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6 UPDATING THE HOOVER DAM DOCUMENTS (2) Arizona, 2.8 million acre-feet annually, plus one-half of any excess or surplus waters unapportioned by the Compact, and exclusive beneficial consumptive use of the Gila River and its tributaries within the boundaries of Arizona; and (3) California, 4.4 million acre-feet annually, plus one-half of any surplus waters unapportioned by the Compact. The three State apportionment proposal was never agreed upon by the Lower Basin States despite negotia- tions in 1929 and 1930. However, the Supreme Court Opinion of June 3, 1963, in Arizona v. California (373 U.S. 546) concluded that Congress had made such an apportionment by authorizing the Secretary of the Interior to accomplish this division. This was done by the Secretary's contracts for the delivery of water in the Lower Basin States and by providing (Section 5) that no person could have the use of Colorado River water without a contract with the Secretary for permanent service. This Opinion and Decree are further dis- cussed in sections I and J hereof. C.3 Conditions Precedent to Act Section 4(a) of the Boulder Canyon Project Act provided that the Act shall not take effect until either all seven States signatory to the Compact had ratified the Compact or, if that ratification did not occur within 6 months from the passage of the Act, then until six States, including California, shall have ratified, and Califor- nia shall have enacted legislation irrevocably limiting its consumptive use to 4.4 maf of the waters appor- tioned to the Lower Basin States by Article III(a) of the Compact plus one-half of any excess or surplus waters (see B.4 and B.5 above). Section 4(b) provided that before any money should be appropriated for the construction of the dam or powerplant, or any construction work done or contracted for, the Secretary of the Interior should make pro- vision for revenues by contract adequate to assure repayment of all expenses of operation and maintenance and the repayment of the Federal investment within' 50 years from the date of completion of such works, together with interest thereon. Similarly, before any money was appropriated for construction or construction work was done on the main canal to Imperial and Coachella Valleys, the Secretary had to provide for revenues, by contract or otherwise, adequate to assure payment of all expenses of construction, operation and maintenance in the manner provided in the Reclamation Law. C.4 Other Major Provisions Section 2 created the Colorado River Dam Fund through which all appropriations ($165 million were authorized) and income were to pass. Hoover Dam and the All-American Canal accounts were to be separately maintained. Hoover power revenues were not to pay for any canal costs; lands benefiting from the canal were to repay its costs but were not to be charged for water or for its use, storage or delivery. All costs of Hoover Dam, its powerplant. and appurtenant structures, including interest at 4 percent, were reimbursable, but $25 million was allocated to flood control to be repayable out of 621/2 percent of the surplus revenues during the 50-year amortization period. Pursuant to Section 4(b), 18-3/4 percent of excess revenues was to be paid to each of the States of Arizona and Nevada, in lieu of taxes which the States might have collected if the project had been built with other than Federal funds. After repayment of all costs, charges were to be made on such basis and revenues expended within the Basin as hereafter prescribed by Congress. These provisions Were changed by the Boulder Canyon Project Adjustment Act (see C.6). The All-American Canal costs were required to be repaid under Reclamation Law in 40 years without in- terest. In addition, the $1.6 million of Laguna Dam costs were also to be repaid, even though it was never used as a diversion structure for Imperial Valley. C. 5 Power Contracts Section 6 of the Act provided that energy was to be disposed of by contract. Section 5 provided that the disposition of energy by the Secretary be done under general and uniform regulations conforming essentially to those of the Federal Power Commission to "responsible applicants" under established standards of I i I I t I r. I I