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<br />OD17~3 <br /> <br />10.(6) Question - Is it not possible that proposed delay in start- <br />ing repayment of a substantial portion of the costs ,lould extend beyond <br />the useful life of the project or at least of some features thereof? <br /> <br />Ansvrer - No. Annual operatL~g expenses include provision for re- <br />placement of depreciable features. The tunnels, dcucill, reservoirs :lnd <br />canals--which represent the greatest portion of the construction cost-- <br />have extre"lely long useful lives. If properly'naintained, a useful <br />life of 200 yoars is not overly opt~Jistic. ThUS, a 69-year repayment <br />period comprises less than one-third of the useful life of the principal <br />works at conservative cstinates. <br /> <br />11. (a) Question - Based upon the costs allocated to irrigation, <br />what nould be the construction cost per acre for the total area to be <br />servod, and ,~lat rmuld be the equivalent cost per acre on a full water <br />supply basis? <br /> <br />" <br />, <br />[, <br />I' <br />i' <br />I ~ <br /> <br />Ansy/er - A total of 322,000 acres would be served by the irriga- <br />tion y;ater [lade available by the Fryingpa.'1..Arkansas Project "hich would <br />reduce the present average shortage from 1.05 acre feot per acre to an <br />average shortage of 0.48 acre feet per acre. The cost allocated to <br />irrigation as of October 1953 is $78,272,000. Using this cost and the <br />area served, the cost per acre of irrigated land would be ~;243. " <br /> <br />The equivalent cost per acre on a full ,,~ter supply basis (average <br />shortage 1.05 acre feet per acre) "ould be ~p434 per acre. <br /> <br />I] <br /> <br />II. (b) Question - As compared to these costs, what is the present <br />average value per acre of the irrigated land to be served by the proposed <br />project, and vmat v~uld be its sale value with proposed project in <br />operation? <br /> <br />Answer - Tho vreighted average value of the presently irri[;ated land <br />in the ~rknnsas V~lley (project area), based on the 1950 census data is <br />(:,225 per acre. These values rango froo ():!10 per acre in Bent Count:>, to <br />~:;480 per acre in Fremont County. <br /> <br />. <br />I <br />I <br />i- <br /> <br />Average land values with the C'ryingpan-Arkansas Project in operation <br />lVould range fror:l (;;300 to ~)800 per acre depending upon location and other <br />related factors. The average would probably be about ::~4oo per acre. <br />lITigated land, now provided \"lith iITigation pumps, furniShing essentially <br />the sar.le ar.lOunt of Y/2.ter as the Froject vmuld furnish, arc selling Vii thin <br />this range of prices. <br /> <br />- 13 - <br />