12-817b.   Contracts with U.S. government or agencies for watersupplies; subject to future nullification if state assumes certainfinancial obligations.Any two or more cities may enter into contracts or a single contractwith the United States government or any agency thereof for a water supplyor part thereof for any one or more of such contracting cities. Any suchcontract may provide that water shall be supplied and paid for in quotaswhich are automatically adjusted for population changes in such cities, orfor other agreed amounts, from storage facilities or reservoirs of theUnited States government. Any such contract or contracts may provide forpayment by such cities to the United States government for such watersupply and may designate the manner in which payment obligations shall beshared among such cities.

      Such contracts may run for any term not exceeding fifty (50) years:Provided, Every such contract shall contain a provision that in theevent the state, through duly authorized officers, at any time declaressuch contract to be void, it shall immediately thereafter be void and of noeffect, however, the state shall at the same time become liable for andassume the financial obligations of such contract for any costreimbursement and maintenance expense which is provided under such contractto be paid by such municipalities to the United States government or anyagency thereof, and such financial obligations shall become due at the sametime and in the same amount as provided in such contract for payment bysuch municipalities: Provided further, Every such contract shallcontain a provision that in the event that such contract is declared voidpursuant to the provisions of this section, such contracting cities shallpay to the state sums of money equal to the sums of money that the statepays to the federal government as a result of such declaration, and suchcities shall thereupon have rights to water similar to their rights towater under such voided contract.

      History:   L. 1963, ch. 78, § 2; April 23.