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Show COWARD w.ccroe P. C. ELLIOTT LCE *'«ATT WILLIAM C.GIOOS ROLAND R.WRIGHT JOHN T. EVANS RICHARD C.CAHOON P. C. RODNEY G.SNOW STEVEN E. CLYDE THOMAS E.CLYDE L.MARK FERRE JOHN L.DAVIS CLYJ)I: ix* PRATT A T T O R N E Y S AT LAW 3 5 1 S O U T H STATE STREET SALT LAKE CITY, UTAH G-4III ; February 12, 1980 PHONE 3 2 2 - 2 5 16 AREA CODE OOl Or COUNSEL FRANK J. ALLEN Governor Scott M. Matheson State Capitol Building Salt Lake City, Utah 84111 Dear Governor: 4-u Thf , C e n t r a l u t a h Water Conservancy District needs to settle the problem of its repayment contract. We met in Washington las*- week, and were told that the Bureau had decided that it was going to force the cancellation of the present contract and require a new repayment contract, or a new water service contract Both would significantly make a change for the farmers, by adding a Z^Zt ^^e-which is a minimum annual payment on each separate tract. It would also involve changing the contracts to implement all new federal water policies, some of which are not serious. We have, m reliance on the 1965 contract, sold about 65 or 70 per cent of the M&I water, and have no assurance at all that those to whom we have sold it will cancel, and accept a new contract with new conditions and new payment terms. A new repayment contract would assuredly require a new election, while the water service contract would result in the District never paying for the water, and forcing us to readjust the price everv five years, etc. y - The^District proposes to keep the present contract in place, and simply sign a new contract to buy a new 20,000 acre-feet which was made available by enlarging Jordanelle. I have outlined all of these reasons in a letter, which I am sending to you for your information and your files, together with a legal opinion concerning the necessity for an election on the new contract we propose. After we met with the people in Washington, I think they were persuaded to our approach, but we may need some help from you at the Secretary level. We met with the staff and the Commissioner of Reclamation, and while we got no committment, I think they looked favorably on our proposal that we keeo the present contract, reduce the mi water to adjust for the fish flow releases, and handle the new debt by a new contract on the nev; water. u / |