ing Congressional ratification, which would apply to the updated list
of contracts attached hereto. Any exemption granted, by contract or
otherwise, would be only upon full payment over the normal term of
the contract, and the land laws would apply and be enforced in the
meantime.
 The issue has been frequently raised as to whether prepayment of
 the contractual obligation would warrant an exemption. We are
 strongly opposed to such a policy, since it would negate the purposes
 of the reclamation program, and we do not think it is authorized under
 existing law.
 DISPOSITION OF EXCESS LANDS
 Section 12 of S. 14 does not address the issue of disposition of excess
 lands. Our amendments attempt to reduce speculation and provide for
 equitable distribution of excess lands. It would limit the classes of
 eligible purchasers from whom the seller could choose to three groups,
 immediate family members, tenants and employees of more than 10
 years standing, or adjoining neighbors. This classification is an attempt
 to recognize, on the one hand, several basic groups which experience
 has shown may have a reasonable basis for a preference at purchasing
 available excess lands, and who, if otherwise eligible as landowners,
 should be encouraged by the law to participate. On the other hand, it
 is an attempt to keep the opportunity for purchase of excess lands
 open to as many people as possible. We feel that the classifications are
 manageable and supportable based on our experience at administering
 the program.
 If a seller has not sold his excess lands to an eligible purchaser
 within the above groups by the end of the recordable contract period,
 power of attorney would vest immediately in the Secretary to sell the
 lands by lottery to an eligible purchaser. The Secretary would estab-
 lish procedures and criteria for sale in regulations. The Secretary
 would retain discretion as to whether, or how long, to continue water
 deliveries to excess lands beyond the recordable contract period and
during the period of sale by the Secretary.
 The Administration would also seek to contract speculation in ex-
cess lands by amending Section 46 of the Omnibus Adjustment Act
of 1926 (43 U.S.C. 423(e)) to extend price control by the Secretary
over the sale and resale of excess lands for a period of 15 years beyond
the initial sale, and by requiring clear documentation of the legal
conditions of sale in the sales transactions. Although Section 46 could,
and we think should, be read to provide authority for price control
over resales of excess lands, it has not been so interpreted until re-
cently. For this reason, we believe that provisions for strengthening
and clarifying Section 46, found at Section 12 (c) of our amendments,
are worthwhile.
 REPAYMENT OF PROJECT COSTS
 Section 10 (a) of the amendments would require that any water
service contracts including amendments or temporary contracts, en-
tered into after enactment, would require reassessments of rates and
repayment every 5 years. This would recognize several factors. Fre-
quently irrigation projects are built on terms which are extremely
favorable to the irrigators, whose initial payment capacity may be