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<br />\jOQ33'2 <br /> <br />- 2 - <br /> <br />relating to the use, control and distribution of western water <br />resources. Of recent years applications and interpretations of <br />Federal law in thie field have tended to upset this balance. <br />A major objective of the program is to reetore that balance in <br />particular by requiring return to traditionsl conceptions of <br />repaY!ll9nt contracts whereby continuing rights to the use of <br />water may be acquired pursuant to state law. It <br /> <br />By the same resolution the Authority also approved "Suggested Principles <br />to Govern Amendments to the Reclamation Project Act of 1939", set forth in the <br />report, which included the following. <br /> <br />"(10) Contracte with irrigation water users, other than for <br />delivery of water during development periods and for temporary <br />use of surplus water, should be restricted to repayment con- <br />tracts executed in conformity with Section 8 of the Reclamation <br />Act of June 17, 1902, and affording opportunity to the contract- <br />ing organization to acquire continuing rights to the use of <br />water for irrigation, appurtenant to the land, in accordance with <br />State law. <br /> <br />"(14) Although recognizing that there should be authority to in- <br />clude provisions in repayment contracts appropriate to secure <br />adoption of proper aocounting, to protect the condition of project <br />works, and to provide for the proper operation and maintenQnce <br />thereof, interference with looal control over use of land and <br />water by tha oontracting organization should be held to the <br />min1.rmJm. feasible extent. <br /> <br />"(1$) Term contracts for water delivery ahould not be authorized <br />as a substitute for rep~ent contracts, but should be authorized <br />during a development period of not to exceed 10 years pending <br />execution of a repayment contract. In event of execution of such <br />a term contract, and a repayment contract is executed during the <br />tem" the period of such term contraot should be deducted from. <br />the permissib1e developnent period.f' <br /> <br />and 2 <br />1948. <br /> <br />The same resolution or the Authority further approved Resolutions Nos. 1 <br />of the National Reclamation Association, adopted at a meeting in November, <br />Resolution No. 1 read in part as follows' <br /> <br />"Be it resolved by the National Reclamation Association <br />that in accordance with the princiPles for which the Association <br />stands, it recommends legislation which should include the following <br />general objectives' <br /> <br />hI. That the integrity of the water laws of the Western States <br />should be preservedj that the basic provisions of Section 8 of <br />the Reclamation Act of 1902 should be reaffirmed; and that Ii <br />return should be made to the traditional concept of repayment <br />contracts whereby continuing rights to the use of water may be <br />aoquired 'Under the state laws. <br /> <br />"3. That the respective obligations of the water and power <br />users and of the Un! ted Sta tee for construction costs and the <br />division of those coste should be openly and clearly expressed. <br /> <br />"6. That Federal control over irrigation projects and facili- <br />ties should be confined to factors and procedures determined <br />by the Congress to be necesaar,y for the protection of Federal <br />interests and investment." <br /> <br />The Irrigation Districts Association of California and the California Fan,l <br />Bureau Federation have gone on record in opposition to the 9(8) contract. As a <br />result of representations by the Association, the State Attorne,y General first <br />opposed validation of the Ivanhoe contract upon the ground that it faUs to comply" <br />with either State or Federa.l law in a number of respects, among them being that it <br />does not recognize the right of the districts and its landowners to receive a <br />permenent water supply and that it purports to provide for a sale of water by the <br />United States (Anawer of the etate, 2nd Defense, paragraph IV) thereby implying <br />federal ownership of the water in derogation ot state law. <br />