towns and schools, not included in the designated area of the San Carlos irrigation project, for the irrigation of lawns and gardens. The charge for such service for the calendar year 1939, and until further order, shall be $2.50 per acre-foot of water delivered, payable in advance of delivery.

The delivery of water and the collection therefor shall be made by the San Carlos irrigation and drainage district. It is agreed that, for the season of 1939, the district shall retain $1.25 per acrefoot, for each acre-foot on which collection shall be made, as its compensation for rendering the service. The remainder of the collections shall be paid to the project engineer for the San Carlos irrigation project for the benefit of the joint works.

Sections 221.62-221.65 are subject to modification for future years by the issuance and publication of changes hereto.

§ 221.67 Operation by district.

The San Carlos irrigation and drainage district upon request of its board of directors may continue for the period of this order to operate the canals serving lands in private and public ownership within its boundary, and in the event said district elects to continue such operation a credit of 70 cents per acre shall be allowed from the said basic charge for the area of district lands so operated and the basic charge to be paid to the Government by the district will accordingly be reduced to 95 cents per acre. § 221.68 Restriction Government

obligations.

of

It should be understood that the provisions of §§ 221.62-221.69 requiring funds to be made available by the United States are dependent upon appropriations being made by Congress therefor; that the charges based upon the conditions defined shall apply to the calendar year 1938 only, and that nothing herein shall be construed as establishing a precedent for future years. § 221.69 District obligations.

Should the San Carlos irrigation and drainage district, through its board of directors, request and be granted the privi

lege of maintaining certain of the works of the project designated in the said repayment contract as "Works of the District," the rights and obligations of the district shall be prescribed and governed by the departmental order turning over the maintenance of such works to the district.

DEFINING JOINT DISTRICT AND INDIAN WORKS OF THE SAN CARLOS FEDERAL IRRIGATION PROJECT

SOURCE: 221.69a to 221.69m appear at 22 F.R. 10655, Dec. 24, 1957.

§ 221.69a Joint works.

The joint works of the San Carlos Federal irrigation project are hereby defined and declared to be as follows:

(a) Coolidge Dam and San Carlos Reservoir.

(b) Electrical power generating, transmission and distribution system.

(c) Ashurst-Hayden Diversion Dam. (d) Florence-Casa Grande Canal to and including turnout to the Picacho Reservoir.

Feeder Canal

(e) Picacho Reservoir. and Outlet Structure: Provided, however, That at any time in the future when the Picacho Reservoir is not or can not be used for project storage or regulatory purposes, it and the outlet structure and feeder canal upon further order of the Secretary may be designated as part of the district works.

(f) North Side Canal from the Florence-Casa Grande Canal to the boundary of the Pima Indian Reservation.

(g) Pima Lateral to the boundary of the Pima Indian Reservation.

(h) Sub-laterals of the Pima Lateral outside of the reservation which serve in whole or in part Indian lands.

(i) Drainage and irrigation pumping works including wells and structures regardless of whether located within the district or the reservation.

(j) All structures on any and all of the above works, together with measuring devices such as measuring flumes or gauging stations used for the division of water as between Indian lands and district lands, even though some of such structures may be located in laterals and canals themselves designated as district or Indian works.

(k) Telephone lines and appurtenances belonging thereto.

(1) All project buildings paid for on joint account including the office building at Coolidge, the project garage and shops, including the shops at Olberg, and all machines and other equipment necessary for the operation and maintenance of the joint works heretofore selected for that purpose by the project engineer and the officials of the San Carlos Irrigation and Drainage District: Provided, however, That in the event the project joint works organization does not need all the office and warehouse space to carry on the activities of the project joint works, the district and the Indian unit, or either, shall have the right to use such space for official purposes on the following conditions, to-wit:

(1) The project engineer shall have the right to determine the amount if any of still available space.

(2) The project engineer has determined that for the present, joint works will need approximately two-thirds of the available office space at Coolidge. The Indian unit has set up its office at Sacaton and makes that location the headquarters for its operation and maintenance activities on Indian lands and, therefore, no longer occupies any of the office space at Coolidge. The district, therefore, is permitted to use one-third of said office space until such time as the project engineer finds that the requirements of joint works for such office space increase or decrease. The occupancy of the office building at Coolidge or any other project building occupied by the district and/or the Indian unit shall be by mutual agreement of the project engineer, the dis trict engineer and the engineer in charge of the Indian unit. Payment shall be made by the Indian unit or by the district for the cost of operating and maintaining space occupied in the office building at Coolidge or in such other project buildings as may be occupied by either unit for its exclusive use. Until the requirements of joint works increase the district may continue to occupy the approximate east one-third of the office building for which occupancy the district shall pay such sum per month from August 1, 1952 as has been or may be agreed upon in writing between the district and the project engineer. The use of such space, which shall include the right to use part of the basement space, and garage referred to in an agreement

between the project engineer and the district engineer of August 25, 1952, approved by the Area Director on December 19, 1952, shall continue, subject to the paramount need for such space for joint works operations, and the judgment of the project engineer in this regard shall be final unless otherwise determined by the Secretary of the Interior. The monthly payments received shall be deposited in the joint works account of the project and applied as provided in the said agreement.

(3) The district and the Indian unit shall have the right at all times to the services of the project shops for official work on the following conditions:

(i) The shops shall be maintained for the purpose principally of doing work for the joint works part of the project.

(ii) The shops shall be operated at all times under the supervision and management of the project engineer who shall make such rules and regulations in regard to their operation as he may from time to time think necessary to promote efficiency and economy, including the time and method of payment for work done for the district or Indian units.

(iii) All shop work done for the district and the Indian units shall be done by the project shop organization on a cost basis, and shall be done only at such times as may not interfere with joint works requirements. All such work shall be done as between the Indian unit and the district on the basis of "first come, first served," except that the project engineer may do emergency work for either at any time, when in his judgment it is necessary.

(m) All lands upon which any of the foregoing buildings or structures are located and the rights-of-way therefor, including the right-of-way for the San Carlos and Picacho Reservoir sites.

(1) If at any time it shall be found that the project joint works does not require the use of some of said land, and any of it can be used advantageously by the district or the Indian unit, the project engineer may assign such area to either of said units for use without cost to be used by the unit to which assigned until needed by the project. The availability of such land for assignment as aforesaid, and the purposes for which it may be used by the party to which it may be assigned, and the manner in which it shall be used and cared for shall be determined by the project engineer, whose

judgment shall be final in case of disagreement in such matters.

(2) In the event the project engineer determines it is necessary for joint works to have and use any or all of the project buildings or premises in this order, or hereafter, assigned to the district, he shall give the district 6 months' notice in advance of the date when the district shall vacate any such buildings or premises occupied or used by it.

§ 221.69b District works.

All project works not reserved in this part as joint works and which are used for the serving of district lands are hereby defined and declared to be district works.

The district works as defined in this section are hereby turned over to the district beginning July 1, 1938, to be operated and maintained by the district and at its expense under management satisfactory to the Secretary of the Interior of the United States, until further order.

The operation and maintenance of the district works by the district as provided for in this section shall be at all times done both as to quality and quantity in a manner satisfactory to the said Secretary. The district shall at all times keep the works hereby entrusted to its care for operation and maintenance in a satisfactory operating condition; it being understood in that regard that if at any time either the management or the operation and maintenance of the district works by the district shall prove unsatisfactory to the United States the Secretary of the Interior or his duly authorized representative, the project engineer, shall, in writing, call such matters to the attention of the district; and in the event such unsatisfactory matters are not corrected by the district within a reasonable time, the Secretary retains the right to withdraw from the district the privilege of operating and maintaining said works. What constitutes "a reasonable time" within the meaning of this section shall be determined and definitely set forth in any letter or notice calling any such unsatisfactory conditions to the attention of the district: Provided, however, That in the event any such notice shall be given by the duly authorized representative of the Secretary, his fixing of a reasonable time for remedying the unsatisfactory conditions called to the attention of the district in any such notice may be appealed to the Secretary

whose decision in that regard shall be final.

§ 221.69c Indian works.

All project works serving Indian lands not reserved in this part as joint works as defined in § 130.69a shall be considered and are hereby declared to be Indian works.

All Indian works as defined in this section shall be operated and maintained by the United States and at its or the Indians' expense.

§ 221.69d Operation and maintenance charges; joint works.

(a) The joint works as defined will be operated and maintained by the United States and the cost thereof, including the administration of the Gila decree (such costs for the fiscal year beginning July 1, 1938, are estimated to be $60,000) exclusive of the cost of operating and maintaining electric power generating plants at the Coolidge Dam and the diesel plant at Coolidge and the power transmission and distribution system, as well as all the appurtenances belonging to the project electrical system, which is payable from power revenues, and for the payment of which such revenues are now expected to be sufficient, shall be paid by the project landowners as provided for in the landowners' agreement and the repayment contract.

(b) Since the project consists of 50,000 acres of Indian lands and 50,000 acres of public and private lands, said cost of maintaining and operating the joint works shall be paid equally on account of the Indian lands and the public and private lands at a per acre rate to be established by order of the Secretary annually hereafter, which said rate shall produce such a sum of money as shall be determined by the Secretary to be the amount necessary to meet, on the aforesaid basis, the proportionate share of the expense required by the project to maintain and operate the joint works.

(c) That part of the charges for operation and maintenance of the joint works to be borne by the district when so determined shall be paid on a fiscal year basis to the United States annually in advance, not later than the first day of March of each year, beginning the first of March 1939, all as provided in the repayment contract as amended, which said first payment shall be for the fiscal year 1940, and the United States or the Indians will make available the same

amount of money each fiscal year for the operation and maintenance of the joint works for and on account of the Indian lands.

(d) Since the district has made payments to the project covering its share of the cost of joint works for the calendar year 1938, and its estimated share of the cost of the project maintenance to July 1, 1938, also the money collected by it for excess water deliveries during the year 1937; and since in any event there will be unadjusted credits due the district or payments due from it to the project on account of its share of said costs and its share of joint works maintenance and operation costs for the last half of the fiscal year 1939, it is hereby provided that any unadjusted credits or payments on account of said items existing on July 1, 1938, shall be adjusted at the first opportunity after the actual figures are determined by the project engineer, in any event within 30 days after the project engineer furnishes the district with a statement of its account with the project as of July 1, 1938, for and on account of the aforesaid items. The project engineer in determining what amount if any the district owes the project on July 1st on account of said items shall allow the district credit for 50 percent of the total project revenues derived from excess water deliveries for the calendar year 1937, to the extent such revenues have been collected and are available for project uses, but no credit can be allowed the district on account of such revenues due for deliveries to Indian lands during 1937 until made available by Congress; credit for such uncollected amounts shall be allowed on future payments by the district.

§ 221.69e Delivery of water and operation and maintenance charges for district lands and works.

(a) The district, in accordance with the repayment contract, shall make an annual charge against lands of the district, designated in this section as the basic charge, for operation and maintenance of district works and for the district's share of operation and maintenance of joint works which charge when collected will, together with its proper share of revenue from the anticipated excess water charges hereinafter provided for, cover the cost of operating and maintaining said district works and pay the district's share of operating and maintaining the joint works.

(b) The district, in accordance with the repayment contract, shall deliver two (2) acre-feet of water or such part thereof as may be legally and physically available, to each irrigated acre in the district on payment of its said basic charge and any other charges due the district or the United States under the provisions of the Landowners' Agreement and the Repayment Contract: Provided, That all sums due the United States provided for in this section shall have been paid by the district in accordance with the provisions of this order and the terms of the repayment contract; all additional water, except free water, as provided for in the repayment contract shall be paid for by the landowners and collected by the district, at the rate of fifty cents (50%) per acre-foot for the third acre-foot per acre and at the rate of one dollar fifty cents ($1.50) per acrefoot for all additional water delivered, but the Secretary retains the right to change at any time the charge for excess water.

(c) In order to protect the interests of the United States and facilitate the collection of the construction charges due from the landowners within the district owing to the United States, it is further provided that the district shall maintain an organization which will not entail an overhead expense disproportionate to the services which it renders the landowners in the operation and maintenance of said district works.

(d) It is further provided that if at any time the Secretary determines that the charges made by the district for operation and maintenance of the district works are excessive, the district shall proceed immediately upon written notice from the Secretary of the Interior to reduce said cost, to a maximum to be fixed in such notice by the Secretary of the Interior and if within a reasonable time the district finds itself unable to meet the demands of the Secretary in that regard the Secretary may withdraw the operation and maintenance of the district works from the district. The Secretary retains full power to determine what constitutes a reasonable time within the meaning of this section.

§ 221.69f Delivery of water and operation and maintenance charges for and on account of the Indian lands and works.

As provided in this part, the United States will make available for operat

ing and maintaining the joint works the aforesaid share thereof due on account of the 50,000 acres of Indian lands in said project. In addition thereto the United States or the Indians shall provide an amount of money which will be sufficient to meet the per acre cost of maintaining and operating the Indian works, which said per acre cost shall be termed the basic charge for Indian lands and shall be paid or provided for at the time and in the manner provided from time to time by the Secretary of the Interior in accordance with law and the repayment contract. It is further provided that when the basic charge for Indian lands plus the Indians' per acre share of the cost of Joint works has been determined and the payment thereof made by the Indians in advance or provided for by the United States then there shall be delivered to each irrigated acre of Indian land two acre-feet of water or such part thereof as may be legally and physically available annually; and all additional water, except free water as provided for in the repayment contract, delivered to Indian lands shall be upon such terms as may be prescribed by the Secretary from time to time as provided for in Article 11 of the repayment contract, but until further order in that regard it shall be paid for in advance by the Indians or provided for by the United States in advance of delivery at the rate of fifty cents (50g) per acre-foot for the third acre-foot per acre and at the rate of one dollar fifty cents ($1.50) per acrefoot for all additional water delivered. § 221.69g Application of funds from excess water deliveries and sales. The revenue from charges for excess water deliveries shall be used and paid as provided in the repayment contract, and its provisions shall be considered as having been complied with as long as the district operates and maintains district works, if the said collections shall be made and applied as follows:

(a) Both the district and the Indian unit or the United States for the Indians shall be entitled to use 50 percent of the total of such charges due or collected hereafter from both Indian and district lands in any one year to meet, to the extent it will, their respective basic sum charges. Where deliveries to district lands exceed those to Indian lands or vice versa, any balance due to or owing from either by reason of such differences

shall be adjusted at the end of each calendar year by proper payments from the district or credits to it. Such payments or credits to be made on or before March 1, of the succeeding year as provided in the repayment contract.

(b) In harmony with the act of March 7, 1928 (45 Stat. 210), and Article 12 of the repayment contract, it has been the practice since the San Carlos project has been in operation to furnish water when available to the State prison near Florence, and to the cities and towns in the project as well as to the agency grounds and gardens and the experimental farm at Sacaton, and it is believed that so long as that can be done it will be to the best interests of the project to continue such uses of water. It is contemplated that contracts and such proper orders as may be required will be made in the near future to carry that policy into effect on a well-defined and permanent basis. When that shall have been done all such services as may be required from the district or the Indian unit to deliver water to said agencies shall be paid for as shall from time to time be provided by the Secretary of the Interior.

(c) All money received from the sale or leasing of water to any or all of the aforesaid public institutions for public enterprises, and beautification, where such service shall be rendered by the district or the Indian unit, shall after due compensation as aforesaid for such service, be used and paid in the same manner provided herein with reference to money received from excess water deliveries. In the event, however, that the project joint works can and does render the service to any or all of said public institutions without using district or Indian unit works, it shall make the collections and the revenue shall go into the joint works operation and maintenance fund and be used to reduce the amount due for that purpose from the district and the Indian unit each year.

§ 221.69h Florence-Casa Grande project lands.

(a) There are certain lands of the Florence-Casa Grande project which have water rights, but have not been merged as yet with the San Carlos project. It is necessary that said lands be served in part through project canals the amount of water to which, under the law and the Florence-Casa Grande agreement, they are entitled. It is contemplated that contracts and proper orders