CONTRACTS FOR WATER SUPPLY.

SEC. 1360. CONTRACTS FOR WATER SUPPLY. (a) Copan Lake, Oklahoma.—Section 8358(b)(2) of the Water Resources Development Act of 2022 (136 Stat. 3802) is amended by striking “shall not pay more than 110 percent of the initial project investment cost per acre-foot of storage for the acre-feet of storage space sought under an agreement under paragraph (1)” and inserting “for the acre-feet of storage space being sought under an agreement under paragraph (1), shall pay 110 percent of the contractual rate per acre-foot of storage in the most recent agreement of the City for water supply storage space at the project”. (b) State of Kansas.— (1) In general.—The Secretary shall amend the contracts described in paragraph (2) between the United States and the State of Kansas, relating to storage space for water supply, to change the method of calculation of the interest charges that began accruing on February 1, 1977, on the investment costs for the 198,350 acre-feet of future use storage space and on April 1, 1979, on 125,000 acre-feet of future use storage from compounding interest annually to charging simple interest annually on the principal amount, until— (A) the State of Kansas informs the Secretary of the desire to convert the future use storage space to present use; and (B) the principal amount plus the accumulated interest becomes payable pursuant to the terms of the contracts. (2) Contracts described.—The contracts referred to in paragraph (1) are the following contracts between the United States and the State of Kansas: (A) Contract DACW41-74-C-0081, entered into on March 8, 1974, for the use by the State of Kansas of storage space for water supply in Milford Lake, Kansas. (B) Contract DACW41-77-C-0003, entered into on December 10, 1976, for the use by the State of Kansas for water supply in Perry Lake, Kansas.