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BUREAU OF RECLAMATION REPORT Recreational Development Under the terms of an agreement reached recently by the Bureau of Reclamation and the Forest Service, the Forest Service will administer all recreational development at the Vallecito Reservoir except boating which will be administered by the Bureau. The agreement is in accord- ance with a previous memorandum of understanding between the two agen~ cies on the recreational development of reservoirs within the National Forest Reserves and in accordance with a general plan approved by the National Park Service. Existing Financial Conditions Approximately $3,3El5,000 has been expended to date for construction of the Pine River project. Of this amount $3,300,000, including $1,500,000 of reimbursable funds and $1,$00,000 of nonreimbursable funds, was appropriated by Congress to the Bureau of Reclamation for the proj+ . ect. The remaining $85,000 was supplied from other funds appropriated to the Bureau of Reclamation. The Court of Claims has recently allowed the construction contractor an additional settlement of $172,300. Fur- ther expenditures, the total amount of which has not yet been definitely determined, are required for completion of reservoir clearing. and for completion of the reservoir spillway and outlet works. The Secretary of the Interior issued a notice to the Pine River irrigation district August 20, 1942, to the effect that the estimated amount of the total reimbursable funds to be expended for construction was $1,844,460. The district is reported to be urging the enactment of legislation fixing the total amount reimbursable at $1,500,000. Assessments to the irri- gators for operation, maintenance, and replacement costs of Vallecito Dam and Reservoir average about $4,800 and are expected to remain fairly constant. Operation costs in excess of this amount have been paid from recreational revenues from the reservoir area. Administrative costs of the Pine River irrigation district now amount to about $8,000 but are expected to drop to about $4,000 with stabilization of the project after construction of the extension. The Bureau of Indian Affairs is obligated for a maximum of one- sixth of the total reimbursable cost of the project by a memorandum of agreement dated January 3, 1940. This agreement, entered into by the Bureau of Reclamation, Bureau of Indian Affairs, and Pine River irriga- tion district, provides that the Bureau of Indian Affairs will be entitled to a right and interest in the dam and reservoir in proportion to the reimbursable costs it will pay, up to one-sixth of the total, and that the Pine River irrigation district will be liable for that part of the reimbursable cost not paid by the Bureau of Indian Affairs. The agreement further provides that the Bureau of Indian Affairs will my a share of the operation and maintenance costs of Vallecito Dam and Reser- voir in proportion to the amount of reimbursable construction costs it 4