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I <br />2. During the period subsequent to May, 1976, the <br />applicant has invested in excess of 540,000,000 on its Craig <br />Project. These expenditures incluAe rental costs on exist- <br />ing coal leases; the acquisition of adjoining lands and <br />surface ownership over areas already under mineral lease; <br />equipment costs for mining equipment such as draglines, <br />cranes, trucks, and tractors; contraction work expenditures; <br />extensive environmental analyses have been ongoing, in- <br />cluding water considerations. The actual mining of coal, <br />which first commenced in June, 1977, has been continuing, <br />and approximately 4,850,000 tons have been mined since that <br />date. Currently, mining operations are maintaining a pro- <br />duction level of about 2.3 million tons annually. <br />3. B~~ the "Craig Station Fuel Agreement" entered into <br />as of March 1, 1973, between Utah international Inc., as <br />seller, and Colorado-Ute Electric Association, Inc., Platte <br />River Municipal Power Association, Tri-State Generation and <br />Transmission Association, Inc., and Salt River Project <br />Agricultural Improvement and Power District, as buyers, <br />buyers may acquire the right to use from the Synthetic <br />Products Ditch direct flow right an amount of water, aver <br />and above that available to buyers from other sources, <br />necessary to operate buyer's Craig Station electricity <br />generating units R1 and A2, as referred to in the agreement, <br />and to service seller's mining operation. The water right <br />remains the sole property of the applicant, and Utah Inter- <br />national intends to beneficially use the water under that <br />decree to the extent not committed to buyers under the Fuel <br />Agreement. By letter dated January 25, 1974, Buyers gave <br />notice to Utoh International that buyers desire to use, <br />under the terms of the Fuel Agreement, 18,760 acre feet of <br />water annually delivere3 at the rate of 25.84 cubic feet per <br />second of time out of the Synthetic Products Ditch right. <br />