[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: 43CFR426.8]

[Page 609-610]
 
                    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. 426.8  Nonresident aliens and foreign entities.

    (a) Definitions for purposes of this section:
    Domestic entity means a legal entity established under State or 
Federal law.
    Foreign entity means a legal entity not established under State or 
Federal law.
    (b) Restriction on receiving irrigation water. Notwithstanding any 
other provision of Federal reclamation law or these regulations, a 
nonresident alien or foreign entity that directly holds land in a 
district that is subject to the discretionary provisions is not eligible 
to receive irrigation water on such land. Nonresident aliens and foreign 
entities may hold land indirectly in

[[Page 610]]

discretionary districts and both directly and indirectly in prior law 
districts and receive irrigation water on such land, subject to their 
acreage limitation entitlements.
    (c) Entitlements for nonresident aliens and foreign entities. Except 
as provided in paragraph (d) of this section, all nonresident aliens and 
foreign entities will be considered prior law recipients, and shall have 
entitlements and eligibility only as prior law recipients as specified 
in Secs. 426.5(d) and 426.6(b)(3).
    (d) Exception to prior law entitlement application. (1) If a 
nonresident alien is a citizen of or a foreign entity is established in 
a country that has one of the following treaties with the United States 
or is a member of the listed organization, then that nonresident alien 
or foreign entity will not be restricted to prior law entitlements, 
provided the eligible landholding subject to the acreage limitation 
provisions is held indirectly:
    (i) Friendship, Commerce and Navigation Treaty;
    (ii) Bilateral Investment Treaty;
    (iii) North American Free Trade Agreement;
    (iv) Canada-United States Free Trade Agreement; or
    (v) Organization for Economic Cooperation and Development.
    (2) Nonresident aliens and foreign entities that meet the criteria 
listed in paragraph (d)(1) of this section will be required to provide 
proof of citizenship or documentation certifying the country in which 
the entity in question was established. Districts will retain such 
documentation in the landholder's file.
    (3) If a nonresident alien or foreign entity meets the criteria 
listed in paragraph (d)(1) of this section, and only holds eligible land 
subject to the acreage limitation provisions indirectly, then the 
nonresident alien may be treated as a United States citizen or the 
foreign entity may be treated as a domestic entity for purposes of 
application of the acreage limitation provisions for the land held 
indirectly.
    (i) The nonresident alien or foreign entity may submit an 
irrevocable election to conform to the discretionary provisions as 
provided for in Sec. 426.3(f). Conformance to the discretionary 
provisions through the submittal of a certification form will not be 
allowed as specified in Sec. 426.3(f)(3).
    (ii) Upon Reclamation's approval of the irrevocable election, a 
nonresident alien will be treated as having the ownership entitlement of 
a qualified recipient as described in Sec. 426.5(b), for any land held 
indirectly. A foreign entity will be treated as a qualified recipient or 
a limited recipient as determined by the number of natural persons who 
are beneficiaries of the entity as specified by the definitions found in 
Sec. 426.2, and the subsequent entitlement as provided in Sec. 426.5(b) 
or (c), for any land held indirectly. The applicable nonfull-cost 
entitlements will be determined as described in Sec. 426.6(b).
    (iii) Reclamation will not approve irrevocable elections submitted 
by a nonresident alien or a foreign entity that holds any land directly 
in any prior law district.
    (iv) Reclamation will not approve irrevocable elections submitted by 
a nonresident alien that is not a citizen of or foreign entity that has 
not been established in a country that has a treaty or international 
membership as specified in paragraph (d)(1) of this section.