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<br />GG88 <br /> <br />5. Fry-Ark Project Repayment <br /> <br />Repayment of the original Fry-Ark Project debt is of paramount importance to all <br />participants in the pSOP project. The enlargement project will not detract from <br />the District's ability to meet its full repayment obligation. In fact, with the <br />increase in demand for Project Water and the use of carryover storage through re- <br />operations contracting for non-Project purposes, revenue for Project repayment <br />should increase, thereby accelerating Project repayment. As long as repayment is <br />on or ahead of schedule, there should not be an added charge for the use of <br />enlarged space. Only O&M charges should apply. The District and its Enterprise, <br />on behalf of all participants, will work with Reclamation to conduct a periodic <br />repayment analysis to document the status of repayment. <br /> <br />6. NEPA Compliance <br /> <br />Reclamation will conduct NEPA compliance on the re-operations <br />contracting program on a program basis after the authority has been established. <br />In like manner, Reclamation will conduct NEP A compliance on the proposed <br />enlargements and the Enterprise's master storage contract on a program basis. <br />Those that wish to execute a re-operations contract or hold an allotment contract <br />will be obligated to conduct the engineering work necessary to fully describe the <br />sources of water to be stored and the end-uses of that water. NEP A compliance <br />work, including an environmental assessment or an environmental impact <br />statement, on the enlargement of Pueblo or Turquoise reservoirs will begin after <br />the projects are authorized by Congress. <br /> <br />7. Participation <br /> <br />7.1 MOA's to Participate in Re-operations- Entities that choose to <br />participate in re-operations in Fry-Ark Project facilities will be asked to commit to <br />the project by signing an Memorandum of Agreement (MOA) with the Enterprise. <br />The MOA will ask participants to commit to a share of the costs (proportionate to <br />their share of the proposed re-operations space) to secure authority for the re- <br />operation of the project, referred to as the Implementation Phase of the PSOP. <br />Such costs will include legal costs, legislative/lobbying work to secure authority <br />to contract, engineering, and NEPA work. MOAs are to be executed no later than <br />June 1, 2001. <br /> <br />Those entities that decide later that they need a re-operations contract shall be <br />obligated to pay their proportionate share of implementation costs. When an <br />entity requests a re-operations contract, the original implementation costs shall be <br />recalculated to each participant based on the new percentages. The new <br />participant shall then reimburse those already in the plan for the cost of <br />implementing re-operations authority, including interest charges based on the <br />average T-Bill rate for the intervening years. <br /> <br />17 <br />