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. I ." '00'2'833 . . ,. c, Issues - Construction costs allocable to M&I water supply will exceed the $38 million ceiling in the repayment contract, The state has supported a bill which would make all costs in excess of the ceiling (about another $38 million) non-reimbursable. The bill has been favorably reported out of House committee, but Rep. Kogovsek is having problems bringing it to the floor due to opposition from national environmentalists, 3, Dolores Project a, Purpose - The project will develop water for irrigation and municipal use, Irrigation water will be furnished to new lands and as a supplemental supply to lands in the Montezuma Valley area (Cortez) , b, Status - Project is under construction and scheduled for completion in 1985-86. c, Issues - Construction costs allocable to M&I water supply will, by next spring, exceed the $20 million for which the repayment contract calls, The Bureau of Reclamation has taken the position that the $20 million is not a fixed ceiling, unlike the Dallas Creek contact, and must therefore be increased to about $40 million to cover allocable costs or construction will be terminated, Bill McDonald is presently working with the Bureau to find a resolution to the problem. No bills have been introduced in Congress addressing the problem. 4. San Miguel a, Purpose - The project would develop water for irrigation, municipal, and industrial use, b. Status - Authorized in 1968 as a participating project of CRSP. Numerous project configurations have been studied, but none have proved economically viable (i,e" benefit-cost ratio is less than unity). Bureau of Reclamation has recently concluded their studies on the project with the finding that it is not economically justified. c. Issues - This project is one of the 5 that was to have been built concurrently with the Central Arizona Project. There is no chance that it will be under construction by 1985, -2-