3

 repaid by such contracting entity by the terms of any contracts with the Secre-
 tary relating to the delivery of water supplies to such landholding for agricul-
 tural use either in the repayment period provided pursuant to the contract or,
 notwithstanding the payment schedule of a contract, upon lump sum payment or
 after repayment by an accelerated schedule when such accelerated schedule is
 applied for by said contracting entity: Provided, That where any such contract
 has been or may be entered into pursuant to the authority of the Rehabilitation
 and Betterment Act (Act of October 7, 1948, 63 Stat. 724, as amended), the
 contracting entity shall have the additional option of adopting a form of re-
 payment consistent with section 5(c) (2) of the Small Reclamation Projects Act
 of 1956 (Act of August 6, 1956, 70 Stat. 1044, as amended) and if such form of
 repayment is adopted, the acreage limitation provisions of the Federal Recla-
 mation Law shall not apply solely as a result of the indebtedness under such
 contract.
 '(b) The Secretary shall provide, upon request of any owner of a landholding
 for which repayment has occurred, a certificate acknowledging that the land-
 holding is free of the acreage limitation of the Federal Reclamation Law. Such
 certificate shall be in a form suitable for entry in the land records of the coun-
 ty in which such landholding is located.

 LEASING RESTRICTIONS
 SEC. 7. (a) Lands which are leased by any lessee and operated for agricul-
 tural production utilizing water supplied pursuant to a contract with the Secre-
 tary shall be considered to be part of such lessee's landholding as well as the les-
 sor's landholding for purposes of applying the acreage limitation of the Federal
 Reclamation Law.
 (b) Notwithstanding the acreage limitation provisions of section 3(b) of this
Act, a lessee may receive water for lands in excess of one thousand two hundred
and eighty acres if he notifies the Secretary showing that such lands in excess
of one thousand two hundred and eighty acres are leased for a period of one
year or less without a right of renewal.
 (c) The right to receive water pursuant to subsection (7) (b) shall be effective
upon the filing of notice of the lease with the Secretary, containing the name
of the lessee and lessor and the length of its term, and shall continue subject to
any subsequent determination by the Secretary that the requirements of this sec-
tion have not been met.
 (d) Lessees holding lands in excess of the acreage limitation of this Act or
of any other provisions of the Federal Reclamation Law under the provisions
of a valid written lease effective as of the date of this Act shall be required to
comply with the appropriate acreage limitation within ten years of the date of
this Act.
 EXEMPTIONS
 SEC. 8. (a) The Secretary is authorized to continue delivery of water supplies
to all project lands held by bona fide religious or charitable nonprofit organiza-
tions as of January 1, 1978, without regard to the acreage limitation of this Act
or other Federal Reclamation Law so long as tide remains unchanged and as
long as the agricultural produce and proceeds of sales are directly used for
charitable purposes.
 (b) Section 3 of the Act of July 7, 1970 (43 U.S.C. 425b) is amended by strik-
ing the phrase "for a period not to exceed twenty-five years" following the term
"project water".
 (c) The acreage limitation of the Federal Reclamation Law shall not apply to
lands within the Imperial Irrigation District of California.
 (d) Any other provision of law notwithstanding, neither the acreage limita-
tion, nor other provisions of the Federal Reclamation Law (Act of June 17, 1902,
32 Stat. 388 and Acts amendatory thereof or supplementary thereto) shall be
applicable to landholdings receiving benefits from Federal water resource proj-
ects constructed by the United States Army Corps of Engineers unless-
 (1) the project has, by Federal statute, explicitly been designated, made
 a part of, or integrated with a Federal reclamation project, or
 (2) the Secretary of the Interior, pursuant to his authority under the
 Federal Reclamation Law has provided project works for the control or
 conveyance of an agricultural water supply for the lands involved, or