|
<br />LETTERS OF SUBMITTAL
<br />
<br />:v.r'i:
<br />
<br />$3,030,000, an increase of about 100 percent over the costs estimated
<br />under 1940 conditi:ms. Of this total cost $600,000 would be allocated
<br />for the cost of 4,000 acre-feet of storage to be provided in the Spring
<br />Creek Reservoir in excess of present needs on project lands, and will
<br />be returned to the United States through later use on other develop-
<br />ments in the North Fork River Valley; $32,000 would be allocated for
<br />flood control; and $78,000 would be allocated to fish and wildlife.
<br />Thus, the remainder of $2,320,000 would be allocated for repayment
<br />by the water users on the Paonia project lands. The water users
<br />have indicated their willingness to repay $2.84 per acre per year for
<br />wa,ter for the Fire Mountain lands and $1.64 per acre per year for
<br />the Leroux Creek lands, over and above the costs of operation and
<br />maintenance. This is slightly higher than the repayment ability
<br />indicated in the report, but after a careful study, I am convinced
<br />that these amounts can be paid. At these rates, the water users
<br />would .be able to repay a total of $1,382,800 of the estimated con-
<br />struction costs in a 40-year repayment period, or would be able .to
<br />repay the allocation of $2,320,000 in a 68-year period. .
<br />The annual benefits-to-costs ratio for this' project is estimated at
<br />1.3 to 1, under present day high construction costs, amortized in 50
<br />years, and benefits at prewar price levels over the entire repayment
<br />period for the project.
<br />I find that the proposed construction has engineering feasibility;
<br />that of the estimated .total construction costs of $3,030,000 at current
<br />price levels, $2,320,000 can properly be allocated to irrigation of the
<br />project lands, $32,000 can properly be alloeated to flood control,
<br />$78,000 can properly be allocated to fish and wildlife, and $600,000
<br />can be allocated to the provision of reserve storage, which can be sold
<br />or rented by the United States for use on lands riot included in the
<br />proposed project; and that no part of the estimated cost can properly
<br />.be allocated to power, municipal water supply, or other miscellaneous
<br />purposes.
<br />I recommend that the Paonia project be authorized for construction
<br />in accordance with the plans set forth in the attached report of the
<br />regional director dated January 2, 1946, with such modifications as
<br />the .Commissioner of Reclamation, with your approval, may find
<br />proper. I recommend that this authorization be on the basis that
<br />the water users be required to repay, during the useful life of the
<br />project and at the maximum rates which, in the judgment of the
<br />Secretary of the Interior, they may reasonably be expected to meet,
<br />that portion of the construction costs of the project which may prop-
<br />erly be allocated to them, in addition to the costs of operation and
<br />maintenance, including ~eplacements of project works. Should a
<br />comprehensive plan of water resources development in the Colorado
<br />River Basin be arrived at, the Paonia project should, of course, be
<br />considered as an element of that plan. .
<br />I recommend that you adopt this letter as your report on the Paonia
<br />project.
<br />Respectfully,
<br />
<br />Approved and adopted May 12, 1947.
<br />OSCAR L. CHAPMAN,
<br />Under Secretary oj the Interior,
<br />
<br />MICHAEL W. STRAUS,
<br />Oommi88ioner.
<br />
|