ects receiving loans under the Small Reclamation Projects Act loan
program.
 Section 3. (c)-This section applies the definition of a "landhold-
ing" to existing acreage limitations as well as to the limitation in
S. 14. It insures that a landholder who is not a "qualified recipient",
is bound by the limitation on the total of all lands owned or leased
which receive water on one or more projects.
 Section 3. (d) -This section recognizes that the restrictions applied
by S. 14 with regard to leased lands and multiple-project ownerships
will result in lands becoming excess which might not have been con-
sidered to be excess as the law has been administered prior to enact-
ment of this measure. Such lands are required to be placed under
recordable contract within 3 years. They will then be treated as all
other excess lands presently under such contracts.
 Section 3. (e)-This section provides a 10-year disposal period for
lands placed under new recordable contracts pursuant to (d) above.
It therefore would provide 10 years for disposal of multi-project
ownerships in excess of 1,280 acres or ownerships in excess of 160
acres if held by parties who are not "qualified recipients."
 Section 3. (f) -This section permits the Secretary to limit the num-
ber of landholdings which a hired manager may operate in the service
of one or more qualified recipients or landholders. It is intended to
avoid the possibility that a management contract arrangement could
be substituted for a lease and used to transfer the benefits of several
landholdings to one "manager".
 Section 3. (g)--This is a savings clause to clarify the intent of
S. 14 to preserve existing Reclamation Law except as specifically
amended.
 It is important to remember in interpreting S. 14 that, unless spe-
cifically changed therein, the existing Reclamation Law continues
to apply, and whatever latitude the Secretary of the Interior or the
courts may have to alter implementation remains. Passage of S. 14
will not change or otherwise affect the Administration by the Secre-
tary of the Small Reclamation Projects Act of 1956 (70 Stat. 1044
as amended), the Emergency Fund Act of 1948 (62 Stat. 1052) or
such other authorities of the Secretary not specifically addressed.
 Section 3. (h) -This is a savings clause to preserve statutory exemp-
tions from the acreage limitation where they now exist.
 Section 4.-This section provides for the application of the Class 1
equivalency concept on a programwide basis; the Committee intends
that the Bureau of Reclamation will follow the practices and pro-
cedures implementing this provision which have been used in estab-
lishing Class 1 equivalency on projects for which the concept has
already been authorized by previous Acts.
 Section 5.-This section abolishes residency as a requirement in order
to be eligible to receive water for a landholding. It is the intention
of this section to remove any requirement for residency in regard
to any "landholdings" which are involved with the Reclamation Law
in any regard.
 Section 6. (a) -This section provides that when a contracting entity
 representing landholders has repaid to the Federal Government the
 amount of construction costs required to be repaid by its contract, in
 accordance with the repayment schedule contemplated in the contract,