1060 Operation of reser voir and dam. Water for irr igation and domestic use from canal, electricity from dam, etc ., by contract . Charges to co ver ex- penses . Irrig ation and dome s- tic permanent service . Ante, p. 1058 . Contracts required . After rep ayin g all money advanc ed, rev- enues to be expended in Colorado River Basin . Contracts for electri- cal energy . Time limit . Readjustments. Renewals . Contrac ts for use o f water, etc., for hydro- electric energy to be made upon application, Determ ination of confli cting applic a- tions. Preference to States for use in the State . SEVENTIETH CONGRESS . SESS. II . Cu. 42. 1928 . Sec. 5 . That the Secretary of the Interior is hereby authorized, under such general regulations as he may prescribe, to contract for the sto rage of wate r in sai d re serv oir and for the deli very the reof at such points on the river and on said canal as may be agreed upon, for irrigation and domestic uses, and generation of electrical energy and delivery at the switchboard to States, municipal corporations, political subdivisions, and private corporations of electrical energy generated at said dam, upon charges that will provide revenue which, in addition to other revenue accruing under the reclamation law and under this Act, will in his judgment cover all expenses of opera- tion and maintenance incurred by the United States on account of works constructed under this Act and the payments to the United States under subdivision (b) of section 4 . Contracts respecting water for irrigation and domestic uses shall be for permanent serv- ice and shall conform to paragraph (a) of section 4 of this Act . No person shall have or be entitled to have the use for any purpose of the water stored as aforesaid except by contract made as herein stated. After the repayments to the United States of all money advanced with interest, charges shall be on such basis and the revenues derived therefrom shall be kept in a separate fund to be expended within the Colorado River Basin as may hereafter be prescribed by the Congress . General and uniform regulations shall be prescribed by the said Secretary for the awarding of contracts for the sale and delivery of electrical energy, and for renewals under subdivision (b) of this section, and in making such contracts the following shall govern (a) No contrac t for e lectri cal ene rgy or for ge neratio n of el ectric al energy shall be of longer duration than fifty years from the date at which such energy is ready for delivery . Contracts made pursuant to subdivision (a) of this section shall be made with a view to obtaining reasonable returns and shall contain provisions whereby at the end of fifteen years from the date of their execution and every ten years thereafter, there shall be readjustment of the contract, upon the demand of either party thereto, either up- ward or downward as to price, as the Secretary of the Interior may find to be justified by competitive conditions at distributing points or competitive centers, and with provisions under which disputes or dis- agreements as to interpretation or performance of such contract shall be determined either by arbitration or court proceedings, the Secre- tary of the Interior being authorized to act for the United States in suc h readjustmen ts or proceed ings . (b) The holder of any contract for electrical energy not in default thereunder shall be entitled to a renewal thereof upon such terms and conditions as may be authorized or required under the then existing laws and regulations, unless the property of such holder dependent for its usefulness on a continuation of the contract be purchased or acquired and such holder be compensated for damages to its property, us ed and useful in the trans mission and di stribu tion of such e lectri cal energy and not taken, resulting from the termination of the supply . (c) Contracts for the use of water and necessary privileges for the generation and distribution of hydroelectric energy or for the sale and delivery of electrical energy shall be made with responsible ap- plicants therefor who will pay the price fixed by the said Secretary with a view to meeting the revenue requirements herein provided for . In case o f confl icting applic ations, if any , such confli cts sha ll be re- solved by the said Secretary, after hearing, with due regard to the public interest, and in conformity with the policy expressed in the Federal Water Power Act as to conflicting applications for permits and licenses, except that preference to applicants for the use of water and appurtenant works and privileges necessary for the generation
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