386 THE OMNIBUS ADJUSTMENT ACT-SEC. 46 41. Pre-existing holdings-Generally Section 46 of the 1926 Act and section 12 of the 1914 Act deal specifically with the breakup of pre-existing holdings, while the 1902 and the 1912 Acts are relevant to the issue of the effect of excess land limitations on the coalescence of holdings. Solicitor Barry Opinion, 68 I.D. 372, 375, 376, 390, 404 (1961), in re proposed repayment contracts for Kings and Kern River projects. The requirement of section 46 that the holder of excess land execute a recordable contract binding him to the disposition of excess lands, as a condition to receiving project water for such lands, was deliberately enacted by the Congress in further pursuance of its policy designed to secure the breakup of pre-existing excess holdings benefiting from the expenditure of Federal funds and to prevent such excess landowners from reaping an unearned profit at the expense of purchasers. Solicitor Barry Opinion, 68 I.D. 372, 394 (1961), in re proposed repayment contracts for Kings and Kern River projects. Payout is not relevant to the recordable contract requirements of section 46. Solicitor Barry Opinion 68 I.D. 372, 404 (1961) in re proposed repayment contracts for Kings and Kern River projects. 42. Delivery to 160 acres If desirable from a policy standpoint, the Department could agree that project water might be applied to the non-excess land of landowners in the irrigation district owning more than 160 acres, even though they had not previously entered into agreements respecting the sale of their excess lands. Solicitor White Opinion, M-36011 (September 23, 1949), in re proposed Tulare Irrigation District contract. It has been administratively determined that in the normal situation where a recordable contract is called for under the law, the owner who refuses to sign such a contract may still obtain water for 160 irrigable acres and hold his excess acreage indefinitely, although he may not receive water supplies from Federal Reclamation works for his excess land. Letter from Commissioner Straus to Senator Joseph C. O'Mahoney, December 29, 1948. Water legally may be furnished to nonexcess lands (the "first" 160 acres) notwithstanding the failure or refusal of an owner thereof to execute a valid recordable contract for the sale of excess landholdings under section 46 of the Omnibus Adjustment Act of 1926. Memorandum of Regional Counsel Graham, August 1, 1945, reprinted in Central Valley Project Docu ments, Part 2, H.R. Doc. No. 246, 85th Cong., 1st Sess. 692 (1957). 43. Recordable contracts [Editor's note: For notes of opinion dealing with conveyances of land covered by recordable contracts see under Ownership of excess lands-Trusts and multiple ownerships, item 34, supra.] The Secretary may allow recordable contracts to be executed covering land that is in excess ownership prior to the date of initial water delivery to the irrigation block in which the land lies, even though such land was purchased after the date of signing of the government repayment or water service contract and whether or not the land was in excess ownership prior to the purchase. Deputy Solicitor Weinberg Opinion, 72 I.D. 245 (1965), in re Westlands Water District contract. The fact that urbanization is expected to replace irrigation farming within fifty years after project operations start does not suspend the recordable contract requirements of the excess land laws. Memorandum of Deputy Solicitor Weinberg to Commissioner, October 14, 1964, in re feasibility report in San Felipe division. The Bureau of Reclamation may waive its authority to conduct a sale of excess land which has been placed under recordable contract the term of which has expired and instead approve a disposition into nonexcess ownership made by the original owner. Memorandum of Deputy Solicitor Weinberg to the Regional Solicitor, Sacramento, October 28, 1965, re proposed trusts for Andersen children (Hammond Trust). If excess lands covered by a recordable contract are sold by the owner to a corporation owned and controlled by him, the sale is not in compliance with the contract and the lands would not be eligible to receive project water. Letter from Assistant Secretary Aandahl to Senator Clinton P. Anderson, May 6, 1959. . In cases where, because of administrative laxity in enforcing the excess land limitations of reclamation law, or because projects were initiated prior to the enactment of section 46 of the 1926 Act, owners of excess lands have been receiving water therefor without having executed recordable contracts, the Secretary, in the exercise of his authority to perform all acts necessary and proper to carry the reclamation laws into full force and effect (sec. 10 of the Reclamation Act of 1902; sec. 15 of the Reclamation Project Act of 1939), may permit the continued delivery of water to such excess lands on condition that the owner, by the execution of a recordable contract, agrees to dispose of such lands within a reasonable time on THE OMNIBUS ADJUSTMENT ACT-SEC. 49 reasonable conditions. Associate Solicitor Cohen Opinion, M-34999 (October 22, 1947). Inasmuch as section 46 of the Omnibus Adjustment Act of 1926 provides only that recordable contracts for the sale of excess lands be "under terms and conditions satisfactory to the Secretary of the Interior," and prescribes no time period within which such sales must be consummated, a ten-year period, if found to be appropriate, is legally permissible. Memorandum of Regional Solicitor Graham, August 1, 1945, reprinted in Central Valley Project Documents, Part 2, H.R. Doc. No. 246, 85th Cong., 1st Sess. 642 (1957). The anti-speculation provisions of section 46, which require the approval of the sale price by the Secretary, apply to all lands which are in excess after the execution of the district repayment or water service contract. Deputy Solicitor Weinberg Opinion, 72 I.D. 245 (1965), in re Westlands Water District contract. For the purpose of determining when the requirement for Secretarial approval of the sales price of excess lands is no longer operative, the Secretary has authority to determine administratively by reasonable means the total construction charges against such land and the time at which one-half of 387 such charges has been paid; and the contingent liability of the lands on account of possible default in payment by other lands is not part of the "construction charge" assignable to the land in question. Memorandum of Chief Counsel Fix, September 3, 1948 (attachment No. 1 to Supp. No. 1, Admin. Ltr. No. 303). [Ed. note: Other aspects of the Fix memorandum were overruled by Solicitor Bennett Opinion, 64 I.D. 273, 278 (1957), in re proposed contract with Kings River Conservation District.] In the Circuit Court of Oregon for Malheur County the question was raised as to whether there was authority in the Secretary of the Interior to require the making of so-called "incremented value" contracts by district water users as a condition to a right to receive water from a project, these contracts having as their object the control or prevention of speculation in lands. The Circuit Court dismissed the actions on the ground that the United States was a vital and necessary party. But in the course of the opinion or the demurrers, the court discussed the question noted above by way of dictum and indicated its view that authority could be found in the Reclamation law. Terra v. Pinney and Owyhee Irr. Dist., and Pfeifer v. Greig and Owyhee Irr. Dist., January 27, 1937, reprinted in June and July, 1937, issues of the "Reclamation Era." Sec. 47. [Repeal of subsections E, F, and L of section 4, Fact Finders' Act.]— Subsections E, F, and L of section 4, act approved December 5, 1924 (Fortythird Statutes at Large, page 701), are hereby repealed, except as herein otherwise provided. (44 Stat. 650) Sec. 48. [Purpose of act.]—The purpose of this act is the rehabilitation of the several reclamation projects and the insuring of their future success by placing them upon a sound operative and business basis and the Secretary of the Interior is directed to administer this act to those ends. (44 Stat. 650; 43 U.S.C. § 423f) Sec. 49. [Delivery of water during 1926 irrigation season notwithstanding delinquency in payment of water-right charges.]-Pending the execution of any contract under this act or the Interior Department Appropriation Act for the fiscal year 1927, or the said act of December 5, 1924, the Secretary is authorized, in his discretion and when convinced that action looking to execution of contract is being expedited in good faith, to deliver water during the irrigation season of 1926 to the irrigation district, water user's association, or water-right applicant affected, notwithstanding delinquency in the payment of water-right charges which under the law applicable would render such irrigation district, water users' association, or water-right applicant ineligible to receive water. (44 Stat. 650) 388 THE OMNIBUS ADJUSTMENT ACT-SEC. 50 EXPLANATORY NOTES Reference in the Text. The Interior Department Appropriation Act for the Fiscal Year 1927, referred to in the text, was approved May 10, 1926. Extracts from the Act appear herein in chronological order. Reference in the Text. The Act of December 5, 1924, referred to in the text, is section 4 of said Act, the Fact Finders' Act. The Act appears herein in chronological order. Sec. 50. [Adjustment of water-right charges as a final adjudication on projects and divisions named.]-The adjustments under sections 1 to 40, inclusive, of this act are declared to be an incident of the operation of the "reclamation law," a final adjudication on the projects and divisions named in such sections under the authority contained in subsection K, section 4, of the act approved December 5, 1924 (Forty-third Statutes, page 701), and shall not hereafter be construed to be the basis of reimbursement of the "reclamation fund" from the general fund of the Treasury or by the diversion to the "reclamation fund" of revenue of the United States not now required by law to be credited to such "reclamation fund." (44 Stat. 650; 43 U.S.C. § 423g) EXPLANATORY NOTES Not Codified. This Act is not codified in the U.S. Code except for Sections 14 (a-1), 40 through 46, 48 and 50. Reference in the Text. Subsection K, section 4 of the Act of December 5, 1924 (Forty-third Statutes at Large, page 701), referred to in section 50, deals with surveys authorized to be made whenever it appears that settlers are unable to pay construction costs. The Act is the Fact Finders' Act, which appears herein in chronological order. Legislative History. H.R. 10429, Public Law 284 in the 69th Congress. H.R. Rept. No. 617. S. Rept. No. 831. 389 CANCELLATION OF WATER-RIGHT CHARGES, BUFORD- An act to cancel water-right charges and release liens on the Buford-Trenton and Williston irrigation projects, North Dakota, and for other purposes. (Act of May 26, 1926, ch. 395, 44 Stat. 653) [Sec. 1. Secretary authorized to cancel water-right charges and release liens, Buford-Trenton and Williston projects.]—The Secretary of the Interior is authorized to cancel water-right charges of any and every kind in connection with the Buford-Trenton and Williston irrigation projects in North Dakota constructed under the act of Congress approved June 17, 1902 (Thirty-second Statutes at Large, page 388), and acts amendatory thereof or supplementary thereto, and to release or consent to the release of any and all liens however created and now existing against lands of said projects on account of said waterright charges. (44 Stat. 653) Sec. 2. [Power of Secretary.]—The Secretary of the Interior is authorized to do any and all things necessary to give full effect to the provisions of this act. (44 Stat. 653) EXPLANATORY NOTES Not Codified. This Act is not codified in the U.S. Code. Sale of Property. The Interior Appropriation Act of March 3, 1925 (43 Stat. 1168), authorized the lease or sale of buildings, machinery, equipment and other property of the Williston project, North Dakota. Contract dated August 18, 1925, canceled repayment contracts of April 3, 1919, and March 1, 1921. Project buildings and property were sold effective January 1, 1926, by contract, Symbol No. Ilr-222, dated January 12, 1926, with W. S. Davidson. Legislative History. H.R. 7819, Public Law 291 in the 69th Congress. H.R. Rept. No. 452. 390 APPOINTMENT OF COMMISSIONER OF RECLAMATION An act to provide for the appointment of a Commissioner of Reclamation, and for other purposes. (Act of May 26, 1926, ch. 401, 44 Stat. 657) [Reclamation of arid lands shall be administered by Commissioner of Reclamation-Salary.]-Under the supervision and direction of the Secretary of the Interior, the reclamation of arid lands, under the act of June 17, 1902, and acts amendatory thereof and supplementary thereto, shall be administered by a Commissioner of Reclamation who shall receive a salary of $10,000 per annum, and who shall be appointed by the President. (44 Stat. 657; 43 U.S.C. § 373a; Act of September 6, 1966, 80 Stat. 378; 5 U.S.C. § 5316) EXPLANATORY NOTES Commissioner's Salary. Various statutes increased the salary of the Commissioner of Reclamation over the years. At this writing, this salary is provided for in section 5316 of Title 5, United States Code. Title 5 of the Code was revised, codified and enacted into law by the Act of September 6, 1966, 80 Stat. 378, Public Law 89-554. Legislative History. S. 1170, Public Law 297 in the 69th Congress. S. Rept. No. 51. H.R. Rept. No. 549. |