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<br />I <br /> <br />I <br /> <br />The Depar~ment of Interior was. directed to reformulate its planning to <br />place em~hasis upon the furnishing of mtin1ci~al and iridUsttial water, <br />and industrial water particularly for meeting energy requirements. The <br />prime motivation of the Nixon administration in the field of water <br />resource development was directed to the furnishing of water for the <br />production of energy. In truth, it is difficult to fault this philosophy, <br />because we do have a serious energy problem in this country today, and <br />throughout the world, which will get more critical as time goes on. At <br />the same time, the Congress did appropriate money to the state of Colo- <br />rado for the construction of various projects which were virtually one <br />hundred percent for irrigated agriculture. <br /> <br />The Nixon administration impounded those appropriated funds, and we were <br />unsuccessful in breaking that presidential impoundment. This situation <br />has continued for several years. Although as long as four years ago we <br />received construction funds for some of our projects, we have been unable <br />to get those funds released. As the result of the presidential directive, <br />we attempted to reformulate the Dallas project. It appeared there was <br />no other way out. We have attempted to reformulate all projects where <br />possible to increase the emphasis upon the energy problem, in hopes that <br />in that manner we could get these projects constructed. The Dallas <br />Creek project was one that was reformulated under the guidelines <br />announced by the Nixon administration. <br /> <br />Some water devoted to agriculture was redirected to take care of energy <br />requirements. The Kemmerer Coal Company offered to execute an agreement <br />and did execute an option agreement to take 24,000 acre-feet of project <br />water annually. On that basis, it appeared that the Nixon administration <br />would approve the project. The definite plan report then proceeded <br />accordingly and resulted in the field draft which has just been presented <br />to you by Mr. Rinckel. <br /> <br />We were gratified and somewhat amazed in late January of this year when <br />President Ford released his budget message to the Congress. He recom- <br />mended the appropriation of construction funds for the Savery-Pot Hook <br />and Fruitland Mesa projects, which, are "a hundred percent agriculture. <br />This, to us, indicated a considerable change in the national viewpoint. <br />We were therefore pleased that agriculture in the West was no longer on <br />the blacklist, or so it appeared to us. At the same time the President <br />recommended construction funds for the Narrows project. This also is <br />primarily an agricultural project in eastern Colorado. Funds were also <br />recommended for the Dallas Creek project. <br /> <br />Hased upon this change of climate at the national level, it now appears <br />that perhaps we can proceed to develop these projects after these many <br />long years of frustrating delay. This change also appears to us to <br />make it possible to reformulate a part of the water supply for the <br />Dallas Creek project back to the original purpose that was in the fea- <br />sibility report presented to the Congress in 1968. <br /> <br />Governor Lamm has been extremely critical of the allocation of the water <br />supply to the Kemmerer Coal Company. His premise has been that it is <br />an improper project purpose in view of the information that was presented <br /> <br />-31- <br />