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B-ll 002790 Project, one of the very first reclamation projects was initially formed to serve agriculture water to 250,000 acres in what is now the Phoenix Metropolitan Area. Within the last twenty-five years, half of that acreage has been converted from agriculture to municipal and industrial, or municipal primarily. This same sort of thing is going on in other parts of the state and will in the future. The fact that Arizona is the most rapidly developing state population wise in the country doesn't really mean that our water requirements are increasing, They are to some extent because some of this use taking place on areas that were not previously in agriculture, But a lot of it is and certainly once we get our policies established in the state, I think that any future growth will have to be at the expense of agriculture, Mr. Valentine. We have ~ad alot of interest Wes as to the rate of build up in deliveries to ~AP after it is in operation, do you contemplate that you will be requesting full deliveries right from the beginning or will you have a build up period? Mr, Steiner. We will have a build up period Vern, but we expect it to be very short, The first deliveries are to be made in 1985 all the way down to here. This whole reach down to Florence and Coolidge area deliveries are supposed to be possible by 1985 and to Tucson in 1987. Now we may have some problems in getting all the distribution systems in operation or ready to go into operation. Most of the agriculture will drop off by the time it gets to here, There are a few agricultural applicants in this area that will un- doubtedly receive water. The necessity to submit the allocation process to the development of environmental assessments and even possibly environmental impact statements could put us in a real bind as to getting the necessary contracts written and the full supply to the subcontractors so that they then in turn will have time to build their distribution systems by 1985. We still think it can be done Vern, and certainly everybody in Arizona is interested in being able to use that water immediately. But it's really too early to tell how successful we will be at this. , Mr. Valentine. Another related question is with the omission of Orme Dam and some other items. Is this going to affect the ability of the Central Arizona Aqueduct System to function well, or is there alternatives that are being developed or what is the situation there? . Mr. Steiner. See we have not conceded that we have lost our regulatory storage, The regulatory storage that was built into the Central Arizona Project was at Orme. We currently are getting under- way now with the Bureau of Reclamation and the Corps of Engineers cooperatively in studying alternatives to the Orme Project, to the initially high Orme Dam, that involve a number of other possibilities. But we certainly do envision Vern, that we will have regulatory storage in the system, If we were to build, if we were forced to operate the Cen.ral Arlzona Project without regulatory storage, we would lose about 147,000 acre-feet of water supply from it. That's what is means to us.