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<br />o <br />OJ <br />..J <br />',1 <br /> <br />" <br /> <br />. <br /> <br />" <br /> <br />I <br />I <br /> <br />. <br /> <br />IJ <br />:f <br /> <br />With respect to construction costs, it is interesting to <br />point out that costs have doubled within,the past 12-year period. <br />Even since the C01'PS of Engineers made its estimate of costs of <br />the Piedmont Bridge Reservoir in 1946, costs have increased al- <br />most 35 percent. In other words, while it is estimated that the <br />demand reservoir will cost about $14,500,000 under present-day <br />costs, it is estimated that under 1946 prices it would have cost <br />about $10,800,000. <br /> <br />It appears that the present tendency of Congress is to look <br /> <br /> <br />favorab).y upon the liberalization of the reclamation law. making <br /> <br />more of the benefits of a multiple-purpose storage project non- <br /> <br />reimbursa,ble and pOSSibly extending the repayment period of the <br /> <br /> <br />irrigation feature. Even under the 1939 Reclamation Act and the <br /> <br /> <br />so-called Solicitor's Opinion the Bureau of Reclamation is setting <br /> <br />up projects in which the irrigation costs that cannot be repaid <br />by the Farmers are paid for from power revenues providing the <br /> <br />generation of hydroelectric energy is one of the functions of <br /> <br />the project. One of the criteria is, however, that that part of <br /> <br /> <br />the cost of the project allocated to irrigation must show irriga- <br /> <br /> <br />tion benefits in excess of the cost, irrigation benefits being <br /> <br />taken essentially ae the value of the increased crop production <br /> <br />resulting from the operation of the project. In its planning the <br /> <br />Bureau of Recle,matlon does not require a physical connection be- <br /> <br />tween the project generating hydroelectric energy and the ir- <br /> <br /> <br />rigation project in order to qualify the irrigation project for <br /> <br />subsidy from power revenues. <br /> <br />-26- <br />