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<br />1. The M'J water marketing and pricing policies in the Missouri <br />Basin. <br /> <br />Department of the Interior: <br /> <br />As an outgrowth of comprehensive plans of development set forth in <br />Senate Document No. 191 and House Document No. 475 (as reconciled <br />and coordinated by Senate Document No. 247) the areas of construction <br />jurisdiction and management responsibility for the Departments of ' <br />Army and Interior were outlined in general terms. The practical <br />effects of this division were to place the responsibility for a <br />sound financial position of the Pick-Sloan Hissouri Basin Program <br />for all reimbursable functions on the Department of the Interior. <br />This has been f-urther confirmed by Congressional approval of the <br />Bureau of Reclamation Report on Financial Position, Missouri River <br />Dasin Project, December 1963, through the enactment of the "Garrison <br />Diversion Bill - Public Law 89-10B, 89th Congress, H.R. 237, dated <br />August 5, 1965." Our responsibilit:y for the financial position of <br />the Pick-Sloan Missouri Basin Pro;lram is further indicated by the <br />recently announced requirement of a power rate increase to insure <br />a sound financial position. The marketing of K&l water at the <br />going rate in the Basin from the main-stem resorvoirs would help <br />to enhance the financial position of the Pick-Sloan Missouri Basin <br />Program. <br /> <br />The current marketin~ policies of the Department of the Interior <br />in the Missouri Basin arc closelv rel~ted to orovisions of the <br />Reclamation Project Act of 1939; section 9(c)- for the municipal and <br />industrial water f-unction. Section 9 (c) (1) applies to contracts <br />which provide for repayc,,,nt of a fixed obligation, and section <br />9(c)(2) applies to contr<lcts that provide repayment through water <br />service rates. <br /> <br />I <br />.' <br />I <br /> <br />t <br /> <br />I <br /> <br />Our cnrrent policy is to recognize custonoers on a first-corne-first <br />service basis. A priori"cj is est<:!:Jlislwd on the? basis of the <br />date of re?ccj,ot of a fon,;'l request for water. In cases where <br />the i:ldustriJl ap?licant is not in a position to use thc ,.;ater but <br />,",'ants to ::-cc"rve the Hater for u fc\,' yp.i1rs on option, then an option- <br />type coat::-"c';; j,'; offcr"eJ. Under thi,; type of contcact the cop-tractor <br />is p(~rmittcd. to holn .vcr:':cl" for 10 ycrrcs by uniform minimum payments <br />gener,llly dceterT;1incd by mIll tiplyi;;g total qunnti ty of water under <br />conl.:rl\ct by r('~tlli:H?ss-to.-3erv(J riltc. If another inuustr 101 party <br />is ,,'illing to P~lY for i1l"t,y or nIl oJ.: ""I.-his \.'ntcl.', the contr~ctor must <br />cithcl. co:n:nellCC puyir.g for the f1112.nt:Lty desired or lose contract <br />entitl"C',cnt. l'~o sl1l>sc~"ent credit in future yc"rs on reildinef;s-to- <br />serve payments. <br /> <br />1 <br />