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<br />Messrs. Horton and Ford <br />Page 3 <br /> <br />I <br />of up to 3 million acre-feet of water annually for industrial purposes. Reser- <br />voir regulation studies conducted for the period of hydrologic record since <br />1898 have demonstrated that the main stem reservoir system can be regulated to <br />supply the most probable consumptive use requirements through the year 2020 <br />(as illustrated in Attachment A). Under these conditions an acceptable degree <br />of service to navigation could be maintained. Hydropower peaking would not be <br />affected to any major degree by these consumptive uses, but energy generation <br />would be reduced significantly. If it were necessary to subordinate navigation <br />to serve all beneficial consumptive uses, in accordance with Section 1b of the <br />1944 Flood Control Act, up to 9.5 million acre-feet of water could be made <br />available annually (above current uses) for future beneficial consumptive uses. <br />Use of this amount of water would still permit minimum releases from the reservoir <br />system of 6,000 cubic feet per second for municipal water supply intakes, water <br />quality control, recreation, fish and wildlife and other purposes. The Missouri ' <br />River. Basin Commission is currently updating the 1969 Framework Study. This and <br />other studies and developments in the Basin over time will permit more specific <br />determinations of water uses and requirements. <br /> <br />Question 3 <br /> <br />What advice can be offered relative to existing applications for industrial <br />water before the North Dakota Water Board? <br /> <br />O?,., .". ".:. <br /> <br />In keeping with the general Ad Hoc Committee agreements, the United States <br />may negotiate a contract with the State of North Dakota for a designated amount <br />of water from the Garrison Reservoir and/or the Oahe Reservoir. In the event the <br />State electS not to .enter into such a contract, the United States ~I;ll then. <br />contract directly with the individual applicants and require as one of the condi- <br />.ticiils' pre'c'ectentthat'thEi' individual a;ppl icant 'obtain a State' water>permit and be <br />governed by all other State and Federal laws and regulations. <br /> <br />"..: <br /> <br />Question 4 <br /> <br />What is the unit price at which water for municipal and industrial uses should <br />be marketed by the Federal Government from the six reservoirs? <br /> <br />The consensus of the Federal and State members on the Ad Hoc Committee is <br />that a higher price should be established for industrial water users than for <br />municipalities which return to the system a considerable portion of the water <br />withdrawn. Historically, municipal water supply prices have been based largely <br />on costs and the States are desirous of continuing this practice and prefer to <br />omit municipal water supply issues from further consideration by the Committee. <br />The exact price for industrial water supply withdrawn from the main stem reser- <br />voirs is subject to further determination during the anticipated contract nego- <br />tiations between the Federal Government and the various States or industrial users. <br />General agreement has been reached that the price of this water should be suffi- <br />cient to maintain the financial integrity of the Pick-Sloan Missouri Basin Program <br />Account and to cover increased costs incident to the industrial marketing program. <br />