# Title 61 — Waters

## Chapter 61-24 — Garrison Diversion Conservancy District

### § 61-24-01. Development and utilization of land and water resources declared a public

purpose - Declaration of intention - Interpretation.
It is hereby declared that more effective development and utilization of the land and water
resources of this state, protection and preservation of the benefits therefrom, opportunity for
greater economic security, protection of health, property and enterprise, and the promotion of
the prosperity and general welfare of all of the people of North Dakota involve, necessitate, and
require the exercise of the sovereign powers of the state and concern a public purpose, the
accomplishment of which, among other things, demands, and it is hereby declared necessary,
that the Garrison diversion unit of the Missouri River basin project as authorized by Act of
Congress approved December 22, 1944 [58 Stat. 887], and acts amendatory thereof and
supplementary thereto, be established and constructed:
1. To provide for the future economic welfare and prosperity of the people of this state,
and particularly of the people residing in the area embraced within the boundaries of
the conservancy district created by this chapter.
2. To provide for the irrigation of lands within the sections of such district periodically
afflicted with drought, and to stabilize the production of crops thereon.
3. To replenish and restore the depleted waters of lakes, the Red, Sheyenne, James, and
other rivers, and streams in the district, and to stabilize the flow of these streams.
4. To replenish the waters, and to restore the level of Devils Lake, Stump Lake, Lake
Williams, and Turtle Lake.
5. To make available within the district, or outside the district to the extent authorized by a
joint powers agreement under chapter 54-40.3, waters diverted from the Missouri
River for irrigation, domestic, municipal, and industrial needs, and for hydroelectric
power, recreation, fish, wildlife, and other beneficial and public uses.
6. To study and provide for the water needs of eastern North Dakota communities and
water districts and western Minnesota communities through a Red River valley water
supply project.
The provisions hereof shall not be construed to, in any manner, abrogate or limit the rights,
powers, duties, and functions of the state water commission, but shall be held to be
supplementary thereto and an aid thereof. Nor shall this chapter be construed as limiting or in
any way affecting the laws of this state relating to the organization and maintenance of irrigation
districts, flood irrigation districts, water resource districts, drainage districts, or watershed
protection districts, nor as precluding the establishment of any such district wholly or in part
within the boundaries of the district created by this chapter.
### § 61-24-02. Garrison Diversion Conservancy District created.

The "Garrison Diversion Conservancy District", hereinafter referred to as the "district"
consists of that part of the state that is included within the boundaries of the following counties:
Barnes, Benson, Bottineau, Burleigh, Cass, Dickey, Eddy, Foster, Grand Forks, Griggs,
LaMoure, McHenry, McKenzie, McLean, Nelson, Pierce, Ramsey, Ransom, Renville, Richland,
Sargent, Sheridan, Steele, Stutsman, Traill, Ward, Wells, and Williams.
The district is a governmental agency, body politic and corporate with the authority to
exercise the powers specified in this chapter, or which may be reasonably implied.
Any county may join the district upon application of its board of county commissioners and
the approval of the application by the board of directors of the district.
### § 61-24-03. Election of directors of the Garrison Diversion Conservancy District.

A director of the Garrison Diversion Conservancy District must be nominated and elected in
each county in the district. Any person who is a resident and qualified elector of the county who
aspires to the office of director of the Garrison Diversion Conservancy District shall, before
four p.m. of the sixty-fourth day before any primary election preceding a general election at
which a director of the district is to be elected, present to the county auditor a petition giving that

person's name, post-office address, the title of the office "Director of the Garrison Diversion
Conservancy District", and containing the signatures of not less than fifty nor more than three
hundred qualified electors of the county to which each signer has added the signer's residence
with street number, if any, and the date of signing.
The petition must be accompanied by an affidavit substantially as follows:
State of North Dakota )
) ss.
County of ___________)
I, ___________, being sworn, say that I reside in the county of _______________ and
State of North Dakota; that I am a qualified elector therein; that I am a candidate for
nomination to the office of director of the Garrison Diversion Conservancy District to be
chosen at the primary election to be held on _____________, ______, and I request that
my name be printed upon the no-party primary election ballot as provided by law, as a
candidate for the office.
______________________________
Subscribed and sworn to before me on _____________, ______.
______________________________
Notary Public
Upon receipt of the petition, the county auditor shall without fee place the name of the
aspirant on the no-party primary election ballot as a candidate for the aforesaid office of director.
The two candidates receiving the highest number of votes if more than two are running are
nominated.
The names of the candidates so nominated at the primary election must be placed on the
no-party ballot at the ensuing general election and the candidate receiving the highest number
of votes is elected.
At the primary and general elections, votes must be canvassed, returned certified, and
certificates of nomination and election issued in the manner provided by law for the nomination
and election of county officers.
### § 61-24-03.1. Filling vacancy of director on general election ballot.

Whenever a vacancy exists on a general election no-party ballot for any directorship of the
Garrison Diversion Conservancy District, the vacancy may be filled by filing with the county
auditor at least sixty-four days before the day of the election and not later than four p.m. of that
day a petition substantially in the form provided in section 61-24-03, stating that the petitioner
desires to become a candidate for election to the office of director. This petition must contain the
signatures of not less than fifty qualified electors of the county, unless there were at least fifty
write-in or sticker votes for the petitioner cast in the no-party primary election for the office.
A vacancy in the no-party ballot is deemed to exist when no candidate is nominated at the
primary election or when a candidate nominated at the primary dies, resigns, or otherwise
becomes disqualified to have that person's name printed on the ballot at the general election.
### § 61-24-04. Compensation of directors.

Each member of the board of directors of the district is entitled to receive as compensation
from the district an amount determined by the board of directors not to exceed the amount
provided for members of the legislative management under section 54-35-10 per day and must
be reimbursed for the member's expenses in the amounts provided in sections 44-08-04 and
the district.
### § 61-24-05. Term of office of directors - Oath of office - Bonds.

Each member of the board of directors of the district shall hold office for a term of three
years, and until the successor in office has been appointed and qualified, provided, that
one-third of the board first appointed shall hold office for a term of three years, one-third for a
term of two years, and the other directors shall hold office for a term of one year, from the first
day of July next following the date of their appointment. Before assuming the duties of the office,

each director shall take and subscribe the oath of office prescribed by law for civil officers. The
district treasurer shall be bonded in such amount as the board may prescribe.
A member of the board of directors of the district elected in 1960 and thereafter shall hold
office for a term of four years and until a successor has been duly elected and qualifies, but
one-half of the directors elected at the general election in 1960 shall hold office for a term of two
years, and one-half shall hold office for four years. Terms of office of directors elected at the first
election shall be determined by lot. Directors elected after 1960 shall hold office for a term of
four years. If the office of any director shall become vacant by reason of the failure of any
director elected at any election to qualify or for any other reason, the successor shall be
appointed to fill the vacancy by the board of county commissioners of the county in which the
vacancy occurs. A director appointed to fill a vacancy shall hold office for the unexpired term of
the director whose office has become vacant. A director shall, however, hold office until a
successor has been elected and qualifies.
Members of the board of directors elected in 1960 shall assume office on the first Monday in
January 1961 and shall replace all members of the board previously appointed. They shall meet
at a time and place designated by the secretary of the replaced board of directors, and if that
secretary is unable to act, by the secretary of the state water commission, and shall organize in
the same manner as the first board of directors was organized. The secretary of the replaced
board and any other person employed by that board shall continue in their positions until the
new board shall otherwise provide.
### § 61-24-06. Meetings of the board - Quorum - Board to adopt rules, regulations, and

bylaws.
The board of directors of the district shall adopt such rules and regulations and bylaws for
the conduct of the business affairs of the district as the board deems necessary, including the
time and place of regular meetings of the board. The board shall elect from its number a
chairman and vice chairman. The board shall also elect a secretary and a treasurer, which
offices may be held by the same person, and either or both offices may be held by someone not
a member of the board. Special meetings may be called by the secretary on order of the
chairman of the board or upon the written request of the majority of the qualified members of the
board. Notice of a special meeting shall be mailed to each member of the board at least six
days before such meetings, provided, that a special meeting may be held at any time when all
members of the board are present or consent thereto in writing. A majority of the members of
the board of directors shall constitute a quorum for the transaction of business, but any number
may adjourn the meeting for want of a quorum.
### § 61-24-07. Attorney general shall act as legal adviser - Department of water resources

to assist board - Employment of counsel and engineers.
The attorney general shall act as the legal adviser of the board to the extent the duties of
the attorney general permit. The department of water resources shall furnish engineering
services and assistance to the extent the duties of the department permit. When the district has
funds available, the board of directors may employ other counsel to advise and represent the
board in the board's proceedings and affairs, and may employ other engineers and engineering
services in connection with the board's work and the affairs of the district.
### § 61-24-08. Powers and duties of the district board of directors.

The board of directors of the Garrison Diversion Conservancy District shall have the power:
1. To sue and be sued in the name of the district.
2. To exercise the power of eminent domain in the manner provided by title 32 for the
purpose of acquiring and securing any right, title, interest, estate, or easement
necessary to carry out the duties imposed by this chapter, and particularly to acquire
the necessary rights in land for the construction of dams, reservoirs, canals,
hydroplants, irrigation systems, pipelines, and any other device for the conservation,
storage, and use of water, and to secure the right of access to such works and the
right of the public access to the waters impounding thereby or emanating therefrom.

3. To accept funds, property, and services or other assistance, financial or otherwise,
from federal, state, and other public or private sources for the purpose of aiding and
promoting the construction, maintenance, and operation of the Garrison diversion unit,
or any part thereof.
4. To cooperate and contract with the state, its agencies, or its political subdivisions, or
any agency of the United States, in research and investigation or other activities
promoting the establishment, construction, development, or operation of the Garrison
diversion unit, or any part thereof.
5. To furnish assurances of cooperation and as principal and guarantor or either to enter
into a contract, or contracts, with the United States of America, or any department or
agency thereof, and with public corporations of North Dakota for the performance of
obligations entered into with the United States for the construction, operation, or
maintenance of works of the Garrison diversion unit of the Missouri River basin project
as defined by Act of Congress, approved December 22, 1944 [58 Stat. 887], and acts
amendatory thereof or supplementary thereto.
6. To construct separately or in cooperation with agencies of the United States, or the
state of North Dakota, its agencies or political subdivisions, and to equip, maintain,
and operate an office and principal place of business for the district, or other buildings
or facilities to carry out activities authorized by this chapter.
7. To appoint and fix the compensation of such employees as the board shall deem
necessary to conduct the business and affairs of the district.
8. To appoint from its number an executive committee and vest the same with such
powers and duties as the board may from time to time delegate thereto, in order to
facilitate the duties and work of the board in connection with the business affairs
involved in the development, construction, operation, and maintenance of the Garrison
diversion unit, or any part thereof.
9. In 1961 and each year thereafter to levy a tax of not to exceed one mill annually on
each dollar of taxable valuation in the district for the payment of the expenses of the
district, including, but not limited to, per diem, mileage and other expenses of directors,
technical, administrative, clerical, operating and other expenses of the district office,
and for the cumulation of a continuing fund through such levy for the performance of
obligations entered into with the United States of America in connection with the
construction, operation, and maintenance of works of the said Garrison diversion unit
of the Missouri River basin project. All moneys collected pursuant to such levy shall be
deposited in the Bank of North Dakota to the credit of the district and shall be
disbursed only as herein provided. The board may invest any funds on hand, not
needed for immediate disbursement or which are held in reserve for future payments,
in bonds of the United States, bonds and mortgages or other securities the payment of
which is guaranteed by the United States or an instrumentality or agency thereof, or
bonds or certificates of indebtedness of the state of North Dakota or any of its political
subdivisions. The amount which may be levied in any one year for operating the
district prior to authorization by Congress of the Garrison diversion project shall not
exceed ten percent of the maximum permissible.
10. To enter into a contract or contracts for a supply of water from the United States and to
sell, lease, and otherwise contract to furnish any such water for beneficial use to
irrigation districts, persons, other public and private corporations, or limited liability
companies within or outside the district.
11. To operate and maintain or to contract for the operation and maintenance of water
supply and irrigation works serving lands and uses within or outside the district, and in
connection therewith, to maintain a reserve fund to meet major unforeseen costs of
operation and maintenance. The acquisition, construction, operation, and maintenance
of dams, reservoirs, ground water storage areas, canals, conduits, pipelines, tunnels,
and any other plants, works, facilities, improvements, or property necessary to operate
or maintain water supply or irrigation works under this section are exempt from any
requirements for voter approval.

12. To accept, on behalf of the district, appointment of the district as fiscal agent of the
United States and authorization to make collections of money for and on behalf of the
United States in connection with the Garrison diversion unit.
13. To use navigable lakes and streams within the conservancy district for holding,
impounding, and conveying water of the Garrison diversion unit.
14. To provide administrative aid and assistance in the relocation of buildings and the
replacement of land to persons affected by the Garrison diversion development in an
effort to make certain that such persons are treated fairly and that they do not suffer
financial hardship due to the development of the Garrison diversion unit.
15. To sell or exchange any and all real property purchased or acquired by the district. All
moneys received pursuant to any such sale or exchange shall be deposited in the
Bank of North Dakota to the credit of the district and may be disbursed only for the
payment of expenses of the district as specified in subsection 9.
16. To borrow money as is provided in this chapter.
17. To issue and sell revenue bonds to finance projects in an amount or amounts
determined by the board, including an amount for costs of issuance and financing, and
any necessary reserve funds, for the purpose of financing the cost of constructing a
project, purchasing bulk water, or otherwise making capital payments required under a
water purchase contract.
18. To utilize some or all proceeds of its revenue bonds to acquire, construct, reconstruct,
or improve one or more projects, or any feasibility study or preliminary economic,
engineering, or legal work relating to any project.
19. To refund and refinance its bonds from time to time as often as it is advantageous and
in the interest of the district.
20. To pledge any and all income, profits, and revenues received by the district in
connection with the operation, lease, sale, or other disposition of all or any part of a
water project to secure the payment of bonds issued and sold to finance the project or
otherwise. Tangible real or personal nonrevenue property of the district may not be
liable to be forfeited or taken in payment of any bonds issued under this chapter and
debt on the general credit of the district may not be incurred in any manner for
payment of bonds under this chapter.
21. To prescribe, revise, and collect rates, fees, tolls, or charges for the services, facilities,
or commodities furnished by the district and in anticipation of the collection of the
revenues of the district, issue revenue bonds to finance all or part of the costs of the
acquisition, construction, reconstruction, improvement, betterment, extension,
operation, or maintenance of a project.
22. To pledge district revenues, grants, and any other project-related payments to the
punctual payment of principal and interest on bonds or water purchase contract
obligations. A pledge under this subsection applies to the revenues of improvements,
betterments, or extensions of the district which may be constructed or acquired after
the issuance of bonds, the revenues of existing systems, plants, works,
instrumentalities, and properties of any part of the district improved, bettered, or
extended, and the revenues received from payments made under water sale contracts
between the district and persons that contract to purchase water from the district.
23. To make all contracts, execute all instruments, and do all things necessary or
convenient in the exercise of its powers or in the performance of its covenants or
duties or in order to secure the payment of its bonds, but an encumbrance, mortgage,
or other pledge of tangible real or personal nonrevenue property of the district may not
be created by any such contract or instrument.
24. To accept from any authorized federal agency loans or grants for the planning,
construction, acquisition, lease, or other provision of a project, and to enter
agreements with the agency respecting the loan or grants.
25. To contract debts and borrow money and provide for payment of debts and expenses
of the district.
26. To distribute water to western Minnesota cities that enter water service contracts for
water.

27. To enter water service contracts with municipalities, water districts, or other political
subdivisions in this state and public utilities in Minnesota as part of the Red River
valley water supply project, regardless of whether the acquisition, construction, or
reconstruction of any Red River valley water supply project is actually completed and
whether water actually is delivered under the contracts. These contracts with cities and
water districts are authorized to be executed without limitation on term of years and, if
the contracts are executed in relation to the initial construction of the system, without
voter approval.
### § 61-24-09. District budget - Determination of amount to be levied - Adoption of levy -

Limitation.
In July of each year, the board of directors shall estimate and itemize all the expenses and
obligations of the district, including expenses of directors, expenses of operating the office, debt
service and retirement, and obligations and liabilities to the United States for which provision
must be made. The board of directors may include in such budget funds deemed necessary to
create reserve funds to meet future payments under district contracts. Upon the completion and
adoption of such budget, the board of directors shall make a tax levy in an amount sufficient to
meet such budget. Such levy shall be in the form of a resolution, adopted by a majority vote of
the members of the board of directors of the district. Such resolution shall levy in mills, but not
exceeding one mill, sufficient to meet all the expenses, obligations, and liabilities of the district
as provided in the budget.
### § 61-24-10. Certified copies of levy and budget sent to county auditors.

Immediately after completion of the budget and the adoption of the annual tax levy by the
board of directors of the district, but not later than October first, the secretary of the district shall
send one certified copy of the levy as adopted and one certified copy of the budget to the county
auditor of each county in the district.
### § 61-24-11. County auditors to extend tax levy.

The county auditor of each county in the district shall extend the levy upon the tax list of the
county for the current year against each description of real property and all personal property
within the county in the same manner and with the same effect as other taxes are extended.
### § 61-24-12. County treasurers to collect and remit district taxes.

The treasurer of each county in the district shall collect all district taxes, together with
interest and penalty thereon, if any, in the same manner as the general taxes are collected, and
shall pay over to the treasurer of the Garrison Diversion Conservancy District, on the first day of
each month, on demand, all taxes so collected during the preceding month, with interest and
penalties collected thereon, and forthwith shall notify the secretary of the district of such
payment.
### § 61-24-13. District may enter into contract for the construction, operation, and

maintenance of works.
When the board of directors of the Garrison Diversion Conservancy District is notified by the
United States, or by any department or agency thereof, that it is necessary for the district to
enter into a contract as principal and guarantor or either, for the repayment of any part of the
cost incurred, or to be incurred in the construction, operation, and maintenance of works of the
Garrison diversion unit of the Missouri River basin project, the board shall give notice of hearing
on such proposed contract as herein provided. Hearings on such contract shall be conducted in
at least three places in the district by a contract hearing committee composed of at least three
director members of the board as designated by the board. Notice of the time and place of such
hearings shall be published at least ten days before such hearing in not less than three
newspapers of general circulation in the district. Anyone interested in, or affected by such
contract if entered into, may appear at any such hearing and show cause, if any, why such
proposed contract should or should not be approved. The contract hearing committee shall

submit its report, including support and objections to the contract, and its recommendations to
the board for final action. After considering the terms and conditions of such proposed contract
and the report and recommendations of the contract hearing committee, the board shall adopt a
resolution approving or disapproving such contract. If disapproved, the board may enter into
further negotiations with the United States concerning terms for a new or amended contract. At
least thirty days before any hearing is held on such contract for construction of facilities or
works, plans therefor shall be filed with the secretary of the district and shall be open to public
inspection.
### § 61-24-14. When contract is approved.

After any such contract shall have been duly executed, as herein provided, the board of
directors shall, in accordance with the provisions of such contract, adopt a resolution that a tax
be assessed and levied upon all the taxable property in the district. Such tax shall be within the
limitation herein provided and shall be levied annually on each dollar of the taxable valuation in
the district until the contract obligations have been paid, or a sufficient fund has been
accumulated to pay the same. The resolution shall state the purpose of such levy and the
amount thereof. A certified copy thereof shall be mailed to the county auditor of each county in
the district. Upon the receipt of such resolution or as soon thereafter as county levies are made,
such county auditor shall spread the levy specified in such resolution for the current year and
annually thereafter as required by such resolution.
### § 61-24-15. Proceedings to confirm contract.

The board of directors of the Garrison Diversion Conservancy District, after entering into a
contract with the United States government or with any public corporation of the state of North
Dakota, may commence a special proceeding in and by which the proceedings of the board and
the making of such contract, or contracts, shall be judicially examined, approved, and
confirmed, or disapproved and disaffirmed. Such proceeding shall comply as nearly as possible
with the procedure required in the case of irrigation districts under the laws of North Dakota.
### § 61-24-16. County may be excluded from conservancy district if not benefited.

1. Any county in the conservancy district not benefited or not to be benefited, in whole or
in part, by the establishment of the Garrison diversion unit of the Missouri River basin
project as authorized by Act of Congress, approved December 22, 1944 [58 Stat. 887],
and acts amendatory thereof or supplementary thereto, may be excluded from the
district as provided herein. The board of county commissioners of any such county
may by resolution direct the county auditor and the chairman of the board to file with
the board of directors of the conservancy district a petition, for and on behalf of the
county, requesting the board of directors of the district to exclude such county
therefrom. A certified copy of the resolution of the county board shall accompany and
be filed with such petition. The petition and resolution shall state specific reasons why
such county will not be benefited by the establishment and development of the
Garrison diversion unit.
2. Within sixty days from the date of filing said resolution and petition for exclusion from
the district, the district board shall meet to consider such petition. It may grant such
petition or it may fix a time and place for a hearing thereon. If a hearing be set, the
secretary of the board shall cause notice of the filing of such petition for exclusion, and
of the time and place for a hearing, to be published once each week for two
consecutive weeks in a newspaper of general circulation printed in the district. The
hearing mentioned in such notice shall be held not less than ten nor more than twenty
days after the last publication of such notice. The notice shall state that any person,
corporation, limited liability company, municipality, and county in the district may
appear or be represented at the hearing and show cause why the petition should or
should not be granted. The board shall hear the petition at the time and place
mentioned in the notice.

3. If after the hearing on the petition the district board of directors shall determine that the
county requesting to be excluded from the district will not be benefited, the district
board shall by resolution grant the petition and shall direct the chairman and secretary
to execute the order of the board excluding such county from the conservancy district.
If, however, the district board shall decide that such county will be benefited it shall
deny the petition and direct the chairman and secretary to execute its order refusing to
exclude such county from the district. A county excluded from the conservancy district
shall not be liable for any obligations thereof incurred after exclusion but shall be liable
for and shall pay to the district taxes levied before exclusion.
4. If any contract shall have been made with the United States or any agency thereof
before such petition is filed, such petition shall not be granted unless consented
thereto by the appropriate agency of the United States and if such agency gives its
consent upon condition, such conditions shall be included in the order of exclusion and
the county may be required to and in that event such county shall continue to pay any
tax levies required to meet the obligations of any such contract.
### § 61-24-17. Appeal from orders of district board.

An appeal from an order of the board of directors of the conservancy district denying a
petition for exclusion may be taken to the district court of the petitioning county. The appeal
must be taken in accordance with the procedure provided in section 28-34-01. The appeal must
be docketed as any cause pending in district court is docketed and thereupon the court shall
hear and determine the cause without a jury. An appeal to the supreme court may be taken by
the petitioning county or by the conservancy district, from any judgment entered in district court,
and from any order of the court if an appeal would lie from such order if entered by the court in a
civil action.
### § 61-24-18. State and political subdivisions contracting with the bureau of reclamation -

Roads.
In connection with the construction and development of the Garrison diversion unit of the
Missouri River basin project, the highway authorities of the state, or any county or organized
township or municipality, are authorized to enter into agreements with each other or with the
federal government, respecting the financing, planning, establishment, relocation, improvement,
maintenance, use, regulation, vacation, or abandonment of public ways in their respective
jurisdictions. Where any such contracts require the relocation, vacation, or abandonment of
particular public ways, the contracting state agency, county, organized township, or municipality
shall be vested with and authorized to exercise the powers of the state in the relocation,
vacation, or abandonment of existing public ways.
### § 61-24-19. Easement granted for ditches, pipelines, canals, tramways, and

transmission lines on any public lands.
In connection with the construction and development of the Garrison diversion unit of the
Missouri River basin project, there is granted over all the lands belonging to the state, including
lands owned or acquired for highway right-of-way purposes, a right of way for ditches, pipelines,
or canals and for tunnels, tramways, and telephone and electric transmission lines constructed
as part of the Garrison diversion unit; provided, however, that the director of the department of
transportation, the board of county commissioners, or the board of township supervisors must
approve the plans of the bureau of reclamation with respect to the use of any and all right of
way of roads under their respective control prior to such grant becoming effective.
### § 61-24-19.1. Permanent easements - Limitations.

The district's use of the permanent easement property is restricted solely to the
construction, operation, and maintenance of facilities authorized by law. The district may not
rent, sell, or assign the rights to a permanent easement, except may reserve the right to assign
the permanent easement to the state of North Dakota if necessary for the operation and
maintenance of a public water pipeline. If the district ceases operation, all permanent

easements must be transferred to the public water system receiving a beneficial use from the
water pipelines and other facilities. If no public water system exists, all permanent easements
must transfer to the state. The state or public water system shall assume full responsibility for all
easement activities and responsibilities, including any environmental remediation obligations.
### § 61-24-20. Director of agricultural experiment station to determine best management

practices - Reports to the Garrison Diversion Conservancy District - Monitoring of
ground water quality.
1. The director of the agricultural experiment station, with respect to all land to be
irrigated by water from the Garrison diversion unit of the Pick-Sloan Missouri River
basin project, shall promulgate rules and regulations for the determination of best
management practices on the affected land. The rules and regulations may be
amended from time to time. For the purposes of this section and section 61-24-21,
"best management practices" means the application of water, fertilizers, pesticides,
and herbicides in amounts that maximize crop production and economically efficient
farming, while, at the same time, minimizing chemical or other pollution and
degradation of ground or surface water supplies in areas irrigated with water from the
Garrison diversion unit. Upon determining the best management practices for all land
in question, the director of the agricultural experiment station shall file the information
with the headquarters office of the district.
2. The district in cooperation with other state agencies shall monitor the ground and
surface water quality in all areas irrigated with water from the Garrison diversion unit,
to determine compliance with the regulations concerning best management practices
for farming of that land. If violations of best management practices are discovered, the
district shall determine the location of all irrigators causing the violation and shall
reduce the amount of water which may be distributed to the violating irrigator
consistent with best management practices.
### § 61-24-21. District to allocate water in accordance with best management practices.

The district shall distribute water to irrigators purchasing water from the district in amounts
that are consistent with the determinations of the director of the agricultural experiment station
for best management practices in the farming of the applicable land.
### § 61-24-22. Resolution authorizing the issuance of revenue bonds.

1. The issuance of revenue bonds or refunding bonds must be authorized by a resolution
of the board adopted after appropriate notice by the affirmative vote of a majority of the
board. Unless otherwise provided in the resolution, the resolution under this section
takes effect immediately and need not be laid over, published, or posted.
2. Each resolution providing for the issuance of bonds provided for in this chapter must
contain the purposes for which the bonds are to be issued, the provisions for payment
of the bonds, and the revenues or other funds pledged to secure the payment of the
bonds.
### § 61-24-23. Provisions governing bonds.

The resolution authorizing the issuance of revenue bonds or refunding bonds under this
chapter or resolutions adopted after adoption of the original resolution must prescribe:
1. The rates of interest, or if an interest rate is variable, the method for calculating the
interest rate.
2. Whether the bonds will be in one or more series.
3. The dates the bonds will bear.
4. The times the bonds will mature.
5. The medium in which the bonds will be payable.
6. The places where the bonds will be payable.
7. The terms of redemption, if any, to which the bonds will be subject.
8. The manner in which the bonds will be executed.

9. The terms, covenants, and conditions that the bonds will contain.
10. The form in which the bonds will be issued, either coupon or registered.
### § 61-24-24. Sale of bonds - When private sale authorized - Public sale and notice.

Revenue bonds or refunding bonds may be sold at public or private sale on any terms as
the board deems appropriate.
### § 61-24-25. Notes issued pending preparation of bonds - Negotiability.

Pending the issuance of bonds, bond anticipation notes may be issued and sold in the form
and with the provisions determined by the district.
### § 61-24-26. Validity of notes and bonds.

Bond anticipation notes, revenue bonds, or refunding bonds bearing the manual or facsimile
signatures of the appropriate officers who are in office on the date of signing are valid and
binding obligations notwithstanding that before the delivery and payment any or all of the
individuals whose signatures appear on the notes or bonds have ceased to be officers of the
issuing district. The resolution authorizing the notes or bonds may provide that the notes or
bonds must contain a recital that they are issued under this chapter and the recital is conclusive
evidence of their validity and of the regularity of their issuance.
### § 61-24-27. Notes and bonds exempt from taxation.

Notwithstanding any other provision of law, the state and all public officers, boards, and
agencies, and political subdivisions and agencies of the state, including the public finance
authority, all national banking associations, state banks, trust companies, savings banks and
institutions, savings and loan associations, credit unions, investment companies, insurance
companies, and other entities carrying on an investment business, and executors,
administrators, guardians, trustees, and other fiduciaries, may legally invest any sinking funds,
moneys, or other funds belonging to them or within their control in any bonds issued under this
chapter, and the bonds are authorized security for public deposits. Notes and bonds, including
refunding bonds, issued under this chapter and their interest and income are exempt from all
taxation by the state or by any political subdivision except inheritance, estate, and transfer
taxes.
### § 61-24-28. Covenants and provisions that may be inserted in resolution authorizing

bonds.
1. Any resolution authorizing the issuance of bonds under this chapter may contain
covenants and provisions concerning:
a. The rates, fees, tolls, or charges to be charged for the services, facilities, and
commodities of a project.
b. The use and disposition of all or a portion of the district's income, profits, and
revenues.
c. The creation, maintenance, regulation, use, and disposition of reserves or sinking
funds.
d. The purpose to which the proceeds of the sale of bonds may be applied and the
use and disposition of the proceeds.
e. The events of default and the rights and liabilities arising upon default and the
terms and conditions upon which the holders of bonds issued under this chapter
may bring civil action on the bonds.
f. The creation, priority, and enforcement of liens against the district's income,
profits, or revenues.
g. The issuance of other or additional bonds or instruments payable from, or
constituting a charge against, the district's income, profits, or revenues.
h. The creation and use of synthetic interest rate contracts, interest rate caps, floors,
and collars, and other techniques to lower the district's borrowing rate or reduce
its exposure to interest rate risk, or both.

i. The keeping, inspection, and audit of books of account.
j. The terms and conditions upon which any or all of the bonds become or may be
declared due before maturity and the terms and conditions upon which the
declaration and its consequences may be waived.
k. The rights, liabilities, powers, and duties arising upon the breach by the district of
any covenants, conditions, or obligations.
l. The vesting in a trustee of the right to enforce any covenants made to secure, to
pay, or in relation to the bonds, the powers and duties of the trustee, and the
limitations of liabilities of the trustee.
m. The terms and conditions upon which the holders of the bonds, or the holders of
any proportion or percentage of them, may enforce any covenants made or any
duties imposed under this chapter.
n. A procedure by which the terms of any resolution authorizing bonds or of any
other contract with bondholders, including an indenture of trust or similar
instrument, may be amended or abrogated, and the amount of bonds that holders
of which must consent to the resolution or contract, and the manner in which the
consent may be given.
o. The subordination of the security of any bonds issued under this chapter and the
payment of principal and interest on those bonds, to the extent determined
feasible and desirable by the governing body, to other bonds or obligations of the
district issued to finance or refinance a project or that may be outstanding when
the bonds thus subordinated are issued and delivered.
p. Provisions with respect to the district entering an agreement with a private bond
insurer, bank, or other liquidity or credit enhancer for bond insurance, a
guarantee, a letter or credit, or any other credit or liquidity enhancement that the
district may find to be advantageous or necessary to insure, guaranty, or enhance
the payment of the principal of or interest on or liquidity for some or all of the
bonds. The cost of the enhancement or liquidity may be paid from bond proceeds
or from other funds of the district available for this purpose.
q. The insurance to be carried upon the project and the use and disposition of
insurance moneys.
2. This section does not authorize the district to do anything in any manner or for any
purpose which would result in the creation or incurring of a debt or indebtedness or the
issuance of any instrument which would constitute a debt or indebtedness within the
meaning of any provision, limitation, or restriction of the Constitution of North Dakota
relating to the creation or incurring of a debt or indebtedness or the issuance of an
instrument constituting a debt or indebtedness.
### § 61-24-29. Liability of district for notes and bonds - Taxing power prohibited.

Bond anticipation notes, revenue bonds, and refunding bonds issued under this chapter
may not be payable from or charged upon any funds other than the revenue pledged to the
bond's payment and the district's notes and bonds may not be subject to any pecuniary liability.
The holder of any of these notes or bonds may not enforce payment of the notes or bonds
against any tangible real or personal nonrevenue property of the district. Notes and bonds
issued under this chapter do not constitute a charge, lien, or encumbrance upon any tangible
real or personal nonrevenue property of the district, other than the revenues pledged to their
payments. Each note and each bond issued under this chapter must recite in substance that the
note or bond and interest on the note or bond is payable solely from the revenue pledged to the
payment and that the note or bond does not constitute a debt of the state within the meaning of
any constitutional or statutory limitation.
### § 61-24-30. Duties of district and officers relative to the issuance of bonds.

1. To adequately secure the payment of bonds and interest on the bonds, the district and
its officers, agents, and employees shall:

a. Pay or cause to be paid punctually the principal and interest of every bond on the
dates, at the places, in the manner, and out of the funds provided in the refunding
bond and in accordance with the resolution authorizing its issuance.
b. Make certain any project financed by the district is operated in an efficient and
economical manner, enforce all water purchase and water sales contracts, and
establish, levy, maintain, and collect related necessary or proper fees, tolls,
rentals, rates, and other charges. The fees, tolls, rentals, rates, and other charges
must be sufficient, after making due and reasonable allowances for contingencies
and for a margin of error in the estimates, at least to:
(1) Pay all current expenses of operation and maintenance of any project;
(2) Make all payments required under any water purchase contract the district
may execute;
(3) Pay the interest and principal on the district's notes and bonds as they
become due;
(4) Comply with the terms of the resolution authorizing the issuance of the
bonds or any other contract or agreement with the holders of the funding
bonds; and
(5) Meet any other obligations of the district that are charges, liens, or
encumbrances upon the revenues of the district.
c. Operate, maintain, preserve, and keep every part of any tangible project financed
and owned or operated by the district in good repair, working order, and condition.
d. Enforce the provisions of all water purchase and sale contracts that produce
revenues pledged to payment of bonds.
e. Preserve and protect the security of the bonds and the rights of the bondholders
and warrant and defend such rights against all claims and demands.
f. Pay and discharge all lawful claims for labor, materials, and supplies which, if
unpaid, might become by law a lien or charge upon the revenues, or any part of
the revenues, superior to the lien of the bonds or which might impair the security
of the bonds.
g. Hold in trust the revenues pledged to the payment of the bonds for the benefit of
the holders of the bonds and apply the revenues only as provided by the
resolution authorizing the issuance of the bonds or, if the resolution is modified,
as provided in the modified resolution.
h. Keep proper separate books of record and accounts of the project in which
complete and correct entries must be made of all transactions relating to any part
of the project. All books and papers of the district are subject to inspection by the
holders of ten percent or more of the outstanding bonds or of their
representatives authorized in writing.
2. The duties contained in this section do not require any expenditure by the district of
any funds other than revenue received from a project or water sale contract. The
performance of the duties in this section is of the essence of the contract of the district
with the bondholders.
### § 61-24-31. Remedies of bondholders in general.

1. Subject to any contractual limitations binding upon the holders of any issue of bonds,
or a trustee for the holders, including the restriction of the exercise of any remedy to a
specified proportion or percentage of the holders, any holder of bonds or trustee, for
the equal benefit and protection of all bondholders similarly situated, may:
a. By mandamus or other civil action, enforce the holder's rights against the district
and its board and any of its officers, agents, or employees and may require the
district or the board or any officers, agents, or employees of the district or board
to perform their duties and obligations under this chapter and their covenants and
agreements with bondholders.
b. By civil action, require the district and the board to account as if the district and
the board were the trustees of an express trust.

c. By civil action, enjoin any acts or things that may be unlawful or in violation of the
rights of the bondholders.
d. Bring suit upon the bond.
2. A right or remedy conferred by this chapter upon any bondholder, or upon any trustee
for a bondholder, is not intended to be exclusive of any other right or remedy, but each
right or remedy is cumulative and in addition to every other right or remedy and may
be exercised without exhausting and without regard to any other remedy conferred by
this chapter or by any other law of this state.
### § 61-24-32. Bonds as legal investments and security.

Notwithstanding any other provision of law, the state and all public officers, boards, and
agencies, and political subdivisions and agencies of the state, all national banking associations,
state banks, trust companies, savings banks and institutions, savings and loan associations,
credit unions, investment companies, insurance companies, and other persons carrying on an
investment business, and all executors, administrators, guardians, trustees, and other
fiduciaries, may legally invest any sinking funds, moneys, or other funds belonging to them or
within their control in any bonds issued under this chapter, and the bonds are authorized
security for all public deposits.
