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. . . .. 0905 UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLA'.'ATION 7-740 IN .....i.v ........ YOI REGIONAL OFFICE. REGION 7 BUILDING 4e. DENVER FEDERAL CENTER DENVER,COLORADO JAN 1 5 1953 Colonel Charles H. McNutt District Engineer Corps of Engineers, U. S. Ar~ Albuquerque District P. O. Box 1538 Albuquerque, New Mexico File No. S'IIKGC Dear Colonel McNuttt My staff and I have reviewed the "Review Report on Survey for Flood Control,' Purgatoire River, Colorado". A copy of the report and supporting appendices was sent to me by Colonel Turner on November 28. Before commenting upon the report I want to eXpress ~ appreciation for the opportunity of working with you during its preparation. Our associations with you and your stalf have been most cordial. As a re- sult of the coordinated planning a worthwhile development has ,been proposed. It is well described in your report. Water rights involve a number of problems and several assump- tions were necessary to complete the study within the time allowed. Operation of the proJect for irrigation will be subject ,to the resolu- tion of the legal entanglements relating to water rights. I i' , , Upon further consideration of the legal matters involved JlK)dification of our recommendation "gll is advisable. Thisrecommenda- tion relates to negotiation of contracts for delivery of irrigation watersuppli~s. I suggest that the language of this recommendation be JlK)dified to read along 'these lines: "Contracts be negotiated by the, Secretary of the Interior, on behalf of the United States, with a District or ,Districts representing the prOject water, users, prior to the start of construction, for the delivery of water supplies at equitable prices which would pay annual operation, maintenance and re- placement costs and retire all construction costs allocable to irriga- tion, such charges to be within the payment capacity of the contracting organization and to be related tO'water supplies, agricultural prices, and other factor'S affecting that capacity. In order to implenent this ; -- APPENDIX G Exhibit No.9 Page '1.. ?f::~ . - ".' - -~" < ,,:,"