able for the irrigation of the lands in the entry for 4 years.

(c) Taxes legally so assessed by the State or political subdivision thereof under the Acts of April 21, 1928, and June 13, 1930, constitute a lien upon the land, subject to the prior lien of the United States for all due and unpaid installments of the appraised purchase price of the lands and for all the unpaid charges authorized by law, whether accrued or otherwise, and such lien may be enforced by the State or political subdivision thereof by the sale of the lands under proceedings had as in case of lands held in private ownership.

(d) No tax assessed or levied, if any, prior to April 21, 1928, by the State or political subdivision thereof, is validated by either the Act of April 21, 1928, or June 13, 1930.

(e) In case of the sale for unpaid taxes of lands included in homestead entries on ceded Indian lands within any Indian irrigation project, or of a reclamation homestead entry, or a desert-land entry within an irrigation project constructed under the Reclamation Act and obtaining its water supply from such a project, the holder of the tax deed or tax title resulting from such tax sale shall be entitled to all the rights and privileges, as to such homestead entries, of an assignee homestead entryman on such ceded Indian lands or of an assignee under the provisions of the Act of June 23, 1910 (36 Stat. 592; 43 U.S.C. 441), and section 2 of the Act of March 28, 1908 (35 Stat. 52; 43 U.S.C. 324), as to desertland entries, only when application for recognition as assignee has been filed in accordance with the governing regulations (see § 2515.5(a)(3) as to homestead entries and § 2521.3(a) of this title as to desert-lands entries), and also satisfactory proof of such tax title and showing that the period of redemption has expired. After acceptance by the manager of the land office of such evidence as satisfactory, the name of such assignee shall be endorsed upon the records of the office and such assignee shall be entitled to the rights of one holding a complete and valid assignment under said Act of June 23, 1910, or the Act of March 28, 1908, and such assignee may at any

final

time thereafter receive patent with lien reserved (in proper cases) under the Act of August 9, 1912 (37 Stat. 265; 43 U.S.C. 541-546), as amended and extended, for all unpaid installments, including, in proper cases, all sums due or to become due to the United States on account of the purchase price of the land, upon submitting satisfactory proof of reclamation required by the Act of June 17, 1902 (32 Stat. 388), and acts amendatory thereof, and in case of desert-land entries, the claimant upon submitting satisfactory proof under the Act of March 3, 1877 (19 Stat. 377; 43 U.S.C. 321-323), as amended by the Acts of March 3, 1891 (26 Stat. 1095; 43 U.S.C. 321, 323, 325, 327-329), section 5 of June 27, 1906 (34 Stat. 520; 43 U.S.C. 448), June 6, 1930 (46 Stat. 502; 43 U.S.C. 448), and June 13, 1930 (46 Stat. 581), and making the payments required by said acts, shall receive patent with lien reserved in proper cases. The holder of the tax deed or tax title, applying for recognition as assignee, as aforesaid, must submit proper evidence of tax title. As the laws governing the sale of lands for taxes are not the same in the several States affected by this act and as in some instances more than one method of conducting sales is permitted, and as the period in which redemption may be made varies, it is not thought advisable to formulate specific rules governing evidence or proof of tax titles. However, the following general rules must be observed: If the tax title is based on court proceedings, a copy of the decree or order of the court under the seal of the clerk of the court must be furnished. The certificate of the clerk of the court should make specific reference to the laws governing such sale and show that the period of redemption has expired without redemption having been made, citing the statute. If the sale was made by the State or political subdivision thereof or under other than court proceedings, the certificate of the officer conducting such sale, under the seal of his office, must be furnished. This certificate should show that all steps necessary to legalize such sale were taken, citing the statutes, and should show that the period

of redemption has expired without redemption being made.

(f) In cases of application for exchange of reclamation homestead entries under said Act of June 17, 1902, in whole or in part (of lands not sold at tax sale), or application to amend, where the proof as to residence, improvements, and cultivation in support of the base land has been accepted as satisfactory (see subsection M of section 4 of the Act of December 5, 1924, 43 Stat. 703, 43 U.S.C. 438, and section 44 of the Act of May 25, 1926, 44 Stat. 648, 43 U.S.C. 423c, and the regulations under said Act of May 25, 1926, 51 L. D. 525, 54 L. D. 193, Part 403 of this title), there must be furnished in addition to the usual evidence a certificate by the proper State or county tax officer showing that there are no unpaid taxes or tax sales charged against the land or tax deeds outstanding and that the accrued taxes for the current year have been provided for. In this connection reference is made of course to assessments or taxes, if any, levied by the State since April 21, 1928, under said Acts of April 21, 1928, and June 13, 1930.

(g) Except in cases of application to exchange, or amend, as set forth in paragraph (f) of this section, whenever relinquishments of entries or parts of entries involving taxable lands are filed with the manager, he will note the same upon his records as in ordinary cases, and in cases of the cancellation, in whole or in part, of entries involving taxable lands, the manager will note such cancellation upon his records and promptly advise the State or county authorities thereof to the end that the lands involved may be formally relieved of taxes, liens, or tax titles, if any, levied or outstanding thereagainst pursuant to said Act of June 13, 1930, between June 13, 1930, and the date when the relinquishment was filed or cancellation made. Such notice should describe the land involved and give the name of the entryman or claimant thereof as shown by the records of the land office. The notice to the tax authorities should be substantially in the form prescribed (53 I.D. 424). The release of the lien or tax title should be duly executed and recorded by the proper State or

county authorities, after which with evidence of its recordation it should be filed with the manager.

(h) Failure to notify the State or political subdivision thereof of reversion of title to the base land in cases of application for exchange, or for amendment, or in cases of relinquishment or cancellation of any entry does not mean that such base land or land covered by the relinquished or canceled entry still retains its taxable status, if any such it ever had under said Act of April 21, 1928, as originally enacted or as amended, as aforesaid, inasmuch as under law lands owned by the United States and not in a taxable status are not, under any circumstances, subject to taxation by the State or political subdivision thereof.

(i) Neither said Act of April 21, 1928, nor the amendatory Act of June 13, 1930, enlarges, abridges, or impairs the Act of August 11, 1916 (39 Stat. 506; 54 U.S.C. 621-630), in re irrigation districts in their relation to the public lands of the United States and both the Act of April 21, 1928, as amended, and said Act of August 11, 1916, may have harmonious operation within their proper spheres.

(j) The holder of the tax deed or tax title resulting from the tax sale mentioned in section 3 of said Act of April 21, 1928, and of said Act of June 13, 1930, should promptly give notice in writing of his claimed interest in the land to the manager of the land office within whose district the involved land is situated, in accordance with §§ 1840.1 and 1850.1 of this title, whereupon he will be entitled to full notice of all action against the entry as provided by said section.

§ 402.1 Purpose of this subpart.

The regulations in this subpart apply to the sale of certain classes of lands that are subject to the reclamation laws and that may be sold under one of the following statutes:

(a) The Act of May 20, 1920 (41 Stat. 605; 43 U.S.C. 375);

(b) The Act of May 16, 1930 (46 Stat. 367; 43 U.S.C. 424-424e); or

(c) The Act of March 31, 1950 (64 Stat. 39; 43 U.S.C. Sup. 375b-375f).

§ 402.2 What lands may be sold; method of sale; limit of acreage.

(a) Lands which may be sold under the Act of May 20, 1920 (41 Stat. 605; 43 U.S.C. 375) are lands, not otherwise reserved, which have been withdrawn in connection with a Federal irrigation project and improved at the expense of the reclamation fund for administration or other like purposes and which are no longer needed for project purposes. Not more than 160 acres of such lands may be sold to any one person. With one exception, such lands must be sold at public auction. If, however, a tract is appraised at not more than $300, it may be sold at private sale or at public auction and without regard to the provisions of the Act of May 20, 1920 respecting notice of publication and mode of sale.

(b) Lands which may be sold under the Act of May 16, 1930 (46 Stat. 367; 43 U.S.C. 424-424e) are tracts of temporarily or permanently unproductive

or

land of insufficient size to support a family. A purchaser must be a resident farm owner or entryman on the Federal irrigation project where such lands are located and is permitted to purchase not more than 160 acres or an area which together with lands already owned entered on such project, does not exceed 320 acres. A resident farm owner means a farm owner who is actually residing on the farm he owns, and a resident entryman means a homestead entryman who is actually residing on the land in his homestead entry. These lands may be sold either at public auction or at private sale.

(c) Lands which may be sold under the Act of March 31, 1950 (64 Stat. 39; 43 U.S.C. Sup., 375b-375f) are tracts of land too small to be classed as farm units under the Federal reclamation laws. A purchaser must be a resident farm owner or entryman (as defined in paragraph (b) of this section) on the Federal irrigation project where such lands are located and is permitted to purchase not more than 160 acres or an area which, together with land already owned or entered on such project, does not exceed 160 irrigable acres. These lands may be sold either at public auction or at private sale.

§ 402.3 Power to sell.

The Commissioner of Reclamation may, in accordance with the regulations in this subpart, sell lands under each of the three statutes listed in § 402.1. An Assistant Commissioner or an official in charge of an office, region, division, district, or project of the Bureau of Reclamation, if authorized in writing by the Commissioner of Reclamation, may also sell lands under the statutes mentioned in accordance with this subpart, and whenever the term "Commissioner" is used in this subpart, it includes any official so authorized.

§ 402.5 Procedures within the Department. (a) Before offering any land for sale under any of the statutes listed in § 402.1, the Commissioner should determine that the sale will be in the best interest of the project in which the lands are located and, if the lands sold are to be irrigated, that there is a sufficient water supply for such irrigation.

(b) When a decision is made to offer lands for sale under any of the statutes listed in § 402.1: (1) The Commissioner should notify the State Supervisor of the Bureau of Land Management in whose State the lands are located, (2) a report showing the status of the lands should be obtained from the Manager of the appropriate office of the Bureau of Land Management, and (3) a report should be obtained from the Geological Survey with respect to the mineral resources of the lands. A copy of the report of the Geological Survey should be furnished to the Manager of the appropriate land office of the Bureau of Land Management for his use in preparing the final certificate.

§ 402.6 Price.

The price of land sold under this subpart shall be not less than that fixed by independent appraisal approved by the Commissioner.

§ 402.7 Notice of sale.

The sale of lands at public auction under this part shall be administered by the Commissioner. Notice of such sales shall be given by publication in a newspaper of general circulation in the vicinity of the lands to be sold for either not less than 30 days or once a week for five consecutive weeks prior to the date fixed for any such sale. Under the Act of May 20, 1920 (41 Stat. 605; 43 U.S.C. 375) notice of sales of lands appraised at more than $300 shall also be given by posting upon the land. In the case of all sales under this subpart notice may be given by such other means as the Commissioner may deem appropriate. Where lands are to be sold at private sale, no public notice shall be required.

§ 402.8 Terms of sale.

(a) Under the Acts of May 16, 1930 (46 Stat. 367; 43 U.S.C. 424-424e) and March 31, 1950 (64 Stat. 39; 43 U.S.C. Sup., 375b-375f) lands may be sold either for cash or upon deferred payments. A sale providing for deferred payments shall be upon terms to be established by the Commissioner, except that the Commissioner shall require the annual payment of interest at six percent per annum on the unpaid bal

ance.

(b) Under the Act of May 20, 1920 (41 Stat. 605; 43 U.S.C. 375) lands may be sold either for cash or upon deferred payments. In connection with a sale providing for deferred payments the Commissioner shall require that not less than one-fifth the purchase price in cash be paid at the time of sale and that the remainder be payable in not more than four annual payments with interest at six percent per annum on the unpaid balance.

(c) All payments shall be made to the official of the Bureau of Reclamation specified in the contract of sale.

A contract in form approved by the Commissioner shall be signed by the purchaser at the time of sale and executed on behalf of the United States by the Commissioner. A copy of the contract shall be furnished to the appropriate land office of the Bureau of Land Management for entering in the tract books. The contract shall contain a description of the land to be sold, the price and terms of sale, a full statement by the purchaser respecting his qualifications, including citizenship, a description by the purchaser of his present holdings, and a statement by him of the irrigable acreage of those holdings. The contract shall also contain a statement by the purchaser with respect to his knowledge as to whether the land is mineral or nonmineral in character, as well as all appropriate reservations, mineral and otherwise, required by law to be made on entries and patents. Assignments of contracts may be made only with the consent of the Commissioner and to persons legally qualified to be purchasers.

§ 402.10 Patent.

When a purchaser has complied fully with the provisions of his contract and with the applicable provisions of law, including the regulations in this subpart, the Commissioner shall issue to the purchaser a final receipt so stating. The receipt shall show any liens that, under the reclamation laws, must be indicated in the final certificate and patent and shall state the statutory authority for such liens. The receipt shall be submitted to the Manager of the appropriate land office of the Bureau of Land Management and the Manager shall prepare a final certificate for the issuance of patent to the purchaser. The Manager shall show in the final certificate the above-mentioned reclamation liens and any reservations that are required by law to be made on the patent.

§ 402.11 Termination or cancellation.

Immediately upon the termination or cancellation of any contract for nonpayment or other appropriate reason the Commissioner shall notify the proper office of the Bureau of Land Management in order that the tract books located there may reflect the termination or cancellation of the contract.

Subpart B-Small Tracts; Public and Acquired Lands; Gila Project, Ari

zona

AUTHORITY: Sec. 15, 53 Stat. 1198, sec. 7, 61 Stat. 630; 43 U.S.C. 485i, 613e. Interpret or apply secs. 3-4, 61 Stat. 629; 43 U.S.C. 613b-613c.

SOURCE: 19 FR 431, Jan. 26, 1954, unless otherwise noted.

§ 402.21 Purpose of this subpart.

The regulations in this subpart apply to the sale of small tracts of public and acquired lands on the Gila Project, Arizona, that are subject to the reclamation laws and that may be sold to actual settlers or farmers under the Act of July 30, 1947 (61 Stat. 628; 43 U. S. C. 613-613e).

§ 402.22 Provisions of Subpart A applicable.

The regulations in Subpart A of this part relative to the sale of public lands under the Act of March 31, 1950 (64 Stat. 39; 43 U. S. C., Sup. 375b-375f) shall be applicable to all sales proposed to be made under this subpart, except that the provisions of § 402.23(b) relative to deeds shall apply in lieu of the provisions of § 402.10 relative to patents; and excepting further that the residence requirements of § 402.2(b) shall not apply.

[18 FR 316, Jan. 15, 1953, as amended at 34 FR 5066, Mar. 11, 1969]

§ 402.23 Special provisions.

(a) After disposition of any lands under this subpart by contract of sale and during the time such contract shall remain in effect, said lands shall be (1) subject to the provisions of the laws of the State of Arizona relating to the organization, government, and regulation of irrigation, electrical power, and other similar districts, and (2) subject to legal assessment or taxation by any such district and by said State or political subdivisions thereof, and to liens for such assessments and taxes and to all proceedings for the enforcement thereof, in the same manner and to the same extent as privately-owned lands; Provided, however, That the United States shall not assume any obligation for amounts so assessed or taxed: And provided further, That any proceedings to enforce said assessments or taxes shall be subject to any title then remaining in the United States, to any prior lien reserved to the United States for unpaid installments under contracts of sale made under this subpart, and to any obligation for any other charges, accrued or unaccrued, for special improvements, construction, or operation and maintenance costs of the Gila Project. Any such lands situate within the Wellton-Mohawk Division of said project shall also be subject to the provisions of the Contract Between the United States and WelltonMohawk Irrigation and Drainage District for Construction of Works and for Delivery of Water, dated March 4,