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<br />OJ <br />.-I <br /> <br />from off-the-farm processing and trading of agricultural products and <br />from increased local expenditures by farm families. Fish and wildlife <br />benefits are not considered in this analysis as they are expected to <br />amount to less than $100 a year. <br /> <br />Annual equivalent costs are estimated at $80,852. These costs <br />include $48,887 for amortization of the project construction cost at <br />2.5 percent interest over the 100-year period of analysis, $13,400 for <br />operation, maintenance, and replacements, and $18,565 for the Hammond <br />project's prorated share of the~ costs of regulatory features of the Colo- <br />rado River Stora.ge project. Costs of the storage project's regulatory <br />features, although payable by revenues of the storage project, are being <br />assigned for purposes of benefit-cost analyses to future water-consuming <br />projects in the upper basin since development of such projects is depen- <br />dent on the river regulation that would be provided by the storage pro- <br />jeot. <br /> <br />Conclusions <br /> <br />The Hammond project plan as outlined in this report has engineering <br />feasibility. Water required by the project is available in San Juan <br />River and necessary rights to its use could be obtained. The project <br />is economically justified on the basis of National benefits and coste. <br />Its annual benefits would compare with its costs in a ratio of 3.24 to <br />1. In a :period of 50 years the Federal government could be reimbursed <br />for the entire construction cost by payments from the water users and <br />revenues from the Upper Colorado River Account, <br /> <br />7 <br />