WSP06343

• File Number: 8220.124.A
• Description: Pine River
• State: CO
• Basin: San Juan/Dolores
• Water Division: 7
• Date: 1/1/1951
• Author: USDOI Bureau of Recl
• Title: Pine River Project Extension Colorado and New Mexico
• Water Supply Pro - Doc Type: Report/Study

BUREAU OF RECLAMATION REPORT

would depend on the relationship between prices at the time of con-
struction and average prices prevailing throughout the useful life of
the project.

The net value of benefits from Federal expenditures is estimated
at $372,233 annually. In estimating the benefits, consideration was
given to an irrigation benefit of $374,633 and a net loss to fish and
wildlife of $2,400. The irrigation benefit would include $223,909
that would directly result from increased crop and livestock produc-
tion and $l50,724 that would indirectly result from off-the-farm
processing and trading of agricultural products and from increased
local expenditures by farm families. Pending completion of a report
by the Fish and Wildlife Service, it is estimated that the extension
would result in an annual loss of $3,000 to fish and a ~in of $600 to
wildlife.

Annual equivalent costs are estimated at $200,750. These costs
include $119,100 for amortization of the extension's construction cost
at 2.5 percent interest over the 100-year period of analysis, $15,150
for operation, maintenance, and replac ements, and $66,500 for the
extension'~ prorated share of the costs of regulatory features of the
Colorado River Storage project. Costs of the storage project's regu-
latory features, although payable by revenues of the storage project,
are being assigned for purposes of benefit-cost analyses to future
water-consuming projects in the upper basin since development of such
projects is dependent on the river regulation that would be provided
by the storage project. Costs of Vallecito Dam and Reservoir are con-
sidered as sunk costs and therefore do not properly enter into the
benefit-cost comparison used for determining the economic ju~tifica-
tion of developing the extension.

Allocation of Extension ~

All the project extension costs would be allocated to irrigation
and would be prorated among the extension lands on a per acre basis.
Approximately $522,250 of the construction cost and $1,940 of the
annual operation, maintenance, and replacement costs would be assigned
to the 1,940 acres of extension lands administered by the Bureau of
Indian Affairs. The remaining costs, approximately $3,566,000 of the
construction cost and $13,210 of the operating costs, would be assigned
to the 13,210 acres of non-Indian lands.

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Repayment Organizations

Since the Pine River irrigation district is representing the non-
Indian extension lands in payment of their share of the Vallecito Dam
and Reservoir costs, it would be the logical agency to contract with
the Federal Government for payment of the extension costs of these

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