BOARD01321

• Board Meeting Date: 3/7/1961
• Description: Minutes and Resolution
• Board Meetings - Doc Type: Meeting

I

prepared. Back in April of 1941, Mr. Howard,
the then General Counsel for the Metropolitan
Water District of Southern California and who,
at that time, was Chairman of the Conference
of Power Contractors from aoover Dam, spoke on
this matter as follows:

'- - - No one asked the United States to
"guarantee" the presence of water in 'the
required amount.'

This guotation had to do with the production
of firm energy. Yet at this stage in the
game, we, the Upper Basin, are asked in effect
to guarantee water in the required amounts.
And then Mr. Howard went on to state:

- To agree to pay for the works - - -
regardless of the amount of energy actually
delivered was not considered good business.
particularly in view of the fact that up-
stream diversions, which might contribute to
the reduction in firm energy were not within
the control of the power contractors.'

I

Now everyone fully realized that when
these contracts were entered into, they were
entered into on a basis of pure assumptions.
One, as to upstream depletion by the Upper
Basin states and two, as to the actual amount
of water flowing in the river. Neither of
those assumptions have lived up to expecta-
tions. The upstream depletion has occurred
faster than was contemplated and the flow of
the river has been less than the flow of the
river was known to be at that time. That
these assumptions could be erroneous ~ fully
contemplated and understood by all parties,
and each power contract that was entered into
by the United States, each and everyone of
tham now in existence, has the following
clause in it:

'Should the delivery of water for any
reason or cause, - - - be discontinued or
reduced below the amount required for the
generation of firm energy - -