OCR Text |
Show APPENDIX VI VI-11 6 COLORADO RIVER STORAGE PROJECT them subject to whatever considerations, if nny, appeared desirable after having afforded the Hoover power allottees an opportunity to present their views on the additional regulation No. 1 which was made a part of the revised general principles and criteria. You, in turn, made my memorandum of June 13, 1961, together with its attached revised general principles and criteria, available to lower and upper basin interests for review and comment. We have now received the results of that review and have had extensive discussions thereon with Assistant Secretary Holum. Most of the substantive suggestions for further revision of the general principles had already been thoroughly considered previously by the Bureau, and we find no convincing reasons to make any fundamental changes in the revised general principles and operating criteria submitted to you with my memorandum of .Tune 13, 1961. Several suggestions for changes of minor import were received, however, which appear desirable and are acceptable to us. The general principles and operating criteria transmitted herewith reflect the Bureau's recommendations taking into account the long histor}' of negotiations, discussions, and views received to date. This memorandum, together with my memorandums of January 18, 1960, and June 13, 1961, and the tabular forms for computing Hoover basic firm and the diminution in power generation under the formula of principle 5 as included in my memorandum of June 13, 1961, comprises a formal record, explanation, and background for these recommendations We are aware that no set of general principles and operating criteria could possibly fully satisfy all of the diverse interests affected. Before proceeding with a discussion of the most recent comments and suggestions received, therefore, I believe it important to reiterate from my June 13, 1961, memorandum that we have proceeded on the basis- * * * of securing a practical approach to the problems of filling, as distinguished from what might be considered a legalistic approach involving an attempt on our part to establish principles and operating criteria on the basis of conclusions as to the perimeters of legal rights and obligations, with the consequent hazards which would attend such an approach. Consequently, our feeling is that irrespective of what might or might not be conceived by any party as the outer measure of its rights or obligations, and with no attempt to establish those limits as a basis for these principles and criteria, we propose action purely within a reasonable exercise of Secretarial discretion. The most substantive of comments on m\r June 13, 1961, memorandum go to principle 5, which deals with the proposal to make an allowance for a portion of the diminution in power generation at Hoover Dam, with provision for future reimbursement of moneys expended from the Upper Colorado River Basin Fund utilized in accomplishing such allowance. For purposes of this presentation, however, I will discuss the comments and suggestions received on my June 13, 1961, memorandum in the order of the principle which they concern. Principle 1.-Question has been raised as to whether acquiescence bv a Hoover power allottee in the exercise by the Secretary of "reasonable discretion" in the operation of the Federal projects involved would invoke a legal liability on that power allottee in respect to power which it has contracted to supply from its share of Hoover power. We believe that the contractual relationships between a Hoover power allottee |