SECTION 785:20-11-7. Water supply contracts from federal projects

(a)   The Board shall obtain the amount of storage together with the estimated dependable yield available for contract from the federal agency responsible for construction of federal projects and notify the managing agency for the project as to who has the rights to the water and the priority of such rights.

(b)   The responsible federal construction agency shall notify the Board upon completion of a project for water supply and the managing agency will be requested to execute water supply contracts for storage in federal projects with holders of permits with a priority falling within the amount of water supply storage available in the project.

(c)   In cases in which the appropriation is from storage other than water supply, the permit holders with appropriation from the water supply storage should be granted first opportunity to sign repayment contracts with the responsible managing agency.

(d)   If a holder of a permit from the water supply pool does not sign a contract as provided in 785:20-7-5, then the permit holder with the next best priority will be given an opportunity to sign a contract.