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Laguna Dam, as such efficiency would be were the Yuma project fully developed, to divert and carry all water needed by the district for the irrigation of its lands above referred to without impairing the utilization of said Laguna Dam, main canal, and auxiliary works to the full extent necessary to irrigate the Yuma project when fully developed. (b) A main canal entirely within the United States, with all necessary appurtenant structures for the practical operation thereof, of sufficient capacity and proper construction to irrigate all lands in Imperial County, State of California, susceptible of economic irrigation from said canal. Such canal to connect with said main canal of the United States at a point described as Siphon Drop, and thence to connect with the canal system of said district in the United States upon the line located and approved as provided by the terms of the cooperative contract of February 16, 1918, above referred to. 7. Upon the approval by the Secretary of the Interior of the said survey, specifications, and estimates, said district will provide for beginning and carrying to completion with due diligence, at the cost of the district, the work of construction and installation at the Laguna Dam and on the main canal, described in and contemplated by this agreement, and the district shall provide proper pecuniary support for the same in advance in a manner satisfactory to the Secretary of the Interior. All such work shall be carried on in such manner as not to interfere with the proper operation of the Yuma project by the United States, and the district will promptly carry out any measures required by the United States or its authorized agents to avoid or relieve any interference with the delivery of water to the Yuma project during and due to such construction, and will save the United States harmless as to any claims for damages that may be presented by reason thereof. 8. All work of construction and installation, and the materials used therein, shall at all times be subject to the approval of the Secretary of the Interior and be under the Supervision and inspection of his authorized agents and engineers, to the end that the works shall conform strictly with said surveys and specifications and such modifications thereof as the Secretary of the Interior may approve in writing. In case any of said works are constructed under contract made by the district and are not in accordance with said surveys and specifications, the Secretary may, at his option, replace such unsatisfactory construction work at the expense of the district, or stop said work of construction or cancel this contract, or resort to any other lawful remedy, and the decision of the Secretary of the Interior whether said surveys and specifications or modifications thereof have been complied with shall be final and conclusive. The district shall make complete detailed progress reports of the said construction work upon demand of the Secretary of the Interior. The cost of the inspection on the part of the United States provided by this section shall be paid by the district to the United States upon demand. 9. For the right to use the Laguna Dam, the main canal, and appurtenant structures, and divert water, as herein provided, the district agrees to pay to the United States the sum of $1,600,000, in twenty installments, the first of which shall become due and payable December 31, 1919, and subsequent installments annually thereafter. The first four installments shall each be two per centum, the next two installments each four per centum, and the next fourteen each six per centum of the total amount. Upon failure of the district to make any such payment at the time and in the amount specified, then all rights under this contract shall be at an end and all payments theretofore made shall become forfeited to the United States as liquidated damages; and as a further consideration for entering into this contract, on the part of the United States, the district hereby releases and relinquishes any and all claims whatsoever for said moneys or any portion thereof so forfeited and paid as liquidated damages: Provided, That the Secretary of the Interior may, in his discretion, extend the time for any such payment upon the payment of seven per cent interest in advance. 10. Subject to the provisions of the reclamation act of June 17, 1902 (32 Stat., 388), and acts amendatory thereof and supplementary thereto, the United States shall have and retain perpetually the title to and the complete control, operation, and management of said Laguna Dam, auxiliary works, and enlarged main canal from the dam to and including the Siphon Drop with appurtenant structures as enlarged, including the diversion works at Siphon Drop for the diversion and delivery of water to the Yuma project and the district. The district shall pay to the United States quarterly, on demand, April 1, July 1, October 1, and December 31, its proportionate share of the cost of operation and maintenance of said dam, auxiliary works, and enlarged main canal for the preceding quarter, such payment by the district to bear the same ratio to the total cost of such operation and maintenance as the amount of water received by the district at the point of delivery to the district's canal at Siphon Drop bears to the total amount of water carried in said main canal at that point plus the amount of water diverted from the canal above the Siphon Drop for use on the Yuma project lands; provided that such extraordinary expense as may be caused by the operation of such desilting works as may be necessary to as nearly as may be maintain the efficiency of the desilting works at Laguna Dam as such efficiency would be were the Yuma project fully developed, shall be borne by Imperial irrigation district. Such extraordinary expense, if any, shall be determined by the Secretary of the Interior. If the district fails to pay to the United States within thirty (30) days after rendition of bill, all operation and maintenance charges as determined by the Secretary of the Interior as they become due, the Secretary of the Interior, in addition to any other remedy which may be available to him for recovery of such charges, is authorized to shut off water from the intake of the district until such time as all sums due have been paid, with interest thereon at the rate of 7 per cent per annum from rendition of bill. 11. The United States reserves the right to arrange for the connection with and use of Laguna Dam on such terms as the Secretary of the Interior may deem expedient, by any other irrigation enterprise, district, corporation, or individual; also of the headworks and main canal and other governmentally constructed works, and works constructed jointly by these parties, after proper enlargement and modification, on terms herein stipulated, without, however, impairing the utilization of said dam, canal, and other works to the extent necessary to irrigate the lands within the boundaries of Imperial irrigation district. 12. The United States reserves the right to develop power with the water in the enlarged main canal down to and including Siphon Drop. All other power possibilities in the main canal down to and including some convenient power site near Pilot Knob shall be developed by the United States to the extent deemed expedient by the Secretary of the Interior, at the joint expense and for the joint benefit of the Yuma project and the Imperial irrigation district, as herein provided. The apportionment of the cost of canal and headworks alterations and enlargement, and of canal extension from the Laguna Dam to the site selected for power development near Pilot Knob, shall be made to the United States (for the Yuma project) and to the Imperial irrigation district, in the proportion that 2,000 second-feet bears to the total canal enlargement, less 2,000 second-feet. The cost of constructing power plants, transmission lines, and other power plant accessories shall be also apportioned to Yuma project and the district, respectively, in the ratio that 8,500 water horsepower bears to the aggregate water horsepower capacity of the plant installed. The operation and maintenance of any such power plant or plants constructed for joint benefit and the sales of power therefrom shall be under the control of the Secretary of the Interior and charges for commercial power shall be upon rules adopted by the Secretary of the Interior applying equally to both valleys. Such power as in the judgment of the Secretary of the Interior is necessary for pumping and other operation and maintenance purposes shall be delivered to the Yuma project and to the Imperial irrigation district, at the cost of development thereof, plus 10 per cent, said cost to include interest at 5 per cent per annum on the capital invested in power plants, transmission lines, and power-plant accessories, and also a proportional part of the headworks and canal enlargement from Laguna Dam to Pilot Knob, determined by the relation 2,000 secondfeet bears to the total enlarged canal capacity and reasonable depreciation as may be determined by the Secretary of the Interior. The preference right to purchase power developed at the price herein specified shall be given over other uses of power, to the requirements of the Yuma project (limited to an area not exceeding 120,000 acres) for power to be used in pumping irrigation water. The profits from power sales or power leases shall be divided between the Yuma project and the Imperial irrigation district in the proportion of their respective investments in power plants ,transmission lines, and power-plant accessories, and in the canal and headworks alterations, canal enlargement, and canal extension “s ” from the Laguna Dam to and including the power-house site near Pilot Knob, to be determined by the Secretary. In case capacity be also provided by enlargement for the irrigation of lands in the United States outside of the Imperial irrigation district, then the cost of enlargement computed as above as chargeable to the Imperial irrigation district shall be borne “by such district

and such " other lands in the ratio of their respective irrigable acreage “s.” The cost of any works used jointly by several irrigation enterprises below the point near Pilot Knob where power is developed shall be apportioned “equitably " by the Secretary of the Interior. No water shall be diverted for power purposes from such main canal below Siphon Drop at any time when such water shall be required for irrigation of lands being irrigated therefrom in Imperial County. 13. It is understood and agreed that the connection with Laguna Dam herein provided for is to be constructed as a part of an All-American Canal, which the district hereby agrees to build at as early a date as possible and within reasonable time, and “when " the district shall have completed said All-American Canal, it shall have the right to drop water at some other point than the vicinity of Pilot Knob for power development, and in this event agrees to place at the disposal of the United States at Pilot Knob, or some other point to be agreed upon, such power in addition to that generated at Pilot Knob as in the judgment of the Secretary of the Interior is necessary for pumping and other irrigation operation and maintenance purposes of the Yuma project or any auxiliary thereof, not in excess of 8,500 water horsepower in the aggregate, at the cost of development thereof at the power house, plus 10 per cent, said cost to include interest at 5 per cent and reasonable depreciation as determined by the Secretary of the Interior. All power development, operation, and maintenance of power plants on the All-American Canal and sales of power shall be under the control of the Secretary of the Interior, and charges for commercial power shall be upon rules adopted by the Secretary of the Interior, applying equally to both Imperial and Yuma Valleys. The profits from commercial power shall be divided between the Imperial irrigation district and the Yuma project in ratio of their respective investments in power, including the enlargements, alterations, and extensions of the headworks and main canal down to and including the power-house site near Pilot Knob, plus investments in the power plants, power house, transmission lines, and other accessories. In dividing profits, the district shall be credited with the net revenue from the amount of power by which the total power output is increased by the All-American canal west of Pilot Knob, which shall be determined by the Secretary of the Interior. Power delivered to Imperial irrigation district for pumping and other irrigation operation and maintenance purposes shall be delivered on the same terms as power delivered to the Yuma project for said purposes. 14. It is understood and agreed that the Secretary of the Interior shall control the division of water and shall divert for use of the Yuma project or any auxiliary thereof as heretofore or hereafter undertaken by the United States within the present boundaries of the United States and not exceeding 120,000 acres, sufficient water to secure the permanent and economical reclamation thereof, not exceeding, however, one-quarter of the water in the river above Laguna Dam. The foregoing applies only to the natural flow of the Colorado River, and not to storage water, which shall be delivered to the party entitled thereto. The United States makes no guaranty or representation as to the quantity of water that may be available without storage for delivery to the district under this contract, and shall not be responsible for failure to deliver water under this contract caused by insufficient supply of water in the Colorado River, hostile diversion or drought, interruption made necessary by repairs, nor on account of any valid order or decree of a competent court; nor for any damages by floods, acts of hostility, or unavoidable circumstances, nor for loss of crops or other damage caused by nondelivery of water. 15. It is understood and agreed that this district shall have the right at any time to extend its boundaries within the United States and water additional lands upon payment of same amount per acre as irrigable lands in present Imperial irrigation district are to pay under terms of this contract. The right to be also available on same conditions to Yuma project, additional to one hundred twenty thousand acres herein mentioned. All proceeds from payments on account of initial connection charges assessed to and collected from such new lands shall be used under the direction of the Secretary of the Interior for the construction of storage works for the benefit of the lands contributing. 16. This contract shall not become effective until the same shall have been duly ratified and confirmed in accordance with law, by a vote of the people of the Imperial irrigation district, and unless it shall be so ratified within six months from the date of execution hereof by the Secretary of the Interior, it shall become void and of no further effect.

17. In case of failure on the part of the district to provide for beginning the work of enlargment of the Yuma main canal within two years from the date hereof, the Secretary of the Interior shall have the right to abrogate this contract.

18. No Member of or Delegate to Congress or Resident Commissioner, after his election or appointment, or either before or after he has qualified and during his continuance in office, and no officer, agent, or employee of the Government shall be admitted to any share or part of this contract or agreement, or to any benefit to arise thereupon. Nothing, however, herein contained shall be construed to extend to any incorporated company, where such contract or agreement is made for the general benefit of such incorporation or company, as provided in section 116 of the act of Congress approved March 4, 1909 (35 Stat. L., 1109).

In witness whereof the parties hereto have caused the execution of these presents as of the day and year first above written.

THE UNITED STATES OF AMERICA, [SEAL.]

By FRANKLIN K. LANE,

Secretary of the Interior, THE IMPERIAL IRRIGATION DISTRICT,

By LEROY HOLT, President. Attest:

F. H. McIVER, Secretary.

(The following indorsements of H. R. 6044 have been received and are on file with the committee :)

SAN BERNARDINO, CALIF., July 10, 1919. Hon. WILLIAM M. KETTER,

Member of Congress, Washington, D. C.: The board of supervisors of San Bernardino County request that you use every means possible to secure passage of House bill 6044, to secure Federal aid in increasing productive agricultural area of the Imperial and Coachella Valleys in southern California, and consider bill in its present form meets all requirements, and most earnestly urge its passage, which they know will result in great benefit to the people of southern California and the entire Nation.

J. B. GLOVER, Chairman of Board.

EL CENTRO, CALIF., July 3, 1919. WILLIAM KETTNER,

Member of Congress, Washington, D. C.: Fifty thousand residents of Imperial Valley of one mind in urging that you cooperate with the valley committee now in Washington to secure early action of Government on Kettner bill, giving indorsement to great irrigation works hereThe very life of this valley depends on favorable action.

EL CENTRO CHAMBER OF COMMERCE.

HOLTVILLE, CALIF., July 12, 1919. WILLIAM KETTNER,

House of Representatives, Washington, D. C.: Fifty thousand citizens of the Imperial Valley, Calif., practically dependent upon Colorado River water for the irrigation of 400,000 acres of the most productive land in the United States. This organization indorses and urges the passage of House bill 6044, introduced in the House of Representatives by Hon. William Kettner, and expresses emphatically its appreciation of the imperative necessity of an all-American canal.

THE HOLTVILLE COMMERCIAL CLUB, By 0. C. HARRIS, President.

SAN BERNARDINO, CALIF., July 12, 1919. Hon. WM, KETTNER, Member of Congress. Hon. JAMES D. PHELAN, Senator. Hon. HIRAM W. JOHNSON, Senator.

GENTLEMEN : At a regular meeting of our organization, held last evening, our members went on record as heartily indorsing House bill 6044, to assist in

increasing the productive agricultural area of the Imperial and Coachella Valleys, Calif., and for other purposes, and I was directed to transmit this information to you, together with the urgent request that you use your best efforts toward the early passage of said bill.

This is a matter of vital interest, not only to the people of the abovementioned districts but to a large number in other sections of southern California as well, and we sincerely hope the project will receive favorable consideration. Yours, very truly,

SAN BERNARDINO CHAMBER OF COMMERCE,
F. M. RENFRO, Secretary.

REDLANDS, CALIF., July 14, 1919. Congressman John E. RAKER,

Washington, D. C. DEAR SIR: Attached please find copy of a resolution passed by the Redlands Chamber of Commerce.

We respectfully call your attention to this matter as something vitally important to the State of California especially, and we trust that it will be possible for you to use your utmost influence in seeing that the resolution embodied in House bill 6044 is passed at the earliest possible time. Yours, very sincerely,

REDLANDS CHAMBER OF COMMERCE,

. A. E. ISHAM, Secretary. Resolution adopted by the executive committee of the Redlands Chamber of Commerce and approved by the board of directors July 10, 1919 : Whereas the Imperial Valley is one of the greatest assets of the Nation as a

food-producing section and vitally important to the welfare of the Nation;

and Whereas millions of dollars have been spent in the Imperial Valley to subdue

the desert and bring hundreds of thousands of acres of fertile land under cultivation, making this one of the garden spots and wealth-producing sec

tions of the world; and Whereas through almost infinite work and sacrifice the present achievements

have been obtained and over a million and a half acres of fertile soil available

for agricultural purposes; and Whereas this great valley, its irrigation works, its production, its growth, its

people, and its safety are vital to the United States : It is hereby

Resolved, That the protection of this valley from flood danger, water shortage and international complication is properly the function of the national Government, and it is further

Resolved, That the Redlands Chamber of Commerce, Redlands, Calif., indorses the passage by the Government of the United States at the earliest possible time of House bill 6044, a bill to assist in increasing the productive agricultural area of the Imperial and Coachella Valleys, Calif., and for other purposes; it is also

Resolved, That a copy of this resolution be sent to our Representatives in Congress and to county boards of supervisors and to chambers of commerce urging immediate active support of this very necessary measure.

H. A. CHERRIES,

President.
H. H. FORD,
Chairman Executive Committee.

PHILIP HARRIS.
M. J. LEVERING.
ALLEN WHEATON.
A. LEIPSIC.
J. H. LOZIER.
E. D. PATTERSON.
H. H. FISKE.

J. H. STRAIT. Attest: This is an exact copy of a resolution passed by the executive committee of the Redlands Chamber of Commerce and approved by the board of directors July 10, 1919.

A. E. ISHAM, Secretary.

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