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Show 84 DIXIE PROJECT, UTAH Mr. HOLTJM. There is no Pacific Southwest development fund at this time. That is right, Mr. Chairman. Mr. ASPINALL. It is just as much of a dream, if not more of a dream, as the Upper Colorado River Storage Act was at the time Senator O'Mahoney and those associated with him brought the Eden project into existence ? Mr. HOLTJM. Mr. Chairman, you are completely correct. It is a dream. I hope the dream will be brought to fruition in the very near future. Mr. ASPINALL. Are you satisfied that the studies that have been made on this project are sufficiently firm so that we can rely upon the question of the availability of water, the delivery of water for the rates suggested, and the slight increase in costs for water can be contemplated ? The reason I ask this is that we have just considered a small non- reclamation project in this area, authorized under the Water Resources Act of the thirties, and I want to be sure there is no comparison, as far as these projects are concerned, Mr. HOLTJM. Mr. Chairman, I think it would be most appropriate to ask the spokesman for the Bureau of Reclamation to verify this. My office has looked into it. We think that a very careful study has been made. We recognize, however, that the margins are very close, and at the end of the 60- year period, the anticipated surplus is 50,000, and I certainly agree we have to proceed with a great deal of care as to financial management. Mr. ASPINALL. Relative to this increase in price for the water, in order to make this project pay out, provide for its repayment within 50 years, you have increased the cost of municipal water from f cents per thousand gallons to a little over 7 cents per thousand gallons; is that correct ? Mr. HOLTJM. I would assume so, Mr. Chairman. I have the figures in acre- feet, from 22.12 an acre- foot to--- Mr. ASPINALL. I think my figures are fairly accurate. And that you have increased power from 6.9 to 7.15, which is an increase of twenty- four one- hundredths of a mill. Are you satisfied that when it comes time to have a contract executed and signed, that the users of these two particular benefits from this project will be willing to sign for the necessary 50- year payout period? Mr. HOLTJM. We have been assured that they will, Mr. Chairman. I am sure the committee will have an opportunity to discuss this same question with spokesmen for the city of St. George and the conservancy district who have the principal responsibility for repayment, here. I think it will be incumbent upon us to make certain that they are willing to assume these financial responsibilities. Mr. ASPPNALL. What you are saying is that there will be no moneys asked for construction of this project until the contracts have been executed, is that correct ? Mr. HOLTJM. I think that would be proper procedure, Mr. Chairman. Mr. ROGERS. Mr. Chenoweth. Mr. CHEJSJOWETH. Mr. Secretary, you propose this as a separate project and not necessarily a part of the regional plan ? You referred to that in your statement, did you not ? |