AZ vs. CA:04 California Exhibits, Vol. IV; Nos. 151-192

page 52

*>2 THE ALL-AMERICAN CANAL. for power would also be available for irrigation. The fact, then, that the water can be had for either of the two purposes at Pilot Knob and that plans are on foot for its independent use for each purpose warrants the assumption, for cost distribution purposes, that the water has equal value for each use. A distribution of the cost of canal construction in equal amounts to each use would probably be as fair as cost distribution on any other basis. The cost, therefore, of bringing to Araz so much water as is used for power at Pilot Knob may be charged in equal amounts to power and to irrigation. Furthermore, if on such a basis the Yuma project pays for an interest in the contemplated canal enlargement and canal extension, this interest and proportional share in the power output should be maintained even though the power house at Pilot Knob were abandoned and all the water were used elsewhere on the line of the ail-American canal for power. If there is cooperation between the Yuma project and the Imperial Talley interests, then any water brought into the vicinity of Pilot Knob for power should be dropped into the Imperial Canal and not into the river. The total fall which in such event can be made -available is about 30 feet. The irrigation demand is likely to reach 7,000 second-feet at the head of the Imperial Canal before the ail-American canal is completed. If the canal were to be constructed without cooperation between the Imperial Irrigation District and the Yuma project, there would be no cost apportionment. If, however, the Yuma project participates, as contemplated, in the canal extension and power-plant installation then the power installation at the Pilot Knob station should be adequate to meet not alone the canal construction requirements but also all possible immediate needs of both Yuma project and of the district. While it appears reasonable to use the above facts as a means of determining how much of the cost of canal enlargement and extension should be charged to the Yuma project for an interest in power wherever developed, they do not afford an entirely satisfactory basis for determining how much of the cost of the full length of canal to the mesa should be charged to power. Where construction is made more expensive than it would be if the development of power were ignored, it would be proper to charge the increase in cost to power. The need of water in large quantity at Araz by the Yuma project for power and by the Imperial Irrigation District to and beyond Araz for irrigation, each party being ready to construct canals independently, has led to an agreement (dated Oct. 23, 1918; see Appendix) relating to the division of the cost of a canal down to Araz when such canal is used jointly by the district and Yuma project. It is believed that in view of this agreement, which was entered into