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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />35 <br /> <br />qua.non of an enduring power settlement was the signing of a compact <br />between the states before power contracts were allocated. The James B. <br />Girand application to the Federal Power Commission (FPC) to build the <br />Diamond Creek power plant below Grand Canyon presented Carpenter with a <br />thorny problem. A preliminary permit had been issued by the FPC to Girand <br />in June 1921. Within a year he claimed to have done $100,000 worth of work <br />in anticipation of a final permit.99 Notwithstanding Arizona's failure to ratify <br />the Compact, Girand insisted that the FPC provide him with a license to build. <br />He planned to construct a masonry dam 465' high, 920' long just above the <br />mouth of Diamond Creek, along with a power plant that would generate <br />"200,000 water wheel horsepower."loo Even though Girand stated his <br />willingness to operate his plant subject to the terms of the Colorado River <br />Compact, the upper states objected based on their conclusion that a storage <br />dam would increase usage on the lower river leading to priority claims against <br />the Upper Basin .101 Ultimately, the FPC denied the permit, but Girand <br />continued to submit the application. <br />Carpenter believed that the pending status of the Girand application, as <br />well as 23 others which had been submitted to the FPC by the end of 1925,102 <br />was heating up the conflict in states which had not yet ratified the Compact. <br />The awarding of a permit to Girand, he contended, would work against the <br />spirit of the Compact. The Upper Basin felt no hostility towards Arizona, he <br />maintained, but the rights of all seven Colorado River basin states would be <br />undermined by the awarding of a license prior to the signing of a Compact. <br />Because the Girand application was proposed for the use of water, not the <br />mere occupancy of the land, a license from the FPC would be "an <br />encroachment of Federal authority upon state jurisdiction. ,,103 No license <br />should be issued, Carpenter concluded, until interstate relations were settled. <br />