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<br />FRYING PAN-ARKANSAS PROJECT, COLORADO
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<br />and the Congress with the recommend" tion thll I, the plan fOl' UlC
<br />initial de,'eJopment of the GlJnnison-Arkansa~ project including
<br />trnnsmission facilities be approved nnd flut.horizetl.
<br />D. The Congress authorize the appropriation of funds for eon-
<br />struct.ion. operat.ion, ano. maintenance of the propospd works. under
<br />the direction of the. SecrctaIT of the Inte.riof, in Hccordnncc with the
<br />Federal reclamation laws Cact of .June 17, 1902,33 Stat. 388, ano!
<br />nets amendatory thereof or supplement-ar.\" thereto) except to t.he
<br />ext.ent otherwise specifically set forth in this report., with such modi-
<br />fications, omissions, or additions to the works as the See-retary may
<br />find proper from time to time for accomplishing t.he objectives of
<br />the project.
<br />E. The profeet be operated under the dired.ion of the Seeretal'!' of
<br />the Interior in llcrol'dnl1ec wit.h t.he operating principles set forth in
<br />t.his report or as the principles may be modified in the. fut,llre hy agree-
<br />ment bet,\\"een the Sccrdan- und the commission esulbljshed l)\~ the
<br />Stat.e of Colorado. . .
<br />F. Allor any part of the spceific munieipnl wat.er-supply systems
<br />described in this report ve const.ructcd by t.he Secret.l1ry of the Interior,
<br />only after satisfactory evidence is prescnted to t.he t)ecretary of t.he
<br />Interior t.hat it would be infen.sible for t.he l'onullunit.ies involved to
<br />construct or toO flnunce the construct.ion of such work themselves,
<br />sin~ly ur jointly.
<br />G. In the event it is determined that said spedfic llllmicipttl wilter
<br />systems are to be eOllstructed by t,he Secret.n.I'Y of the Interior, a
<br />contract, providing among other things for payment t.o the United
<br />States of the act.ual cost of constrllct,ion over n. period of 40 years from
<br />t.he year in which the Inunicipn.! wat.er is first delivered ,,,,-it,h interest
<br />at t.he rate of 2 percent per annum and providing t,hat operation,
<br />maintenance, and replaceIlleIlt. of the works ue assumed b.1; t.}w COll-
<br />trading party or parties, be fl condition precedent to t,he start of
<br />construction of sw;h works.
<br />H. The Secretary of the Interior be authorized to establish rates for
<br />collection, transpo'rtation, regulation, and deliver.'" of wnt.er at a
<br />designated point or points in the slIppl,y syste1n to the Illunicipnlit,ies
<br />and industries at the lowest price consist.ent with sOllnd business
<br />principlcs, including interest at t,hc rnt.e of 2 percent per nnnum, bllt
<br />in no case higher t,han the cost of an alternative single-purpose supply
<br />of equal quantit,y and qunlity. The cont.racts providing for sueh
<br />deliveries should be long term 01' short term but not t.o exceed 40 years.
<br />Each such contract should include appropriate provision for one or
<br />more renewals, the t,erms and conditions of the rcnewed contract Qt'
<br />contracts to be determined in the light of the situation at the time of
<br />renewal.
<br />~~I: I 1. The Secret,nr." of t,lw Intt'.rior. he Huthol'izl~d, upon agreement
<br />""'with t.he wat.er users, to mnke eithcf"short:...tc'nll or long-term conl-fllets
<br />fOT collect-ion, t.ransportnCioll, regulntion, l111d ddin-:,I'Y of wat.er for
<br />irrigation ptlrpose~ fit. fi designntcd point 01' points in the supply systPIll.
<br />Such cont.l'llcts should he fol' stleh period. not. to pxcecll 4U ypors, and
<br />at. rotes, eit.hC'r fixed or nlrinhlt" b,r t.he oPVlieut.ion of stich formula ns
<br />the part.ies Sha~l ,lif \re' ngrCt'd upon to reflect imptovement in. OJ'
<br />detcriorntion of l~' pnym(>nl, nhility of tile Wi\t.el' lISers., find whi('-It
<br />will, in t,he. Spcr.- ary"s j UdglllC'llt. prodtl(~e revenlles nt. least suffieicllt
<br />t.o corcr fill I1pprnp'rintC' sbul'(' of t,he ilnlllH~1 OIwrnt.ion and muil1te-
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