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<br />~f <br /> <br />4. Relative merits of Interior and Corps administering the marketing <br />of M&I water from the six main-stem reservoirs. <br /> <br />Interior <br /> <br />A. Of primary importance, Reclamation law allOlo/s the Secretary <br />of Interior to enter into M&I water service contracts (Section 9(c)(2)), <br />having periodic rate adjustments, particularily upon renewaL This <br />desirable feature accommodates changes in cost, repayment, water <br />use and policy and implements the utility concept of water marketing <br />for the life of the project. <br /> <br />B. M&I marketing by Interior coupled with existing power <br />and irrigation responsibilities ,",ould have a unitizing effect upon <br />which the financiul integrity of the Pick-Sloan Hissouri Basin ' <br />Program could be assured. <br /> <br />II <br />I <br /> <br />" <br />C. Interior stands ready with contract negotiation experience <br />and administrative expertise to efficiently and effectively handle <br />the marketing of I1tI "a tel' ulong \'Iith poo'ler and irrigation. The <br />Upper }1issouri Regional Office, Bureau of Reclamation, Billings, <br />110ntana, h2S the miJrkcting c2pability to easily assume such 11&1 <br />r(:5pULJb.l~..i..:i..Lt:..i..t:~. S.i.lIce 1923, more than 40 D, H&I con"tracts nave <br />been signed in this region, representing annual revenues of over <br />$500,000. <br /> <br />~ <br /> <br />! <br />I <br />! <br />]1 <br /> <br />II <br /> <br />, Relative merits of IntC'rior ilnd Corps administC'ring milrketine <br />of ~l&I \'mter from the six main-stcm resC'rvoirs. These COO1IDents do <br />not uddrcss the le~"l aspects, such as intcrprC'tation of Section 6 <br />of the Flood Control Act of 1944. (USDR Statement) <br /> <br />The Corps of Engineers believes that administrative costs, Guper- <br />vision and inspection costs ,'.'ould be considcl"ithly IC'ss without <br />involvement of a third party in the contracts for sale of ".'ater <br />or storage. In most cases structures "ill be required at the <br />dam 01" on the reser",oir area. Since reul estate easC'll1l>nts, the <br />permit progmnl and possibly safety of the dam are iuvolveci, the <br />Corps Dillst retain control of diversions of H~,I Hater [Tom rC'servo:i,rs <br />for Hhich it is responsible. In addition, in those H&I divC'rsions <br />in\'olvin~ the retnrn of \'iatC'r to the reservoir (cooling of thermal <br />generating plants), control of the entire process is much 1T,0re <br />positivC' "hen the contract is mude directly \.Jith the user orgunization. <br /> <br />, <br /> <br />II <br /> <br />6 <br /> <br />II <br />