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gation in varying degree. Development of a success- ful winter storage program will require that these ditch companies enter into contracls with the District (a) agreeing to forego 1\-,e exercise of tne'rr d'lvers'lon rights during the winter season so that the water may be stored in Pueblo Reservo;r, and (b) agreeing on the manner in which the participating ditch com- panies will share the irrigation season releases of the winter stored water, In addition, the cooperation and consent of the 7 ditch companies outside the Dis. trict which serve some 58,000 acres below the exist. ing John Martin Reservoir 'Nill be required. One of the most important provisions of the contract is that contained in Article 3 which provides essentially thaI whenever, prior to the initial delivery of woter to the District, ,he Secretary finds that the construction cost of the project is expected to increase to the point where rhe payments required of the District under the enclosed contract, and renewals thereof, will be insufficient to return by the end of the 50-year authoriz.ed poymen1 period the Distric.t's allocated shore of the cas I of the project, no water sholl be furnished the District until the District has agreed to satisfactory revision of the payments to be made under the contract. Since most of the project works to be utilized in delivering project water to the District will have been completed prior to the initial water delivery date, a reasonably firm basis will exist for determining what revisions, if any, will be needed in the water c;ervice c.hcHge-:, to be paid by the District. Other contract articles of note are Article 2 which provides for the transfer to the United Slates by the Dis1rict of the water rights essential to the construc- tion and operation of the project and Article 6 (b) which provides in accordance with. th.e operating principles that municipal users shall have a first right each year to the imported proiect water provided it is reserved by payment in advance. By resolution of October 30, 1964, the District Board of Directors approved the contract and author- jzed its execution on behalf of the Di..trict in sub- stantially the form enclosed. We hove revised the first sentence of Article 23(0) to add the words, "ex- cept for winter storage os hereinbefore defined." This revision wos mode to both clarify the under- standing reached with the District tnat the excess land limitations of Federal Reclamation low are applicable to winter ';.~<:m::1.ge Ql"'od 10 make meaningful tne pro. vision regarding judicial determination which was added to Article 24 at the request of the District, 10 o a N o .... "'-l