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<br />11'~ <br />w:{. ! <br />",;it <br /> <br />~~?)IMAS-LA PLATA PROJECT <br />"",:;1'./ <br /> <br />5. WOULD THE ENTIRE PROJECT BE OPERATED BY COLORADO BOARD? Initially, the <br />project would be under the direct adm~nistration of the Bureau of Reclamation. <br />During this time, personnel from the La Plata Conservancy District in New <br />Mexico, the La Plata Water Conservancy District in Colorado, and the Ute <br />Mountain Indian Tribe would be trained in all phases of the project's opera- <br />tion. This training interval is known as "development period," after which <br />administration of the project would be turned over to the local organizations <br />(the conservancy districts and the Ute Mountain Tribe). The development per- <br />iod would probably last from two to three years. The Bureau of Reclamation <br />would still be available for consultation and technical assistance after the <br />administration has been turned over to the local organizations. It is antici- <br />pated that the two Conservancy Districts would operate the facilities in their <br />respective States except those on Indian lands which would be operated by the <br />rspective Tribes. A Master governing body would be formed from representa- <br />tives of the entities subscribing for project water, including representatives <br />of municipalities. <br /> <br />6, WHAT IS THE PRIORITY ON WATER IN RIDGES BASIN? Municipal and industrial <br />water users would be fully supplied every year. A full supply would be de- <br />livered to the sprinkler irrigation areas in most years although shortages <br />would occur in drought years. The period of 1951-1956 was the longest and <br />most critical drought in the last 75 years. A simulation of project opera- <br />tions indicated that irrigation shortages would have averaged 12 percent per <br />year during this six year period. <br /> <br />7. HO'I WOULD THE FED RA TMENT IN D? <br />The cost allocate to ~rrigat~on w~ll be repaid ~nterest free from four prin- <br />cipal sources: irrigators, ad valorem taxes, revenues from Colorado River <br />Storage Project (CRSP) Basin Fund, and revenues from the Colorado River De- <br />velopment Fund. <br />Irrigators would pay both allocated construction and operation and main- <br />tenance (O&M) costs up to their estimated payment capacity, which was deter- <br />mined through the use of a computerized farm budget program which computes <br />estimated net farm income. An allowance for the farm family is subtracted <br />out which gives the farmer a return for his management, labor and equity. The <br />balance of the net income is determined to be the farm payment capacity. The <br />balance of the costs allocated to irrigation would be paid by ad valorem taxes <br />assessed by the district and revenues from the CRSP Basin Fund, and the <br />Colorad River Development Fund. CRSP funds are derived from the sale of power <br />from the water storage projects on the Colorado River such as Glen Canyon Dam <br />and Flaming Gorge Dam, after these projects have been paid for. Excess reve- <br />nues from these storage projects are put into a fund which by law will be used <br />to repay part of the costs allocated to irrigation on projects designated as <br />CRSP participating projects, of which the Animas-La Plata Project is one. <br />Irrigators would pay approximately 10 percent of their allocated costs. <br />Ad valorem taxes would pay approximately 5 percent and the balance (85 percent) <br />woul come from CRSP funds. Costs allocated to Indian lands would be deferred <br />until such time that the Indian lands pass into non-Indian ownership, if ever. <br />Costs allocated at M & I water will be repaid with interest at 6.595% by <br />those who contract for the water. This repayment would be spread over a 50 <br />year payout period. provision is made for a ten year deferral of costs <br />associated with storage for future years capacity provided the deferred costs <br />do not exceed 30 percent of the total project cost--for example: <br />Durango would be able to defer payment on 4100 acre-feet of water for <br />the first ten years. This would amount to an annual savings of <br />$274,700 each year of the deferral period. <br /> <br />8. WHAT WILL BE THE COST OF PUMPING? Operation and maintenance (O&M) costs <br />directly attributable to project pumping represent nearly 80 percent of the <br />total annual 0 & M costs of the Animas-La Plata Project. Included in the <br />pumping costs are electrical power and transmission costs, personnel and <br />equipment costs, supplies costs, major replacement costs, and special items <br />costs. A breakdown of these costs, based on current prices, is given in <br />the following table: <br /> <br />2 <br />