Whenever the department of ecology shall have heretofore entered, or shall hereafter enter, into a contract with an irrigation, diking, or drainage district and shall have expended moneys under said contract, and said district shall be indebted to the state for the moneys so expended, and in the judgment of the director of ecology said district shall have not received benefits equal to the amount of said indebtedness, the director of ecology shall be and is hereby authorized and empowered to settle and compromise the claim of the state against said district upon such terms and for such an amount as he or she shall deem fair and just to the state and the district.
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