General Information about the RRA Forms

FORM 7-21INFO
2010 Instructions

GENERAL INFORMATION
ABOUT THE RRA FORMS

(7-09)

Bureau of Reclamation
Do not use this form after December 31, 20010

OMB Control No.: 1006-0005

GENERAL INFORMATION

If landholdings change ................................................. 6
Administrative fee........................................................ 6
Complete list of landholder and farm operator RRA
forms (table)............................................................. 7
Definitions ................................................................... 7

You will find definitions of words used in all RRA forms at
the end of this “General Information About the RRA Forms”
(Form 7-21INFO). It is important that you refer to these
definitions because many words have special meanings when
used in these forms that differ from their common meanings.
Examples of words with special definitions are
“landholder,” “direct” and “indirect” (when used in
conjunction with owning, leasing, or holding land), and
“irrigation land” and “irrigable land.” Other terms and
corresponding definitions that are specific to the RRA forms
are:

Visit www.usbr.gov/rra for more information.

FACT SHEETS
We have developed FACT SHEETS that will provide you
with additional information. These FACT SHEETS are
available at your district office, the appropriate Reclamation
office, and at www.usbr.gov/rra.

• “Land” or “acres” means irrigable and/or irrigation land.
• “You” or “your” means all types of landholders -individuals, entities, religious or charitable organizations,
public entities, etc.

FACT
SHEET
1

RRA Forms - Who, Where, When, and What

• “We,” “us,” “our,” or “Reclamation” means the Bureau
of Reclamation.

2

How to Determine Your Status Under Reclamation Law

3

How to Become Subject to the Discretionary Provisions

4

What Are My Entitlements as a Qualified Recipient?

5

What Forms Are Required for a Qualified Recipient?

6

What Are My Entitlements as a Limited Recipient?

ON PAGE

7

What Forms Are Required for a Limited Recipient?

Fact Sheets....................................................................1
Who must submit RRA forms.......................................1
RRA forms submittal thresholds (table) .......................2
Eligibility to receive water............................................2

8

What Are My Entitlements as a Prior Law Recipient?

In addition, these instructions address the following subjects:
SUBJECT

Which forms to submit .................................................2
Types of landholders and appropriate
standard forms (table) ..............................................3
When and where to submit RRA forms ........................3
Verification forms.........................................................3
Use of substitute RRA forms,
computer-generated printouts, or
scanned versions of the official RRA forms ............3
Using attachments.........................................................4
Excess land ...................................................................4
Full-cost land ................................................................4
Class 1 equivalency factors ..........................................4
Who must sign the RRA forms and
signature authorization forms ..................................4
Making an irrevocable election.....................................5
Nonresident aliens and foreign entities.........................5
Public entities ...............................................................6
Leases ...........................................................................6

TITLE

9

What Forms Are Required for a Prior Law Recipient?

10

Signature Requirements for RRA Forms

11

What Constitutes a Landholding Change?

12

Trusts and Estates and the RRA

13

Involuntary Acquisitions and the RRA

14

How to Appeal Final RRA Determinations

WHO MUST SUBMIT RRA FORMS
You must submit RRA forms if you are a landholder
(including but not limited to individuals, entities, trusts,
estates, public entities, and religious or charitable
organizations) and you hold (directly or indirectly own or
lease) land that is subject to the acreage limitation provisions
of Federal reclamation law (including but not limited to the
Reclamation Reform Act of 1982 [RRA]), unless you meet
one of the following three exceptions:

1

(1)

The amount of land you hold westwide is equal to or
less than your district’s RRA forms submittal
threshold. The RRA forms submittal thresholds are
determined by each landholder’s acreage limitation
status and each district’s RRA forms submittal
category. Table 1 lists the RRA forms submittal
thresholds. You should contact each district in which
you hold land to determine each district’s forms
submittal category if you are a qualified recipient.
A district’s RRA forms submittal category is subject
to change annually.

(2)

You are exempt from the acreage limitation provisions
by statute or by action of the Secretary of the Interior.

(3)

Your landholdings are in districts that are obligated to
the United States only by a Small Reclamation
Projects Act or Water Conservation and Utilization
Act contract, or your landholdings are in districts that
receive water from a Corps of Engineers project that is
exempt from the acreage limitation provisions.

In situations where a parent(s) or legal guardian(s) of a
minor child or ward wants us to consider the minor as being
nondependent for acreage limitation purposes, they must
submit to us a “Parental Oath Affirmation Regarding
Nondependent Status of a Minor.” If the landholdings of the
nondependent minor exceed the RRA forms submittal
threshold of the district(s) in which they hold land then they
must submit their own RRA form(s) to each district in which
they hold land.

ELIGIBILITY TO RECEIVE WATER
Your land is not eligible to receive Reclamation irrigation
water if the required RRA forms have not been submitted.
You will jeopardize the continued delivery of Reclamation
irrigation water if you fail to submit RRA forms. However,
the completion of RRA forms does not guarantee the land’s
eligibility for water. For example, excess land that has not
been placed under recordable contract and land acquired
from excess status without our price approval is generally
ineligible for Reclamation irrigation water deliveries.
Landholders that lease land to or from other landholders
should inform the lessees and lessors of their obligation to
also submit RRA forms. If either the lessee or lessor fails to
submit RRA forms, the eligibility of the land to receive
Reclamation irrigation water will be jeopardized.

Generally, you must also submit RRA forms if you are a
farm operator providing services to trusts or legal entities.
The RRA forms submittal threshold for farm operators and
other important information for farm operators are specified
in the instructions for the “Declaration of Farm Operator
Information” (Form 7-21FARMOP).

WHICH FORMS TO SUBMIT
Different forms are required for different types of
landholders. In most cases, the forms landholders must
submit depend on whether the landholders are subject to
prior law provisions or subject to discretionary provisions.
The standard forms that each type of landholder must submit
are shown in table 2. A complete list of forms by name and
number is shown in table 3. Types of landholders are listed
below, along with further information if necessary.

TABLE 1.—RRA forms submittal thresholds.
District Forms
Submittal
Category 1

District Forms
Submittal
Category 2

Qualified
i i recipient
Limited

240 acres

80 acres

40 acres

40 acres

Prior law
i i entities
t
Public

40 acres

40 acres

40 acres

40 acres

Landholder
Status

• Individuals subject to discretionary provisions.

Trusts and estates Please see the instructions for the “Declaration of
Trust’s or Estate’s Landholdings”
(Form 7-21TRUST)
Farm operator

• Individuals subject to prior law provisions.
• Entities subject to discretionary provisions (see
definitions of “legal entity” and “family”).

Please see the instructions for the “Declaration of
Farm Operator Information” (Form 7-21FARMOP)

• Entities subject to prior law provisions (see definitions
of “legal entity” and “family”).

Example:
Farmer A is a prior law recipient and holds a total of
40.0 acres of land westwide. Since Farmer A does not
hold more than the RRA forms submittal threshold for
a prior law recipient (40 acres), Farmer A does not
have to submit RRA forms to be eligible to receive
Reclamation irrigation water. If Farmer A held
40.1 acres (directly or indirectly owned or leased), he
would have to submit RRA forms in order to be
eligible to receive such water.

• Religious or charitable organizations subject to
discretionary provisions.
• Religious or charitable organizations subject to prior
law provisions.
• Trusts of all kinds, including revocable trusts where the
grantor is the trustee and also the sole beneficiary. The
RRA does not specifically limit the amount of land trusts
may own that is eligible to receive Reclamation irrigation
water or the amount of land trusts may hold and irrigate at
nonfull-cost rates. However, trusts may be limited if the
parties attributed with the land held in trust exceed their
entitlements.

It is the responsibility of landowners, sellers of land, and
districts to notify lessees, buyers of land, and new
landholders, respectively, of the RRA forms submittal
requirements associated with the land in question.

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FORM 7-21INFO (2010)

Please note that all parties attributed with the land held in
trust must also submit their own RRA forms unless they
meet one of the exceptions listed above under “Who
Must Submit RRA Forms.” Trust documents are not
required to be on file in district offices. However,
section 426.7 of the Acreage Limitation Rules and
Regulations requires that all trusts be approved;
therefore, if your trust has not been approved, the
trustee(s) must submit the trust document(s) to the
appropriate Reclamation office.

WHEN AND WHERE TO SUBMIT RRA FORMS
If you are a landholder, you must submit the necessary RRA
forms to each district in which you hold land prior to the
delivery of Reclamation irrigation water to your land. You
must submit the original form to one district and may submit
copies to the others if you hold land in more than one
district. You must submit RRA forms each and every year
you wish to receive Reclamation irrigation water. If you do
not receive Reclamation irrigation water in a given year, you
do not have to submit an RRA form that year. However, if
you wish to receive Reclamation irrigation water in a
following year, you must demonstrate that you did not
receive water in years when you did not submit forms to
your district.

• Estates are treated similarly to trusts. See the
instructions for “Declaration of Trust’s or Estate’s
Landholdings” (Form 7-21TRUST) for further
explanation about attributing the estate’s landholding.
• Public entities include, but are not limited to, Federal,
State, county, and city government agencies and any
other public entities. In general, public entities are
exempt from acreage limitation provisions if their land is
farmed primarily in the direct furtherance of a
nonrevenue producing function, but they must submit
forms to aid us in determining if they are, in fact, exempt
and in identifying any land they lease to other parties.

You are required to submit RRA forms only once if you are
a part owner of an entity, trust 3 , or estate that holds land and
if:
• Your westwide landholdings exceed the applicable RRA
forms submittal threshold for the district;
• You hold land only indirectly through an entity, trust, or
estate;

• Farm Operators that (1) provide services to more than
960 nonexempt acres westwide, held by a single trust or
legal entity or any combination of trusts and legal entities
or (2) a part owner of a legal entity that is a farm operator
that must submit RRA forms and the farm operator is
providing services to land that was formerly owned as
excess by the part owner and sold or transferred at a price
approved by us.

• Neither the number of acres attributed to you nor your
percentage of ownership in the entity, trust, or estate
changes; and
• All other information on the previously submitted form
has not changed.

VERIFICATION FORMS

TABLE 2.—Types of landholders and appropriate
standard forms.
Type of landholder
Individuals
Discretionary Provisions
Standard form
1
Optional form
Prior Law
Standard form
Optional form 2
Entities
Discretionary Provisions
Prior Law
Religious or charitable organizations
Discretionary Provisions
Prior Law
Trusts or estates

7-2180
7-2180EZ
7-2190
7-2190EZ
7-2181
7-2191

7-21PE

Farm operators

7-21FARMOP

2

USE OF SUBSTITUTE RRA FORMS,
COMPUTER-GENERATED PRINTOUTS, OR
SCANNED VERSIONS OF THE OFFICIAL
RRA FORMS

7-2184
7-2194
7-21TRUST

Public entities
1

Once you have submitted a standard form, if your
landholdings do not change, you may submit a “Verification
of Landholdings” (Form 7-21VERIFY) the next year instead
of a standard form. 4 You may also use verification forms if
the only change from the last standard form you submitted is
that an annual lease (a lease whose original term and any
renewal or extension are each for a term of 12 months or
less) was extended or renewed or that a farm operator
changed.

Standard form

You may use substitute RRA forms or computer-generated
printouts as attachments to the official RRA forms only after

For landholders that directly hold all irrigable and/or
irrigation land in only one district, where the landholdings
do not total more than 960 acres, and the land is not held
by a dependent.

3

Annual RRA forms are required for trusts that include a class of
beneficiaries; specifically, an annual Form 7-21TRUST for the
trust and an annual appropriate standard form for each beneficiary.
4
Farm operators cannot use Form 7-21VERIFY to meet any
applicable RRA forms submittal requirements. This includes part
owners of farm operators who meet the criteria to submit RRA
forms.

For landholders that directly hold all irrigable and/or
irrigation land in only one district, where the landholdings
do not total more than 160 acres [320 acres for husband
and wife], and the land is not held by a dependent.

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FORM 7-21INFO (2010)

they have been reviewed and approved by us. The following
forms are the only exceptions:

You must also designate land on your own Form 7-21XS if
you indirectly own land designated as excess by an entity,
trust, or estate, and if you exceed your ownership
entitlement. You do not have to submit Form 7-21XS if you
are only an indirect landholder and you do not exceed your
ownership entitlement, even if excess land is attributed to
you by an entity, trust, or estate.

• “Continuation Sheet for Indirectly Held Landholdings”
(Form 7-21CONT-I)
• “Continuation Sheet for Directly Leased Landholdings”
(Form 7-21CONT-L)
• “Continuation Sheet for Directly Owned Landholdings”
(Form 7-21CONT-O)

If you purchase land that is designated as excess by the seller
without our sales price approval you must designate that land
as excess on Form 7-21XS even if you do not exceed your
ownership entitlement. If you exceed your westwide
ownership entitlements and do not submit Form 7-21XS to
designate your excess acres, then we will determine all land
held by you to be ineligible to receive Reclamation irrigation
water until the appropriate excess designation is made. It is
the direct landowner’s responsibility to notify potential
buyers of excess land of the actions needed to make the land
eligible to receive Reclamation irrigation water.

• “Attachment Sheet for Form 7-21XS”
(Form 7-21XSINAQ)
These forms do not require prior approval because you are
presently able to use your own similar form in place of
Forms 7-21CONT-I, 7-21CONT-L, 7-21CONT-O, and
7-21XSINAQ.
If a landholder or district office uses an unapproved
substitute form or computer-generated printout as an
attachment to an official RRA form to meet their RRA
certification or reporting requirements, we will determine
them to be in noncompliance with the RRA and they will be
required to recreate the information on an official RRA form.
Even though landholders and district offices are not required
to seek our review and approval of scanned versions of the
official RRA forms, the user of such a form will be held
responsible for the correctness and legibility of the text on a
scanned RRA form.

FULL-COST LAND
If you have received Reclamation irrigation water on your
maximum nonfull-cost entitlement in a given water year, you
must pay the full-cost rate for Reclamation irrigation water
deliveries to any additional eligible land. If you hold more
land than your nonfull-cost entitlements, you must select
which land is to be considered full-cost and which is nonfullcost through the submittal of a “Selection of Full-Cost Land”
(Form 7-21FC). Only direct landholders can select land as
full-cost. Although trusts and estates do not have a specific
limitation on the amount of land they hold that can receive
Reclamation irrigation water at nonfull-cost rates, they must
select land as full cost on Form 7-21FC if any party
attributed with land held in trust or estate exceeds his or her
nonfull-cost entitlement and his or her full-cost land is land
held by the trust or estate.

USING ATTACHMENTS
You may attach your own continuation sheets or use the
preprinted continuation sheets supplied by us if you do not
have enough space on a form. Please contact your district
office to obtain the preprinted continuation sheets; these are
listed by name and number in the section above and in
table 3.

You must also select land on your own Form 7-21FC if you
indirectly hold land selected as full-cost land by an entity,
trust, or estate, and if you exceed your nonfull-cost
entitlement. You do not have to submit Form 7-21FC if you
are only an indirect landholder and you do not exceed your
nonfull-cost entitlement, even if full-cost land is attributed to
you by an entity, trust, or estate.

You may also prepare your own continuation sheet to list
your landholdings. The sheet may be handwritten, typed, or
computerized as long as it includes the required information
in a format similar to the preprinted form. However, you
cannot submit a continuation sheet without a standard or
verification form.

CLASS 1 EQUIVALENCY

EXCESS LAND

For those districts that have class 1 equivalency factors,
please refer to the separate instructions for Forms 7-21FC
and 7-21XS for more information on how to utilize class 1
equivalency factors.

Only direct landowners can designate land as excess. If you
own land in excess of your ownership entitlement, you must
designate your excess land using a “Designation of Excess
Land” (Form 7-21XS). You should use Form 7-21XS to
designate your excess land, whether you are an individual,
entity, trust, estate, etc. Although trusts or estates do not
have a specific limitation on the amount of land they can
own, they must designate excess land on Form 7-21XS if
any party attributed with the land held in trust or estate
exceeds his or her ownership entitlement and his or her
excess land is land owned by the trust or estate.

WHO MUST SIGN THE RRA FORMS AND
SIGNATURE AUTHORIZATION FORMS
The instructions to each form identify who must sign that
specific form. For instance, if you are married and you are
submitting Form 7-2180, both you and your spouse must
sign the form, even if the land is not jointly held. However,
a written signature authorization form may be submitted to
4

FORM 7-21INFO (2010)

permit one spouse to sign for the couple. A partnership,
joint tenancy, or tenancy-in-common may also submit a
written signature authorization to allow one individual to
sign the RRA forms for the partnership, tenancy, or
tenancy-in-common. A written signature authorization
cannot be used retroactively, must pre-date the signature to
which it pertains on the applicable RRA form(s), and must
be filed with each district where RRA forms are submitted.
All trustees, administrators, or executors must sign the form
unless the trust or a power-of-attorney authorizes one
individual to sign the RRA forms for the trust or estate.

copy of the certification form to all districts in which you
hold land subject to the acreage limitation provisions.
(See the paragraph below titled “Nonresident Aliens and
Foreign Entities” for special instructions regarding
nonresident aliens and foreign entities.)
If you are under the provisions of prior law and you do not
submit an RRA form(s), it will be taken as evidence that you
have conformed to the discretionary provisions if you:

MAKING AN IRREVOCABLE ELECTION
You must submit the necessary certification form(s) to your
district office with an irrevocable election form in order to
become subject to the discretionary provisions. If you hold
land in more than one district, you must also submit copies
of the irrevocable election form and certification form(s) to
the appropriate district(s) at the same time. You will be
eligible for a higher RRA forms submittal threshold if you
make an irrevocable election and you are determined to be a
qualified recipient.

(2)

Have not made an irrevocable election to
conform to the discretionary provisions, and

(3)

Have not made an irrevocable election by
simply submitting a certification form to any
district.

(2)

Have westwide landholdings of more than
40 acres, but you do not exceed the applicable
RRA forms submittal threshold for a qualified
recipient in each district where you hold land;
and

(3)

Have not submitted a certification form in the
past or made an irrevocable election.

NONRESIDENT ALIENS AND FOREIGN
ENTITIES
If you are a nonresident alien or foreign entity, you have the
applicable prior law entitlements as your base acreage
limitation entitlements (ownership and nonfull-cost) for all
land held directly and indirectly in prior law districts, and all
land held indirectly in discretionary provisions districts. Any
land you hold directly in a discretionary provisions district is
ineligible to receive Reclamation irrigation water.

You can choose to remain or become subject to prior law
provisions if you only hold land indirectly in a district that
has conformed to the discretionary provisions. This assumes
that you:
Hold no land directly,

Hold land only indirectly in a discretionary
provisions district;

As with all actions to conform to the discretionary
provisions, the decision not to submit an RRA form, and
therefore conform, will be considered irrevocable and
binding in all districts. NOTE: This action does not apply if
you are an entity that is owned by or benefits 26 or more
natural persons because such a landholder would be a limited
recipient with a 40-acre RRA forms submittal threshold
under the discretionary provisions. This action also does not
apply if you and your spouse, if married, are nonresident
aliens.

An irrevocable election binds only the elector. An
irrevocable election by a legal entity does not make the
entity’s stockholders, part owners, or beneficiaries subject to
the discretionary provisions. Similarly, an irrevocable
election by a stockholder, part owner, or beneficiary does not
make the entity subject to the discretionary provisions.
However, if an entity is wholly owned by a single family,
the family members may elect for themselves and their
wholly owned entity by completing the irrevocable election
form as instructed on the irrevocable election form. Such an
action will be binding on both the entity and the family. If
an entity makes an irrevocable election and a stockholder,
part owner, or beneficiary would also like to become subject
to the discretionary provisions, that stockholder, part owner,
or beneficiary must also make an irrevocable election.
Separate irrevocable elections must be completed by all part
owners and entities unless an entity is wholly owned by a
single family.

(1)

(1)

If you are a nonresident alien who is a citizen of a country or
foreign entity that was established in a country that meets
certain criteria, you have the option of conforming to the
discretionary provisions to increase your acreage limitation
entitlements for land held indirectly in all districts [see
43 CFR 426.8(d)]. By conforming to the discretionary
provisions, you or your entity will no longer have the option
to hold land directly in prior law districts and have such land
be eligible to receive Reclamation irrigation water.
It should be noted that nonresident aliens and foreign entities
must submit irrevocable elections to conform to the
discretionary provisions. The submittal of only a
certification form as an indirect landholder by a nonresident
alien or foreign entity will not be acceptable [43 CFR
426.8(d)(3)(i)]. We will not approve an irrevocable election

As with any irrevocable election, an election made by
submitting a certification form is binding in all districts in
which such an elector holds land, including districts under
the prior law provisions (43 CFR 426.3). You must submit a
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FORM 7-21INFO (2010)

submitted by a nonresident alien or foreign entity that
directly holds land in a prior law district.

The landholding change requirements do not apply to
landholders that submit only a Form 7-21FARMOP. Once a
farm operator has submitted a Form 7-21 FARMOP for a
particular water year, that farm operator is not required to
submit additional Forms 7-21FARMOP during the same
water year if that farm operator starts to provide services to
additional lands or ceases to provide services to certain
lands.

For additional information on which countries meet the
established criteria and how to conform to the discretionary
provisions, please contact your district office or the
appropriate Reclamation office.

PUBLIC ENTITIES
ADMINISTRATIVE FEE

On January 1, 2005, Reclamation fully implemented
Public Law 91-310 (Act of July 7, 1970) which, among other
things, provides that the acreage limitation provisions will
not apply to public entity land that is farmed primarily in the
direct furtherance of a nonrevenue producing function.
Generally, Reclamation will ascertain whether or not a
public entity’s land meets this revenue criterion and will
accordingly apply the proper acreage limitation entitlements.
Please contact the appropriate district office for more
information.

You will be assessed an administrative fee according to
43 CFR 426.20 if you do not submit RRA forms as required
or if they are completed incorrectly and are not corrected
within a specified time. This includes the use of unapproved
substitute RRA forms. Also, the administrative fee will be
charged in addition to the “compensation rate” if
Reclamation irrigation water is delivered to ineligible excess
land.

A public entity must submit a “Declaration of Public Entity’s
Landholdings” (Form 7-21PE) if that public entity holds
more than 40 acres westwide. Land leased from a public
entity must be counted against the lessee’s ownership
entitlement. If your public entity holds land through a
wholly-owned or partially owned legal entity and that legal
entity holds land subject to the acreage limitation provisions,
you must submit Form 7-21PE-IND in addition to
Form 7-21PE in order to identify such land. Instructions on
the use of Form 7-21PE-IND are located on the reverse side
of Form 7-21PE-IND.

LEASES
Leases are not required to be on file in district offices;
however, all landholders must make their leases available for
inspection upon request by their district office or
Reclamation office. The RRA requires that all leases must:
(1)

Be in writing, and

(2)

Have terms that do not exceed 10 years, except
with our written approval for perennial crops,
which are determined on a crop-by-crop basis
but cannot exceed 25 years.

Additional requirements for leases may be found under
43 CFR 426.6(a).

IF LANDHOLDINGS CHANGE
You must notify all districts in which you hold land within
30 calendar days if your landholdings change during the
water year, and you must submit new RRA forms within
60 calendar days of the change to all districts in which you
hold land. These 30- and 60-day grace periods do not apply
to a new landholder. A new landholder must submit the
appropriate RRA forms prior to receiving Reclamation
irrigation water. For more information on landholding
changes, see Fact Sheet 11 which is available at your district
office.
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FORM 7-21INFO (2010)

TABLE 3.—Complete list of RRA forms for landholders and farm operators

Form Number

Name

7-2180

Certification of Individual’s Landholdings (Discretionary Provisions)

7-2180EZ

“EZ” Certification of Individual’s Landholdings (Discretionary Provisions)

7-2181

Certification of Entity’s Landholdings (Discretionary Provisions)

7-2184

Certification of Religious or Charitable Organization’s Landholdings (Discretionary Provisions)

7-2190

Report of Individual’s Landholdings (Prior Law Provisions)

7-2190EZ

“EZ” Report of Individual’s Landholdings (Prior Law Provisions)

7-2191

Report of Entity’s Landholdings (Prior Law Provisions)

7-2194

Report of Religious or Charitable Organization’s Landholdings (Prior Law Provisions)

7-21PE

Declaration of Public Entity’s Landholdings

7-21XS

Designation of Excess Land

7-21FC

Selection of Full-Cost Land

7-21VERIFY

Verification of Landholdings

7-21TRUST

Declaration of Trust’s or Estate’s Landholdings

7-21CONT-O

Continuation Sheet for Directly Owned Land

7-21CONT-L

Continuation Sheet for Directly Leased Land

7-21CONT-I

Continuation Sheet for Indirectly Held Land

7-21FARMOP

Declaration of Farm Operator Information

7-21XSINAQ

Attachment Sheet for Form 7-21XS

7-21PE-IND

Attachment Sheet for Form 7-21PE

7-21BOOK-C

Certification Forms Booklet

7-21BOOK-R

Reporting Forms Booklet

DEFINITIONS
Acreage limitation provisions

The ownership limitations and pricing restrictions specified in Federal reclamation law,
including but not limited to, Sections 203(b), 204, and 205 of the Reclamation Reform Act
of 1982 (43 U.S.C. 390aa et seq.).

Acreage limitation status

Whether a landholder is a qualified recipient, limited recipient, or prior law recipient.

Acres

The number of acres contained within the area specified by the legal description or assessor’s
parcel number. Class 1 equivalent acres are not to be used except in those specific instances
identified in the instructions for Form 7-21FC and Form 7-21XS.

Actual acres

Refers to all irrigable and irrigation acres with no adjustment applied for Class 1 equivalency.

Class 1 equivalency

An adjustment made on a district-wide basis to irrigable land with lower productive potential
(Classes 2, 3, and 4) in order to make such land equivalent in productive potential to the most
suitable irrigable land (Class 1) in the local agricultural economic setting. Reclamation performs
Class 1 equivalency determinations at the request and partial expense of the district.

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FORM 7-21INFO (2008)

Class 1 equivalent acres

The resulting number of acres when an adjustment is made to actual acres for Class 1
equivalency.

Compensation rate

A water rate applied, in certain situations, to water delivered to ineligible land that is not
discovered until after the delivery has taken place. The compensation rate is equal to the
established full-cost rate that would apply to the landholder if the landholder was to receive
irrigation water on land that exceeded a nonfull-cost entitlement.

Contract

Any repayment or water service contract or agreement between the United States and a district
providing for the payment to the United States of construction charges and normal operation,
maintenance, and replacement costs under Federal reclamation law, even if the contract does not
specifically identify the portion of the payment that is to be attributed to operation and
maintenance and that portion that is to be attributed to construction. This definition includes
contracts made in accordance with the Distribution System Loans Act, as amended
(43 U.S.C.421).

Contract operator

See definition of farm operator.

Custom service provider

An individual or legal entity that provides one specialized, farm-related service that a farm owner,
lessee, sublessee, or farm operator employs for agreed-upon payments. This includes,
for example, crop dusters, custom harvesters, grain haulers, and any other such service.

Dependent

Any natural person within the meaning of the term dependent in the Internal Revenue Code of
1954 (26 U.S.C. 152) and any subsequent amendments. Landholdings of a person who is
someone’s dependent for income tax purposes must be identified on RRA forms submitted by the
dependent’s parent(s) or legal guardian(s).

Description

See definition of legal description.

Direct

When used in connection with the terms landholder, landowner, lessee, lessor, or owner, “direct”
refers to the party that is the owner of record, holder of title, or the lessee of a land parcel, as
appropriate. However, joint tenants and tenants-in-common will be considered indirect
landholders; the joint tenancy or the tenancy-in-common will be considered the direct landholder.

Discretionary provisions

Refers to Sections 390cc through 390hh, except for 390cc(b), of the Reclamation Reform Act of
1982, (43 U.S.C. 390aa et seq.). The discretionary provisions provide for increased ownership
entitlements and full-cost pricing of Reclamation irrigation water. Districts and individuals may,
at their discretion, choose to become subject to the discretionary provisions or to remain subject
to prior acreage limitation provisions. Once a landholder or district chooses to become subject to
the discretionary provisions, he can never again be subject to the prior law provisions.

District or irrigation district

Any individual or any legal entity established under State law that has entered into a contract or
can potentially enter into a contract with the United States for irrigation water service through
federally developed or improved water storage and/or distribution facilities. The term “district,”
as used in these forms, could refer to a canal company, irrigation company, water user
association, ditch company, water company, drainage district, etc.

Effective date of agreement

The effective date of a farm operation agreement or lease is the effective date as specified in the
agreement or lease. If no date was specified in the agreement or lease, then it is the date the
agreement or lease was signed.

Employer Identification
Number (EIN)

A unique number assigned to businesses by the Internal Revenue Service (formerly known as a
“Taxpayer Identification Number” [TIN], and prior to that as a “Federal Employer’s Identification
Number” [FEIN]).

Eligible

Except where otherwise provided, “eligible” means permitted to receive an irrigation water
supply from a Reclamation project under applicable Federal reclamation law.

Entity

See definition of legal entity.
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Excess land

Nonexempt land that is in excess of a landowner's maximum ownership entitlement under the
applicable provisions of Federal reclamation law.

Exempt

Except where otherwise provided, “exempt” means not subject to the acreage limitation
provisions.

Extended recordable contract

A recordable contract whose term was extended due to moratoriums established in 1976 and 1977
on the sale of excess land.

Family

A married couple and their dependents. Nondependent children are not considered part of the
same family as their parents. Rather, each nondependent child is considered a separate individual
or, if married, a separate family.

Farm operator

An individual or legal entity other than the owner, lessee, or sublessee that performs any portion
of the farming operation. This includes farm managers, but does not include spouses, minor
children, employees for whom the employer pays social security taxes, or custom service
providers.

Foreign entity

A legal entity not established under State or Federal law.

Full cost or full-cost rate

An annual rate established by Reclamation that amortizes the expenditures for construction
properly allocable to irrigation facilities in service, including all operation and maintenance
deficits funded, less payments, over such periods as may be required under Federal reclamation
law, or applicable contract provisions. The full-cost rate includes actual operation, maintenance,
and replacement costs required under Federal reclamation law.

Indirect

When used in connection with the terms landholder, landowner, lessee, lessor, or owner,
“indirect” means that such party is not the owner of record, holder of title, or the lessee of a land
parcel, but that such party has a beneficial interest in the legal entity that is the owner of record,
holder of title, or the lessee of a land parcel. Landholdings of joint tenants and tenants-incommon will be considered indirect. A security interest held by lenders, who are not otherwise
considered a landholder of the land in question, in a legal entity or in a land parcel will not be
considered an indirect interest or a beneficial interest.

Individual

Any natural person, including his or her spouse, and including other dependents. Under prior
law, the term “individual” does not include a natural person's spouse or dependents. Under
discretionary provisions, an individual has exactly the same entitlement as a family (see definition
of family).

Ineligible

Except where otherwise provided, “ineligible” means not permitted to receive an irrigation water
supply under applicable Federal reclamation law regardless of the rate paid for such water.

Intermediate entity

An entity that is a part owner of another entity and in turn is owned by others (either another
entity or individuals).

Involuntary acquisition

Land that is acquired through an involuntary foreclosure or similar involuntary process of law,
conveyance in satisfaction of a debt (including, but not limited to, a mortgage, real estate contract
or deed of trust), inheritance, or devise.

Irrevocable election

The execution of the legal instrument that a landholder subject to prior law provisions submits to
become subject to the discretionary provisions of Federal reclamation law.

Irrevocable elector

A landholder who makes an irrevocable election to conform to the discretionary provisions of
Federal reclamation law.

Irrigable land

Land so classified by Reclamation under a specific project plan for which irrigation water is, can
be, or is planned to be provided, and for which facilities necessary for sustained irrigation are
provided or are planned to be provided.

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FORM 7-21INFO (2008)

Irrigation district

See definition of district.

Irrigation land

Any land receiving water from a Reclamation project facility for irrigation purposes in a given
water year, except for land that has been specifically exempted by statute or administrative action
from the acreage limitation provisions of Federal reclamation law.

Irrigation water

Water made available for agricultural purposes from the operation of Reclamation project
facilities pursuant to a contract with Reclamation.

Landholder

A party that directly or indirectly owns or leases nonexempt land.

Landholding

The total acreage of nonexempt land directly or indirectly owned or leased by a landholder.

Lease

Any arrangement between a landholder (the lessor) and another party (the lessee) under which the
economic risk and the use or possession of the lessor’s land is partially or wholly transferred to
the lessee. If a management arrangement or consulting agreement is one in which the manager or
consultant performs a service for the landholder for a fee, but does not assume the economic risk
in the farming operation, and the landholder retains the right to the use and possession of the land,
is responsible for payment of the operating expenses, and is entitled to receive the profits from the
farming operation, then the agreement or arrangement will not be considered to be a lease.

Legal description

A legal description (metes and bounds) of the land in question, or a county assessor’s parcel
number or land serial number. Parcels should be broken down as far as necessary to ensure
accurate identification.

Legal entity or entity

For the purpose of establishing application of the acreage limitation entitlements, legal entity or
entity means, but is not limited to, corporations, partnerships, organizations, and any business or
property ownership arrangements such as joint tenancies and tenancies-in-common. For purposes
of the information requirements specified in §426.18 only, trusts will be considered to be legal
entities.

Limited recipient

Any legal entity established under State or Federal law benefitting more than 25 natural persons.
In order to become limited recipients, legal entities must be subject to the discretionary provisions
through either district contract action or irrevocable election.

Natural person

A living human being. For acreage limitation purposes, this includes shareholders specifically
named on stock certificates, partners identified by a partnership agreement, tenants specifically
named in landownership documents, etc. When looking at an entity, a spouse and dependents of
a natural person identified on an entity document are not counted as natural persons for acreage
limitation purposes unless their names also appear on the entity documents.

New landholder

An individual, legal entity, or public entity that did not directly or indirectly own or lease land in
a specific district during the water year immediately preceding the water year in question. For
forms submittal purposes only, a landholder whose landholding changes from “not exceeding” to
“exceeding” the applicable RRA forms submittal threshold during the water year will be
considered to be a “new landholder.”

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FORM 7-21INFO (2008)

Nonexempt land

Either irrigation land or irrigable land that is subject to the acreage limitation provisions. Areas
used for field roads, farm ditches and drains, tailwater ponds, temporary equipment storage, and
other improvements subject to change at will by the landowner, are included in the nonexempt
acreage. Areas occupied by and currently used for homesites, farmstead buildings, and corollary
permanent structures such as feedlots, equipment storage yards, permanent roads, permanent
ponds, and similar facilities, together with roads open for unrestricted use by the public are
excluded from nonexempt acreage.

Nonfull-cost entitlement

The maximum acreage a landholder may irrigate with irrigation water at a nonfull-cost rate.

Nonfull-cost rate

Any water rate other than the full-cost rate. Nonfull-cost rates are paid for irrigation water made
available to land in a landholder's nonfull-cost entitlement.

Nonproject water

Water from sources other than Reclamation project facilities.

Nonresident alien

Any natural person who is neither a citizen nor a resident alien of the United States.

Operator

See definitions of farm operator and custom service provider.

Ownership entitlement

The maximum acreage a landholder may directly or indirectly own and irrigate with irrigation
water.

Part owner

An individual or legal entity that has a beneficial interest in a legal entity, but does not own 100
percent of that legal entity. A lender, who is not otherwise considered a landholder of the land in
question, with a security interest in a legal entity or land owned by a legal entity shall not be
considered a part owner.

Prior law

The Reclamation Act of 1902, and acts amendatory and supplementary thereto
(43 U.S.C. 371 et seq.) that were in effect prior to the enactment of the RRA, and as amended by
the RRA.

Prior law recipient

An individual or legal entity that has not become subject to the discretionary provisions.

Project

Any irrigation project authorized by Federal reclamation law, or constructed by the United States
pursuant to such law, or in connection with a repayment or water service contract executed by the
United States pursuant to such law, or any project constructed by the United States through
Reclamation for the reclamation of lands. The term project includes any incidental features of an
irrigation project.

Public entity

States, political subdivisions or agencies thereof, and agencies of the Federal Government.

Qualified recipient

An individual who is a citizen or a resident alien of the United States or any legal entity
established under State or Federal law that benefits 25 natural persons or less. A married couple
may become a qualified recipient if either spouse is a United States citizen or resident alien. In
order to become qualified recipients, individuals and legal entities must be subject to the
discretionary provisions through either district contract action or irrevocable election.

Reclamation

The Bureau of Reclamation, Department of the Interior.

Reclamation irrigation water

For purposes of these forms only, irrigation water from nonexempt Reclamation project facilities.

Reclamation Reform Act of
1982 (RRA)

The Reclamation Reform Act of 1982, Public Law 97-293, Title II, 96 Stat. 1263,
(43 U.S.C. 390aa et seq.) as amended. An act signed into law by President Reagan on
October 12, 1982, which gave districts and individuals the option of remaining subject to prior
Federal reclamation law or electing to become subject to the increased ownership and full-cost
pricing provisions of the new law. The RRA also directs the Secretary of the Interior to collect all
information on landholdings necessary to administer the acreage limitation provisions.

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FORM 7-21INFO (2008)

Recordable contract

A written contract between Reclamation and a landowner capable of being recorded under State
law, providing for the disposition of land held by that landowner in excess of the ownership
limitations of Federal reclamation law.

Religious or charitable
organization

An organization or each congregation, chapter, parish, school, ward, or similar
subdivision of a religious or charitable organization that is exempt from taxation under
Section 501 of the Internal Revenue Code of 1954, as amended.

Resident alien

Any natural person within the meaning of the term as defined in the Internal Revenue Act of 1954
(26 U.S.C. 7701) as it may be amended.

Standard certification,
reporting, or declaration
forms

Forms on which landholders provide complete information about the directly and
indirectly owned and leased nonexempt lands in their landholdings.

Ultimate parent entity

A legal entity that owns 100 percent of its subsidiary entity(ies) and is not wholly owned by
any other entity.

Water year

A 365-day period (or 366 days during leap years) whose start date is specified within a contract
between Reclamation and the district or through some other agreement between Reclamation and
the district.

Westwide

The 17 Western States where Reclamation projects are located, namely: Arizona, California,
Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma,
Oregon, South Dakota, Texas, Utah, Washington, and Wyoming.

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FORM 7-21INFO (2008)