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<br />. <br /> <br />. <br /> <br />co <br />,."J') <br />~J' water simply in storage? If the compact froze its use, water in <br />N <br />~~, storage was no good for irrigation nor for the production of water <br />CJ <br />sales revenues. Could water, or reservoir space, be "subleased" <br /> <br />to other users to help create a stable revenue stream? The Bureau <br /> <br />felt that such subleases must be limited to entities that complied <br /> <br />with acreage limitations and other constraints of reclamation law. <br /> <br />The District complained about the spiralling operations and <br /> <br />maintenance costs. It felt it could much more efficiently operate <br /> <br />the reservoir itself. <br /> <br />The Bureau's suggestion was that Conejos <br /> <br />simply buy Platoro. <br /> <br />Conejos responded by writing a general offer for purchase of <br /> <br />the entire reservoir except for the flood control function. The <br /> <br />offer was for $500,000. <br /> <br />The Bureau countered that Conejos must <br /> <br />take the entire reservoir including flood control (and therefore <br /> <br />100% of the O&M costs), but the price would remain at $500,000. <br />That essential agreement was memorialized in an Agreement in <br /> <br />Principle which has been executed by the Bureau and Conejos. That <br /> <br />agreement was subject to congressional approval since it <br /> <br />contemplated both amendment to the original authorizing legislation <br /> <br />and federal transfer of facilities. <br /> <br />Subsequently, policy discussions occurred concerning the <br />advisability of actually transferring title to the federal <br /> <br />facilities as opposed to providing for assignment of all operation <br /> <br />and maintenance control and for single payment in lieu of future <br /> <br />6 <br />