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,,, o (') ~ ...... ..... (t) t :(,,::'........ DEPLETION OF SURFACE WATER SUPPLIES 27 ',.-, A bill is now before the Congress to authorize construction of tl;te Fryingpan-Arkansas project which would involve the diversion of about 72,000 acre-feet annually from Fryingpan Creek, a tributary of Roaring Fork, into the headwaters of Arkansas River. This would 1:>e physically feasible. Economic factors Colorado Springs is paying for its transmountain diversion works. The city and country of Denver now states that it is the intention to finance the construction of the works in its plan in the manner customarily followed 1:>y municipalities making additions to water systems. Hence, subject to the legal rights of these communities and other municipalities, depletions approaching 200,000 acre-feet per year may be made without subsidies by the Federal Government. Transmountain diversions for other purposes, however, will requh:e subsidies. For example, when the Colorado-Big Thompson project was undertaken for the diversion of water across the Continental Divide, contracts were entered into by the water users which limited their obligation to the then estimated costs of works allocated to irrigation. The intent was thus to limit the subsidy to that arising out of the waiver of interest. However, costs of construction were So much greater. than those originally estimated, due to inflation and other causes, that the actual subsidy will be substantially more than $200 per acre of land furnished supplemental water. . In the case of the Fryingpan-Arkansas project, the total estimated cost at present price levels is $172,898,000 of which $75,128,000 i~ allocated to irrigation. Total payments aggregating approximately $43 million are expected to be made for water during a period of 69 years, which would amortize about $20 million of the cost allocated to irrigation. The gross subsidy to irrigation will thus be $480 pet acre spread over the 114,500 acres included in the area to be supplied with supplemental water. Under the proposed plan of' financing (modified Collbran formula), about $32 million of the total subsidy will be paid out of net power revenues and net revenues from water delivered to municipalities. About 60 percent of the total subsidy . to hTigation will thus be borne by the municipalities and power con" sUIDers in the trade area. . Should the Blue-South Platte project of the Bureau of Reclamation be undertaken in lieu of the plan proposed by Denver, much greater subsidies to irrigation would be necessary. The costs allocated to irrigation are estimated to be $236 million at 1947 price levels. The area of land to be supplied with water is given as 347,000 acres. The average cost at 1947 prices is thus $680 per acre; at present price levels, the unit cost would be close to $1,000 per acre. In its pre- liminary financial analysis, the Bureau of Reclamation has assumed that payments for water directly and through taxes levied on the land would amount to about $97 million in 61 years. Such payments would amortize about $45 million so that the actual subsidy to irri- gated land would be more than 80 percent of the cost allocated to' irrigation. At 1947 price levels this would be equivalent to $550 per acre; at current price levels the subsidy per acre of agricultural land . would be about $800 per acre if the repayment capacity be 1,aken, as that determined 5 years ago. . ;.. co-" '.; ~, ' t,:. ~. t.