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<br /> <br />EXHIBIT IV <br />Page 1 of 3 <br />United States Department of the Interior <br /> <br />BUREAU OF RECLAMATION <br />WASHINGTON, D.C. 20240 <br /> <br />tlf lIJEPLY <br />_TO' 744 <br />631. <br /> <br />MAY 4 1978 <br /> <br />Memorandum <br /> <br />To: Director of Audit and Investigation <br /> <br />Through: <br /> <br /> <br />From: <br /> <br />Assistant Secretary - Land and Water Resources <br /> <br />Commissioner of ReClamation~ ~ <br /> <br />Draft Audit Report, "Review of Repayment Stat <br />Missouri Basin Program and Individually Authorized <br />Bureau of Reclamation <br /> <br />ick-Sloan <br />Projects - <br /> <br />Subject: <br /> <br />This responds to your March I, 1978, memorandum to Assistant Secretary - <br />Land and Water Resources providing the subject Report for review and <br />comment, Enclosed are the combined comments of the Upper and Lower <br />Missouri regional offices provided by faxogram to this office April 7, <br />1978, with enclosure of detailed comments on certain specific items, <br />(enclosure 1). Also enclosed are comments with attachments thereto (SEE NOTE <br />provided by the Acting Chief, Division of Power of this office, <br />(enclosure 2). We are in general accord with these comments as supplemented <br />below. <br /> <br />The subject Report acknowledges that since the review was initiated, the <br />Department of Energy has been established (October 1977) and is now <br />responsible for transmission and marketing of commercial power production <br />from certain Reclamation and Corps of Engineers projects for which <br />power marketing was formerly administered by the Bureau of Reclamation <br />under the Department of the Interior. For the Pick-Sloan Missouri Basin <br />Program (PSMBP), this further divides administrative responsibilities <br />among three Federal Departments (Interior, Army, and Energy) instead of <br />the former two (Army and Interior), As a result of these significant <br />changes and the time required for a large !lew Federal Department to become <br />fully functional, we believe it is reasonable to anticipate a rather <br />lengthy process of clarifying this new division of responsibilities from <br />both legal and administrative viewpoints as they relate to Reclamation <br />projects in general as well as to the PSMBP in particular, <br /> <br />The subject Report also acknowledges that legal advice indicates that <br />most of the recommendations, including full implementation of Departmental <br />Manual Directive 730 DM 4, cannot be legally applied to the PSMBP. <br />Exhibit III of the Draft Report is an Assistant Solicitor's opinion of <br /> <br />