WSP08467

• File Number: 8507
• Description: Rio Grande Project
• State: CO
• Basin: Rio Grande
• Date: 6/6/1950
• Title: Summary Report of Clifford H. Stone/ Director Colorado Water Conservation Board
• Water Supply Pro - Doc Type: Report/Study

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(3) Based on firm power rate of 5.6 mills a kilowatt-hour and nonfirm rate of
3 mills, required to retire power allocation in 60 years at 3 percent
interest.
(4) Returns to Federal Treasury during payment period would exceed project
costs, except non-reimbursable costs allocated to fish And Ydldlife, by
$6,428,000.

The City of Grand Junction, as ~ result of its rapid growth will soon
reach the limit of its ~vailable domestic water supplies. It is the objective
to complete the construction of this project prior to the time that Grand
J~nction must have available these additional water supplies.

8, Paoilla :project. Last fell Commissioner Straus and Regional Director
Larson attended a meeting with representatives of the water users under the
project and me. At thAt time, there was ~n understanding that 1~. Larson would
complete as soon "-s possible a "Definite Plan Report" to cover proposed reloca-
tion of the storage reservoir, inclusion of the Minnesota Creek Division, and
estimates of a financial plan for the project. In compliance with this under-
standing the Regional Office completed the report and it is now in Washington.

This project was first authorized by the Congress in 1939 and it was
reauthorized in 1947 (61 Stat. 181, Public Law 117,' 80th Cong., 1st Sess.)
Under the reauthorization the estimated cost was $3,030,000. The authorization
bill provided that all costs allocAted to irrigation be reimbursable under the
Federal Reclamation Laws, within a repayment period fixed by the Secretary of
the Interior, at not to exceed 68 years. A contract has been executed between
the United States and the North Fork .iater Conservancy District providing for
repayment of construction costs chargeab18 ovor a p8riod of 68 years. The
District has executed two sep?xate contr~cts with the Fire Mountain Canal and
Reservoir Company and the Leroux Creek Natcr Users' Association. Appropriations
in various amounts, have been made for this projrct in 1930, 1940, and ~gain in
1942. After the reauthorization in 1947 construction was connnenced on the Fire
Mountain Canal. This feature of the project vdll be completed early this fall
(1950). Construction of the reservoir was not undertaken bec~usG further in-
vestigations indicated the advisability of its relocation. This involved
additional costs which could not be met by the water users. The revision of
the project plan, as shown by the recent report of Region 4 of the Bureau,
results in a relocation of the reservoir, the inclusion of the wunnesota Creek
Division in the project plan for repayment, and the elimination of reserve
capacity in the reservoir. It ~~ll be necessary for the execution of an amenda-
tory contract between the Gni ted States and the North Fork ;(ater ~onservancy
District to provide for the extension of the development period of the Fire
Mountain Division of from 3 to 5 years, and also to provide for the repayment
from water users on the Minnesota Creek Division. It is not proposed to extend
the basic repayment period of 68 years nor to increase the unit payments by the
water users.

It is proposed in the project report that cost allocated to irrigation
in excess of the ability of the irrigators to pay will be paid from revenues from
the sale of power that will be gGner~ted by hydroelectric power plants con-
structed as features of the Colorado River Storage Project.

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