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.' , ~ ~09S33 . . contract will then have to be approved at an election of persons holding property in the district. Construction on the project could start in federal FY 82 if Congress would appropriate funds. with respect to the San Miguel and West Divide projects, both have been found to have BIC ratios of about 0.8. Bill McDonald has reviewed these findings and agrees with them, given the Principles and Standards under which federal projects must now be formulated. The Department of the Interior, over Keith Higginson's signature, informed Congress and the Colorado Congressional delegation of this fact in mid-January, indicating that planning would be terminated and concluding reports written. Mr. Higginson's letter did not request that these two projects be de-authorized. To compound the problem, the Associate Solicitor for Energy and Resources, Department of the Interior, issued a memorandum in June, 1980, which concluded that: Nothing in the authorizing act, its legislative history, or the Regional Solicitor's analysis thereof, can properly be read to mean that Congress in 1968 directed construction regardless of new findings of economic feasibility. All of thewarticipatin~projects were authorized by Congress on the assumption that they were economically feasible, and Congress' 1968 directive regarding timing of construction...did not seek to short-circuit the ordinary appropriations process, and in fact reflected that the actual construction schedule...was based on continuing"support of the Executive Branch and appropria- tions of moneys by the Congress" tquoting from the conference report on the 1968 ac~ in the future. In anticipation of the difficulties which have been en- countered, and'in light of the potential for energy development in western Colorado, Senator Hart requested Secretary Andrus, in the spring of 1980, to examine the opportunities for -3-