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l'- QO C'i C"":' C UNIT:s:D STATES DEPARTiIjEl'TT OE' TF~ INTERIOR BlJllZATJ' OF RECLA!1ATION WA~rtINGTON 25, D,C. " ~- Dec. 30, 1947 The Secretary of the Interior. Sir: This is my proposed repGrt on a plan for the development of the 'Potential Snowflake Froject, in Navajo CO',lllty, Arizona. My report is based on the attachea report of the Regional Director, Boulder City, Nevada, dated August 1947. The project lands, consisting of 4,500 acres of new lands and 2,200 acres to which a supplemental watAr supply would be furnished, are located along Silver Creek, a tributary of the Little Colorado River, in the vicinity of Shumway, Taylor and Snowflake, Arizona. Since the potential project, as outlined in the attached report, is not economically feasible, we do not recommend that the project be authorized for construction at this time. The area lacks opportunities for employment in agri~~lture and other industries, and the project would result in stabilizing the economy and raising the living standards of the residents as well as preventing periodic water shortages that cause hardship to the existing irrigators. However, the high project costs involved, appear to be excessive as compared to the probable low repayment, . The rroject plan urovides for the construction of a reservoir on Silver Creek at the Shumway site to imuound the surplus waters of Silver and S'nowlow Creeks. The water from Showlow Creek would be diverted to this reservoir by a tunnel through the ridge separating the two streams. A new main canal would be constructed down each side of Silver Creek valley with a lateral system to serve the new lands. Rehabilitation of existing facilities to the extent that such work is beyond the abilities of the local interests to perform would be provided, There is sufficient water physically available to meet the requirements of the project, Some drain- age might be required and the costs thereof are inCluded in the cost estimates for the project. The construction cost af the project is estimated to be "'7,500,000 on the basis of current prices. Of this amount, $7,353,000 can properly be allocated to irrigation of the project lands, $85,000 to fish and wildlife cOLservation and $62,000 to flood ~ontrol. It is estimated that the water users could repay only $675,000 of the construction costs allocated to ir- rigation within the 40-year period prescribed by the Reclamation Laws. It is obvious, therefore, that the project will not meet the standards for repayment pres~ribed in Section 9(a) of the Reclamation FrojPct Act of 1939.