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SUMMARY (Continued) Some landowners in the MVIC were concerned about irrigation short- ages during dry years. During dry years, the use of a calt system by the MVIC for nonproject water stored in McPhee Reservoir and more effi- cient use of water early in the irrigation season could result in water being available later in the irrigation system. The MVIC board eKpressed interest in the alternative for piping the entire system. Reclamation explained that the piping alternative would be too high in cost compared to the amount of salt removed from the Colorado River. The MVIC also expressed interest in retaining Totten Reservoir for use by local water user entities after the Towaoc Canal is completed, if the operating costs would not be too prohibitive. The MVIC will operate and maintain Totten Reservoir. In 1985, some of the project full service irrigators representing ownership of approximately 15 percent of the land became concerned with the existing poor agricultural economy and their potential inability to satisfy the obligations of their water petitions. They are asking finan- cial relief in having to convert dryland farming to full service irriga- tion. Reclamation is working with the DWCD to clarify the implementa- tion of the repayment contract regarding the establishing of development blocks for irrigation water, the delivery of project water during the startup period, and the initiation of repayment. In November 1986, 17 claimants filed a tort claim against the United States; the claim was denied in June 1987. In August 1987, the claimants filed a lawsui t, which is pending in District Court, against the Dolores Water Conservancy District to rescind the petitions and to collect an undisclosed amount of damages. In 1982, Reclamation advised the DWCD that the cost ceiling for municipal and industrial water would be exceeded. The Dolores Water Conservancy District, the Bureau of Reclamation, and the Colorado Water Conservation Board concluded that a change in cost allocation procedures and State financing of two single-purpose municipal and industrial fea- tures--the Monument Creek Reservoir and the pipeline from McPhee Reser- voir to Cortez--would solve the problem. The Dolores Water Conservancy District agreed to assume this obligation itself, subject to the avail- ability of financing from the Colorado Water Conservation Board con- struction fund. Construction of Dolores Project features was thereby allowed to continue under the existing repayment contract with the ex- clusion of these two features. Under the Agreement in Pri~"..!Ele Co,,-~ inJL~he Col!?.Eado U.!'e Indian \i.ater Rights ~ettlement and Bindi_~S~ ~.~ for Ani~as-La Plata Proje~t Cost S~aring, June 30, 1986, the remain- ing portion of the Cortez-Towaoc Municipal and Industrial Pipeline was deleted from the Dolores Project. The State of Colorado will assume the obligation to construct this portion of the pipeline. s-l<;