42-2009 — CONTRACT FOR CONSTRUCTION OF RECLAMATION WORKS


                                  TITLE  42
                       IRRIGATION AND DRAINAGE -- WATER
                            RIGHTS AND RECLAMATION
                                  CHAPTER 20
                        RECLAMATION OF CAREY ACT LANDS
    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.