Page:United States Statutes at Large Volume 82.djvu/1041

 82 STAT. ]

PUBLIC LAW 90-562-OCT. 12, 1968

999

Public Law 90-562 AN ACT

October 12, 1968

To authorize the Secretary of the Interior to construct, operate, and maintain stage 1 and to acquire lands for stage 2 of the Palmetto Bend reclamation project, Texas, and for other purposes.

[H- R. 5117]

Be it enacted by the Senate and House of Representatives of the Palmetto United States of America in Congress assembled, That the Secretaryreclamation Bend projof the Interior is authorized to construct, operate, and maintain the ect, Texas, first stage and to acquire lands for the second stage of the Palmetto construction. Bend Federal reclamation project, Texas, in accordance with the Federal reclamation laws (Act of June 17, 1902 (32 Stat. 388), and ^^ use 371 note. Acts amendatory thereof or supplementary thereto) for the purposes of storing, regulating, and furnishing water for municipal and industrial use, conserving and developing fish and wildlife resources, and enhancing outdoor recreation opportunities. The stage 1 development of the project shall consist of the following principal works: Palmetto Bend Dam and Eeservoir on the Navidad River near Edna, Texas, and recreation facilities. SEC. 2. (a) Closts of the project or any unit or stage thereof allocated ^1^^°'^^'' P*"'"' to municipal and industrial water supply shall be repayable with Repayment interest, by the municipal and industrial water users over a period of c°sts. not more than fifty years from the date that water is first delivered for that purpose, pursuant to contracts with municipal corporations, organizations, or other entities as defined in section 2(g) of the Reclamation Project Act of 1939 (53 Stat. 1187). Such contracts shall be ^3 USC 485a. precedent to the commencement of construction of the project. Contracts may be entered into with a qualified entity or entities pursuant to the provisions of this Act without regard to the last sentence of subsection 9(c) of the Reclamation Project Act of 1939, supra. " ^ ^^'^ ^^•'>^^ (b) If contracts for the repayment of all of the costs allocated to municipal and industrial water supply shall not have been executed within five years of the date of enactment of this Act, the authorization herein granted to the Secretary shall thereupon terminate. (c) The interest rate used for computing interest during construe- . interest rate, tion and interest on the unpaid balance of the costs of the project allocated to municipal and industrial water supply shall be determined by the Secretary of the Treasury, as of the beginning of the fiscal year in which construction is commenced, on the basis of the computed average interest rate payable by the Treasury upon its outstanding marketable public obligations wiich are neither due nor callable for redemption for fifteen years from date of issue. SEC. 3. (a) The Secretary is authorized to transfer to a qualified Project care, contracting entity or entities the care, operation, and maintenance of Tran^fLr^o'' the project works, and, if such transfer is made, to credit annually contractor. against the contractor's repayment obligation that portion of the year's joint operation and maintenance costs which, if the United States had continued to operate the project, would have been allocated to fish and wildlife and recreation purposes. Prior to assuming care, operation, and maintenance of the project works the contracting entity or entities shall be obligated to operate them in accordance with criteria established by the Secretary of the Interior with respect to fish and wildlife and recreation. (b) Upon complete payment of the obligation assumed, the contract-. Permanent usage ing entity or entities, their designee or designees, shall have a perma- "^'^ nent right to use that portion of project reservoir capacity which is or may be allocated to municipal and industrial water supply purposes by the Secretary of the Interior, so long as the space designated for those purposes may be physically available, taking into account such equit-

96-600 O - 69 - 66

�