Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />. <br /> <br />510"d <br /> <br />payment is appropriate because, if such a conversion occurs, in the absence of a transfer, the <br />ben..ficiaries of that facility are required to pay the United States at a higher rate to reflect the <br />greater value of the Water in that use. <br /> <br />The sale price also accounts for the loss of Fedcral revenue from the Federal dams charge <br />required under Section 10(e)(2) of the Federal Power Act of 1920, as amended. This Act <br />requires that a licensee pay the United States a Government Dams charge when the hydropower <br />plant occupies a location downstre3m of a Federally owned dam and utilizes surplus water or <br />water power in connection with the Federal facility. Currently Ptannigan Resources and Energy <br />Company (Ptarmigan), which maintains a hydroelectric facility at Vallecito Dam. pays the United <br />Sta~es an annual fee based on the annual generation of their hydropower plant, If 5/6 rights to the <br />Project are transterrea OUt 01 reU"Ull un,,~~I..y _ ....1!'...~, .\..~~ ~II:' nfth"_~e revenues would <br />no longer be due to the United States, and the sale price appropriately accounts for this. We <br />understand, however, that this legislation envisions that 116 of the revenues from the Federal <br />dams charge would continue to be paid to the United States until the 1/6 rights are transferred to <br />the Tribe. At that time, unless the Tribe, or some other entity, agrees to pay to offset the loss of <br />revenues from the dams charge, the Federal Treasury would lose these revenues. As such there <br />needs to be an accommodation, or an offset, of this fmancial loss in this legislation. <br /> <br />. These may be all of the appropriate considerlltions, but we recommend that Section 3{b) be <br />amended to allow the Secretary to establish a price based on our municipal water, power <br />revenues and other factors. This will ensure adequate review of the Federal taxpayers interests, <br /> <br />Da.Ttl Safet'{: Section 6 ofH,R. 3715 requires the Secretary to provide a statement of the <br />condition ot"the Qam tlaseQ 1)11 "w,<:uL k11o...1"d~.. "".1 _d"r"D"tii"l!. CUIrentlv. Reclamation <br />plans to complete hydrologic and seismic studies at the dam in Fiscal Yelll's 2000 and 200I. <br />Between now and then a comprehensive review will provide recommendations on whether these <br />or other studies are warranted. If the dam were to remain in the ownership of the United States, <br />Reclamation would complete the recommended studies. If title is transferred to the District, the <br />District and the State of Colorado .."ould determine the proper course of action. <br /> <br />Comoliance with Fl:.deral Laws and Protection ofPubl\<; furnoses: A very important feature of <br />H,R. 371S is that there are numerous provisions to ensure that there is full compliance with <br />NEP A and other Federal laws and requirements and that the public purposes for which this <br />facility was developed lll'e protected. <br /> <br />Section 6 of H.R. 3715 establishes a number of important conditions that must be met before title <br />,,"'. t.<. tl....,~r.rr..d.. TlU~ ..n 1\ "Mnre that the public purposes are protectii:d and will ensure that <br />interested stakeholders have the opportunity to participate in determinIng me l'Utur<:: Vl'o....'i..M of <br />the reservoir to protect their interests. These conditions lll'e: <br /> <br />1) Compliance with NEPA and other applicable federal and state laws, <br />2) A ....Tinen statement from the Southern Ute Indian Tribe of satisfaction that their interests lll'e <br /> <br />6 <br /> <br />B6.0.B80.l.6 <br /> <br />HOli~~I~~r ~3^r~ 3Hld <br />W~ 9~:Ot r~~ B6-tO-^~W <br />