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<br />. <br /> <br />. <br /> <br />. <br /> <br />000526 <br /> <br />one in order to insure economic feasibility for both. By <br />including provisions for an average annual supply of 55,500 <br />acre-feet of municipal and industrial water which may not <br />be saleable for many years, the resulting project is much <br />larger than would be required to provide only the irrigation <br />requirements. <br /> <br />Costs for and benefits of the irrigation features of <br />the project have not been segregated for the Milk Creek and <br />White River areas so it is not possible to accurately compare <br />the merits of separate projects for the two areas. However, <br />it appears that the first cost of providing irrigation water <br />for the Milk Creek area is about $600 per acre feet while <br />that for the White River area is about $400 per acre-foot. <br />Even so the combined project appears to be economically <br />feasible under current standards for determining feasibility. <br /> <br />The doubtful features of the project are those relating <br />to the supply of municipal and industrial water. If the <br />demand for this water does not develop and the assessed <br />valuation of the benefitted area does not increase just as <br />predicted)the Yellow Jacket Water Conservancy District would <br />face an intolerable burden in making the required payments. <br />A possible solution might be to construct the features <br />required for irrigation as the first phase of the project <br />and deferral of the remainder of the project until a demand <br />develops for municipal and industrial water. <br /> <br />FMB:mm - 11/18/68 <br /> <br />-2- <br />