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<br />294 <br /> <br />I <br /> <br />However, we of the PAONIA PROJBCf will greatly <br />appreciate it if you will bring to the attention of those <br />who are in the Policy making group, the situation the <br />PAONIA PROJECT is in relative to the High or Low cost <br />electric generating sites that will be in the Initial <br />Phase of the Colorado River Storage Project and parti- <br />cipating projects. <br /> <br />Sincerely, <br /> <br />/s/ CHARLES R. NBILL <br />Executive Vice President <br /> <br />WHBREAS ~he Bureau of Reclamation, United States De- <br />partment of the Interior, opened an office in Paonia, <br />Colorado in April, 1936 and in August, 1938 issued a' <br />preliminary report. <br /> <br />On the strength of the 1938 report, the Paonia Project <br />was authorized under reclamation law, on ~arch 18, 1939, <br />by Presidential approval of the findings of feasibility <br />of the Secretary of the Interior, dated I'larch 16, 1939. <br />Appropriations for the construction of the project were <br />made by the Interior Appropriations Act of 1940 in the <br />amount of ~300,000 and by the Interior Appropriations <br />Act of 1942 for an additional sum of ~600,000. Both <br />sums were appropriated from the reclamation fund and <br />are reimbursable, and <br /> <br />WHEREAS under date of June 11, 1948, a repayment con- <br />tract was executed between the UNITED STATES OF ill~ERICA ' <br />and'the NORTH FORK WAfER CONSE~VANCY DISTRICT wherein <br />the North Fork Water eonservancy District agreed to pay <br />the s~n of Two Million Three Hundred Twenty Thousand <br />($2,320,000.00) Dollars over a period of years for the <br />construction of certain works, and <br /> <br />I <br /> <br />WHEREAS on August 4, 1948, the bureau of Reclamation <br />opened bids on the construction of the dpring Creek <br />Dam and found that the low bid on this phase of the <br />Paonia Project was CIiJ3,047,000.00, or approxLnately <br />~17,000.00 in excess of the overall appropriation of <br />$3,030,000.00 for the construction of the entire pro- <br />j ect, and <br /> <br />WHEREAS certain structures (Hubbard Creek Syphon and <br />Leroux Creek Flume) on the Fire ~ountain Canal were in <br />such physical condition that it was concluded that for <br />the then time being no further action would be taken <br />on the Reservoir phase of the Project, rather attention <br />and action would be at that ti.ne concentrated on the <br />Canal phase of the Project in order that these critical <br />points on the Canal be corrected, and <br />