§ 42-2009 — CONTRACT FOR CONSTRUCTION OF RECLAMATION WORKS

Upon the withdrawal of the land by the department of the interior, it shall be the duty of the department of water resources to enter into a contract with the parties submitting the proposal, which contract shall contain complete specifications of the location, dimensions, character and estimated cost of the proposed ditch, canal or other irrigation works, the amount of water per acre which said works will make available at the water user’s headgate, the price and terms per acre at which such works and perpetual water rights shall be sold to settlers and the price and terms upon which the state is to dispose of the lands to settlers. This contract shall not be entered into on the part of the state until the withdrawal of the lands by the department of the interior and the filing of a satisfactory bond on the part of the proposed contractor, which bond shall be in a penal sum equal to five per cent (5%) of the estimated cost of the works, and shall be conditioned for the faithful performance of the provisions of the contract with the state.
Should it appear at any time, in the judgment of the department of water resources, that the water supply of the party or parties with which such contract had been made, is inadequate to properly and sufficiently irrigate the lands so proposed in said contract to be irrigated, or that water rights have been sold to the full carrying capacity of the proposed ditch, canal or other irrigation works, or that water rights have been sold by said party or parties to the full amount or in excess of the actual appropriation of water made by said party or parties or to the full amount or in excess of the supply of water made actually available by said parties, then in that event the department of water resources shall have the right to enter an order forbidding said parties from making any further or additional sales of water rights or of shares of stock in any company representing or evidencing water rights, and after the entry of such order all further or additional sales of such water or water rights, shares of stock and contracts to sell the same made by said party or parties shall be null and void, and said department of water resources shall have the power to refuse to issue entryman’s certificates thereon. This section shall apply to contracts heretofore made as well as contracts hereafter to be made by the department.

Legislative History

[(42-2009) 1895, p. 215, ch. 2, sec. 12; reen. 1899, p. 282, ch. 2, sec. 12; reen. R.C., sec. 1621; am. 1917, ch. 104, sec. 1, p. 379; reen. C.L., sec. 1621; am. 1919, ch. 70, secs. 1, 2, p. 247; C.S., sec. 3004; I.C.A., sec. 41-1709.]