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<br />APPENDIX I <br /> <br />APPENDIX I <br /> <br />irrigation and drainage system plan is completed toward the end <br />of 1985, but he does not expect a major increase in the <br />irrigators' ability to pay. Irrigators' rising operation and <br />maintenance costs, he said, have consumed any increase in their <br />payment capacity. <br /> <br />M&I WATER SUPPLY AND COSTS <br /> <br />Costs allocated to M&I water have also increased since the <br />original 1964 estimate of $76.3 million. The costs associated <br />with supplying 121,000 acre-feet of M&I water are now <br />$640.9 million. Of this amount, $525.1 million is related to the <br />94,000 acre-feet to be received by the district. <br /> <br />The remaining 27,000 acre-feet was pegged for industrial use <br />by Utah Power and Light Company. However, a 1984 review by the <br />Utah Natural Resources Department indicated that the utility may <br />not have a need for this water in the near future. According to <br />regional officials, the Bureau is now considering reassigning the <br />27,000 acre-feet to irrigation. <br /> <br />PROPOSED REPAYMENT CONTRACTS <br />WOULD PROVIDE $404 MILLION MORE <br />FOR THE DISTRICT'S M&I REPAYMENT <br /> <br />Expenditures allocated to M&I development have exceeded the <br />district's total repayment obligation of $112.4 million. <br />Operating under the supposition that deferrals and reallocations <br />were proper, the Bureau did not reinitiate negotiations for a <br />supplemental contract to increase the district's repayment <br />obligation until July 1984. <br /> <br />The proposed supplemental contract with the district will <br />increase its obligation by $368.5 million, including a 10-percent <br />escalation factor for cost increases, project modifications, and <br />increases or adjustments in water supply. The contract also <br />assumes that the $38 million previously designated for irrigation <br />repayment will be used for M&I repayment. <br /> <br />Two other repayment contracts are being negotiated with the <br />district and its municipal subdistricts to repay the costs of the <br />Jordan Aqueduct, part of the M&I system. These proposed <br />contracts would provide another $35.3 mill ion in repayment <br />obligation. The contractors would also repay any costs for the <br />aqueduct beyond the contracted amount. With these three <br />contracts in place, the total M&I repayment obligation will be <br />$554.2 mill ion. <br /> <br />10 <br />