are consistent with the recommendations of the San Luis Task Force.
They would require public notice of proposed draft contracts, and op-
portunity for public comment, with public hearings at the Secretary's
discretion; review of comments by the Secretary would also be re-
quired. Contract negotiations would be open to the public as ob-
servers; notice of these sessions would not be required.

 CIVIL PENALTY PROVISION
 We have proposed in Section 16 the addition of authority for the
Secretary to assess a civil penalty against those who violate provisions
of the Federal reclamation laws and regulations. The penalties would
vary wtih the circumstances but could range, at the Secretary's dis-
cretion to $5,000, or to twice the value of project water delivered to
a violator. Traditionally, the only sanction available to the Secretary
to enforce reclamation laws has been to cut off project water supplies
for infractions. This is a Draconian measure which the Department
has been reluctant to invoke. Without abandoning the option of shut-
ting off water, we believe that the civil penalty provision will offer
an additional and more flexible and realistic tool for achieving com-
pliance with the reclamation laws.

 OTHER PROVISIONS
 We would adopt a provision in Sec. 8(b) of S. 14 calling for an
exemption for charitable and religious organizations, holding project
lands as of January 1, 1978, from legal limitations of the reclamation
program. Although we do not want to expand the participation of
charitable organizations in the program since that is not the purpose
of the program, we do not wish to eliminate those charitable orga-
nizations now participating in the program.
 Our position adopts the provision of Section 9(a) of S. 14 which
would authorize the Secretary upon the request of the holder to amend
existing contracts to conform to the provisions of the bill.
 An additional provision requires water districts to obtain and
maintain such data and submit such reports as the Secretary may con-
sider necessary to enforce the law.
 Other reclamation laws, not inconsistent with the new bill, would
remain in full force and effect.

 DEPARTMENTAL REGULATIONS
 It is appropriate to mention here the regulations, which would be
required by Section 14 of our amendments, and which are being de-
veloped in coordination with work now underway on an environ-
mental impact statement (EIS). The draft regulations which were
proposed previously have been substantially revised, based upon
hearings which were conducted in the West by top policy level of-
ficials of the Department, on 10,000 written comments which were
received, and on further ongoing study by the Department. Addi-
tional revisions to the regulations will be forthcoming. Pursuant to
a decision of the Federal District Court in Fresno, further promulga-
tion of rules is stayed pending completion of the EIS. The EIS will
be done with references to the rules as revised to date, not the rules