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, " l~ U:P1.y lUU.lo: 953.1 United States Department of the Interior IIUREAU OF RECI.A~L\TI()N ~~ f', ~""R'[(allNI\I. OFFICE. l.()W~Jl MISSUllRI RtCION 1';; 1- BUILDING 20, DENVER fEOERAL CENTER P.O. BOX 252.7 hENVER. COLORADO 80225 :\UG 31 1983 LN-740 Mr. Gary K. Friehauf Secreta ry-l~a nager Lower South Platte Water Conservancy District P.O. Box 172 5 Sterling, CO 80751 Dear Mr. Friehauf: I , " The purpose of this letter is to officially inform you that we have lowered Narrows Unit irrigator's payment capacity to $15.35 per acre-foot at Narrows Dam from the $17.20 per acre-foot amount displayed in the Addendum NO.2 to Definite Plan Report. Discussions with board members of the Lower South Platte Conservancy District and with area experts in irrigated corn produc- tion led us to conclude that we had underestimated fertilizer costs on our farm budgets. The technical staff from the Bureau of Reclanation's Engineering and Research Center reviewed the revised fertilizer costs as well as other farm budget standards and gave final approval for our payment capacity analysis. Note also that we have increased fertilizer costs on the farm budgets used to derive irrigation benefits which has resulted in a decrease in those benefits and the Narrows Unit benefit-cost ratio. I 'I " If you require further detail on the revised fertilizer costs and resultant payment capacity, please telephone Bob Hamilton of my staff at 234-4228. I 1 , " Sincerely yours, Jtr.'!~~n cc: Mr. lval Goslin Colorado Water Resources and Power Development Authority 1390 logan Street, Room 217 Denver, CO 80203 Regional Director ~. J. William McDonald Di rector, Colorado I'ia ter Conservation Board 1313 Sherman Street Denver, CO 80202