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It is not permissible to deduct the receipts from the sale of town lots from construction or operation and maintenance cost. Neither is it permissible to class such receipts as repayments under the comptroller's decision of December 6, 1906. They are accretions to the reclamation fund directly resulting from the operations of the Reclamation Service. (Bureau of Reclamation.) (C. L. 639, March 22, 1917.)

It is not the intent of Congress by this act to take away the right of the State of Idaho to the 5 per cent of the net proceeds of sales of public lands lying within said State for the support of the common schools of the State. If, however, the whole proceeds of said sales have been covered into the reclamation fund and the 5 per cent paid to the State out of the permanent indefinite appropriation therefor, the reclamation fund should be charged therewith. (20 Comp. Dec. 365.)

Sec. 3. [Public reservations to be maintained by town authorities Conveyances of same to municipal corporations.] That the public reservations in such town sites shall be improved and maintained by the town authorities at the expense of the town; and upon the organization thereof as municipal corporations the said reservations shall be conveyed to such corporations by the Secretary of the Interior, subject to the condition that they shall be used forever for public purposes. (34 Stat. 116.)

Textual note.-Section 3 is codified as section 566, title 43, United States Code, the only change being the omission of the word “That” at the beginning of the section.


Public purposes.-Reservations for fire house, town hall, and armory approved. (Departmental decision, July 15, 1916, Shoshone.)

Sec. 4. [Water rights for towns—Contracts therefor.]—That the Secretary of the Interior shall, in accordance with the provisions of the reclamation act, provide for water rights in amount he may deem necessary for the towns established as herein provided, and may enter into contract with the proper authorities of such towns, and other towns or cities on or in the immediate vicinity of irrigation projects, which shall have a water right from the same source as that of said project for the delivery of such water supply to some convenient point, and for the payment into the reclamation fund of charges for the same to be paid by such towns or cities, which charges shall not be less nor upon terms more favorable than those fixed by the Secretary of the Interior for the irrigation project from which the water is taken. (34 Stat. 116.)

Textual note.-Section 4 is codified as section 567, title 43, United States Code, with the following changes : "That" at the beginning of the section is omitted; "reclamation act" reads "reclamation law"; "herein provided" reads "provided, in the preceding sections."


No contract with individual lot owners.—Application for water rights under the reclamation act by individual lot owners for lands which have been subdivided into town lots will not be allowed; but water may be supplied to towns from reclamation projects by delivery to some convenient point, to be handled and distributed to the inhabitants of the town by the municipal authorities in accordance with the provisions of this act. (Secretary's Instruction, March 21, 1911; 39 L. D. 591.)

Discretionary power of the Secretary.-It is within the discretion of the Secretary of the Interior to contract with towns in the manner provided by this section, or contract direct with water users upon town lots or tracts within the corporate limits of town sites regardless of the size of such lots or tracts. TOWN SITES AND POWER DEVELOPMENT


(Opinion Chief Counsel, Reclamation Service (Bureau of Reclamation), February 22, 1916, Commission Minutes 147, Docket 658.) See notes under section 5 of this act.

Sec. 5. [Development and lease of surplus power—Proceeds—Impairment of projects prohibited.]—That whenever a development of power is necessary for the irrigation of lands under any project undertaken under the said reclamation act, or an opportunity is afforded for the development of power under any such project, the Secretary of the Interior is authorized to lease for a period not exceeding 10 years, giving preference to municipal purposes, any surplus power or power privilege, and the moneys derived from such leases shall be covered into the reclamation fund and be placed to the credit of the project from which such power is derived : Provided, That no lease shall be made of such surplus power or power privilege as will impair the efficiency of the irrigation project. (34 Stat. 117.)

Textual note.-Section 5 as amended by act of February 24, 1911 (36 Stat. 930), is codified as section 522, title 43, United States Code.

Amendment.--See act of February 24, 1911 (36 Stat. 930), amending this section.

Cross references.--Act September 18, 1922 (42 Stat. 847), regarding sale of power on Salt River project.

Yuma and Boise items in appropriation act of June 5, 1924 (43 Stat. 416).
The following acts relate to application of power revenues :
Subsection I, section 4, act of December 5, 1924 (43 Stat. 703).

North Platte and Newlands items in appropriation act of March 3, 1925 (43 Stat. 1167).

Minidoka item in act of May 10, 1926 (44 Stat. 480). Boise (Deadwood) and Shoshone items in appropriation act of March 4, 1929 (45 Stat. 1590 and 1592).

Yakima (Kennewick Highlands unit) item in act of May 14, 1930 (46 Stat. 308).

Application of receipts.-The receipts arising from the sale or leasing of water rights to towns or others, and from the leases of power to towns or others, should be classed as repayments. (Comp. Dec., December 6, 1906.)

Returns from the sale of power and power privileges are to be credited as a refund on account of the construction cost of the project. (Departmental Decision, December 28, 1916.)

See resolution of reclamation commission, December 28, 1914, as to application of power receipts.

See also "Receipts from Sale of Water Power," hearing February 12, 1917, before Committee on Irrigation of Arid Lands, House of Representatives, Sixtyfourth Congress, second session.

Pacific Gas & Electric Co. contract.-By the terms of a contract between the United States and the Pacific Gas & Electric Co. in connection with the construction, operation, and maintenance of the Salt River Project, the company surrendered and conveyed all of its rights within the physical limits of the project, and in lieu thereof the United States agreed to furnish the company in the city of Phoenix, Ariz., a specified amount of electrical energy generated at its works at the Roosevelt Reservoir at a stipulated sum of money and for a term not exceeding 10 years, and the United States further agreed that while serving power to the company under the terms of the contract, it would refrain from entering into a general retailing of power to customers in the city of Phoenix and from furnishing power to anyone in said city to be again sold or retailed. This contract neither violates the provisions of the antitrust law of July 2, 1890 (26 Stat. 209), nor the provision of the act of April 16, 1906 (34 Stat. 116), which, in authorizing the Secretary of the Interior to lease surplus power derived from reclamation projects, provides that preference be given to municipal usage. (30 Op. Atty. Gen. 197.)



An act to provide for the disposition under the public land laws of the lands in the abandoned Fort Shaw Military Reservation, Mont. (Act June 9, 1906, ch. 3066, 34 Stat. 228)

[Sec. 1. Disposal of lands—Reservation-Withdrawal under reclamation act,]—That the Secretary of the Interior is hereby authorized to dispose of the lands in the abandoned Fort Shaw Military Reservation, in Montana, under the provisions of the public land laws, and the public-land surveys shall be extended over the lands therein: Provided, That he may reserve for Indian school purposes the following-described lands in township twenty north, range two west, Montana principal meridian, as determined by the extension of the public surveys: That portion of section two lying south of Sun River, all of sections eleven, fourteen, and twenty-three, and that portion of section twenty-six lying within the present reservation boundary: Provided further, That before opening the reservation to entry, the Secretary of the Interior may withdraw any other lands therein needed in connection with an irrigation project under the provisions of the act of June seventeenth, nineteen hundred and two, known as the reclamation act, for use or disposition thereunder. (34 Stat. 228.)



An act to extend the irrigation act to the State of Texas.

34 Stat. 259)

(Act June 12, 1906, ch. 3288,

[Sec. 1. Reclamation act to apply to Texas.]—That the provisions of the act entitled "An act appropriating the receipts from the sale and disposal of public lands in certain States and Territories to the construction of irrigation works for the reclamation of arid lands," approved June seventeenth, nineteen hundred and two, be, and the same are hereby, extended so as to include and apply to the State of Texas. (34 Stat. 259.)

Textual note.—The substance of this act, combined with the permanent provision of section 1 of the act of June 17, 1902 (32 Stat. 388), is codified as section 391, title 43, United States Code.


Cross reference.-See act of February 25, 1905 (33 Stat. 814), extending the reclamation act to a portion of the State of Texas.




(Extract from] An act making appropriations for the current and contingent expenses of

the Indian Department, for fulfilling treaty stipulations with various Indian tribes, and for other purposes, for the fiscal year ending June 30, 1907. (Act June 21, 1906, ch. 3504, 34 Stat. 325)

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[Sales within reclamation projects—Proceeds.]—That any Indian allotted lands under any law or treaty without the power of alienation, and within a reclamation project approved by the Secretary of the Interior, may sell and convey any part thereof, under rules and regulations prescribed by the Secretary of the Interior, but such conveyance shall be subject to his approval, and when so approved shall convey full title to the purchaser the same as if final patent without restrictions had been issued to the allottee: Provided. That the consideration shall be placed in the Treasury of the United States and used by the Commissioner of Indian Affairs to pay the construction charges that may be assessed against the unsold part of the allotment, and to pay the maintenance charges thereon during the trust period, and any surplus shall be a benefit running with the water right to be paid to the holder thereof. (34 Stat. 327.)

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Textual note.-The above provision is codified as section 409, title 25, United States Code.


Sale to United States of canal right of way.-Under this clause, a contract by an Indian allottee to convey to the United States a strip over his allotted lands, as a right of way for a canal under a reclamation project, executed during the trust period, may properly be approved by the Secretary of the Interior. (Lucy Hawk Shively, 36 L. D. 135.)

Miscellaneous.---Act of March 1, 1907 (34 Stat. 1015), in reference to conveyance of Indian lands. Act of May 29, 1908 (35 Stat. 444), regarding patents in fee to purchasers of Indian lands.


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