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<br />MR. STAPLETON: <br /> <br />MR. SMITlI: <br /> <br />"Mr. Smith." <br /> <br />"Mr. Chairman, members of the Board, ladies <br />and gentlemen, The Colorado River Water Con- <br />servation District, which I represent as <br />Secretary-Engineer, is certainly vitally inter- <br />ested in getting the oil shale industry moving.. <br />Therefore, we have been working with a number <br />of the oil companies to develop plans for meet- <br />ing their water requirements. <br /> <br />I <br /> <br />We have not been able to take any official <br />action on this proposed contract because our <br />board doesn't meet until next week. At that <br />time they will, and I am sure that they will <br />be very much in favor of going forward with <br />the thing. <br /> <br />In my letter to Mr. Dugan, I did point <br />out, however, that our interpretation of Senate <br />Document No. 80 and the Federal District Court <br />in Denver did declare that we were benefici- . <br />aries under the provisions of that document <br />and that the document did constitute a contract. <br />We did point out that of this 100,000 acre- <br />feet compensatory pool there were preferences <br />of use stated there and those preferences, <br />first preferences, went to irrigation and <br />domestic uses. Of course, part of this oil <br />shale water, no doubt, will go for domestic <br />uses. <br /> <br />It did, as Mr. Sparks pointed out, provide <br />that water could be made available for indus- <br />try, especially the oil shale industry, and <br />we favor that very much because it does make <br />the water available immediately and it isn't <br />needed right now, all of it, for those prefer- <br />ence uses. <br /> <br />I do feel, though, and I did point out to I <br />Mr. Dugan, that any contract entered into <br />should be of interim nature and that the oil <br />companies will probably need to develop stor- <br />age of their own as the demand for irrigation <br />water from the compensatory pool builds up. <br />