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<br />8/16/99 USBR Staff Draft
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<br />the Reclamation Reform Act of 1982 (96 Stat. 1263,43 V.S.C. ss390aa - 390zz-I), and from any
<br />farm unit size limitations established pursuant to 16 V.S.C. S590z-2(c)(5); Provided, however,
<br />that in the event such non-project water is commingled with project water in Reclamation project
<br />facilities, and the resulting commingled supply is used to irrigate lands in a project contractor's
<br />service area, then such commingled water shall bear the same acreage limitations or farm unit
<br />size limitations as the project water unless--
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<br />(i) contract provisions are in effect which provide that project or non-project water, or
<br />both, will be accounted for on a quantitative basis, that project water will not be delivered to
<br />ineligible land, and that appropriate charges, as determined by the Secretary, will be paid for the
<br />proj ect water; and
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<br />(ii) the charges for the use of the excess capacity include an appropriate interest
<br />component, as determined by the Secretary.
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<br />TITLE II-CONTRACTS FOR THE USE OF EXCESS FACILITIES CAPACITY
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<br />Section 201. Contracting Authority.
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<br />(a) The Secretary is authorized to enter into contracts with any person or any agency or
<br />entity, private or public (including, but not limited to, irrigation districts and associations, water
<br />conservation and conservancy districts, municipalities, special purpose districts, public water
<br />districts and agencies, other Federal agencies, State agencies, Tribes, and non-governmental
<br />entities), for the use of capacity in Reclamation project facilities which is excess, as determined
<br />by the Secretary, to that needed for a project's authorized purposes for the purpose of diverting,
<br />storing, impounding, pumping, or conveying non-project water for irrigation, domestic,
<br />municipal and industrial, fish and wildlife, hydropower, or any other beneficial purposes;
<br />Provided, however, that such contracts shall not impair or otherwise interfere with a project's
<br />authorized purposes or the capacity in Reclamation project facilities which is needed therefor.
<br />Except as specifically provided by statute or by contracts executed prior to the enactment of this
<br />title, no person, nor any agency or entity, public or private, may make use of the excess capacity
<br />in Reclamation project facilities to divert, store, impound, pump, or convey non-project water for
<br />any purpose absent a contract with the Secretary executed pursuant to the authority of this title
<br />for the use of such excess capacity.
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<br />(b) The Secretary may enter into such contracts upon such terms and conditions as he or
<br />she may determine to be just and equitable, but subject to sections 202, 203, 204, and 205. Each
<br />such contract shall be for such period, not to exceed forty years, as the Secretary deems
<br />appropriate.
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<br />Section 202. Charges for the Use of Excess Capacity
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