                                 CODE OF VIRGINIA

LIMITS ON EXPENDITURES AUTHORIZED UNDER § 10.1-638 B; SALE OF RESULTING
FACILITIES; SALE OF STORED WATER; RENTING FACILITIES (§ 10.1-645)

Expenditures by the Board for any one facility under the provisions of §
10.1-638 B shall not exceed $500,000 without the written approval of the
Governor for construction and seeding, acquisition of land, easements, and
rights-of-way, engineering costs, appraisal costs, legal services, and other
costs related to the facility. The Board is authorized to sell any facility
resulting from an expenditure authorized by § 10.1-638 B to any entity to whom
a loan could be made pursuant to the provisions of § 10.1-638 A under the terms
and conditions prescribed hereinafter. Conveyances of any such facilities shall
be executed by the chairman of the Board acting pursuant to a resolution of the
Board and shall be approved by the Governor and Attorney General as to form and
substance. Upon the transfer of title of such facilities, the purchasing entity
shall grant an easement or right-of-way to the appropriate soil and water
conservation district to assure the continued operation, inspection and repair
of the works of improvement on the land sold, and in all cases, the purchasing
entity shall agree to maintain the facility in a satisfactory manner. The Board
may contract with an entity eligible to borrow from the revolving fund pursuant
to § 10.1-638 A, for the sale of water stored at facilities constructed by
expenditures pursuant to § 10.1-638 B. However, it is not the intent of this
article to provide a means whereby the Commonwealth shall store and sell water
to such entities; therefore, unless extenuating circumstances prevail, such
contract shall be entered into with the understanding that such entities shall
acquire the rights of the Board in the water storage facility by a future date
agreeable to the Board and entity. The Board may lease such facilities to any
agency or entity of government, corporation, organization or individual for
recreational purposes or any other uses which will not impair the
facilities&#8217; value for future water supply. Proceeds from the sale of
stored water or sale or rental of such facilities shall be placed in the
revolving fund.

HISTORY: 1970, c. 591, § 21-11.9; 1972, c. 821; 1988, c. 891.