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<br />1732
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<br />FRYINGPAN-.\RKANSAS PROJECT, COLORADO
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<br />and. the COllgr"ss with the recommendation that the plan for tb"
<br />init.ial development of t.he Gunnison-Arkansas project including
<br />transmission facilities be approved and lluthori7.ed.
<br />D. The Congress authorize the Rpproprilltioll of funds for con-
<br />struction, operation, and muintcnanee of the proposed works, uDuer
<br />the direction of the Secretory of the Interior, ill llcconlunce with the
<br />Feder"l rec1amat.ion laws (act of June 17, 1902. 32 Stat. 388, and
<br />acts amendatory thereof or supplementary thereto) exeept to th"
<br />extent otherwis(~ specifically set forth in t,his report., with such modi-
<br />fications, omissions~ or additions to the works as tho Secretary may
<br />find proper from time to time for accomplishing the objectives of
<br />the project.
<br />E. The projeet be operated undcr the direction of the Secretar!" of
<br />t.he Interior ill o.ccordullce wit.h t,lie operating principles set forth in
<br />this report or as the priIlCiIJles may be modifieu in the future by agree-
<br />ment between the Secretal'v and t,he conunission established by the
<br />State of Colorado. . .
<br />F. Allor any part of the specific municipal wRtel'-supply systems
<br />described in this report he <:onstructed by t.he Secretary of the Interior,
<br />only aCt.er satisCactory evidence is presented to t.llC Secretary of the
<br />Interior that it would be infeasible for t,he conllllunities involved to
<br />construct or to finance the construetjoll of sllch work thenlselves,
<br />singly or jointly.
<br />G. In the eve.nt it is determined tltat said specific municipal water
<br />systems are to be construct.ed by t.he SeL'l'etary of Ule Interior, It
<br />contract, providing Rmong ot,her t,hings for payment to the United
<br />States oC the actual cost of construct,ion over n period of 40 years from
<br />the year in which the municipal wat.or is first delivered with interest
<br />at the rate of 2 percent per annum and providing that operat.ion,
<br />maintenance, and replacement of the works be assumed by the con-
<br />tracting party or. parties, be a condition precedeut to the start of
<br />construction of such works.
<br />H. The Secretary of the Interior be au t.horized to establish rates for
<br />collection, transportation, regulation, and delivery of water at a
<br />designated point or points in the supply system to the municipalities
<br />and industries at the lowest price consistent with sound business
<br />principles, including interest fit the ra.te of 2 percent per annum, but,
<br />in no case higher than the cost of nn alternative single-purpose supply
<br />of eqnal quantity and quality. The contracts providiug for such
<br />deliv"ries should be long term or short term but not to exceed 40 years.
<br />Each such contract should include appropriate provision for one. or
<br />Illore renewals, t.he terms and conditions of the rene,!':cd contrad or
<br />,eO:::'::lts to be determined in the light of the situlltion at the. time of
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<br />': The Secretnry of the Int.erior lip fi.lIt,horizecl, upon ag-recmenl,
<br />\ I t.he wat,cl' users, to make eit,her short-term or long-tC'l'lIl cont,racts
<br />for collect.ion, t.nmsportotion, rpgulat,ion, and deliyp,ry of wat.er for
<br />irrigation purposes at. a designn ted point or points in the supply system.
<br />Such contracts should he fol' ~lIch period, not to exceed 40 yeRrs, and
<br />Nt ralc~, .either fix~:Y~'rillblt-~. by t.he npplieat.io,n of Soudl form~lla as
<br />t.he parties shall MW~' ngrel'd llpon to reftect, Improyement Ill, or
<br />nete.rioration of, tJ~ pt"lyment nhilit,y of the wut{-'r lISl-'.rs, and whic.h
<br />!'!"'ill, in the Secrdury's jUdgllH'Ilt, pl'Oclu('e reYCJIUeS nt least suffieient
<br />to I;O\'l'r nIt tlPPl'Oprill tl' ~hnn' of the llllIlunl operat.ion and mainte-
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