63 STAT.] 81ST CONG., 1ST SESS.-CH. 198-JUNE 13, 1949 of such public lands prior to the time an application for the exchange thereof shall have been made. SEC. 3. The proportionate part of all payments heretofore made under the contract dated October 23, 1918, between the United States and Imperial Irrigation District, of California, which, under the Act of June 28, 1926 (44 Stat. 776), as amended, would have been appli- cable as a credit to the public lands of the United States severed from the Yuma auxiliary project pursuant to the provisions of the first section of this Act, shall be applied as of the date of enactment of this Act to offset that portion of the cost, originally allocated to such lands, of those facilities previously constructed to be used jointly for the furnishing of water to the lands of the Yuma project and the Yuma auxiliary project. SEC. 4. (a) The Secretary is hereby authorized to negotiate and enter into a suitable contract with an organization, as defined in section 2 (g) of the Reclamation Project Act of 1939, as amended, satisfactory in form and powers to him, representing the water users of the Yuma auxiliary project as herein limited (hereafter referred to as the organization), for the repayment of certain costs in connection with the construction of works to enable the said project to obtain delivery of water appurtenant to the lands of its water users through the works of the Gila project; to carry such water through the works of the Gila project instead of the Yuma project when additional works for the purpose shall have been completed; and to extend and improve the existing distribution system of the Yuma auxiliary project so as more adequately to supply the.needs of the water users. The contract, among other things, shall provide for the assumption of liability by the organization for (1) the repayment of the cost of the additional works necessary to supply water to the Yuma auxiliary project through the works of the Gila project, together with an appropriate share of the cost of works common to the Gila project and the Yuma auxiliary project; (2) the repayment of the cost of extend- ing and improving the Yuma auxiliary project distribution system; (3) the payment annually in advance of estimated charges for the operation and maintenance of the works of the Yuma auxiliary project and an appropriate share of the estimated charges for the operation and maintenance of the works common to the Yuma auxili- ary project and the Gila project. The general repayment obligation of any organization entering into such contract covering the repayment of the construction, extension, and improvement costs herein enumerated may be spread in annual installments, without the payment of interest over such reasonable period not exceeding sixty years, as the Secretary may determine: Provided, however, That repayment of costs allocated on a per acre basis to lands not under water-right application under the Act of January 25, 1917 (39 Stat. 868), as amended, and the joint resolution of February 21, 1925 (43 Stat. 962), on the date of the contract may be deferred until after water-right application has been made: Provided further, That the liability of the organization with respect to the costs allocated to such lands shall be suspended upon the cancellation of any water-right application as to any payments for the calendar year following such cancellation, and shall remain suspended until a new water-right application shall have been made. The contract may provide for the appointment of the organization as fiscal agent of the United States for the purpose of collecting any sums of money which may become due the United States with respect to land and water rights or water- right applications under the Act of January 25, 1917, as amended, and the joint resolution of February 21, 1925, and shall provide that payments made to the organization or any of its representatives for 173 Imperial Irrigation District. Application of pay- ments. Contract for repay- ment of certain costs. 53 Stat. 1188 . 43U.S.C. 485a(g). Repayment. Suspension of la- bility. 39 Stat. 88 . 43 Stat. 962 .
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