the Federal Reclamation Laws (act of June 17, 1902, 32 Stat. 388, and acts amendatory thereof or supplemental thereto); Provided, (1) That this report shall be deemed to satisfy the requirements of the Federal Reclamation Laws governing the submission to the President and Congress of a finding of engineering feasibility. (2) That the water users be required, by contract with the United States, to pay, during the useful life of the project and at the maximum rate which in the judgment of the Secretary they can reasonably be expected to pay, the construction cost of the project; and that, during the period of contract with the United States, they shall pay for or otherwise provide adequate operation and maintenance, including replacements, of project works. (Signed) WESLEY R. NELSON, Regional Director. BUREAU OF RECLAMATION, The SECRETARY OF THE INTERIOR. SIR: A plan for the rehabilitation of the Fort Sumner Irrigation District, along the East Bank of the Pecos River, downstream from the town of Fort Sumner, De Baca County, New Mexico, is presented in this report which is based on the accompanying report of the Regional Director, Amarillo, Texas, dated October 7, 1946, and entitled, "Plan for rehabilitation of Fort Sumner Project, Pecos River, New Mexico." The Fort Sumner Project plan has been formulated to meet the urgent needs of the area by protecting and expanding its present economy through rehabilitation of an existing irrigation district. Irrigation, essential for successful farming in this semi-arid area, was first initiated in 1863, and has been practiced continuously since 1903. The present Fort Sumner Irrigation District, which now operates the development, was organized in 1919. The district comprises about 8,000 acres of land. About 5,000 acres have been under irrigation in recent years, although a total of 6,650 acres was under irrigation in 1937. The development has been hampered by repeated failures of diversion dams constructed to serve the lands and by the ensuing financial difficulties. The district's existing diversion dam is in a precarious condition due to flood damages and the canals, the laterals, and drains, as well as the general farm improvements, are being allowed to deteriorate because of the land owners' fears that new floods might wash out the existing diversion dam and destroy their investments. The project would protect the existing development against further financial loss due to failure of existing works and would provide sustained irrigation of 6,500 acres of irrigable land within the boundaries of the Fort Sumner Irrigation District (1,500 acres more than are now irrigated) through a more effi cient distribution of the district's ample water supply based on its decreed rights and through improved drainage. The principal works in the rehabilitation plan include: (1) construction of a new concrete diversion dam on a firm foundation to replace the present damaged structure; (2) rehabilitation and enlargement of the canal and drainage systems; and (3) installation of an adequate pumping plant to deliver water to the highline canal. The proposed construction is feasible from an engineering standpoint. The estimated cost of construction based on 1946 prices is $1,798,000, all of which is properly allocable to irrigation. As a test of the feasibility of this project, in accordance with the Federal Reclamation laws, consideration has been given to the average annual rate of repayment which could be made by the organized irrigation district representing the water users in the project area. It is estimated that the Fort Sumner Irrigation District would be able to repay $26,000 annually toward the total construction cost in addition to payment by the district of the cost of operation and maintenance. This repayment is believed to be a reasonable allowance out of the annual gross crop income after suitable allowances are made for the cost of farm operation, an adequate level of living for the farm family and interest on investment. At this rate of $26,000 annually, the irrigation district would be able to repay $1,040,000 of the estimated construction costs over a period of forty years. If this period were extended, the irrigation district would be able to repay proportionately more of the construction costs. It would be able to repay $1,300,000 in fifty years, $1,560,000 in sixty years, and the total of $1,798,000 (based on 1946 construction prices) in sixty-nine years. This latter period is considered to be well within the useful life of the project. The water users have expressed a willingness to continue annual payments toward the capital cost of the project beyond the normal forty-year repayment period, and have urged immediate construction of the project. In his analysis of the project, the Regional Director has also considered the benefits which would accrue to the region and to the Nation as a whole as a result of the proposed work. There is no simple direct relationship between repayment ability and these over-all benefits of the project. The portion of the cost of the project which the farmer can afford to repay is necessarily only a portion of the returns which he receives. Similarly, the income to the farmer is only a portion of the benefits to be received by the region and the Nation. The benefits from the project include the safeguard of the capital investment already made as well as the support to the economy of the surrounding area, and the generation of commerce and industry. The annual benefits are estimated to be $218,105 compared to the annual cost of $91,350 (amortization of the rehabilitation costs in 50 years at 3 per cent equalling $69,900 annually plus operation and maintenance costs of $21,450 annually.) The resulting ratio of benefits to costs is 2.38 to 1.00. This analysis shows the project to be justified from the standpoint of the over-all economic results which will accrue from its construction. Means are not available for direct repay ment to the United States of sums equivalent to the benefits which will accrue to the region and to the Nation from construction of the project. As pointed out above, however, the United States will recover the construction cost of the project. I recommend that rehabilitation of the Fort Sumner Irrigation District be authorized in accordance with plans set forth in the attached report of the Regional Director dated October 7, 1946, with such modifications as the Commissioner of Reclamation, with your approval, may find proper. I also recommend that this authorization be on the basis that the water users be required to pay, during the useful life of the project and at the maximum rate which in the judgment of the Secretary they can reasonably be expected to pay, the construction cost of the project; and that, during the period of contract with the United States, they shall pay for or otherwise provide adequate operation and maintenance, including replacements, of project works. There is, of course, the alternative that Congress may provide non-reimbursable funds for any portion of the construction cost which is beyond the ability of the water users to repay in that period which Congress may consider suitable for repayment. I recommend that you adopt this report as your proposed report on the rehabilitation of the Fort Sumner Irrigation District and that you authorize me in your behalf to transmit copies of this letter and the attached proposed report to the affected States of New Mexico and Texas and to the Secretary of War in accordance with the requirements of the Flood Control Act of 1944; and to the head of the agency exercising administration over the wildlife resources of the State of New Mexico in accordance with the requirements of Public Law No. 732, 79th Congress. [Extract from] An act making appropriations to supply deficiencies in certain appropriations for the fiscal year ending June 30, 1948, and for other purposes. (Act of June 25, 1948, 62 Stat., 1027, 1040, Public Law 785, 80th Cong., 2d sess.) * That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, to supply deficiency appropriations for the fiscal year ending June 30, 1948, and for other purposes, namely: Fort Sumner irrigation district, New Mexico: For the purpose of aiding and assisting the Fort Sumner Irrigation District in New Mexico to protect its diversion dam and the existing works of said irrigation district from flood damage, in the event the Secretary of the Interior determines that flood damage is or appears to be imminent, $60,000, to be remibursable and to remain available until expended. AUTHORIZATION OF FORT SUMNER PROJECT An act to authorize a project for the rehabilitation of certain works of the Fort Summer irrigation district in New Mexico, and for other purposes. (Act of July 29, 1949, 63 Stat. 483 Public Law 192, 81st Cong., 1st sess.) * That, for the purpose of providing water for the irrigation of approximately six thousand five hundred acres of arid lands on the Pecos River in New Mexico, the Secretary of the Interior is hereby authorized to rehabilitate, operate, and maintain in accordance with the Federal reclamation laws (Act of June 17, 1902, 32 Stat. 388, and Acts amendatory thereof or supplementary thereto) the irrigation system of the Fort Sumner irrigation district in New Mexico and to construct all necessary works incidental thereto: Provided, that the project shall not be initiated until contracts satisfactory to the Secretary of the Interior shall have been executed with (a) an irrigation or conservancy district, satisfactory in form and powers to the Secretary and embracing the lands of the project as determined by him, obligating the district, among other things, (i) to repay to the United States without interest the cost of rehabilitating and constructing the project, the terms to be such as will secure repayment as rapidly as, in the judgment of the Secretary, the district can reasonably be expected to make repayment and, in any event, within the useful life of the project; (ii) to pay for or otherwise provide adequate operation and maintenance, including replacements, of the project works during the period of the contract; and (iii) to furnish the Secretary with such control over and access to project works which are owned by or within the control of the district as he may require in order to safeguard the investment of the United States in the project; and (b) the holder or holders of at least 90 per centum of the outstanding general obligation bonds of the Fort Sumner irrigation district providing for such refinancing or cancellation of those bonds and scheduling of payments of principal and interest called for thereby as the Secretary believes necessary in order to insure fulfillment of the obligations required under (a) above. FRENCHTOWN PROJECT MONTANA The Frenchtown project was found feasible by the Secretary on September 11, 1935, and approved by the President on September 21, 1935, pursuant to section 4 of the act of June 25, 1910 (36 Stat. 836), and subsection B of section 4 of the act of December 5, 1924 (43 Stat. 702). OFFICE OF THE SECRETARY, Washington, September 11, 1935. THE PRESIDENT, The White House. MY DEAR MR. PRESIDENT: The Supreme Court of the United States in the Parker Dam decision (United States v. State of Arizona) indicated that Section 4 of the Act of June 25, 1910 (36 Stat. 835), is applicable to irrigation projects constructed under the National Industrial Recovery Act and this report on the Frenchtown Project is made to you under said statute of 1910 and under Subsection B of Section 4 of the Act of December 5, 1924 (43 Stat. 701). Section 4 of the Act of June 25, 1910, provides, in effect, that after the date of that act no irrigation project to be constructed under the Act of June 17, 1902 (32 Stat. 388), and acts amendatory thereof or supplementary thereto, shall be undertaken unless and until the project shall have been recommended by the Secretary of the Interior and approved by the direct order of the President. Subsection B, Section 4, Act of December 5, 1924 (43 Stat. 701), provides as follows: That no new project or new division of a project shall be approved for construction or estimates submitted therefor by the Secretary until information in detail shall be secured by him concerning the water supply, the engineering 1 The Frenchtown Project was initiated under the provisions of the National Industrial Recovery Act of 1933. |