SAN LUIS VALLEY PROJECT COLORADO 1 The San Luis Valley project was found feasible by the Secretary on February 1, 1940, under the provisions of the Reclamation Project Act of 1939. The Platoro Reservoir of the Platoro unit, the first unit of the Conejos division, was reauthorized by a supplemental finding of feasibility of the Secretary on March 7, 1949. BUREAU OF RECLAMATION, The SECRETARY OF THE INTERIOR. SIR: I am transmitting the report on the San Luis Valley project on the Rio Grande headwaters in Colorado, prepared after consultation with the Corps of Engineers of the War Department, which is also making a similar report. Both reports contemplate construction for joint irrigation and flood-control purposes of the Wagon Wheel Gap Reservoir of 1,000,000 acre-feet on Rio Grande near Creede, and two reservoirs with a combined capacity of 100,000 acre-feet on Conejos River southwest of Alamosa, to provide supplemental water and flood protection for 400,000 acres of irrigated land in Colorado and a lesser benefit to the Rio Grande Valley in New Mexico. The works will assist in the application of the Rio Grande Compact. The Bureau report further adds to the project a small transmountain diversion from the Colorado River Basin to the Rio Grande Basin to assist San Luis Valley in complying with the compact. The Bureau report finds power development unwarranted at this time but provisions for future development are included. A tabulation of data on the project is appended. Both reports recommend allocating 60 percent of the construction cost of the reservoirs, or $10,320,000, to irrigation. The Bureau report contemplates repayment of such costs without interest in 40 annual installments of $258,000. The Chief of Engineers' report proposes a lump-sum payment by the irrigation interests, 1 Initial funds for construction of the San Luis Valley Project were authorized under the provisions of the National Industrial Recovery Act of 1933, but later rescinded. upon completion of the project of $5,512,000, which amount, if borrowed by them and retired in 40 years with interest at 31% percent, would result in equal annual costs to the irrigators. Both reports recommend allocating 40 percent of the construction and of the operation and maintenance costs of the reservoirs to flood control, with such costs to be borne by the Government. The Chief of Engineers proposes that operation and maintenance of the works be conducted always by the irrigation interests, who are to be reimbursed for the Federal share on account of flood control by a capitalized credit of $345,000 on the lumpsum irrigation payment. In my opinion the complicated irrigation rights, including the Rio Grande Compact and the potential conflict of irrigation and flood-control operations, make it advisable for the Government to operate and maintain the reservoirs, leaving all other operations in present hands. Irrigation is the dominant feature of this project. In the circumstances, I believe that this project, if and when undertaken, should be constructed and operated by the Bureau of Reclamation. The project is greatly desired by local interests and would materially improve their economic status. No new lands would be developed. The benefits exceed the annual costs. The project clearly meets all requirements of feasibility and authorization under section 9 of the Reclamation Act of 1939. I recommend that a finding of feasibility, together with the report, be submitted to the President and to the Congress in compliance with that act. Respectfully, MY DEAR MR. PRESIDENT: There is transmitted a letter of January 25, 1940, from the Commissioner of Reclamation, submitting a report on the San Luis Valley project on Rio Grande in Colorado, contemplating an expenditure of $17,465,000 for the Wagon Wheel Gap Reservoir on Rio Grande, two small reservoirs on Conejos River and a minor transmountain diversion, to provide supplemental water and flood control for 400,000 acres of land already under irrigation. Through consultation and agreement with the Chief of Engineers, representing the Secretary of War, $6,880,000 of this cost has been allocated to flood control, with no reimbursement contemplated. To irrigation there would be allocated $10,585,000 to be repaid under the reclamation law in 40 years without interest. The proposed allocation of costs is proper and equals the estimated cost of the project. The repayment of reimbursable costs can be anticipated with assurance. I find the project desirable, economically and engineeringly feasible, and authorized for construction under the provisions of section 9 of the Reclamation Act of 1939. I therefore recommend its construction thereunder, if and when funds are made available. Unless you have objections thereto, the letter and report will be transmitted to the Congress, in accordance with the provisions of that law. Sincerely yours, (Signed) HAROLD L. ICKES, Secretary of the Interior. THE WHITE HOUSE, Washington, March 30, 1940. The Honorable the SECRETARY OF THE INTERIOR. MY DEAR MR. SECRETARY: I return herewith the proposed report of the Bureau of Reclamation on a project for flood control and irrigation in the San Luis Valley, on the Rio Grande, in Colorado, which report you transmitted to me with the statement that you deemed the project desirable, economically and engineeringly feasible, and authorized for construction under the provisions of section 9 of the Reclamation Act of 1939. I have considered the proposed report of the Bureau of Reclamation in connection with a proposed report on the same project prepared by the Corps of Engineers of the War Department in compliance with the Flood Control Act of June 28, 1938. I find that these two reports are in agreement except as to three questions of policy, namely: (1) Should the Bureau of Reclamation or the Corps of Engineers construct the project? (2) Should irrigation beneficiaries repay in 40 annual payments or in a lump-sum payment equivalent to the present value of such payments? (Note: The proposal is to charge Irrigation with 60 percent of the cost of the project, or approximately $10,320,000.) (3) Should the Federal Government or the local interests maintain and operate the project after completion? With respect to these matters, I am of the opinion that, since the project is dominantly an irrigation undertaking, suited to operation and maintenance under the reclamation law, it should be constructed by the Bureau of Reclamation; that the portion of the project cost to be charged to Irrigation should be financed on the basis of the prevailing Federal policy of 40 annual payments by irrigation beneficiaries; and that the project should be maintained and operated by the Bureau of Reclamation, with water releases to be determined by local responsible interests, and with operation for flood control to be in accordance with regulations prescribed by the Secretary of War. While it is my desire that legislation initiating the San Luis Valley project, if and when enacted, should be in accord with the views expressed above, you are advised that the enactment of such legislation would not, at this time, be in accord with my program. It is desired that you arrange to have the report of the Bureau of Reclamation transmitted to Congress on the same day that the report of the Corps of Engineers of the War Department is forwarded, in order that an opportunity may be afforded to have the two reports printed in a single document. A letter similar to the above has been addressed by me to the Secretary of War. Sincerely yours, (Signed) FRANKLIN D. ROOSEVELT, President. DEPARTMENT OF THE INTERIOR, Hon. WILLIAM B. BANKHEAD, Speaker of the House of Representatives. MY DEAR MR. SPEAKER: I am transmitting herewith the Reclamation report on the San Luis Valley project in Colorado. In his letter dated January 25, 1940, to me, Commissioner John C. Page, Bureau of Reclamation, said with respect to the project: The benefits exceed the annual costs. The project clearly meets all requirements of feasibility and authorization under Section 9 of the Reclamation (Project) Act of 1939. I recommend that a finding of feasibility, together with the report, be submitted to the President and to the Congress in compliance with that Act. My finding of feasibility was included in my letter of February 1, 1940, regarding the project, to the President. This letter stated in part: The proposed allocation of costs is proper and equals the estimated cost of the project. The repayment of reimbursable costs can be anticipated with assurance. I find the project desirable, economically and engineeringly feasible, and authorized for construction under the provisions of Section 9 of the Reclamation (Project) Act of 1939. I, therefore, recommend its construction thereunder, if and when funds are made available. The President in his letter to me of March 30, 1940, with reference to a study of the Reclamation report on the San Luis Valley project and a report prepared by the Corps of Engineers, War Department, on the same project, said in part: I have considered the proposed report of the Bureau of Reclamation in connection with a proposed report on the same project prepared by the Corps of Engineers of the War Department in compliance with the Flood Control Act of June 28, 1938. I find that these two reports are in agreement except as to three questions of policy, namely: (1) Should the Bureau of Reclamation or the Corps of Engineers construct the project? (2) Should irrigation beneficiaries repay in forty annual payments or in a lump-sum payment equivalent to the present value of such payments? (Note: The proposal is to charge Irrigation with 60 percent of the cost of the project, or approximately $10,320,000.) (3) Should the Federal Government or the local interests maintain and operate the propect after completion? With respect to these matters, I am of the opinion that since the project is dominantly an irrigation undertaking, suited to operation and maintenance under the Reclamation Law, it should be constructed by the Bureau of Reclamation; that the portion of the project cost to be charged to Irrigation should be financed on the basis of the prevailing Federal policy of forty annual payments by irrigation beneficiaries; and that the project should be maintained and operated by the Bureau of Reclamation, with water releases to be determined by local responsible interests, and with operation for flood control to be in accordance with regulations prescribed by the Secretary of War. Copies of these three letters are enclosed and are a part of the report, the main body of which, separately bound, also is enclosed. These enclosures constitute the report, the findings, and the authorization contemplated in section 9 of the Reclamation Project Act of 1939, on the San Luis Valley project, Colorado. Sincerely yours, (Signed) HAROLD L. ICKES, Secretary of the Interior. PROVISIONS OF INTERIOR DEPARTMENT [Extract from] An act making appropriations for the Department of the Interior for the fiscal year ending June 30, 1941, and for other purposes. (Act of June 18, 1940, 54 Stat. 406, 437, 438, Public Law 640, 76th Cong., 3d sess.) * That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Department of the Interior for the fiscal year ending June 30, 1941, namely: GENERAL FUND, CONSTRUCTION For continuation of construction of the following projects and for administrative expenses in not to exceed the following |