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<br />, i'n <br />I. j'I.J) <br /> <br />Significant changes are being made to the laterals of the <br /> <br />Phelps System. Of the present 410 km of laterals, 280 km <br /> <br />are being lined using concrete, compacted earth, or replaced <br /> <br />with pipelines. Improvements will be made to flu~es, low- <br /> <br />lift pump stations and wasteways. Of the more than 1,300 <br /> <br />lateral structures (check, drops, turnouts), about 460 are <br /> <br />replaced or modified. In most cases, the modifications were <br /> <br />necessary because of a lack of capacity. An additional 490 <br /> <br />structures will have erosion protection added. <br /> <br />As with the E-65 improvements, it is expected that the <br /> <br />project will be financed with a government loan, $10.4 Million. <br /> <br />The District's share, $2.5 million will be used primarily to <br /> <br />finance the lateral construction program, purchase rights- <br /> <br />of-way, and finance the loan application report. <br /> <br />The Kingsley Hydroelectric Project. At the time the Kingsley <br /> <br />Dam was constructed, the addition of power facilities was <br /> <br />considered. Again in the early 1960's, an appraisal of the <br /> <br />hydroelectric potential indicated that the project had some <br /> <br />merit. In 1972, the District Board of Directors authorized <br /> <br />a reconnaissance level study to evaluate the hydroelectric <br /> <br />potential at Kingsley Darn, including pumped storage alter- <br /> <br />natives. <br /> <br />A reconnaissance study completed in September 1973 indicated <br /> <br />that a conventional 33 H\v development utilizing the existing <br /> <br />-17- <br />