may be purchased within the reclamation project, if such a limit has been fixed, must sell or dispose of all in excess of that area before water-right application will be accepted from such holders. (See § 230.80.) If the holder of a greater area desires, he can subscribe for stock in the local water users' association (if there be one), for his entire holdings, executing a trust deed, giving the association power to ultimately sell the excess area to actual settlers who are qualified to comply with the reclamation law, unless the land has been sold by the owner when the Government is ready to furnish water thereon, or provide for the disposal of such excess holdings in some manner approved by an authorized offcer of the Department of the Interior. Holders of land in private ownership who have made and had accepted water-right application for their holdings may receive water for lands in excess of the area hereinabove stated, in case such excess lands have had water-right application made and accepted therefor, and have been acquired by descent, will, or by foreclosure of any lien; in which case said excess lands may be held for 2 years and no longer after their acquisition, without in any manner militating

against the right of the holder to be furnished water under the reclamation law.

§ 230.66 Water-right application, where contract to purchase private lands is canceled.

Where private lands are held under contract of purchase, title remaining in the vendor, and the purchaser makes water-right application therefor, making one or more payments on account of the construction or building charge, and subsequently the vendor cancels the contract of purchase because of default in payments or for other default of the purchaser, the land resumes its status as if no contract of purchase had been entered into and no water-right application had been made. All payments made by the contract purchaser on account of the water-right application are forfeited to the United States. If the tract is resold to new purchasers, whether by deed or by contract of purchase, such new purchaser must make a new water-right application under such regulations as are in force at the time.

§ 230.67 Water-right application, where contract to purchase private lands is transferred.

A different result occurs where the contract purchaser sells his interest under the contract to another and transfers in writing credit for payments made by him and this other and the vendor enters into a new arrangement whereby this other takes a new contract of purchase from the vendor. In this case the new contract purchaser is the successor in interest of the original contract purchaser and succeeds to the benefits of any payments made by the original contractor on his water-right application. If, therefore, in such a case a new waterright application is required because of any regulations applicable to the case, credits should be allowed on the new application to the extent of the payments made by the original contract purchaser. Purpose of the reclamation

§ 230.68

law.

The purpose of the reclamation law is to secure the reclamation of arid or semiarid lands and to render them productive, and section 8 declares that the right to the use of water acquired under that law shall be appurtenant to the land irrigated and that "beneficial use shall be the basis, the measure, and the limit of the right." There can be no beneficial use of water for irrigation until it is actually applied to reclamation of the land. The final and only conclusive test of reclamation is production. This does not necessarily mean the maturing of a crop, but does mean the securing of actual growth of a crop. The requirement as to reclamation imposed upon lands under homestead entries applies likewise to lands in private ownership and land entered prior to the withdrawal-namely, that the landowner shall reclaim his land as required by law, and no right to the use of water will permanently attach until such reclamation has been shown. (See 37 L.D. 468, and § 2211.7-6(g).) § 230.69

Cancellation of water-right and homestead entry for default in payment.

Sections 3 and 6 of the Reclamation Extension Act of August 13, 1914 (38 Stat. 687, 688; 43 U.S.C. 478-481, 493, 494-497) provide for the cancellation of entries with forfeiture of rights for 1 year's default in payment of any installment of the construction or operation

§ 230.72

Entries made prior to June 25, 1910; contests and water-right applications.

Under the act of April 30, 1912 (37 Stat. 105; 43 U.S.C. 445), a reclamation homestead entry made prior to June 25, 1910, where a residence was established in good faith, is not subject to contest for failure of the entryman to maintain residence or make improvements upon the land prior to the time when water is available for the irrigation of the lands embraced within the entry under public notice. The entryman is required within 90 days after public notice has issued to file a water-right application. (See § 2211.7-1(g) (1).)

§ 230.73 When Form A water-right applications must be filed.

Upon notice issued by the authorized officer that the Government is ready to receive applications for water right for described lands under a particular project, all persons who have made entries of such lands under the provisions of

the reclamation law will be required to file application for water rights on Form A for the number of acres of irrigable land in the farm unit entered, as shown by the plats of farm units approved by an authorized officer of the Department of the Interior, and any person settled on such lands or intending to make entry of any such lands may file application for water rights on Form A for the number of acres of irrigable land in the farm unit settled on or intended to be entered, as shown by such farm-unit plats.

§ 230.74 Action on Form A water-right application, where entry has not been allowed.

Where such settler or other person makes a water-right application before initiating entry for the lands for which such water-right application is made, the water-right application will be received by the official in charge of the project, and the amount due thereon as shown by the public notices and orders collected by the agent cashier of the Bureau of Reclamation. The waterright application will be retained by the official in charge until entry is made, or if entry is not perfected by the applicant within 30 days the application shall be endorsed "rejected," with the date thereof, and the amount collected returned to the applicant, except in case water shall have been furnished such applicant under the application, in which case only the amount collected on account of the construction or building and betterment charges will be returned. The amount collected for operation and maintenance will be retained by the agent cashier as payment to the United States for the service rendered in furnishing water. If entry is made the entryman will be required to exhibit to the official in charge his land-office receipt. The official in charge will endorse on the water-right application the number, date, and landoffice serial number of the entry and take the action indicated in § 230.75.

§ 230.75 Action on Form A water-right application, where entry has been allowed.

All applications on Form A must be filed in the project office of the United States Bureau of Reclamation in person or by mail, accompanied by two complete copies and the amount due thereon as shown by the public notices and orders. The official in charge of the project will

carefully examine the original application, and if regularly and properly made out accept the same and endorse thereon his acceptance. He will see that the copies correspond with the original and that the entry number, date, etc., are properly given, and will immediately transmit one copy to the Commissioner, Bureau of Reclamation, and give the second copy to the applicant, with the agent cashier's receipt for the amount collected. The original application will be retained in the project office of the Bureau of Reclamation.

§ 230.76 When Form B water-right application must be filed.

Upon the issuance of the public notice private landowners and entrymen whose entries were made prior to withdrawal may, in like manner, apply to the project office of the United States Bureau of Reclamation, on Form B for water rights for tracts not containing more than 160 acres of irrigable land, according to the approved plats, unless a smaller limit has been fixed as to lands in private ownership by an authorized officer.

§ 230.77 Showing as to residence required for Form B applicants.

Each application on Form B must contain a statement as to the distance of the applicant's residence from the land for which a water right is desired. § 230.78 Form B; applicants not resid

ing within distance fixed for project. If a greater distance than that fixed for the project is shown in any application, the case should be reported to the Commissioner of the Bureau of Reclamation, for special consideration upon the facts shown. If the applicant is an actual bona fide resident on the land for which water-right application is made, the clause in parentheses of Form B, regarding residence elsewhere, must be stricken out.

§ 230.79 Form B applicant required to state nature of interest.

The applicant on Form B must state accurately the nature of his interest in the land. If this interest is such that it cannot be perfected into a fee simple title at or before the time when the last annual installment for water right is due, the application must be rejected. § 230.80 Execution of Form B applica

tion.

Form B, used by owners of private land and entrymen whose entries were

made prior to the withdrawal of the land within reclamation projects for entering into contracts with the United States for the purchase of a water right, must be signed, sealed, and acknowledged before a duly authorized officer in the manner provided by local law. A space is provided on the blank for evidence of the acknowledgment, which should be in exact conformity to that prescribed for mortgages by the law of the State in which the lands covered by the contract lie. When so executed the original must be filed in the project office of the Bureau of Reclamation either in person or by mail, together with four complete copies, and must be accompanied by the amount of the charges for recording the same in the county records. The application must cover all the irrigable land of the applicant in the project. (See § 230.65.) If the applicant owns more than the limit of irrigable area fixed for land in private ownership, he must make disposition of all the irrigable lands not covered by his application, as indicated in § 230.65, before the application is accepted. If the application is (a) regular and sufficient in all respects; (b) bears the certificate of the secretary of the local water users' association in cases where such certificate is required; (c) is accompanied by the proper payments required by the provisions of the public notices and orders issued in connection with the project and the recording fees; the official in charge of the project will accept the same by filling out the blank provided and attaching his signature and seal and placing a scroll around the word "Seal," whereupon the water-right application becomes a water-right contract. § 230.81 Recordation of contract.

As stated in the instructions for the execution of the blank, the contract must be duly recorded in the records of the county in which the lands are situated, and, therefore, immediately upon execution of the contract the original will be transmitted by the official in charge of the project to the proper county officer to be recorded.

§ 230.82 Action after recordation of

contract.

Upon return of the original contract to the official in charge of the project, bearing certificate at the bottom of the last page executed by the recording officer, showing the recordation of the instrument, the said official in charge

will fill out the same blank on the three copies held in his office, signing the name of the recording officer with the word "signed" in parentheses preceding such name. The original will be sent to the General Accounting Office, Audit Division; one copy will be forwarded to the Commissioner, Bureau of Reclamation, one copy to the applicant, and the remaining copy will be retained by the official in charge.

§ 230.83 Assignment of credits.

When application is filed by an assignee of an entryman under the Reclamation Act, and the assignee proposes to claim credit for any payment made by the assignor, the prior applicant should execute the following form at the bottom of the last page, either written in ink or typewritten:

Action on cases bearing such assignment will be the same as on other cases, except that the assignment must be permissible under the provisions of existing public notices and departmental regulations and orders.

WATER-RIGHT CHARGES

§ 230.85 Fixing of acreage in an entry and water charges.

An authorized officer will at the proper time, as provided in section 4 of the act of June 17, 1902 (32 Stat. 389; 43 U.S.C. 419), fix and announce the area of lands which may be embraced in any entry thereafter made or which may be retained in any entry theretofore made under the reclamation law and the charges which shall be made per acre for the irrigable lands embraced in such entries and lands in private ownership, for the building of the works, and for operation and maintenance and prescribe the number and amount and the dates of payment of the annual installments thereof.

§ 230.86 Public notices which may be withdrawn.

Under the act of February 13, 1911 (36 Stat. 902; 43 U.S.C. 468), the Secre

tary is authorized in his discretion to withdraw any public notice issued prior to the passage of that act.

§ 230.87 When water-right payments are forfeited.

If an entry subject to the reclamation law is canceled or relinquished, the payment for water-right charges already made and not assigned in writing to a prospective or succeeding entryman under the provisions of § 230.94, is forfeited. All water-right charges which remain unpaid are canceled by the relinquishment or cancellation of the entry, except as provided by the specific provisions of public notices applicable to particular projects.

CROSS REFERENCE: For general regulations concerning cancellations, relinquishments, and reinstatements, see Part 105 of this chapter.

§ 230.88 Irrigable area increased; supplemental agreement.

In cases where water-right application has been made and the irrigable area is subsequently ascertained to be greater than that stated therein, action should be taken as follows:

(a) For land covered by water-right application reserving a lien to the United States, the water users should execute a supplemental contract and the same shall be recorded in the county records at the expense of the United States.

(b) For land covered by water-right application not reserving a lien to the United States, the water user should execute application on the form of waterright application in current use, and the same shall be recorded in the county records at the expense of the United States.

private ownership covered by a waterright application which is not recorded in the county records, the vendor will be required to have his transferee make new water-right application for the land transferred. Upon acceptance of such new water-right application the transfer will be duly noted, and, in case of transfer of part the water-right charges under the original application of the vendor, will be adjusted to the respective tracts. If the vendor's water-right application has been recorded on the county records, the vendee will not be required to make new water-right application.

§ 230.91 Tender of part payment.

Where payment is tendered for a part only of either an annual installment of water-right construction or building charges or an annual operation and maintenance charge, the same may be accepted if the insufficient tender is, in the opinion of the official in charge of the project, caused by misunderstanding as to the amount due and approximates the same.

§ 230.92

Action where insufficient payment is tendered.

In all cases of insufficient payment accepted in accordance with the provisions of the foregoing section, receipts must issue for the amount paid and the water user shall be immediately notified by registered letter that the payment is insufficient and allowed a period of 30 days to make payment of the balance due to complete the charge on which a part payment has been made. If the balance of either such installments is paid within this period, additional receipt must issue therefor, but if either or both installments remain unpaid for 30 days, report shall be made to the Commissioner of the Bureau of Reclamation. In all other cases where insufficient tenders are made they shall be rejected with notice to the water user of the reason for the rejection. § 230.93 Receipt for full payment.

When full payment is tendered and, upon examination, is found to be correct, the agent cashier will issue receipt therefor.

§ 230.94 Assignment of money credits.

A person who has entered lands under the reclamation law, and against whose entry there is no pending charge of noncompliance with the law or regulations, or whose entry is not subject to cancellation under this act, may relin

quish his entry to the United States and in writing assign to a prospective or succeeding entryman any credit he may have for payments already made under this act on account of said entry, and the party taking such assignment may, upon making proper entry of the land at the time of the filing of the relinquishment, if subject to entry, receive full credit for all payments thus assigned to him, but must otherwise comply in every respect with the homestead law and the reclamation law. Under this section credit may be allowed in cases of assignment where the water-right application has been made under the Reclamation Extension Act; and also, in case of new entry under the act of March 4, 1915 (38 Stat. 1215; 43 U. S. C. 447). (See departmental instructions, Dec. 20, 1915, 44 L. D. 544.) § 230.95 Water-right charges on trans

fer of privately owned lands; delivery of water.

The transfer of lands in private ownership covered by water-right contract before cancellation of the contract carries with it the burden of waterright charges and credit for the payments made by the prior owner. (See departmental decision, Mar. 20, 1911, in the case of Fleming McLean and Thomas Dolf, 39 L. D. 580.) After any such transfer, water will continue to be delivered for the entire irrigable area of the tract transferred and tract retained, at the same place or places as delivery was theretofore made, and no change will be made in the place of delivery except upon compliance with the provisions of §§ 230.98 and 230.99, regarding the additional expense for laterals, division boxes, surveys, or for other purposes, and for providing rights of way for irrigation or drainage ditches across the portions transferred or retained.

CROSS REFERENCE: For rights-of-way for irrigation drainage ditches, see Subpart 2234 of this title.

NOTICE OF INSTALLMENTS DUE