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162 except for the fact that various oil companies and people interested in the minerals have paid back assessments. Unless a distribution system is constructed, the land cannot support the assessments for the dam. "Paragraph 5. Water should not be diverted for use outside the present boundaries of the district if such diversion would render present storage facilities of the Vallecito Reservoir inadequate. "We suggest that paragraph 6 and 7 be amended substantially as follows: I "Colorado concurs in the findings of the report that water users under the project extension would be unable to repay the entire cost of the extension works on either a 40-year or a 60:-year repa;yment period. The benefit-cost ratio is favorable and the water users under the proposed extension would have the ability to pay operation and maintenance charges and a portion of the construction costs. "The report as submitted contemplates that the persons within the Pine River Irrigation District who now have water available for their lands would pay the entire balance of the reimbursable construction costs of the 'Vallecito Reservoir and that the perso~s benefitting under the pr9ject extension would be relieved of further payment for the reservoir. It is our understanding that the report will be revised to eliminate this provision for repayment insofar as the cost of the Vallecito Reservoir is concerned. Any such change in the existing contract between the United Sta~es and the Irriga- tion ilistrict would involve an election within the district. It is very unlikely that such an election would carry. If, however, the lands to be benefitted by the extension are to continue their proportionate share of the cost of the dam the contract for payment of the reimbursable cost of the dam should be revised and the time extended so that the district will pay only 1 and 1/2 per cent of the total reimbursable cost during any year. It should be borne in mind in considering revision of this contract that the final cost of the Vallecito dam has never been determined." Attorney Emigh discussed sugeestions contained in his prepared statement, aTld cited the background and reasons for each. Additional conrrnents and sug- gestions applying to ~~e statement .7ere offered by the Director and Mr. Tipton. It was moved by Mr. Hunter and seconded by Mr. Smith, that the State's official conunents on the report of the Bureau of Reclamation on Pine River Project and Extension Project, as ' prepared by the Director and submitted to the Board, and in- cluding the additions and revisions proposed by Mr. Emigh and an insertion of provisions for vdldlife survey, be accepted and approved. 'I ' ' On vote, the motion carried and was declared unanimously adopted. ,~