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Show 28 DIXIE PROJECT, UTAH Kolob Dam, a Utah Water and Power Board project, on one of the high tributaries of the Virgin River, has been in operation for 7 years. The Baker Reservoir on the Santa Clara has been in operation for 11 years. Both of these State- assisted projects serve lands that come under the project. All repayments have been made and the per acre- foot costs of water have in most years been higher than contemplated by the project. In this water short area it is inevitable that there would be keen competition for all available sources of water. However, through the patient efforts of the Utah Water and Power Board and the cooperative attitude of Iron County and Washington County interests, an agreement has been reached which removes intrastate controversy over water rights for the Dixie project. This agreement, executed by officials of the two counties and authenticated by the Utah Water and Power Board, provides that when the Dixie project is built the entire water supply available by natural flow at the Kolob Reservoir, and, as may be later augmented by a feeder canal from Crystal Creek, will be available to Cedar City and vicinity. The agreement further provides that Cedar City shall pay to the Dixie project the annual loss of power revenue to the Dixie project occasioned by the transbasin diversion of water to Cedar City. Water rights for the Dixie project, held in trust by the Utah Water and Power Board for the development, further recognize the terms of the agreement. The U. S. Bureau of Reclamation's project development report gives further recognition to the amicable solution worked out at the local level. In conclusion let me again stress the need for the Dixie project by citing the willingness of the Washington County interests to obligate themselves for a 5 mill ad valorem tax to supplement water sales. The expenditure by State and local interest of $ 720,000 for small water conservation projects in the area will compliment the proposed Dixie project. Over $ 67,000 has been expended by the State of Utah in protecting and defending its rights in the lower basin. Extensive discussions have been held with the States of Arizona and Nevada relative to the effects of this project. We believe that the proposed Dixie project will improve conditions on the lower reaches of the Virgin River and this project and other developments can proceed in a cooperative and mutually beneficial manner. Thank you, Mr. Chairman. Mr. ROGERS. Thank you, Mr. Bingham. Mr. Bingham, I think Mr. Burton has a question he wants to ask you. , Mr. BURTON. Mr. Bingham, I commend you on an excellent presentation- it was outstanding. And thank you for these documents you have given the committee, because they will help us. Mr. Bingham, I have had two members of this committee, off the record, ask me if the cost of water connected with this project would not be too high. In other words, the purchase price of water that you would buy from the Dixie- isn't this too much to pay for water to put on this land? It appears to me that you are the logical person in view of your long experience with the State- financed water projects to comment on that, and I'm sure it will help the record if you can give these members some guidance. Mr. BINGHAM. Thank you, Congressman Burton. Generally the experience of the board has been that where you have good land and |