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BUREAU OF RECLAMATION REPORT pays. The agreement also recognizes that payment of construction and operation and maintenance costs by the Bureau of Indian Affairs would be contingent upon the availability of funds appropriated therefor by. Congress. To date the Bureau of Indian Affairs has paid a one-sixth share of the annual operation, maintenance, and replacement costs amounting to $800 but has not made any payment on construction costs. The Pine River irrigation district I s repayment contract with the United States Governmen~dated April 15, 1940, provides that the dis- trict shall repay in 38 annual installments the total reimbursable expenditures for Vallecito Dam and Reservoir not paid by the Bureau of Indian Affairs. These installments are to be made on a graduated basis, the first 10 payments each to equal 1-1/2 percent of the total amount repayable, the. second 10 each to equal 2-1/2 percent of the total, and the last 18 each to equal 3-1/3 percent of the total. Based on the notice issued by the Secretary of the Interior in 1942, the district would be obligated for $1,537,050 or five-sixths of the total estimated reimbursable cost of $1,844,460. On this basis, the district's obliga~ tion would amount to $23,056 annually for the first 10 years. The dis- trict, howeve~is making annual payments of only $18,750, contending that by its contract with the Government it is obligated for $1,250,000 . or five-sixths of the $1,500,000 reimbursable appropriations made for the project. The district is assessing lands on the basis of the ~23,056 annual payment and is holding the difference of $4,306 pending clarification by Congress of the amount of its total obligation. The district has annually collected and paid its five-sixths share of the project operation, maintenance, and replacement costs amounting to about $4,000. In addition the district has assessed lands for its administrative costs averaging $8,000. Thus total assessments by the district for dam and reservoir and administrative costs have amounted to about $35,000 annually. Additional assessments have been made by the various ditch companies for operation of existing canal systems but since these have no effect on financial conditions of the exten- sion, they are not discussed in this report. ;j " , f Although the 1942 land classification showed a total of only 42,230 acres of land in the Pine River irrigation district, the dis- trict is basing its assessments on a total of 43,930 acres which was certified as the irrigable acreage within the district boundaries when the district contrac.ted with the United States Government in 1940 for construction of the project. Assessments are made against presently irrigated lands and some lands that are not receiving water. More than half of these unirrigated lands, however, would be furnished water fram the project extension, but the remaining landS are not included in any developments now planned. The district also is receiving contributions toward project costs from 720 acres of irrigated land in New Mexico that are paying through a rsntal arrangement. Payments toward dam and reservoir and administrative costs made by the New Mexico and district , ".1 ~ ;1 t-:: 5