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<br />-':cO .-.J <br /> <br />.?,.; <br /> <br />" <br /> <br />.,." <br /> <br />AS S IG Nl\IE,JT <br /> <br />By action of the Arkansas~Vhite-Red Basins Inter-Agency <br />~'."r.r.:itt"'e at its mee';ing in Santa Fe on )larch 22, 19')1, the <br />r'~":.??itr, and C%ts WOl"!{ Gro:>up was authorizCld tc cres.t,) a sub-<>;;"ot:p <br />-!orJ ",-"Cl".y the subject of cost allocation and rai.J1'.bur<'''C1ont. 'i'he <br />',','.',:'i:r,lc.n "f tha Vlork group. in exerci se of thi s au~;h0:'i t:!, G8sig- <br />n:<'..;;d P.1GJo'lership of thF3 sub~grcup to include rp.pres0:.J.-:;at~_\1es o~. <br />.c!>, Fedare.l POW6:i:" Commission, the Dep3.rt:nf3nt of t]18 IntE):ri,):" J th'3 <br />IJep,o:...rt,nent of A.~:.r icul ture J ...::he Corps of Br~gineu.."s J the iJepF.\~:-t.ro1ant <br />of Commerce, a:;.o. subsequently the U. S. Public He"l'i;h Son-ice. <br /> <br />The p!'.rticular assignments to this suh-creup were the <br />review of Chapter V, "Cost ,'.llocation for liult-Lp1o-PQ:'pose Projects" <br />as found on page 53 of the report to the FIALlC "rrcf.",;ed Practici')s <br />for Economic Analysi s of t(i var Basin Projects": edi ti ()~ of llay 19:;0 <br />(the Green Book), and the recommendation to tite 3enpf'it.s and Costs <br />Wo,k Group, A'IJR, of the best approach to be followe-l in cost <br />allocation. <br /> <br />OBJECTIVES <br /> <br />In compliance with this assignment, the two objectives of <br />study are: <br /> <br />(1) To determine whether or not the method of <br />cost allocation recommended in the "Green <br />Book" is generally suitable and adequate <br />for application toAVffi project analysis, <br />and <br /> <br />(2) To make definite recommendations as to the <br />conditions, criteria, and analysis proce- <br />dures of cost allocation in sufficient <br />dotail as to permit unifo~m and particular <br />application to ~cffi projects. <br /> <br />In apprOflchi.ng the problem, certain basic statements may <br />be regarded as axiomatic. In definition, cost allocation ia the <br />process of apportioning project costs equitably among the various <br /> <br />-1- <br />