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<br />,- <br /> <br />395",' <br /> <br />12 !lUED! DAM AND RESERVOlR, COLO. <br /> <br />The total reimbursable investment a\located to municipal and <br />indust,rial water supply reasonably can be, expected to be repaid, with <br />interest under provJsions of the "'Yater ::;upply Act of 1958 (pubhc <br />Law 8':-500). A substantial demand for such water will devclop <br />when the oil sha.le reserves begin to ue ut.ilized on a commercial scale, <br />probably within 10 yeltrs of the complet.ion of constI~lction of Huedi <br />Dam. In the a.bsence a.t this time of age.neies or organizations qurdi- <br />tied t.o contra.ct fol' re.pn..;}'ment. of the CO::it assigned to deferred munic- <br />il'a.l lwd industrial water supply, it wi]] be necessary that the State of <br />Colorado, prior to transmittal of this report t.o the CUI1O"ress, furnish <br />reasonable a.ssurance as to flltm"e repayment. as required L;.r the \Va.t.el" <br />Snpply Act of 1V[.8. <br />Cosh of Ruedi D,un and Hese.rvoir allocated to flood control would <br />be nonreimbursable, in accordance wit.h existing la.ws. Those a.ll{}- <br />ca.tecl to fish a.nd wilcllife a.nd minimum basic recreat.ionu.l facilities we <br />recommend be nonreimbursable. <br />The operating principles, which a.re quoted in full in the Regionn,l <br />Director's report, are genera.lly acceptable n.s a. basis of projed npm';l.- <br />t.ion and we lIltend that they sluLll control the ph'ysica.J opemtion of the <br />Fryingpan-Arka.ns..'1s project. Some of the provisioll::;, howe.ver, a.J'e <br />not compatible with reclamation law and policy. <br />For exa.mple., the reimbursable port.ion of the constructlon cost. of <br />Ruedi Dam and Reservoir not charged to the Fryingpan-Arka.nsas <br />project is expected to be ,,]located to municipal and indust.rial water <br />supply. Pnblic Law 485 pennits apportioned revenues to be used to <br />repay only irrigation costs, whereas section 3 of t.he operating prin- <br />ciples would provide for apportioned revenues to be HEed in repay- <br />nlent of cosls allocat.ed to municipal and industrial water supply. In <br />any event, we do not contemplate, and our planning report is not pre- <br />misedon, the basin fund being used to provide assistance in t.he repay" <br />lllent of municipa.l and industrial costs of Ruedi Dam a.nd ReselToir. <br />In order to avoid ambiguit.ie.s :uHl to avoid possible future conflicts <br />such inconsistencies, along with cert<tin otller points la,rgely technica.l <br />in nature, will be discussed with the State during the period t.hat t.his <br />proposed report is bei.ng coordinated with t,he all'ected State;; with the <br />objective that they be resolved before t.he finall'epOIt on Ruedi Dam <br />and Reservoir is transmitted to the Congress. <br />Subject, of course, to consideration of comments received. I recom- <br />mend that )'ou n.pprm'e a,nd adopt. this as YDur proposed 'report on <br />Ruedi Dam and Reservoir and that you authorize me, on 'your bchalf, <br />to transmit it to the affected States and to t,he Secretllry of the Army <br />for official review and COlllwent in fu.'cordance with the. provisiolls of <br />t,he Flo(KI Control Ac.t. of 1!J44, 10 the St"te of Colorado as required by <br />the Fish and 'Yildlife Coordination Act of 19[;8, and to other <br />interested Federlll agencies for t.heir views a.ud comments. <br />Respectfully, <br /> <br />WILLIAM I. PALl\IER, <br />Actlll[/ (}07n1TlJ.ssloner. <br />Appro,p,d and adopted October 27,10[;0. <br />Er.;\fRn F. BEI'\NE"lT. <br />Acting 8ecrct"ry of the Interior. <br /> <br />, <br /> <br />~ <br />