Arkansas Code
Subchapter 4 - District Operation
§ 14-117-402. Contracts between district and United States

(a) 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 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) The contract or assurance may provide for the payment by the district to the United States of the agreed costs thereof in the form of construction charges, operation and maintenance charges, water rental, or service charges.
(B) The construction charges may include the cost of works of improvement for irrigation, drainage, flood control, prevention of seepage of irrigated lands, prevention of erosion, floodwater, and sediment damages, and the conservation, development, utilization, and disposal of water.
(C) The contract or assurance may provide for the repayment of the various charges by the 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 or cash. However, if sufficient revenue is not available from this source or if the district was organized primarily for purposes other than irrigation, then the board shall have authority to assess benefits against the property within the district for the purpose of repaying the obligations of the district under the terms of the contract with or assurances given to the United States.
(D) The contract or assurance may provide that the 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.
(E) The contract or assurance may provide that the 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.

(b) Until all moneys receivable by the United States from the district under the contract or assurance shall have been fully paid, the boundaries of the district shall not be altered without the consent of the United States.
(c) Any indebtedness to the United States shall be and remain a prior charge against the lands of the district. It shall be paid by sale or rental of water or service under contract with the landowners of the district, by the annual levy of assessments by the commissioners against the district lands or by advance toll charge, all as herein provided, and the obligation to the United States shall so remain prior to any subsequent obligation of the district.
(d)
(1) After the terms of the contract or assurance have been negotiated with the United States, the board shall petition the chancery or circuit court for the approval, if necessary, of a bond issue or other evidence of indebtedness by the district for the purpose of paying for preliminary expenses and the cost of acquisition of lands, easements, and rights-of-way which may be needed in order to carry out the plan of improvement.
(2) The chancery or circuit clerk shall thereupon give notice by publication for two (2) weeks in some newspaper published and having a general circulation in the county or counties within the district, calling upon all persons owning property within the district to appear before the court upon some date not less than thirty (30) days nor more than ninety (90) days from the date of the last publication, to be fixed by the court, to show cause in favor of or against the issuance of bonds or other evidence of indebtedness.
(3) If upon final hearing the court deems it to be in the best interest of the owners of real property within the district, the court shall enter an order authorizing the issuance of bonds or other evidence of indebtedness. However, if it is determined by the court that a majority in number of the holders of title to the lands within the district and the owners of a majority in value of the lands therein, as shown by the last assessment, oppose the issuance of bonds or other evidence of indebtedness, the court shall enter a decree disapproving the issuance of bonds or other evidence of indebtedness.
(4) The order of the court shall have the force of a judgment, and any aggrieved party may appeal from the order as provided in § 14-117-207.