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Show VI-38 UPDATING THE HOOVER DAM DOCUMENTS COLORADO RIVER STORAGE PROJECT 33 purpose. Jf assumption (1) is reunited bin the propose*! principles and criteria are substituted for assumption (2) there would be no adverse effect on upper basin payout. To the extent that combined system operation of Hoover and Glen Canyon would increase power production over and above that resulting from the assumptions of the current repayment analysis the upper basin payout would be benefited. Application of even the adverse runoff cycles of 1930-52 result* in storage at Glen Canyon to minimum power head of 0,500,000 acre-feet in from 2 to 3 years. After power generation is initiated at Glen Canyon the objective, as spelled out in the proposed principles and criteria, is to produce the greatest practical amount of power and energy from combined operation. The revenues from all energy generated from the combined system in excess of that required to meet the commitments outlined above for the firm power under the Hoover Dam contracts would be credited to the upper basin project. Thus, it is probable that with allowances for computed deficiency and under integration, and with 1930-52 runoff conditions the rate of upper basin project payout would be somewhat slower for a brief period with the possibility of offsetting gains in later operations. The Bureau's proposal is an equitable and practicable approach that results in the best use of the natural resource-falling water. To be recognized is the fact that the proposal states only general priciples and broad operating criteria. It does not attempt to, and should not in our judgment, spell out all of the details which will have to be worked out, many of which would need to be negotiated. RECOMMENDATION I recommend that you approve the Bureau's proposal tentatively, and that we carry out the following program: 1. Upon receipt of your approval, copies of the tentative proposal be forwarded to the members of the engineering group, both upper and lower basin, which performed the operating studies. The transmittal would indicate that the proposal is tentative and open for discussion but that it does reflect the principles which the Department presently believes should be adopted. The group would be asked to stud}7 the proposal, and after a suitable interval, a meeting would be held with the combined engineering group to discuss and explain the details of the proposal. 2. Following the meeting of the engineers it would be expected that those representing each state would refer the matter to their administrative people and discuss the various considerations involved. 3. After allowing time for discussion and review within the States, a general meeting would be called, preferably in Washington, somewhat similar to the meeting held here in October 1957. At that meeting it would be expected that the States would present their views, both pro and con, following which a final decision would need to be made as to the principles to be followed. .4. Subsequent to the final decision and assuming it is substantially in accord with the present proposal, negotiations on the necessary points would be undertaken immediately. Floyd E. Dominy. Approved: February 9, 1960. Fred A. Seaton, Secretary of tht Interior. |