[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR632.41]

[Page 398]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 632--RURAL ABANDONED MINE PROGRAM--Table of Contents
 
                    Subpart E--Appeals and Violations
 
Sec. 632.41  Violations.

    (a) Actions causing violation. The following actions constitute 
violation of a contract by a land user:
    (1) Knowingly or negligently damaging or causing conservation 
treatment to be impaired.
    (2) Adopting land use or treatment that tends to defeat the program 
purposes during the period of the contract.
    (3) Failing to comply with the terms of the contract.
    (4) Filing a false claim.
    (5) Misusing an authorization.
    (b) Effect of violation--(1) Contract to be terminated. (i) By 
signing a contract, the land user agrees to forfeit all rights to 
further cost-share payments under a contract and to refund cost-share 
payments received not to exceed the difference between the estimated 
value of the land at time of entering into the contract and the value at 
time of termination, if the contracting officer, with approval of the 
State conservationist, determines that:
    (A) There was a violation of the contract during the time the land 
user had control of the land, and
    (B) The violation was of a nature as to warrant termination of the 
contract.
    (ii) The land user is to be obligated to refund cost-share payments 
and cost shares paid under authorizations not to exceed the difference 
between the estimated value of the land at time of entering into the 
contract and the value at time of termination.
    (2) Contract not terminated. (i) By signing a contract, the land 
user agrees to refund cost-share payments received under the contract or 
to accept payment adjustment if the contracting officer, with the 
approval of the State conservationist, determines that:
    (A) There was a violation of the contract during the time the land 
user had control of the land, and
    (B) The nature of the violation does not warrant termination of the 
contract.
    (ii) Payment adjustments may include decreasing the rate of a cost 
share, deleting a cost-share commitment from the contract, or 
withholding cost-share payments earned but not paid. The land user who 
signs the contract may be obligated to refund cost-share payments and 
cost shares paid under authorizations.