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<br />LETTERS OF SUBMITTAL
<br />
<br />XIII
<br />
<br />A project, known as the Paonia project, Colorado, was allthorized
<br />in 1939. It consists of the Horse Ranch Dam, on Anthracite Creek,
<br />and Beaver Dam, on the East Fork of Minnesota Creek. The Con-
<br />gress, in the Interior Department Appropriation Act of 1940, appro-
<br />priated $300,000 for that project. An additional sum of $600,000
<br />was appropriated for that project in the Interior DeP3:rtment Appro-
<br />priation Act of 1942. These amounts were approprIated from the
<br />reclamation fund and are reimbursable under the Federal reclamation
<br />laws. However, no part of the project has been constructed, since core
<br />drillings, made after the project was authorized, showed that the dam
<br />sites were more costly and less attractive than preliminary investiga-
<br />tions had indicated.
<br />Further investigation has resulted in the development of the plan
<br />proposed in the attached report. The works now proposed involve
<br />the construction of the Spring Creek Dam on Muddy Creek, a tribu-
<br />tary to the North Fork of the Gunnison River, to form a 14,000 acre-
<br />foot reservoir which would control and supply water for the supple-
<br />mental irrigation of lands under the Fire Mountain canal; the en-
<br />largement and extension of the Fire Mountain canal, which diverts
<br />water from the north Fork of Gunnison River; and the reconstruction
<br />and enlargement of the Overland canal, which diverts water from
<br />Leroux Creek to the Redlands Mesa. The development would pro-
<br />vide a supplemental water supply for 12,750 acres of cultivated land
<br />now inadequately irrigated and a water supply for 2,000 acres of new
<br />land. Local flood protection also would be provided.
<br />If the Paonia project is constructed in accordance with the revised
<br />plans outlined briefly in the preceding paragraph, economic conditions
<br />in the valley of the North Fork of the Gunnison River will be improved
<br />and provision will have been made for normal growth in futme years.
<br />Irrigation is well established in the valley, but over 65 percent of the
<br />21,000 acres now under irrigation suffer water shortages of varying
<br />degrees in practically all years and, in dry years, serious crop failures
<br />are experienced.
<br />The project is feasible from an engineering standpoint, and it is
<br />economically justified. The regional director finds a favorable .ratio
<br />of benefits to costs of 2.6 to 1, based on 1940 costs estimated at
<br />$1,521,000. Even under present costs, which are about 60 percent
<br />higher than in 1940, there is a favorable ratio of benefits to costs of
<br />better than 1.6 to 1.
<br />. Accordingly, I recommend that you adopt the attached report as
<br />your proposed report on the Paonia project and that you authorize
<br />me, in your behalf, to transmit copies of this letter and of the attached
<br />propose~ report, to the ~ected ~tate of Colorado and to the Secretary
<br />of War, m accordance WIth reqUIrements of the Flood Control Act of
<br />December 22, 1944 (58 Stat. 887). Upon clearance with the affected
<br />State and with the Secretary of War, copies of the report together
<br />with the comments received, if any, will be submitted for your trans-
<br />mittal to the President and, subsequently, to the Congress. I
<br />Respectflllly, ,
<br />MICHAEL W. STRAUS,
<br />Commissioner.
<br />
<br />Approved: May 23, 1946.
<br />OSCAR L. CHAPMAN,
<br />Acting Secretary oj the Interior.
<br />
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