SPOKANE VALLEY PROJECT

EXPLANATORY NOTES

1503

DEFERMENT OF CONSTRUCTION CHARGES

An act to amend section 17(b) of the Reclamation Project Act of 1939. (Act of September 21, 1959, Public Law 86-308, 73 Stat. 584)

[Sec. 1. Deferment of construction charges.]-Section 17, subsection (b), of the Reclamation Project Act of 1939, as amended, is hereby further amended to read as follows:

"The Secretary is hereby authorized, subject to the provisions of this subsection, to defer the time for the payment of such part of any installments of construction charges under any repayment contract or other form of obligation as he deems necessary to adjust such installments to amounts within the probable ability of the water users to pay. Any such deferment shall be effected only after findings by the Secretary that the installments under consideration probably cannot be paid on their due date without undue burden on the water users, considering the various factors which in the Secretary's judgment bear on the ability of the water users so to pay.

"The Secretary may effect the deferments hereunder subject to such conditions and provisions relating to the operation and maintenance of the project involved as he deems to be in the interest of the United States. If, however, any deferments would affect installments to accrue more than twelve months after the action of deferment, they shall be effected only by a formal supplemental contract. Such a contract shall provide by its terms that, it being only an interim solution of the repayment problems dealt with therein, its terms are not, in themselves, to be construed as a criterion of the terms of any amendatory contract that may be negotiated and that any such amendatory contract must be approved by the Congress unless it does not lengthen the repayment period for the project in question beyond that permitted by the laws applicable to that project, involves no reduction in the total amount payable by the water users, and is not in other respects less advantageous to the Government than the existing contract arrangements. The Secretary shall report to the Congress all deferments granted under this subsection." (73 Stat. 584; 43 U.S.C. § 485b-1) Sec. 2. [1952 Act amended.]-The Act of March 6, 1952 (66 Stat. 16), as amended, is hereby further amended by deleting therefrom the words "and by section 3 of the Act of April 24, 1945 (59 Stat. 75, 76)". (73 Stat. 585; 43 U.S.C. § 485b)

Sec. 3. [Application of section 1 provisions.]-The provisions of section 17, subsection (b), of the Reclamation Project Act of 1939, as amended by section 1 of this Act, shall apply to any project within the administrative jurisdiction of the Bureau of Reclamation to which, if it had been constructed as a project under the Federal Reclamation laws (Act of June 17, 1902, 32 Stat. 388, and Acts amendatory thereof or supplementary thereto), these provisions would be applicable. (73 Stat. 585; 43 U.S.C. § 485b-1)

DEFERMENT OF CONSTRUCTION CHARGES

EXPLANATORY NOTES

1505

LA FERIA DIVISION, LOWER RIO GRANDE REHABILITATION

PROJECT

An act to authorize the Secretary of the Interior to construct, rehabilitate, operate, and maintain the lower Rio Grande rehabilitation project, Texas, La Feria division. (Act of September 22, 1959, Public Law 86-357, 73 Stat. 641)

[Sec. 1. Rehabilitation of the works of the La Feria Water Control and Improvement District authorized.]-The Secretary of the Interior, acting pursuant to the Federal reclamation laws (Act of June 17, 1902, 32 Stat. 388 and Acts amendatory thereof or supplementary thereto, including the last sentence of Section 1 of the Act of October 7, 1949 (63 Stat. 724), but subject to exceptions herein contained) is authorized to undertake the rehabilitation and betterment of the works of the La Feria Water Control and Improvement District, Cameron County numbered 3, Texas, and to operate and maintain the same. Such undertaking which shall be known as the La Feria division of the lower Rio Grande rehabilitation project, shall not be commenced until a repayment contract has been entered into by said district under the Federal reclamation laws, subject to exceptions herein contained, which contract shall provide for payment of the capital cost of the La Feria division over a basic period of not more than thirty-five years and shall, in addition, in lieu of the excess-land provisions of the Federal reclamation laws, require the payment of interest on that pro rata share of the capital cost, which is attributable to furnishing benefits in each particular year to land held in private ownership by any one owner in excess of one hundred and sixty irrigable acres, said interest to be at a rate determined by the Secretary of the Treasury by estimating the average annual yield to maturity, on the basis of daily closing market bid quotations or prices during the month of May preceding the fiscal year in which the repayment contract is entered into, on all outstanding marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month ɔf May, and by adjusting such estimated average annual yield to the nearest one-eighth of 1 per centum. (73 Stat. 641)

Sec. 2. [Title to United States lands to pass to District upon payment of obligations arising under this Act.]—Title to all lands and works of the division, to the extent an interest has been vested in the United States, shall pass to the La Feria Water Control and Improvement District, Cameron County numbered 3 or its designee or designees upon payment to the United States of all obligations. arising under this Act or incurred in connection with this division of the project. (73 Stat. 642)

Sec. 3. [Appropriations authorization.]—There is hereby authorized to be appropriated for the work to be undertaken pursuant to the first section of this Act the sum of $6,000,000 (January 1959 costs), plus such amount, if any, as may be required by reason of changes in costs of work of the types involved as shown by engineering indices. (73 Stat. 642)

LA FERIA DIVISION, LOWER RIO GRANDE

EXPLANATORY NOTES