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. . . 002319 GRJ\PrER II BASES FOR Al'lALYSIS Costs of the storage project's regulatory facilities, although pa.yable J:' revenues of the storage project, are being assie,ned for purposes of ber.,,- fit-cost analyses to fUture water-consuming projects in the Upper Colorado River Basin since development of such projects is dependent on the river TeguJ ati.on that would be provided by the storage project. Repayment Repayment of costs of each unit was assumed to extend over a 50-year period beyond a suitable development period. Such a period is provided for participating projects in the initial authorizing act. Payment ca.pac1ties of unit lands were estimated from farm budget analyses previously made for full irrigation service lands in areas comparable to unit areas of the Yampa-White project. The payment capacity per acre-foot of water deter- mined for such lands was also assumed to apply to the supplemental service lands. The payment capacity for each unit was estimated as the difference in net farm income with and without the unit developments and after allow- ances were made for family living costs. The estimates were made by land class and were based on a variable repayment plan which takes into account annual variations in net farm income. The 215-price level (1910-14=100) was used, The payment capacity less annual operation, maintenance, and replacement costs represents the amortization capacity or the water users' ability to pay toward construction costs. The studies made indicate that nearly Illl of the irrigation units could meet the criteria for participating projects outlined in the Bureau of Reclamation report of December 1950 on the Colorado River Storage proJ- ect and participating projects. Thus they are considered eligible to be classed as participating projects and to receive assistance from the Upper Colorado Basin Fund in repayment of irrigation costs that are beyond the payment capacity of the water users. Under reclamation law, however, the Flattops unit, which would be a municipal and industrial water and power development, would be required to be financially independent, Formulation of Development Plans Development plans of the various project units were formulated from engineering inspections and surveys of sites of potential features, esti- mates of the available water and arable lsnd resources, and consideration of the relative econo~ of the various development possibilities. Refine- ments in the analyses in subsequent detailed investigations, under econo- mic conditions and ~xiteria then prevailing, may alter the relative econo- mic attr!1cti vcneGS of the units and may show changes in scale of develop- ment to be desir,,-ble in some of the unit plans. For the pu..ryose of this investigation, develo:prnE!lt plans were formulated largely with 3, vi_ew toward ou~linill3 the maximum physical irriGation ~r.tial that coula be economically justified or that ~uld approach justification, rather thrnl the scale of optimum economic development, 22