repayment of the amount called for in the contract. The courts have
said that such contract provisions are generally invalid unless the con-
tract has been submitted to the Congress for review pursuant to the
Reclamation Project Act of 1939 (53 Stat. 1187; 43 U.S.C. par. 485).
The effect of this section would be to allow, at the initiation of the
water user, validation by the Congress of such contract provisions
which have not otherwise been validated following a review by the
Secretary of the Interior.
 Section 10. (d)-This section provides that excess lands which are
 sold by the Secretary by power of attorney after expiration of the 10-
 year recordable contract period (which is a procedure of existing law)
 shall be sold only to qualified recipients and by impartial selection of
 buyers. The Secretary shall include in such sales of excess lands parcels
 of various sizes, smaller than 1,280 acres and especially very small par-
 cels where he determines that such parcels would be financially and
 economically viable farm units. The purpose of this provision is to
 facilitate the initiation of new family farm units at minimal invest-
 ment costs. No authority is granted to apply such restrictions to sales
 made by owners within the 10-year recordable contract period.
 Section 11.-Repayment contracts between water users and the Sec-
 retary are the usual vehicle for the application of acreage limitations
 to the project lands. Some such contracts have explicit provisions
 which were questioned by the courts on the grounds that they exceeded
 the Secretary's authority. Section 10 (c) of this Act provides for the
 congressional validation of such provisions at the request of the water
 users.
 In some instances, written representations were made to the water
 users concerning the interpretation of the Reclamation Law or of con-
 tract provisions which may have influenced the water users' decision
 to consulate the contract. Section 11 provides access to the courts for
 parties seeking to reform such contracts in accordance with the terms
 of such representations. The conditions of this permission are clear in
 the text.
 This right would be applicable to the contractual agreements, in-
 cluding any amendments to contracts, which were in force upon the
 date of enactment of this Act.
 Section 12.-This section is self-explanatory.

 COST AND BUDGETARY CONSIDERATIONS
 The following estimate of costs of this measure has been provided by
the Congressional Budget Office:
 CONGRESSIONAL BUDGET OFFICE,
 U.S. CONGRESS,
 Washington, D.C., July 5,1979.
Hon. HENRY M. JACKSON,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
 Dirksen Senate Office Building, Washington, D.C.
 DEAR MR. CHAIRMAN : Pursuant to Section 403 of the Congressional
Budget Act of 1974, the Congressional Budget Office has reviewed S.
14, the Reclamation Reform Act of 1979, as ordered reported by the
Senate Committee on Energy and Natural Resources, June 21, 1979.


S.Nept. 96-235 --- 2