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<br /> <br />8 <br /> <br />CO~ORADORIVER STORAGE PROJECT <br /> <br /> <br />believe the wording now used adequately covers this matter, (See <br />my memorandum i of January 18, 1960,) To insert the words "or <br />losses" would, in bur opinion, confuse the issue b)' introducing the <br />aspect of replaci~g river losses (as distinguished from reservoir <br />losses) for no apP!>rent reason, We have inserted the word "and/" <br />after the words "Lake Powell" as suggested. <br />Principle 5;-This principle, dealing as it does with partial allowance <br />for diminution of Hoover energy during the filling period and subse- <br />quent partial reimbursement of the Upper Colorado River Basin fund, <br />both contains the' heart of the solution to formulation of acceptable <br />filling criteria and!invokes the most perplexing problems, The recent <br />comments on thi$ principle cover a wide range of previously held <br />positions varyin!j ifrom that of the upper basin States that they are <br />under no obligat]{jn to m~ke allowance for Hoover power d~fici~nci~s <br />to that of the lower basm States that allowance for defiClenclOs m <br />diminution of botl;t energy and capacity at Hoover .should be provided <br />without reimburs~ment, Neither extreme,in our opinion, is practical <br />or serves the purposes sought. <br />Principle 5 as s'et forth m the revised general principles and filling <br />criteria recommended in my memorandum of June 13, 1961, represents <br />the selection of ,a middle-ground solution based on an impllJ'tial <br />appraisal of all of the issues involved. In essence, it is a product of <br />judgment as to what constitutes a practical procedure, Such judg- <br />ment. must be made, however, and we sincerely hope accepted, if the <br />related issues are to bekept clear of court actions or other 10ng-drawn- <br />out procedures, fhich, we believe, would work to the . advantage of <br />neither the upper nor lower basin interests nor to the overall develop- <br />ment of the wat~r resources of the Colorado River Basin, We still <br />believe that principle 5, as proposed and explained in my June 13, 1961, <br />memorandum, is ~he most practical appreach available. <br />Other points relating to principle 5 were raised that warrant <br />discussion. <br />The upper basin interests reiterated their proposal that the Colorado <br />River developmeJ?t fund be used either to make necessary replacement <br />energy purchases or to reimburse the Upper Colorado River Basin <br />fund on a curreJ:.t basis. We believe that this proposal has merit <br />and should be further explored. If there is found to begenera1 sup- <br />port for this among the various basin interests, I would recommend <br />that. the Departjnent sponsor such legislation as may be required. <br />The upper ba~in interests point out that principle 5 provides a <br />guarantee of enetgy to the Hoover power allottees but only an intent <br />to reimburse the,Upper Colorado River Basin fund, As pointed out <br />in my memoranqum of June 13, 1961, this is as far as the Seeretary <br />ean go at this ti'1';e without additional legislation. <br />The lower basin interests suggest that evaporation from storage <br />project reservoir$ should be taken into aceount in determining dim- <br />inution in Hoov$r energy. This was diseussed in my memorandum <br />of June 13, 196~, and the reasons for our position stated therein <br />have not ehangell, <br />It was suggested that Hoover replacement energ)' should be de- <br />livered at times as well as at points~cceptable to both the Secretar)' <br />and the Hoover;power allottees. As stated in my memorandum of <br />June 13, 1961, iUhe allowance is made by delivering energy, it will be <br />delivered in a nionthly pattern designed to fit those months when <br />