure that
<br />the sratutorily established purposes of the project shall continue to be met.
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<br />Amend 43 U.S.C. S 523 to read as follows:
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<br />Whenever in carrying out the provisions of the reclamation law and the Water Conservation
<br />and Utilization Aet, storage or carrying eapaciry has been or may be provided in excess of the
<br />requirements of the lands to be irrigated under any project, the Seererary of the Interior, or
<br />the operaring organizarion and, if different, repayment organization, preserving a first right to
<br />lands and entrymen under the project, is hereby, authorized, upon such terms as the Seeretary
<br />and the operating organization, or, if different, repayment organization may determine to be
<br />just and equitable, to contract for the impounding, storage, and/or carriage of water to an
<br />extent not exceeding such exeess capaciry with (i) irrigation systems operating under the Act
<br />of August 18, 1894, known as the Carey Act, 43 U.S.C. S 641, and (ii) individuals,
<br />corporations, associations, and organizations organized for or engaged in furnishing or in .
<br />distributing water for irrigation, municipal or industrial uses. Water so impounded, stored,
<br />or earried under any such contract shall be for the purpose of distribution to individual water
<br />users by the parry with whom the eontraet is made: Provided, however, That water so
<br />impounded, stored, or carried shall not be used otherwise than as prescribed by law as to lands
<br />held in private ownership within Government reclamation projeets. In fixing the charges
<br />under any such contraet for impounding, storing, or carrying water for any irrigation system,
<br />corporation, assoeiation, distrier, or individual, as herein provided, the Seeretary or
<br />organization shall take into consideration the cost of construction and maintenance of the
<br />reservoir by which such water is to be impounded or stored and/or the canal by which it is to
<br />be carried, and such eharges shall be just and equitable as to water users under the
<br />Government projeet. No irrigation system, distrier, association, corporation, or individual so
<br />contracting shall make any charge for the storage, earriage, or delivery of slIch water in excess
<br />of the charge paid to the United States or organizarion exeept to sueh extent as may be
<br />reasonably neeessary to cover cost of carriage and delivery of such water through their works.
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<br />Explanation and justification of the amendments.
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