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Show 82 DIXIE PROJECT, UTAH We still think that it is important that we move ahead as rapidly as possible with a regional program for the Pacific Southwest. We think that it is appropriate and necessary that a regional development plan be authorized and constructed as soon as possible. The Congress now has an opportunity to authorize the Dixie project either as an individual, self- supporting unit, or as a unit of the Pacific Southwest development program. In any event, it would seem appropriate to us that if the Dixie project is authorized and constructed prior to the authorization of a Pacific Southwest development program and the creation of a Southwest development fund, that some provision be made so this unit may eventually become a part of a Pacific Southwest development program. This is an excellent reclamation project, in accordance with reclamation law and policy. We are here this morning to express the hope on the part of the Department of the Interior and the administration that we may be able to move ahead with development of the water resources of southwestern Utah, and that we can soon move ahead with the development of water resources for the entire region. Thank you,* Mr. Chairman. Mr. EOGERS. Thank you, Mr. Holum. Did you want your written statement printed in the record ? Mr. HOLUM. I would be very happy to have it available to the committee. Mr. ROGERS. Without objection, it will be included, together with your supplemental remarks. ( The statement follows.) STATEMENT OF ASSISTANT SECRETARY OF THE INTERIOR KENNETH HOLUM ON PROPOSED LEGISLATION TO AUTHORIZE THE DIXIE PROJECT, UTAH Mr. Chairman, the authorization and construction of the Dixie project has long been a cherished objective of the people of Washington County, Utah, and the State of Utah. Investigation of this project by the Bureau of Reclamation began in 1940, almost 25 years ago. The project is urgently needed; it is economically sound and financially feasible. I welcome, therefore, the opportunity to be here today to indicate the support of the Department of the Interior for this worthwhile project. The Dixie project is a potential multiple- purpose water resource development in the Virgin River Basin in southwestern Utah which can make an important contribution to the economic welfare of this area. Its construction would permit regulation of the Virgin River and its tributary, the Santa Clara River, to provide for the irrigation of approximately 21,000 acres of land and to provide a municipal and industrial water supply to the city of St. George. Electric energy for project use and commercial sale would be produced. Benefits to fish and wildlife and recreation also would accrue. In addition, minor flood- control benefits would result from operation of the project. Following development of the project and pursuant to an August 26, 1953, agreement among local government and water users' organizations, Cedar City, Utah, would construct works for the diversion of up to 8,000 acre- feet of water from tributaries of the Virgin River for municipal use. Cedar City has agreed to reimburse the project for any loss of power revenues caused by such diversions. Despite the fact that the project has a benefit- cost ratio of 2.2 to 1, we have not previously requested authorization because we have not been able to show project repayment as required under reclamation law. In recent years, however, several developments have occurred that have enhanced the project's financial feasibility. Municipal and industrial water supply for the city of St. George has become an important area need, and revenues from the sale of municipal and industrial water can be used to assist in the repayment of irrigation costs. The State of |