Arkansas Code
Subchapter 4 - Operation of Water Districts
§ 14-116-407. Contracts — Water district and United States

The board is authorized to:
(1) Cooperate with the United States or any agency or instrumentality thereof, hereinafter referred to as the “United States”, in the development of plans for the construction, operation, and maintenance of any facilities which the water district is authorized to construct, operate, and maintain;
(2) Negotiate a contract with the United States or give such assurance as may be required by the United States for the construction, operation, and maintenance of such facilities or any part thereof by the United States.
(A)
(i) The contract or assurance may provide for the payment by the water district to the United States of the agreed costs thereof in the form of construction charges, operation and maintenance charges, water storage rental, or service charges.
(ii) “Construction charges” may include the cost of works of improvement for any project addressing the purposes contained in § 14-116-102 and ancillary benefits derived therefrom, including, but not limited to, fish and wildlife, prevention of seepage on irrigated lands, prevention of erosion and sediment damages, and the conservation, development, utilization, and disposal of water.

(B) The contract or assurance may provide for the repayment of the various charges by the water district primarily or exclusively from revenue to be derived by the district from the sale under contract between the district and its water users from the district works, with payment to be made either in the form of agricultural products, cash, or, if an improvement project area has been created under § 14-116-501 et seq., § 14-116-601 et seq., or § 14-116-701 et seq., with revenues derived from assessments levied pursuant thereto.
(C) The contract or assurance may provide that the water district shall furnish lands, easements, and rights-of-way and that property so acquired by the district may be conveyed to the United States insofar as the property may be required for the construction, operation, and maintenance of works thereon by the United States for the benefit of the district.
(D) The contract or assurance may provide that the water district shall save and hold harmless the United States from any liability or damages due to or arising out of the construction, operation, and maintenance of any of the works.

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