WSP00062

• File Number: 8276.140
• Description: Grand Valley Unit-Colorado River Basin Salinity Control Project
• State: CO
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 11/14/1986
• Title: Evaluation and Recommendations Concerning the Authority of the Grand Valley Irrigation Company to Undertake Salinity Control Measures Pursuant to the Colorado River Basin Salinity Control Act
• Water Supply Pro - Doc Type: Report/Study

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not all laterals (especially those already lined) may be taken

into the salinity control program.

Second, section l595(a)

of the Salinity Control Act7

contains a sentence which provides, without qualification, that

reimbursements to non-Federal entities under section 1592 (b) (2)

the section under which the Company would operate as a

non-Federal entity -- are to be made without interest.

It is

doubtful that the Company will agree to finance the expenses of

construction, operation and maintenance of salinity control

measures,

and pass

thereof along to

the

interest costs

shareholders.

Third, we have a concern that shareholders have the ability

to disapprove of the funding of salinity control activities by

voting down an annual assessment that includes funds necessary

for

salinity

control.

This

is

distinguished

from

the

shareholders' failure to make an assessment or authorize an

assessment, in which event the authority to assess would default

to the Board of Directors.

If the shareholders voted down an

assessment, the Company would have inadequate funds to conduct

not only its regular operations, but salinity control measures as

well.

7 43 D.S.C. S l595(a) primarily addresses the repayment of
expenditures allocated between upper and lower Colorado River
Basin funds.

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