DEPARTMENT OF THE INTERIOR, BUREAU OF RECLAMATION, Con missioner to all field offices. Subject: Regulations for leasing of land, in lieu of regulations in Circular Letters 987, 1031, 1090, 1141, and 1165. WHAT LAND MAY BE LEASED 1. Any land acquired by the Bureau of Reclamation by purchase or otherwise and any vacant public land under first form withdrawal for use by the bureau may be leased if such action will not interfere with the use and control of the lands when needed for the purposes contemplated by the acquisition or reservation. (34 L. D. 480.) 2. The sundry civil appropriation act of July 19, 1919 (41 Stat. 202), provides: "The proceeds heretofore or hereafter received from the lease of any lands reserved or withdrawn under the reclamation law or from the sale of the products therefrom shall be covered into the reclamation fund; and where such lands are affected by a reservation or withdrawal under some other law, the proceeds from the lease of land and the sale of products therefrom shall likewise be covered into the reclamation fund in all cases where such lands are needed for the protection or operation of any reservoir or other works constructed under the reclamation law, and such lands shall be and remain under the jurisdiction of the Secretary of the Interior." (See Circular Letters 841 and 866.) 3. The above law confirms the authority to lease lands withdrawn under the reclamation act and also determines the rights of the Bureau of Reclamation in national forests and other reservations, and gives the bureau jurisdiction over all such reserved lands needed for the protection or operation of any reservoir or other works constructed under the reclamation law. Such lands may be leased when the leasing will not interfere with the purpose for which they are withdrawn, but before taking such action it is necessary to arrive at an understanding with the National Park Service, the Forest Service, or other agency in charge regarding the limits of the land under the jurisdiction of the Bureau of Reclamation. 4. Careful consideration should be given to any extensive leasing of withdrawn lands which may soon be open to entry, or other like action, and the matter should be presented through the Denver office to the Washington office, so that the case can be submitted to the Secretary. After every authorization for leasing, publicity shall be given so that all interested may be informed of the action proposed. WHO MAY AUTHORIZE LEASES 5. Of lands which, in accordance with paragraphs 1, 2, and 3 hereof, may be leased those forming a part of a primary project may be leased by the project office after having obtained general authority from the Denver office, and those forming a part of a secondary project may be leased by the Denver office after having obtained general authority from the Washington office, provided that the Denver office, after securing authority from the Washington office for leasing lands in any secondary project, may delegate authority to a project office to execute leases for lands in that project. Lands in a bird reserve should not be leased for agricultural purposes except upon specific authority of the Washington office. 6. After general authority has been granted, the project office in the case of primary projects and the Denver office in the case of secondary projects, may advertise and lease from time to time any lands covered by such general authority and may readvertise and release such lands on the expiration or termination of prior leases, subject to the regulations regarding advertising and those herein provided. Leases will become effective on execution and will not require approval where the highest bid is accepted and the total amount to be collected is $5,000 or less. The original must be transmitted to the civil division of the General Accounting Office and copies furnished the returns office, the district counsel's office, the Denver office, and the Washington office. (See pars. 3(d) and 4(f), I and II, C. L. 969.) CLASSES OF LEASES 7. Leases will be of two classes as to purpose-agricultural and grazing. Form 7-523 A-G. should be followed unless there are substantial reasons for varying from same in order to adapt the lease to local conditions. None of the provisions of this form shall be omitted without prior approval, but further requirements not inconsistent therewith may be added without advance approval. Where land is suitable for agricultural purposes, proposals to lease the land for such purposes should be given preference over proposals to lease for grazing. RENTAL CHARGES 8. The occupancy and use of Government lands withdrawn or acquired as aforesaid, unless otherwise authorized by the Secretary, shall be conditioned upon the payment of a rental charge. Ordinarily rentals shall be cash and must be paid in advance. Agreement for rental payments other than cash, such as a certain part of the crop, or for payment otherwise than in advance, must not be made unless prior authority has been obtained. If the total amount is not more than $100 it shall be paid in advance on the date of execution of lease. The following minimum rates of charge shall be observed: Agricultural lands, 25 cents per acre per annum; grazing lands, 5 cents per acre per annum. 9. The initial payment under the lease shall be due and payable at the time of the execution thereof and shall be the proper proportionate part for the remainder of that calendar year. Subsequent annual payments shall be due and payable in advance on January 1 of each year. In the case of any agricultural lease executed at a time sufficiently early to permit the raising of a crop in the year in which the lease is executed, the full year's rental shall be charged, and if executed so late in the year as to give no benefit for that year it may be made effective the following January 1 or, to permit preparation of the land for the next year's crop, it may be made effective at an earlier date than January 1, but not earlier than September 1,.with no charge for the remainder of the year in which it is executed. 10. Where unauthorized use of the land has been made prior to the execution of the lease and such action is not treated as a trespass, payment should be required at the time the lease is executed to cover the period of unauthorized use. 11. Generally, all moneys not earned by the United States on any lease which has been terminated through no fault of the lessee will be refunded, provided the United States has suffered no damage on account of the lessee's occupation of the land for which the lessee is liable. No refund can be made except to the lessee or his legal representative. In the latter case a certified copy of testamentary or administrative letters or other authorization must accompany the voucher. PROCEDURE FOR SECURING LEASES 12. When it is desired to lease lands and before advertisement is issued, report shall be made by the project office to the Denver office in the case of primary project lands, and by the Denver office to the Washington office in the case of secondary project lands, which report should describe the lands it is proposed to lease, giving the reasons therefor. This report, in so far as practicable, should be comprehensive as regards any project so that frequent requests for authority will not be required. It should include not only lands to be leased at the time the report is made, but also lands then under lease which should be readvertised upon the expiration or termination of the existing leases (see par. 19), and the lands which should be leased at some not distant date. A full statement should be made of the status of the lands, the purpose of the withdrawal or acquisition, the condition of the lands as regards suitability for agricultural or grazing purposes, the extent of previous cultivation, if any, whether or not water for irrigation is available therefor, the terms under which it is proposed water will be furnished, and all other matters affecting the advisability of leasing the land and the terms and conditions which should be imposed. 13. Before advertising land for lease, except in the case of lands acquired by purchase, the records of the local land office should be examined to see if all the land to be leased is vacant public land under first form withdrawal, and report of such examination should accompany copies of lease to the district counsel's office, the Denver office, and the Washington office. Such an examination once made need not be repeated so long as the same withdrawal continues. (See par. 5, p. 268, vol. 1 of manual.) 14. Land to be leased shall be subdivided into tracts suitable for use of settlers living near the area to be leased, and in awarding bids preference shall be given to the local or adjoining bidder, other things being equal. After awards to local bidders the provisions of paragraph 15 should be followed in awarding the remaining subdivisions, provided that when withdrawn or acquired land is about to be advertised for lease and there is local sentiment in favor of leasing same in small tracts to water users or landowners in the vicinity for encouragement of the stock and dairy industry, recommendation should be prepared and forwarded for the approval of the Denver office, fixing the minimum rate per acre, the maximum area to be leased to each small stock owner, and the necessary qualifications of each lessee and providing for separate bids for the small areas, or the requirement for advertisement may be eliminated and a flat rate stated. Payment of rental on the small tracts should be required in advance. Whenever practicable persons holding small acreages should be favored by allowing them to lease adjacent or near-by areas. 15. Land should be leased to the highest responsible bidder, unless there are good and sufficient reasons for rejecting the highest bidder's proposal. When the highest bid is not accepted, leases executed by the project office will require the approval of the Denver office and those executed by the Denver office will require the approval of the Washington office. A condition imposed by a bidder that he will accept all or none of a certain area shall not be considered as a sufficient reason for accepting his proposal if another bidder has submitted a higher bid on a portion of the land. When other than the highest bid is accepted, a certificate giving full explanation should accompany the lease and all copies thereof stating why such action was taken. No lease for land shall be entered into with any person while any debt due from him to the United States is delinquent. ASSIGNMENT OF LEASES 16. Subject to a charge of $10, to be paid in advance by the assignee, agreements for the assignment of leases on form attached hereto may be executed by the project office or Denver office without obtaining specific authority. The assignment will be executed for the unexpired period of the lease. When an assignment is made, any unearned rental which has been paid will be credited to the new lessee. PERIOD OF LEASE, TERMINATION, CANCELLATION, AND EXTENSION 17. Ordinarily lands should not be leased for a longer period than five years. When it is deemed advisable to lease lands for a longer period, specific authority should be secured in advance. Generally leases should terminate on December 31, and when made to terminate on any other date full explanation thereof should accompany copies of the lease to district counsel's office, Denver office, and Washington office. Care should be taken not to lease land beyond the time when the land may be required for project purposes. 18. Whenever it is desired to terminate a lease on notice as provided by the lease, the project office should submit in duplicate to the Denver office full report as to the conditions, together with recommendations. A copy of the report should be sent distric counsel with the request that he submit an opinion whether there are objections to the proposed action. The report should state what improvements, if any, have been put upon the lands by the lessee. The Denver office may authorize or decline to authorize the termination of the lease or may, if desired, submit the matter with recommendations to the Washington office for decision. Leases shall not be terminated by notice until authorization has been obtained. When such authorization has been received the project office should serve notice on the lessee in accordance with the terms of the lease, stating the date when termination becomes effective. 19. Ordinarily the period of a lease should not be extended. When it is deemed advisable to extend a lease, or when it is deemed that the interests of the United States will be better protected by an extension of the existing lease than by readvertisemen, full report thereon should be made to the Denver office, which may authorize or decline to authorize such extension or may submit the matter with recommendation to the Washington office for decision. Leases can be extended only by supplemental contract. (See par. 12.) COLLECTION OF RENTALS 20. Thirty days in advance of the date when rental charges will become due, the project office or the Denver office, as the case may be, shall render a bill on Form 7-460 to the lessee of the amount of charges, showing the date when due and type thereon the following: "Notice is hereby given that under authority of the lease above described, the same will immediately terminate if payment of said rental is not made on or before the due date, and the right of occupancy of the lessee will immediately cease without further notice or action." The bill shall be sent by registered mail, with demand for receipt, addressed to the post-office address of the lessee as given at the foot of the lease. Bills should be rendered promptly to all lessees and the above procedure regarding the insertion of notice in the bills should be strictly followed. RECORD OF LEASES 21. It is essential that a proper record be maintained of all leases in accordance with instructions in Circular Letter No. 933, dated September 22, 1920. If such records are faithfully maintained there will be no excuse for failure to render bills promptly. Examiners of accounts are instructed to examine the records in this connection and whenever it is found that such records are not properly kept to report thereon. 22. On each January 15, beginning January 15, 1924, each project office shall make a report of all leases in effect at any time during the preceding year showing payments made thereon during such year. In the case of agricultural leases the report shall show whether the requisite amount of cultivation was carried on the preceding year. Copies of this report shall be sent the district counsel's office, the Denver office, and the Washington office. LEASE OF TOWNSITE LANDS 23. Lands within either platted or unplatted portions of reclamation townsites for which water is available, comprising lots and blocks withdrawn from sale or which have not been advertised for sale and which it is not expected will be offered for sale within the term of the proposed lease, may be leased for agricultural purposes for a period not to exceed three years. 24. Fill in the number and date of this circular letter in paragraphs 3(d) and 4(f), I and II of C. L. 969. D. W. DAVIS. Enclosures: Form of advertisements, form of proposal, and form of assignment of lease. Key words: Lease of lands; lands, lease of; grazing leases; and agricultural leases. Approved December 21, 1923. E. C. FINNEY, First Assistant Secretary. (Advertisement of lands for lease, for posting and mailing) DEPARTMENT OF THE INTERIOR, BUREAU OF RECLAMATION, PROJECT LANDS FOR LEASE until o'clock p. m., IRRIGATION 19-. Bureau of 19, and will 1. Sealed proposals will be received at the office of the Reclamation, then be opened in the presence of such bidders as may attend, for the lease for agricultural or grazing purposes of all or any tract or tracts of the lands described in the accompanying list (marked "Exhibit A.") 2. The land may be leased for either agricultural or grazing purposes, and proposals to lease lands for agricultural purposes will be preferred. The land will be leased for a period ending not later than December 31, 19—. The bidder shall state in the proposal (a) the period during which he proposes to lease the land, (b) the legal description of such subdivisions or tracts, (c) the area in acres, (d) the annual rental price per acre he proposes to pay, (e) the total amount per annum for the tract, and (f) whether for agricultural or grazing purposes. The bidder may make such stipulations as he may desire regarding combinations of tracts he is willing to accept. No more than head of horses, head head of hogs per 40-acre tract head of sheep, or of cattle, and 3. The first payment will be due in advance on the date of the execution of the lease and will cover the period from that date to and including December 31, 19—. When land is leased for agricultural purposes the first payment will be the full annual rental charge and will cover the period from the date the lease becomes effective to and including December 31, 19, but when the land is leased for grazing purposes the first payment will be such proportionate part of the annual rental charge as the unexpired portion of the year bears to a full year. Subsequent payments will be due annually in advance on January 1 of each year during the continuance of the lease. In case any rental charge is not paid on or before the due date, the lease and the right of occupancy of the lease terminate immediately without further notice or action. 4. If the total rental charge is not more than $100 it shall be paid in advance on the date of execution of the lease. 5. In the case of agricultural leases, the lessee will be required to prepare for cultivation and cultivate properly to such crops as are adapted to the locality during: (a) The first crop season, 30 per cent of the cultivable area. (b) The second crop season, 60 per cent of the cultivable area. (c) The third and subsequent crop seasons, 80 per cent of the cultivable area. 6. The United States will deliver water for irrigation during the usual irrigation season to all lands leased for agricultural purposes for which water is available from Government canals. 7. Those desiring to bid for any of said lands should first obtain from the undersigned a copy of lease Form 7-523-A-G, which must be promptly executed by successful bidders before possession of land is given, and which describes various rights reserved by the United States and other details not herein enumerated, to which the lessee must agree. Bureau of Reclamation. (Advertisement of lands for lease, for newspaper) DEPARTMENT OF THE INTERIOR, BUREAU OF RECLAMATION, PROJECT IRRIGATION LANDS FOR LEASE o'clock m.- -(date of opening) for lease Bureau of Recla township Sealed proposals will be received at the office of the mation, (place), until for agricultural or grazing purposes, lands in sections range M. For detailed description of lands, proposal blanks, terms of lease, lease form, etc., apply to at (NOTE. In advertising in newspapers follow regulations, page 273, volume 1 of the manual.) Department of THE INTERIOR, BUREAU OF RECLAMATION, IRRIGATION PROJECT PROPOSAL FOR LEASE OF LANDS To the Bureau of Reclamation: Pursuant to the accompanying advertisement, and subject to all of the provisions thereof, the undersigned proposes to lease the tract or tracts described below, for the period ending December 31, 19, at the prices named, for (agricultural or grazing-state which) purposes, to wit: |