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B-198376,B-198377,B-198378 1 (1981-09-25)

handle is hein.gao/gaobabizy0001 and id is 1 raw text is: . i-r'afdum September 25, 1981 , ,j .g .. B- ,~~.N4 S irector, CElD - Henry Eschwege t- Acting General Counsel - Van Cleve ~~~I IIIIII IIIIIIIIII I III II IIIIIIIII III JZ-Iz'Review of Federal Water Marketing Practi ces: Sk! -B-198376, B-198377, and B-198378-O.M.; ident to your division's assessment of th} Federal Government's ter marketing practices, me received several reuests for legal opin- ..%The requests were suhmitted in connection with three CEDD audit ies' Legal Requirements, Cost Allocations, and Water Subsidies '&i--85540) ) 5-198376; Uncontracted Federal Water and Marketing Alter- .[Code 85550) B-198377; and .Evaluation of Water Pricing and Rate At, A Techniques (Code 085530), B-198378. Questions relating to the e13basis 'of the irriqettion subsidy whi6h were asked in connection with r 0f 'TLeqal Requirements, Cost Allocations and Water Subsidies 'sarned in a separate mermrandum, B-198376-O.M.,O4uly 10, 3981. - %llquestions sutmitted in connection with the three studies are an- a.4u-.his memorandum except for those cuestions which have k e n Z no'longer necessary to your staff's reviews. I n t e r e s t ',.-. -A :3stlon (question 1, code 085550). May interest 'becharged on _NW ta.costs originally allocated to irrigatioc. if the water or storage ,egiSl' .ctualy used by industrial consumers? 'Answer: Yes. cg Zn answering this question, the relevant statutory provision is C91Cof the Reclamation Project Act of 1939 (1939 Act), 43 U.S.C. t -85h(c)X( 1976). t: er the above 'ection of' the 1939 Act,- the Secretary of the Enterior (Secretary) is authorized to furnish water for municipal water P-Dy or miscellaneous purposes * * *. It is understood, though not made Vljcit, that miscellaneous purposes include domestic and industrial sup. ;Yy 2 W~ters and Water Rights S 122.2 at 246 (R. Clark ed. 19671, (Clark). aelscthe ActOtof June 21, 1963, Pub. L. No. 88-44, 77 Stat. 68in w-d Z .- re s~s expressly authorized the renewal of contracts previously-made by' 5.- ,h6 Secretary under the 1939 ActYfor municipal, domestic, or industrial atrsupply. I-:ln arketing water from reclamation projects for municipal and nUStrial prposes (M&I), two main types of contracts are used: a 4 -.ent -YPe contract under S 9(c)(1),,requiring fixed periodic payments :..A. f 11'?

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