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;; . All Council ~~bers 1983 . Memo to ~lay 20, Page 2. It was agreed that a working committee should be established to meet and devise an appropriate financing mechanism for Congressman Pashayan's consideration. We will keep you' further advised. Also enclosed for your reference is a copy of some comments prepared by the National Rural Electric Cooperative Association in response to recently proposed rules by the Federal Energy Regulatory Commission relating to annual falling water charges for non-federal facilities at federal dams. As we reported in our newsletter, the comment deadline on the regulations has been extended to July 15. The National Rural Electric Cooperative Association comments conclude that, if the regu- lations are adopted, non-federal development of hydroelectric facili- ties at federal sites will be effectively precluded. There has alsu been some concern raised about Section H beginning on page 15148 of the enclosed copy of the proposed rules. The proposed regulations note that "Commission licensees at dams owned by the U.S. Bureau of Recla- mation (BuRec) sometimes make arrangements to pay for some or all of the costs of dam construction. The Commission is of the opinion that it is inappropriate to allow a credit for these payments to BuRec against the billed annual charges under Section 10(e) of the FPA. The BuRec payments are normally designed to repay the costs of construction of the dam or for benefits no~ related to power produced at the dam. As a result, these, payments to BuRec would not qualify in nature as Section 10(e) payments." We hope the enclusures may be helpful should you decide to submit comments regarding the proposed regulations. In yet another matter, you will find enclosed copies of revised rules published in the Federal Register pertaining to the regulatory responsibilities of the Corps of Engineers under Section 404 and Section 10 of the Rivers and Harbors Act. The accompanying press re- lease is also enclosed. Also enclosed is a reply from Frank DuBois regarding a question raised at the Council meeting pertaining to the Secretary's power to create reserved rights through withdrawal orders issued pursuant'to FLPMA. Mr. Dubois' conclusion that the Secretary's withdrawals under FLMPA can create reserved rights is interesting in light of earlier Solicitor's opinions that FLMPA does not establish an independent basis for reserved rights or non-reserved rights. Portions of these earlier opinions by Solicitors Krulitz and Martz, which have never been overturned, are enclosed for your reference. If you have any questions regarding the foregoing or the enclosed materials, please feel free to give us a call. Encl.