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<br />. <br /> <br />. <br /> <br />the municipal and industrial water allocation is estimated to be <br />as much as double the ceiling in the repayment contract. <br /> <br />About a year ago, when it became evident that the cost <br />ceiling would be exceeded, the Bureau advised the District of <br />this fact. The Bureau estimated that the award of the contract <br />for the Great Cut Dike pumping plant would bring allocated costs <br />over $20,000,000 and therefore took the position that the <br />contract could not be awarded until the problem was resolved. <br /> <br />Discussions have been under way since then among the <br />District, the Bureau, and, at the District's request, the CWCB <br />staff. A favorable change in cost allocation procedures has been <br />agreed to by the Bureau, which change can be effected only if the <br />construction and financing of two single purpose M&I features of <br />the project--the pipeline from McPhee Reservoir to Cortez and the <br />small terminal storage reservoir at Dove Creek--are taken over by <br />the District. The District has indicated its willingness to <br />assume this obligation, subject to the availability of financing <br />from the CWCB construction fund (see attached resolution). <br /> <br />The Commissioner of Reclamation is desirous of having this <br />matter resolved during this session of the General Assembly <br />in light of the scheduled award date for the Great Cut Dike <br />pumping plant contract. This would permit construction to <br />proceed on schedule and within the $20,000,000 ceiling in the <br />repayment contract. <br /> <br />Proposed Facilities <br /> <br />It has not been necessary to prepare an independent <br />feasibility study of the two features under consideration. <br />Rather, the preliminary plans already developed by the Bureau <br />have been utilized. <br /> <br />The pipeline to Cortez presents no significant technical <br />questions. It should be, based upon the Bureau data, a straight- <br />forward construction project. The cost is estimated at about <br />$2,700,000 (see attached table). <br /> <br />The terminal storage reservoir at Dove Creek, known as the <br />Monument Creek Reservoir, is presently planned by the Bureau with <br />a capacity of about 600 acre-feet. It would provide neither fish <br />and wildlife nor recreation benefits. <br /> <br />During the District's deliberations concerning this problem, <br />interests from the Dove Creek and western Dolores County area <br />asked that consideration be given to relocating and enlarging <br />Monument Creek Reservoir. <br /> <br />-2- <br />