43 U.S.C. § 501 — Disposition of profits of project taken over by water users

submitted 102 years ago by ch. 4 to r/title-43-PUBLIC-LANDS · 135 words · no verdicts yet

in plain englishAI-generated · not legal advice

When water users take over an irrigation project, past profits get credited to the project's construction debt. Future profits go first to construction costs, then to operating costs, then wherever the water users decide. No profits go to individual users until the government is fully repaid.

When water users take over caring for, operating, and maintaining an irrigation project (or part of one), all the project's accumulated net profits — as determined by the Secretary — from power plants, leasing grazing and farm land, and selling or using town sites, get credited against the project's construction debt. After that, future net profits from those same sources can be used by the water users in this order: first, toward the project's construction charge; second, toward operation and maintenance costs; and third, however the water users decide. No money from these profits may be paid out to individual water users until every debt owed to the government has been fully paid off.

the actual law source: uscode.house.gov ↗public domain

Whenever the water users take over the care, operation, and maintenance of a project, or a division of a project, the total accumulated net profits, as determined by the Secretary, derived from the operation of project power plants, leasing of project grazing and farm lands, and the sale or use of town sites shall be credited to the construction charge of the project, or a division thereof, and thereafter the net profits from such sources may be used by the water users to be credited annually, first, on account of project construction charge, second, on account of project operation and maintenance charge, and third, as the water users may direct. No distribution to individual water users shall be made out of any such profits before all obligations to the Government shall have been fully paid.

Source credit: (Dec. 5, 1924, ch. 4, § 4, subsec. I, 43 Stat. 703.)

history & why it existsrecord from the source credit

1924Enacted · Act of Dec. 5, 1924, ch. 4 · 43 Stat. 703

A history note hasn’t been published yet. The record shows enactment by ch. 4 on 1924-12-05.

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