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<br />,ODZf23
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<br />FRY~GPAN-AR~SAS PROJECT
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<br />, D. Congress authorize the appropriation of funds for construction,
<br />operation, and maintenance of the proposed works, under the direc-
<br />tion of the Secretary of the Interior, in accordance with the Federal
<br />reclamation la,ws (act of June 17, 1902,32 Stat. 388, and acts amenda-
<br />tory thereof 01.' supplementary thereto) except to the extent otherwise
<br />specifically se~ forth in this report, with such modifications, omissions,
<br />or additions to the works as the Secretary may find proper from time
<br />to time for accOInplishing the objectives of the project.
<br />E, The project be operated under the direction of the Secretary
<br />of the Interior in accordance with the operating principles set forth
<br />in this report' or as the principles may be modified in the future by
<br />agreement be~ween the Secretary and the commission established by
<br />the State of Oolorado. '
<br />F. All or any part of the specific municipal water supply systems
<br />described in this report be constructed by the Secretary of' the
<br />Interior, only after satisfactory evidence is presented to the Secre-
<br />tary of the Interior that it would be infeasible for the communities
<br />involved to construct or to finance the construction of such work
<br />themselves, singly or jointly.
<br />G. In the event it IS determined that said specific municipal water
<br />systems are M be constructed by the Secretary of the Interior, a con-
<br />tract, providing among other things for payment to the, United
<br />States of the ,actual cost of construction over a period of 40 years
<br />from the year; in which the municipal water is first delivered with
<br />interest at the. rate of 2 percent per annum and providing that opera-
<br />tion, mainten~nce, and replacement of the works be assumed by the
<br />contracting pairty or parties, be a condition precedent to the start of
<br />construction of such works.
<br />R. The Secretary of the Interior be authorized to establish rates
<br />for collection, transportation, regulation, and delivery of water at a
<br />designated poillt or points in the supply system to the municipalities
<br />and industries at the lowest price consistent with sound business
<br />principles, including interest at the rate of 2 percent per annum, but
<br />in no case high,er than the cost of an alternative single pur, pose supply
<br />of equal quan!tity- and quality. The contracts providing for such
<br />deliveries shoilldbe long term or short term but not to exceed 40
<br />years. Each such contract should include appropriate provision for
<br />one or more renewals, the terms and conditions of the renewed con-
<br />tract or contracts to be determined in the light of the situation at the
<br />time of renewal.
<br />I. The Secretary of the Interior be authorized, upon agreement
<br />with the water'users, to make either short-term or long-term contracts'
<br />for collection, transportation, regulation, and delivery of water for
<br />irrigation purposes at a designated point or .{loints in the supply
<br />system. Such. contracts should be for such perIOd, not to exceed 40
<br />years, and at ra,' tes, either fixed or variable, by the application of such
<br />formula as the parties shall have agreed upon to reflect improvement
<br />in/ .or de.teri?ratio'n of, the pa~ent ability of the water users, and
<br />WhICh will, III the Secretary's Judgment, produce revenues at least
<br />sufficient to cover an appropriate share of the annual operation and
<br />maintenance cost and an appropriate share of such fixed charges as
<br />the Secretary deems proper. Due regard being given to income
<br />!rom the contr/l.cting organization's other sources, the rates provided
<br />m such contracts should be such that the water users shall return
<br />within the shortest period, consistent with their ability, that part
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