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http: / /resourcescommittee. house. gov / 107cong /water /2002mar 19/keyes.htm <br /> • <br /> we will send a copy to the Committee. <br /> Reclamation also has concerns about the implications for potential water delivery contractors arising <br /> from the various restrictions imposed by H.R. 3881 on the Secretary =s contracting authority. For <br /> example, H.R. 3881 states that Reclamation can contract with any entity delivering water for municipal <br /> or other purposes, but the entity must first have signed an agreement with the District under certain <br /> terms listed in the legislation. These terms include a provision for payment of any surcharges set by the <br /> District. This requirement alone could provide significant leverage to the District to impose substantial <br /> surcharges as a prerequisite to an agency =s entering into a contract with the Secretary. <br /> Finally, the application of revenues collected under the legislation, not related to the surcharges of the <br /> District, is not consistent with current Reclamation law. <br /> Conclusion <br /> Reclamation appreciates the District =s forward thinking and collaborative planning efforts in developing <br /> its. P_SOP reports_ While we applaud their efforts to plan for the future, we must recognize the many <br /> complexities of the Project. Unlike many Reclamation projects, the Fryingpan- Arkansas Project was <br /> developed for multiple uses from the beginning, so our role is different and broader than the District =s. <br /> Reclamation is committed to build upon the good work done by the District. As such, the Department <br /> proposes that Congress authorize Reclamation to conduct a feasibility study consistent with the <br /> AReclamation Manual Directives and Standards for feasibility studies @, with a shared ownership of the <br /> -end product; and to produce contracting authorities consistent with and complementary to Reclamation <br /> law. <br /> Reclamation commends the Southeastern Colorado Water Conservancy District and Enterprise Board <br /> for its efforts to address its future water needs. Reclamation would be happy to work with the sponsor <br /> and the Committee to develop legislative language that would achieve the sponsor=s goals while <br /> addressing our concerns with H.R. 3881 as introduced. This concludes my statement and 1 would be <br /> pleased to answer any questions. <br /> # # ## <br /> 3 of 3 3/20/02 10:17 AM <br />