February 18, 1921
SUPPLEMENT TO THE HERMISTON HERALD
I of record. The United States agrees in construction work of for insuffi­ to all irrigable District lands under
DEPARTMELT OF THE INTERIOR
project and shall be paid to the
United States Reclamation Service to assent to the release of the lien by cient supply of water, hostile diver­ the
U. S. by the District in equal semi-
CONTRACT WITH
HERMISTON the Association, as aforesaid, and to
IRRIGATION DISTRICT AND UMA- the discharge of the said corporation
TILLA RIVER WATER USERS’ AS­ from the obligation of the aforesaid
SOCIATION, UMATILLA PROJECT, contract. dated April 2 5, 1906, and
to the dissolution of the Association,
OREGON.
and to release all liens created or
1- Parties
evidenced by water right applications
This agreement, made this........
day of............
1921, between the for the payment of charges existing
United States of America, herein re­ in favor of the United States upon
ferred to as the "United States," act­ any or all lands within said District
ing for this purpose through............. which are or shall become subject
secretary of the Interior, herein re­ to assessment and levy and to the
ferred to as the "Secretary," under lien of assessment and levy of the
the provisions of the Act of Congress District, except that nothing herein
approved June 17, 1902, (32 Stat., shall be construed as releasing or at­
388), and acts amendatory thereof tempting to realese the liens reserved
and supplemental thereto, herein re­ to the United States in connection
ferred to as the Reclamation Law. ! with patents or water right certifi-
the Hermiston Irrigation District, a I cates issued under the act of August
public corporation organized under 9, 1912 (37 Stat., 265). The re­
lease of liens as in this article pro­
the laws of the State of Oregon, nav- vided
shall not, however, be made
ing its office at Hermiston, Oregon, prior to
confirmation of this con­
herein referred to as the “District,"
tract, as provided by the Statutes of
and the Umatilla River Water Users' Oregon.
Association, a corporation organized
6—Expenditures bv the U. S.
under the laws of the State of Ore­
The U. 8. agrees to expend under
gon, and having its office at Hermis­
written
agreements between the U.
ton, Oregon, herein referred to as the
S. and the District, in the Improve­
"Association;”
ment of Canal “A”, in additional lat­
WITNESSETH:
erals and in betterments and recon-
2—Purpose
of the project system, the
(a) Whereas, the Association ex­ struction
sum of Seven Hundred Forty-four
ecuted a contract with the United Thousand
Dollars ($744,000).
States dated April 25, 1906, whereby
It is understood that this sum in­
the Association guaranteed to the cludes
Three Hundred Thousand Dol-
United States the payments for that iais ($300,000)
for “A” canal im­
part of the cost of the irrigation provement of which ................... have
works of the Umatilla United States been heretofore expended, and the
Reclamation Project which should remainder, or so much thereof as
be apportioned by the Secretary to may be required, will be expended
the share-holders of the Association, hereafter, according to adopted plans
and it is now the desire of said share­ or such modifications thereof as may
holders that the said Association be be necessary; that $244,000 or as
dissolved, the liens imposed by shares n uch thereafter as may be required,
of stock of the Association be dis­ i will be expended in extending the
charged, and that cooperation with lateral system, and that $200,000
the United States be carried on thru shall be expended for other better­
the District; and
ments and reconstruction work; pro­
(b) Whereas, the District de­ vided that any part of the sums here­
sires the discharge, so far as lawful, in provided for the following items:
of existing Hens of the United States (a) “A” Canal improvement, (b) ad­
for water charges against the lands ditional laterals, and (c) betterments
of the District, and that the United and reconstruction, may by written
States provide additional funds for agreement between the U. S. and the
improving the irrigation system sup­ District be expended for any other
plying District lands;
(c) Whereas. District lands with­ of such items.
7—Computation of Cost
in the Umatilla Project embrace ap­
cost of the work provided for
proximately 17,000 irrigable acres, by The
this contract, which the District
which lands, in relation to said pro­ obligates itseif to pay, shall embrace
ject, comprise the following classes: all expense of whatsoever kind in
(1)—Lands covered by water
with, growing out of, or
right contracts with the United connection
resulting from the work described,
States fixing the primary construc­ including the cost of labor, material.
tion charges at $25, $60, $70 and
I equipment, engineering, legal work,
$73.50 per acre respectively.
superintendence,
administration,
(2)-—Lands in private ownership,
rights of way, property and
subject to existing public notices of overhead,
damage of all kinds; and in deter­
the Secretary for which the primary mining the total amount of such cost
construction charge is fixed at $7 0 the project books of the U. S. R. S.
per acre, but not under water right shall be accepted as conclusive.
contract.
8—Contract Subiect to Appropria­
(3)—Unentered public lands sub­
tions bv Congress
ject to existing public notices of the
This contract is subject to appro­
Secretary for which the primary con­ priations by Congress, from year to
struction charge is fixed at $70 per year, of funds sufficient to begin and
acre
carry on the work provided for here-
(4)— Lands in public and private in. No liability shall accrue against
ownership, not under public notice, the U. S. in case funds are not ap­
but for which public notice may sub­ portioned, and should only a por­
sequently issue, for which the pri­ tion of the amount necessary to car­
mary construction charge will be ry on the work be appropriated, then
fixed at $70 per acre.
the amount to be repaid by the Dis­
3—Now, Therefore, in consider­ trict to the U. S. shall be reduced to
ation of the covenants herein con­ an amount equal to the sum appro­
tained, it is agreed as follows:
priated and actually expended.
4—Definition of Terms
That the terms "Umatilla Project”
and “project” as hereinafter used are
intended to describe the original
Umatilla Project of the United States
Reclamation Service • irrigated from
the waters of Umatilla river by
means of the Cold Springs Reservoir
and the Maxwell canal and that the
water rights for such project lands
(consisting of approximately 17,000
irrigable acres) are the water rights
attaching to said reservoir and canal.
5—Release of Liers
9—Operation of Proiect
The Ü. S. agrees to continue the
operation and maintenance of the
project until otherwise provided by
contract after vote by the electorate
of the project, or until the payments
required by the Reclamation law are
made for the major portion of the
lands irrigated from the project
works.
1 0— Statement for District Budget
The Ü. S. agrees to furnish to the
District each year on request before
the date of the director's annual
meeting for the purpose of determin­
ing the District assessments, a state­
ment of the amounts due the U. 3.
for the year on account of the Dis­
trict’s obligation under this contract,
and will prepare the assessment roll
for the project charges.
Nothing in this contract contained
or in the formation of the District
shall be deemed in any wise to have
abrogated, enlarged or modified the
said water right applications to the
United States except as herein pro­
vided. The Association agrees that
when Its affairs and the liquidation
11—Failure of Water Supply
of its liabilities will nermit the lien
The U. S. shall not be liable for
contaned in the stock subscriptions failure to impound, carry or deliver
to the Association will be discharged water caused by unavoidable delays
sions, droughts, court order, inter­
ruptions of service necessitated by
repairs, damages caused by flood or
other acts of God, unlawful acts or
unavoidable accidents.
12—Pavment bv District
(a) The District agrees to pay to
the U. S. not to exceed the sum of $
..........for primary construction
charges under existing contracts and
public notices issued heretofore or
hereafter to be issued by the Secre­
tary, less the aggregate of payments
heretofore made applying thereto;
Provided: that the District shall not
be held liable for any of such charges
for lands which may be declared per­
manently non-irrigable.
The said
primary construction charges shall
be paid in equal semi-annual install­
ments on June 30 and December 31
of each year, beginning with 1922.
The construction charges due Decem­
ber 1, 1921, under existing water
right contracts, together with any
arrearages in payment of charges
due previously for District lands, and
construction penalties accrued to the
date of this contract, shall be paid by
the District in 1922. Charges for
succeeding years under the terms of
the said water right contracts shall
be paid in like manner and on cor­
responding dates.
The payments in 1922 shall also
include two per centum of the con­
struction charge for all class two•(2)
lands (described in paragraph 2 (c)
(2) ). and the balance of the con­
struction charge for such lands shall
be paid during the succeeding 19
years as follows: Two per centum
per annum for the first three years,
four, per centum per annum for the
next two years, and six per centum
per annum for the next 14 years.
For class three (3) lands (des­
cribed in paragraph 2 (c) (3) ) five
per centum of the construction
charge shall be paid as an initial in­
stallment at the time of the allow­
ance of an entry embracing land of
this class, and the balance of the
construction charge shall be paid as
follows:
Beginning with the fifth
year after the date of entry, five per
centum per annum for five years and
seven per centum per annum for ten
years.
For class four (4) lands (describ­
ed in paragraph 2 (c) (4) ) payment
by the District shall begin In the
year following issuance of Public
Notice fixing construction charge for
such lands and shall be made in the
same manner as for Class three (3)
lands above described.
(b) The District agrees to pay to
the U. S. as a supplemental construc­
tion charge.
(1) Twenty Thousand Two Hun­
dred Twelve and Eighty-one Hun­
dredths Dollars, the deficit due to
the accrued operation and mainten­
ance charges for the calendar years
1914 to 1920 inclusive not being suf­
ficient to reimburse the U. S. for the
cost of operation and maintenance
for District lands during those years.
(2) Fifty-six Thousand Four
Hundred Twenty-seven and Thirty-
three Hundredths Dollars, heretofore
expended by the U. S. under supple­
mental construction contracts.
(3) Seven Hundred Forty-four
Thousand Dollars, or as much there­
of as may be actually expended for
supplemental construction work to
be done by the U. S. as described in
Article 6 hereof.
(4) Ninety-one Thousand One
Hundred Three and Twenty-one
Hundredths Dollars, charged by the
U .8. against the project as an op­
eration and maintenance cost incur­
red prior to August 13, 1914, and
remaining unpaid. It is understood
and agreed, however, that the U. S.
expended on account of the Umatilla
Project, in construction and opera­
tion and maintenance. $486.906 over
and above the amount repayable to
the U. S. under public notices, and
that If the reclamation fund be re­
couped from any source for such de­
ficit. or any part thereof, one-fifth
of the amount so recouped shall be
credited to the District on account
of the $91,103.21, which the District
has herein contracted to pay.
Such supplemental construction
charges shall be apportioned equally
annual installments on June 30 and
December 31 of each year, beginning
as hereinafter provided and continu­
ing until the full amount is paid. For
each tract of District lands annual
payments for supplemental construc­
tion charges shall begin with the
year following that In which the
final installment of primary construe
tion charges becomes due, and the
amount for supplemental construc­
tion charges paid by the District in
any year shall be not less than an
amount equal to six per centum of
the total construction charge for all
class one (1) and class two (2) lands
from which supplemental construc­
tion payments are due for that year,
plus not less than seven per centum
of the total construction charge for
all class three (3) and four (4) lands
from which supplemental construc­
tion payments are due for that year.
c) The maximum aggregate sum
payable to the U. S. under this con­
tract. exclusive of future operation
and maintenance charges, penalties
and interest, but including unpaid
charges for 1920 and prior years,
shall be $1,750,000.
(d) The District agrees to pay to
the U. S. the annual cost apportioned
to District lands of operating and
maintaining the project as follows:
On June 30, 1922, one-half the
charge for the year 1921, and on
December 31, 1922, one-half of said
charge; the charges for succeeding
years to bé paid in similar semi-an­
nual installments and on correspond­
ing dates. The payments made in
192 2 shall include any arrearages for
District lands in payment of opera­
tion and maintenance due March 1,
1921, or previously, together with
of execution of this contract by the
penalties thereon accrued to the date
U. S.
(e) The District agrees to employ
Its lawful powers in assessment and
levy upon District lands to meet all
payments hereunder and in every
proper way to carry out the true
spirit and purpose of the Reclama­
tion Law and the rules and regula­
tions thereunder and the terms and
conditions of this contract.
(f) The District agrees to use dil­
igence In beginning and prosecuting
to decree proceedings under the Ore­
gon Irrigation District Law in con­
firmation of the proceedings for or­
ganization and for the authorization
of said contract; Provided, that if
decree by way of confirmation shall
not have been rendered and the time
for appeal expired, if ground for ap­
peal shall have been laid, within six
months from approval of this con­
tract, the Secretary may, in his dis­
cretion, declare this contract rescind­
ed; Provided further, that the Sec­
retary may extend the time for the
securing of decree in confirmation
or for appellate proceedings.
(g) No interest on deferred pay­
ments shall be paid to the U. 3., un­
less any sum payable shall not be
liquidated when due, In which case
a penalty thereon shall be paid by
the District as provided in paragraph
16 hereof.
13— Lands
rigable
Temporarily
Non-Ir-
If .the Secretary shall find any
lands of the District temporarily in­
capable of successful cultivation on
account of seepage, or alkaline or
other conditions, he may exempt the
District from the payment of con­
struction or of operation and main­
tenance charges, or both, for such
lands for a specified period or until
further notice, whereupon the Dis­
trict shall exempt from assessment
and levy the lands so specified during
the period named. Nothing in this
article contained, however, shall de­
prive the Secretary of discretionary
power as regards the exemption of
the District from the payment of
charges for any tract, nor shall the
land owners be deemed by any im­
plication to be relieved from respon­
sibility for improving drainage con­
ditions.
14—Lands Permanently Non-Ir-
rigable
If the Secretary shall find any
lands of the District permanently in­
susceptible of reclamation on account