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<br />0079 <br /> <br />I <br /> <br />! <br /> <br />~ <br /> <br />shall proceed in conformity with such Jaws, <br />and nothing [herein] shall in any way affect <br />any rights of any State or of the Federal <br />Government or of any landowner, appropriator, or <br />user of water in, to, or from any interstate <br />stream or the waters thereof. <br /> <br />43 U.S.C. S 383. Other specific restrictions on the use or <br />distribution of water reclaimed in a federal project appear <br />in S 5, 43 U.S.C. S 431, which prohibits the sale of reclamation <br />water to tracts of land in excess of l60 acres, and S 9 of <br />the Reclamation project Act of 1939, 43 U.S.C. S 485h, which <br />provides for repayment to the United States of funds <br />expended in the construction of reclamation works and authorizes <br />the Secretary of the Interior to make contracts to furnish <br />reclamation water at appropriate rates for irrigation. <br /> <br />The Federal Power Act established a comprehensive licensing <br />scheme for water power projects constructed by private or <br />public entities on navigable streams or federally owned land. <br />The Act contains two provisions referring to the applicability <br />of state laws: S 9b, which requires an applicant to <br />present evidence of "satisfactory compliance" with certain <br />state laws; 40/ and S 27, which expressly saves certain <br />state laws reTating to property rights in the use of water <br />from supersedure by the Act. 41/ <br /> <br />The McCarran Amendment is not a substantive statute, <br />but rather a limited waiver of sovereign immunity permitting <br />the United States to be joined as a party in state general <br />I stream adjudications. It does not affect the federal government's <br />substantive rights with respect to water on federal lands. <br />However, the Act has often been relied upon as evidence <br />of congressional recognition of the primacy of the western <br />states' interests in regulating and administering water rights. <br /> <br />40/ Sectlon 9(b) requires an applicant to provide the Federal <br />Power Commission with "satisfactory evidence that [he] has complied <br />with the requirements of the laws of the State or States within <br />which the proposed project is to be located with respect to <br />bed and banks and to the appropriation, diversion, and use of <br />water for power purposes and with respect to the right <br />to engage in the business of developing, transmitting, and <br />distributing power, and in any other business necessary <br />to effect the purpose of a license under this chapter.. 16 U.S.C. <br />S 802(b). <br /> <br />41/ Section 27 provides that . [n]othing herein contained shall <br />De construed as affecting or intending to affect or in any <br />way to interfere with the laws of the respective States <br />relating to the control, appropriation, use or distribution <br />of water used in irrigation or for municipal or other uses, <br />or any vested right acquired therein." 16 U.S.C. S 821. <br /> <br />- 23 - <br />