OCR Text |
Show 80 ONE HUNDRED YEARS OF WATER DEVELOPMENT Metropolitan Water District of Provo 8,000 shares Highland Conservation District 5,010 shares Utah Lake Distributing Company 15,200 shares Provo Reservoir Water Users Company 16,000 shares THE DEER CREEK " REPAYMENT CONTRACT" On June 27, 1936, the Provo River Water Users Association entered into a contract with the United States " for the construction of the Deer Creek Division of the Provo River Project." The United States to Construct Project Works and Advance Construction Costs This contract provides that, subject to the availability of funds, the United States will expend the sum of $ 7,600,- 000 in the construction of the works described in the contract ( analysis of which begins on Page 68 under the caption " The Deer Creek Project") and that subject to compliance with the obligations assumed by it the Association shall have the right to utilize them and the water supply thus and by the project water rights made available. Terms of Repayment The Association agrees to repay the United States the construction cost in forty equal annual installments, commencing the year following the completion of the project works as certified by the Secretary of the Interior. There are no interest charges except in the event of delinquency. Project Works to be Operated by Association The project works, after completion, must be taken over by the Association and be operated at its expense when directed by the Secretary of the Interior. In the meantime the expense of operation and maintainence must be repaid the United States. The Association Superintendent The Association Engineer or Superintendent must be and remain a person satisfactory to the Secreatry of the Interior. Association Must Exercise All Powers Toward Payment of the United States The Association is required to use all of its powers and resources toward the payment of its obligations to the United States, and, among other things, it must levy the necessary assessments and withhold delivery of water to those of its stockholders who may be in default. Holdover Storage Rights of Stockholders An important provision, and one peculiar to this contract, is that by which the stockholders are given the right of " holdover storage," the right to store in the reservoir in years of plenty, water which is not then required but which may be during the seasons or years following. This privilege, then unique in Reclamation contracts, is further defined and amplified in the Subscription Agreements and in a Supplemental Contract executed during 1937. |