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One potential significant problem which requires manag.ement's immediate atten- tion and resolution is the repayment status of the Bonneville Unit (BU) of the Central Utah participating project. The Water and Power Resources Service (Service) entered into a repayment contract in 1965 with the Central Utah Water Conservancy District (CUWCD) and agreed to contract provisions which explicitly limit CUWCD's repayment obligation to $156.3 million. Based on the Service's estimate to complete the project, this contractual limitation on reimbursable costs will preclude recovery of additional reimbursable costs of about $193 million. Although the Service forecasts that construction expenditures for BU will exceed contract repayment obligations in fiscal year 1931, necessary amendatory contract actions providing for repayment of the project cost increases have not yet been taken. Given the explicit language of existing contractual repayment terms, drawn-out legal proceedings and problems could be encountered in attempting to amend the contract to provide for reimbursement of appropriate Mod water costs. And, since construction costs will soon exceed repayment obligations, the Service should not delay action to appropriately revise exiSting contract repayment provisions. Should the CUWCD be unwilling to agree to appropriate repayment terms, the Department should decide, in a timely manner, the extent to which the project will be continued as contemplated and what steps need to be taken to assure repayment of reimbursable M&:1 water costs. In the area of irrigators' ability to pay, we noted that the Service recently completed an analysis which shows that since the date the CUWCD executed its repayment contract, the ability to pay for irrigators in the project service area has 2