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The purpose of the US8R proQram is to benefit downstream Colorado River water users by lininQ maior irriQation canals for salinity reduction. Initially USSR identified all of OMID's canals, including MML, as downstream salinity contribu- tors. During the 1980's OMID's canals were removed from this program when US8R determined salinity contribution from them was not cost effective. The lesser known is the CRSC program. (See Secretary's Memorandum 1031 - 11, dated February 14, 1985.) This program benefits farmers through reduced production costs, reduced labor costs, reduced operation costs, reduced main- tenance costs, and improved crop yields. These benefits are accomplished by improving the irrigation systems serving that farm. This proQram is not a re- placement or supplement to the USSR proQram. The voluntary CRSC program issues grants of up to 70% of the total project cost, or a maximum of $400,000, to farmers that own or have control of the land of which the system provides water. Private corporations and public bodies selling stock or shares, or co-op's, can participate in this program. According to the Code of Federal Regulations, OMID is not eligible for a grant under this program because it does not own or have control of any of the land to which MML provides water. OMID does not market agricultural products, and does not share farming profits with the taxpayers it serves. OMID water rights go with the land and can not be transferred within the District or to other areas. Many OMID landowners have participated in this CRSC program to improve their farming practices. These farming systems are divided into two segments, on- farm and off-farm... The distribution part of a system is known as on-farm. This portion controls the irrigation practice used to irrigate growing crops. Some better known on-farm irrigation practices include flood, drip, and sprinkler. The feeder, or supply, part of the system is said to be off-farm. The off-farm part of the system is that part which transports water from a supply canal to the distri- bution, or on-farm system. As noted in the 8ackground portion of this request, OMID entered into a contract with the United States for grant funds under the CRCS program for the placing of MML in pipe. This contract is # (92-233) 65-8805-4-3207. The remainder of this section addresses this specific contract. MML is a 21,500 foot long (not 22500' as the CWCS loan contract states) OMID supply canal, providing water to 2700 water users located on 2100 acres. MML is not a part of anyon-farm or off-farm system. MML is a segment of OMID's 39 mile delivery system. These canals are commonly owned by all OMID landown- ers including the 2700 individual owners served by the 4.0 mile long MML. These tenants in common pay 0 & M costs as a part of their real property taxes. , OMID is not supposed to own any land within the District above that amount 12 ~~