[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: 7CFR634.26]

[Page 421-422]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 634--RURAL CLEAN WATER PROGRAM--Table of Contents
 
                  Subpart C--Participant RCWP Contracts
 
Sec. 634.26  Contract modifications.

    (a) The administering agency may modify contracts previously entered 
into if it is determined to be desirable to carry out the purposes of 
the program, facilitate the practical administration thereof, or to 
accomplish equitable treatment with respect to other conservation, land-
use, or water-quality programs.
    (b) Requirements of active contracts may be waived or modified by 
the administering agency only if such waiver or modification is 
specifically provided for in these regulations. NRCS concurrence in 
modifications is necessary when modifications involve a technical aspect 
of the participant's water-quality plan. A contract may be modified only 
if it is determined that such modifications are desirable to carry out 
purposes of the program or to facilitate the program's practical 
administration.
    (c) Contracts may be modified to add, delete, substitute, or 
reinstall best management practices when:
    (1) The installed measure failed to achieve the desired results 
through no fault of the participant,
    (2) The installed measure deteriorated because of conditions beyond 
the control of the participant, or
    (3) Another BMP is substituted that will achieve the desired 
results.
    (d) Contract modifications are not required when items of work are 
accomplished prior to scheduled completion or within 1 year following 
the year of scheduled completion.
    (e) If, during the contract period, all or part of the right and 
interest in the land is transferred by sale or other transfer action, 
the contract is terminated on the land unit that was transferred and the 
participant having control over such land:

[[Page 422]]

    (1) Forfeits all right to any future cost-share payments on the 
transferred land unit, and
    (2) Must refund with interest all cost-share payments that have been 
made on the transferred land unit unless the new land owner or operator 
becomes a party to the contract, except that where it is determined by 
the administering agency, with the approval of the State 
conservationist, NRCS, that the established BMPs will provide water 
quality benefits for the design life of the BMP, the payment may be 
retained.
    (f) If the new land owner or operator becomes a party to the 
contract:
    (1) Payment which has been earned, but not made to the participant 
who applied the BMPs and had control prior to the transfer, can be made,
    (2) Such land owner or operator is to assume all obligations of the 
previous participant on the transferred land unit,
    (3) The contract with the new participant is to remain in effect 
with the original terms and conditions, and
    (4) The contract is to be modified in writing to show the changes 
caused by the transfer. If the modification is not acceptable to the 
administering agency, the provisions of paragraphs (e) (1) and (2) of 
this section apply.
    (g) The transfer of all or part of a land unit by a participant does 
not affect the rights and obligations of other participants who have 
signed the contract.