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<br />the construction of the project were made in 1940. Additional invest- <br />, igations of the project were made with ;:the results being presented to <br />Congress in 1947 with Congress authorizing the project in June 1947. <br />The North Fork Water Conservancy District signed a contract with the <br />Bureau to repay the construction costs of the project, agreeing to <br />repay $2,320,000 in.68 years. This contract provided for a ten year <br />development period for the Leroux Creek Block to allow the Leroux <br />Creek Water Users Association to rehabilitate their own facilities. <br />The development period for the Fire Mountain Block waS set at 3 years <br />at that time. . <br /> <br />Enlargement and extension of the Fire Mountain Canal began in <br />1949 and was finished in 1953 with funds under the 1947 authorization <br />being e~pended. <br /> <br />In February 1951, the Bureau of Reclamation prepared another report <br />on the Paonia Project. This report became the basis for the 1956 pro- <br />ject authorization, which authorized the project as a participating <br />project in the Colorado River Storage Project. This authorization <br />provided for the construction of Paonia Dam and Reservoir, further <br />extension of the Fire Mountain Canal, and rehabilitation o~ critical <br />sections of the canal that had been enlarged. It also provided that <br />part of the construction costs would be repayed with power revenues <br />from the Colorado River Storage Project.. <br /> <br />In the period 1957 to 1961, . the construction of project facilitie.s <br />was completed. During this period 25,300 feet of the Fire Mountain <br />Canal waS lined with thick earth lining, the canal was extended another <br />1.7 miles, and Paonia Dam and Reservoir was built. <br /> <br />The development period of the project began Janusry 1, 1962. <br />Early in this period, operation of the Fire Mountain Canal showed <br />that some additional short sections of it needed lining. So the <br />Development. Period of the Fire Mountain Block was extended first <br />from 3 to 7 years and later was extm ded to 10 years to allow the <br />.Company money to accomplish the necessary construction. During this <br />.period, the company lined 1845 feet with concrete and 14,995 feet <br />with earth (13,874 feet half section and 1121 feet full section earth). <br /> <br />Under the repayment contracts, the Leroux Creek Water Users Assoc- <br />iation (Leroux Creek Block) was given a lO-year development period to <br />allow them money to rehabilitate their smaIl reservoirs. They decided <br />.to expend most of their availablemoney on three reservoirs: Carl <br />Smith, Bailey, and Doughty. They have accomplished minor improvements <br />to several of the other small reservoirs they own. <br /> <br /> <br />~ <br /> <br />2 <br /> <br />., <br />,. <br /> <br />J <br />