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<br />-.416-, <br /> <br />,. <br /> <br />. <br /> <br />. <br /> <br />other local interests could develop water supplies in <br />connection with the construction of ~ederal brojects, <br />Storage in such ?rojects CQuld be reserved for future <br />demands for municipal and industrial water. Before <br />construction of the project, the state was to agree to pay <br />for the costs of the water reserved. The cost for this was <br />not to exceed 30% of the total cost of the project and this <br />cost is to be paid off within the life of the project but <br />not to exceed 50 years after the project is first used for <br />storage of water for water supply purposes. This is <br />qualified by two stipulations. The first is that no payment <br />need be made with respect to the storage for future wa~er <br />supply until such supply is first used. The other. is that <br />no interest shall be charged on such cost until such supply <br />is first used, but in no case shall the interest-free period <br />exceed 10 en years. Another proviso in the Act is: <br /> <br />that before construction. . of any project <br />. is initiated, State or local interests <br />shall agree to pay for the cost of such pro- <br />visions in accordan~e with the provisions <br />of this section. <br /> <br />House Document No. 353, 86th Congress, 2nd Session, Ruedi <br />Dam and Reservoir Colo., dated March 7, 1960 contains the <br />following on page 52: <br /> <br />Service fer municipal and industrial water <br />supply will be on a deferred basis. A sub- <br />stantial demand for ~unicipal and industrial <br />water will not occur until about 1975 - approxi- <br />~ately 9 years after ~uedi ReserVOir will <br />?rovide s~orage. There~ore, provisions of <br />the Water Supply ~ct of 1958 (Public Law 85-500) <br />are applicable. This act provides that <br />deferred use may extend not in excess of <br />10 years (interest tree) and that allocated <br />costs may not exceed 30 percent of the <br />total costs of the storage works. Tn <br />this case the cost ot Ruedi Dam and <br />Reservoir allocated to municipal and <br />industrial water of 53,300,700 comprises <br />less than 26 percent of the total <br />~rojEct cost. <br /> <br /> <br />..-- --- <br />This same doc\:;:nent .it page 131 contains a copy of a letter <br />dated ~ovember 24, 1959 to the Secretary of the Interior <br /> <br />6 <br />