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WSP07933
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Last modified
1/26/2010 2:29:28 PM
Creation date
10/12/2006 2:40:42 AM
Metadata
Fields
Template:
Water Supply Protection
File Number
8220.132.A
Description
Hammond Project
State
NM
Basin
San Juan/Dolores
Date
11/1/1950
Author
USDOI - BOR
Title
Hammond Project-New Mexico - A Supplement to the Colorado River Storage Project Report - Project Planning Report No. 4-8a.22-2
Water Supply Pro - Doc Type
Report/Study
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<br />CJ <br />-' 1939-44 prices, assumed to be indicative of average prices for such <br />features over an extended period in the future. With proper operation, <br />maintenance, and replacements, project works are expected to have a <br />useful life of 150 years. <br /> <br />Cost Allocations <br /> <br />The entire construction cost ($1,892,800 exclusive of nonreim- <br />bursable money already expended from the Colorado River Development <br />Fund) is properly allocable to irrigation without interest in accord. <br />ance with reclamation law. All coste for operation, maintenance, and <br />replacements are likewise allocable to irrigation. <br /> <br />Repayment <br /> <br />On the basis of farm budget analyses, the annual capacity of lands <br />in the fruit-crop farms is estimated at $5.63 an acre and the capacity <br />of lands in dairy-field crop farms is estimated at $4.95 an acre. All <br />lands, however, would be required to pay toward project costs at a uni- <br />form rate of $4.95 an acre, amounting to approximately $3.65 for opera- <br />tion, maintenance, and replacements, and $1.30 for construction costs. <br />The installments toward construction costs would amount to about $4,770 <br />annually. Thus they would amount to $238,500 in 50 years, the irriga- <br />tion repe.yment period being considered for projects participating in <br />the benefits and revenues of the Colorado River Storage project. The <br />remaining portion of the construction cost, approximately $1,653,800, <br />would be paid from revenues of the storage project through the Upper <br />Colorado River Account. <br /> <br />A dev'elopment period of approximately 10 years after the first <br />delivery of project water would be desirable before water users were <br />assessed for construction costs of the project works. This period would <br />permit farmers to prepare lands for irrigation and organize their farm- <br />ing operations so that they could begin to realize benefits of the de- <br />velopment at the time the assessments were started. An appropriate dis- <br />trict, preferably of the water conservancy type, would be required to <br />represent the water users in contracting with the United States Govern- <br />ment for repayment of reimbursable costs. <br /> <br />Benefits and Annual Equivalent Costs <br /> <br />Benefits from the Hammond project attributable to Federal expendi- <br />tures would compare with the attendant Federal costs in a ratio of 3.24 <br />to 1. For the comparison, both benefits and costs were computed as <br />average annual equivalents at 2.5 percent interest over a 100-year <br />period beginning with the first year of full project operation. <br /> <br />Benefits from the Hammond project, all of which would stem from <br />irrigation, would have an estimated net annual value of $262,253. This <br />value includes $152,153 directly resulting from increased production of <br />cropB, livestock, or livestock products and $110,100 indirectly resulting <br /> <br />6 <br />
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