[Code of Federal Regulations]
[Title 43, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR426.23]

[Page 630-631]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
      CHAPTER I--BUREAU OF RECLAMATION, DEPARTMENT OF THE INTERIOR
 
PART 426--ACREAGE LIMITATION RULES AND REGULATIONS (Eff. 1-1-98)--Table of Contents
 
Sec. 426.23  Recovery of operation and maintenance (O&M) costs.

    (a) General. All new, amended, and renewed contracts shall provide 
for payment of O&M costs as specified in this section.
    (b) Amount of O&M costs a district must pay if it executes a new or 
renewed contract. If a district executes a new or renewed contract after 
October 12, 1982, then that district must pay all of the O&M costs that 
Reclamation allocates to irrigation.
    (c) Amount of O&M costs a district must pay if it amends its 
contract to conform to the discretionary provisions. If a district has a 
contract executed prior to October 12, 1982, and the district amends the 
contract after October 12, 1982, as provided for in Sec. 426.3(a)(2) to 
conform to the discretionary provisions, then the following applies:
    (1) The district must pay all of the O&M costs that Reclamation 
allocates to irrigation;
    (2) If in the year the amendment is executed, the district's 
contract rate was more than the O&M costs allocated to the district in 
that year then that positive difference at the time of the contract 
amendment must continue to be factored into the contract rate and 
annually paid to the United States. This would be in addition to any 
adjusted O&M cost that results from paragraph (c)(1) of this section. 
The positive difference would be factored into the contract rate for the 
remainder of the term of the contract; and
    (3) The district will not be required to pay an increased amount 
toward the construction costs of a project as a condition of the 
district's agreeing to a contract amendment pursuant to paragraph (c) of 
this section.
    (d) Amount of O&M cost a district must pay if it amends its contract 
to provide supplemental or additional benefits. If a district amends its 
contract after October 12, 1982, to provide supplemental or additional 
benefits, as provided for in Sec. 426.3(a)(3), then the following must 
be complied with:
    (1) The district must pay all of the O&M costs that Reclamation 
allocates to irrigation;
    (2) If in the year the amendment is executed, the district's 
contract rate was more than the O&M costs allocated to the district in 
that year then that positive difference at the time of the contract 
amendment must continue to be factored into the contract rate and

[[Page 631]]

annually paid to the United States. This would be in addition to any 
adjusted O&M cost that results from paragraph (d)(1) of this section. 
The positive difference would be factored into the contract rate for the 
remainder of the term of the contract; and
    (3) The district must pay any increases in the amount paid annually 
toward the construction costs of a project that the United States 
requires the district to pay as a condition of agreeing to provide the 
district with supplemental and additional benefits.
    (e) Amount of O&M a district pays under a prior contract. For a 
district whose prior contract was executed prior to October 12, 1982, 
the district must pay all of the O&M costs allocated by Reclamation to 
irrigation unless the contract specifically provides contrary terms.
    (f) Amount of O&M that Reclamation charges an irrevocable elector. 
(1) Regardless of any terms to the contrary within a prior contract with 
a district, a landholder who makes an irrevocable election, as provided 
for in Sec. 426.3(f) must pay, annually, his or her proportionate share 
of all O&M costs allocated by Reclamation to irrigation. The irrevocable 
elector's proportionate share is based upon the ratio of:
    (i) The amount of land in the district held by the irrevocable 
elector that received irrigation water to the total amount of land in 
the district that received irrigation water; or
    (ii) The amount of irrigation water in the district received by the 
irrevocable elector to the total amount of irrigation water that the 
district delivered.
    (2) The district(s) where the irrevocable elector's landholding is 
located must collect from the irrevocable elector an amount equal to the 
irrevocable elector's proportionate share of all O&M costs allocated by 
Reclamation to irrigation and the following apply:
    (i) If in the year the election is executed, the district's contract 
rate was more than the O&M costs allocated to the district in that year, 
then that positive difference at the time of the contract amendment must 
continue to be factored into the contract rate. This would be in 
addition to any adjusted O&M cost that results from paragraph (f)(1) of 
this section. The positive difference would be factored into the 
contract rate for the remainder of the term of the contract; and
    (ii) Such collections must be forwarded annually to the United 
States.
    (g) Amount of O&M that Reclamation charges if a landholder is 
subject to full- cost pricing. In a district subject to prior law, if a 
landholder is subject to full-cost pricing the district must ensure that 
all O&M costs are included in any full-cost assessment, regardless of 
whether the landholder is subject to the discretionary provisions. The 
revenues from such full-cost assessments must be collected and submitted 
to the United States.