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PREAMBLE UNITED STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION The Southeastern Colorado Water Conservancy District was created by the District Court in Pueblo, Colorado, on the 29th doy of April, 1958, following the circulation of petitions throughouf the nine coun- ties which stood to derive benefits from the Fryingpan- Arkansas praiect. This brochure, and others in the series, are in- tended to help identify the absolute importance of water in the Arkansas Valley of Colorado, It is entitled "The future of the Arkansas Volley is its water", and certainly no statement can better identify the fact 1hat the one single i1em which predicates the fu1ure of this area is its use of water. Areas which have water can pion for unlimited growth Clnd prosperity. Others, which hove wa1er in limited quantity, but use it and protect it wisely, can have limited growth and prosperity. Those areas which do not plan for future development and use of this precious commodity, have already establi:!>hed the point and flme beyond which they cannot grow and prosper, The Fryingpan-Arkonsos water proiec.t began os. a dream many years ago, when a few visonary men and women realized the seriousness of water. They set about studying the wafer lows of Colorado: the amounts of water to which the citizens of this state were legally entitled, but which 1hey were not using; the engineering involved in making this water avail- able to the citizens of Colorado; and the procedures to be followed in making their dreams 0 reality. They sifted reams of information, held countless in-state and out-of-state meetings, and finally deter- mined the Fryingpan project was the best way to get Colorado and Arkansas river water for the present and future citizens of the semi-arid Arkansas Volley. On August 16, 1962, President John F. Kennedy signed the bill passed earlier by the Congress of The United States creating the Fryingpan-Arkansas proi- ect. The Southeastern Colorado Water Conservancy District became the legal agency responsible for the repayment of the reimburseable portion of this multi-million dollar multi-purpose project. The in- formation contained in this, and other brochures, explain the critical role being performed by the District and the serious responsibilities which have been imposed upon the fifteen men who serve os directors for this agency. 2 Fryingpan-Arkansos Project, Colorado CONTRACT BETWEEN THE UNITED STATES AND THE SOUTHEASTERN COlORADO WATER CONS<RVANCY D1S1R1C1 Contract Number 14-06-700-4715 THIS CONTRACT, Made this 21 sl day of Jan- uary, 1965 in pursuance generally of the Act of June 17, 1902 (32 Stat. 388) and acts amendatory thereof and 'Supplemen1ary thereto, paYliculorly the Ac.t of August 16, 1962 (76 Stat. 389). all collectively here- inafter referred to as the Federal Reclamation Laws, between THE UNITED STATES OF AMERICA, herein. after referred to as the United States, and the SOUTH- EASTERN COlORADO WATER CONSERVANCY DIS- TRICT, hereinafter referred to as the District, a corpo- ration of the Stote of Colorado, wi1"h its principal place of business at Pueblo, Colorado, Explanatory Recitals (0) The United States, acting through the Sec- retary of the Inferior, proposes to construct the Fry- ingpan-Arkonsas Pro\ect as authorized by the Act of Congress approved August 16, 1962 (76 Slat. 389) for the purpose of supplying water for irrigation, municipal, domestic, and industrial uses, generating and transmitting hydroelectric power and energy, controlling floods, and for other useful and beneficial purposes. (c) The limit of expenditures for tne construction of project works as fixed in said authorizing act is $170,000,000 subject, however, to the ordinary fluctuations in construction cosl indicated by ap- plicable engineering cost indexes, and plus expendi- tures of any sums that may be appropriated for the operation and maintenance of the proiect and for future costs incurred under Section 4 of the Act of August 16, 1962 (supra.). (d) The reimbursable construction costs of the authorized project works, being those allocable to municipal and industrial uses, irrigation uses and for the production and transmission of electric energy os estirnated in said House Document 187, Eigh1y-third Congress, modified as proposed in House Document 353, 86th Congress, 2nd Session, and revised as set out in the document entitled "Payout Study-Frying. pan.Arkansas Project-Colorado (Based on 3.046 per cent interest)" bearing date of 10-9.63, are estimated as fallows: 3