Normally in a constantly growing utility system the earnings from a first or
early constructed generating plant will be used for the purpose of amortizing the
cost of a second or subsequently built generating plant once the first one is
paid for. This could automatically take place in the Columbia River power
system if the earnings from dams paid out in the early years could be used
to cover costs of dams built in later years. To add a reclamation cost, even
though it is to be paid after a 50-year period, will dilute the earnings credit in
the power system which had been paid for and built up by the power user.

A further argument against this type of an arrangement is that the Bonneville
Power Administration is not a multiple-purpose agency of the Federal Govern-
ment. It is merely a power sales agency for those departments which construct
and operate multiple-purpose projects. The production and sale of power has
been a related or secondary adjunct of such projects. The proposed type of an
arrangement makes power sales a prior or first obligation of the Federal
Government.

Our final argument in opposition to this type of reclamation subsidy is on
the basis that the project being considered here is not located in an area in
which Federal power sales are made. In other words, no contribution is to be
made in the form of power sales by the area which is to have the project. Cer-
tainly in fairness it would seem that if Bonneville power revenues are to be
used for a reclamation subsidy the reclamation project should be located within
the established and used Bonneville service area from which the power revenues
originate.

We feel the proposed reclamation project is of value and is needed in the
development of the Nation's economy. However, it should be directly related
to a particular multiple-purpose project if power revenues are going to be used
for the reclamation subsidy purpose. Otherwise the project should be authorized
and constructed on the basis of using the general credit of the Federal Govern-
ment with direct grants for the purpose of those subsidies needed in excess to
the amounts which irrigators can properly pay. General power revenues from
the Bonneville Power Administration should not be used for such a purpose.
Respectfully submitted.

KEN BILLINGTON.

Mr. ROGERS. Without objection, the pictures presented to the com-
mittee will be received for the file.

If there is nothing further to come before the subcommittee, the
subcommittee stands adjourned subject to the call of the Chair.
(Whereupon, at 12:15 p.m., the subcommitteee was adjourned, sub-
ject to the call of the Chair.)

O

MAIN

INTERIOR AND INSULAR AFFAIRSDING ROOM
HOUSE OF REPRESENTATIVES

EIGHTY-SEVENTH CONGRESS

ON

H.R. 8385 and H.R. 8389

BILLS TO AUTHORIZE THE SECRETARY OF THE INTERIOR TO SELL TO
LANDOWNERS IN URBAN AREAS THE RIGHTS OF THE UNITED STATES
TO CERTAIN MINERALS, AND FOR OTHER PURPOSES

H.R. 6585

A BILL TO PROVIDE FOR THE DISPOSITION OF MINERAL INTERESTS
RESERVED BY THE UNITED STATES IN TRACTS OF SMALL ACREAGE,
AND FOR OTHER PURPOSES
H.R. 7465

A BILL TO PROVIDE THAT OWNERS OF SURFACE RIGHTS TO CERTAIN
REAL PROPERTY, THE SUBSURFACE MINERAL RIGHTS OF WHICH ARE
OWNED BY THE UNITED STATES, SHALL HAVE THE RIGHT TO PUR-
CHASE SUCH MINERAL RIGHTS
H.R. 8134

A BILL TO AUTHORIZE THE SALE OF THE MINERAL ESTATE IN

CERTAIN LANDS
H.R. 9750

A BILL TO AUTHORIZE THE SECRETARY OF THE INTERIOR TO REQUIRE
PERSONS ENTERING UNITED STATES LANDS UNDER FEDERAL MINING
LAWS TO EITHER OBTAIN CONSENT OF THE SURFACE OWNER OR POST
A BOND PRIOR TO CONDUCTING PROSPECTING, LOCATION, OR MINING

OPERATIONS

H.R. 9796

A BILL TO GRANT RESERVED MINERAL RIGHTS IN CERTAIN LANDS
IN THE COUNTY OF PIMA, IN THE STATE OF ARIZONA, TO THE PRESENT
OWNERS OF THESE LANDS
H.R. 10566

A BILL TO PROVIDE FOR THE WITHDRAWAL AND ORDERLY DISPOSI-
TION OF MINERAL INTERESTS IN CERTAIN PUBLIC LANDS IN PIMA
COUNTY, ARIZ.

NOVEMBER 30, 1961-TUCSON, ARIZ.
DECEMBER 1, 1961-TUCSON, ARIZ.
FEBRUARY 2, 1962-WASHINGTON, D.C.
MARCH 29, 1962-WASHINGTON, D.C.

Serial No. 20

Printed for the use of the Committee on Interior and Insular Affairs

UNITED STATES OF AMERICA

Statement of-

Culbertson, Ivan, president, Casas Adobes Community Club, Ruthrauff

Road, Tucson, Ariz...

Darling, Richard S., JRW Construction and Investments, Inc., Santa

Rita Hotel, Tucson, Ariz.-

97

120

Emmons, Frances G., Tucson, Ariz
Hochmuth, Harold R., Associate Director, Bureau of Land Manage-
ment, accompanied by Dale Zimmerman, legal assistant, Bureau
of Land Management, Department of the Interior---

Holmes, W. T., attorney for Casas Adobes Estates Corp., Tucson,

Ariz...

94

141

Johnson, B. L., Milchester Realty Co., Tucson, Ariz..

Knight, Frank P., director, Arizona Department of Mineral Resources.

Logan, Charles A., Route 1, Box 503, Tucson, Ariz

Paulsen, Martin R., representing the Casas Adobes Community Club,

Tucson, Ariz..........

Pollitt, Mima R., Washington, D.C.

160

Secrist, Stanley R., chairman, Public Lands Committee, Tucson Board

of Realtors, Inc., accompanied by Michael B. Hodges and Howard

R. Senesac__

61

Senesac, Howard R., member, Public Lands Committee, Tucson Board
of Realtors, Inc...

66

Smith, Madelaine C., Tucson, Ariz..

Smith, A. Turney, Tucson, Ariz..

91

75

60

Trachta, Stanley W., representing Sovereign Resources, Inc., Tucson,

Ariz...

Twitty, Howard, attorney, accompanied by W. C. Heinrichs, Jr.,

Dr. Thomas Mitcham, Arthur W. Jacobs, and G. W. Irwin, repre-

senting Arizona Small Mine Operators Association, Tucson Council,

Tucson, Ariz__.

Udall, Hon. Morris K., a Representative in Congress from the State of

Arizona

Van Slyke, Claque, attorney, representing the Tucson Home Builders

Association, Tucson, Ariz___

Walthier, Thomas N., district geologist, southwest district, Bear Creek

Mining Co., Tucson, Ariz...

Statements submitted by

Arizona Land Title & Trust Co., Tucson, Ariz

Bowman, A. B., vice president of Banner Mining Co., Tucson, Ariz.
Goss, W. P., president of Magma Copper Co. and San Manuel Coffee
Corp., Superior, Ariz____

Heinrichs, Walter E., Jr., president of Heinrichs Geoexploration Co.,
Tucson, Ariz...

Page,

126

36

34

34

Hodges, Michael B., member, Public Lands Committee, Tucson Board of Realtors, Inc.

Johnson, Benjamin L., consulting engineer, supplemental, dated
December 14, 1961.

Land Title Association of Arizona, submitted by Willard B. Fleming, secretary, Tucson Ariz..

68

111

127

Lassen, Obed M., State land commissioner of the State of Arizona...
Messer, B. G., administrative assistant, Duval Sulphur & Potash Co.,
Tucson, Ariz__

128

Mitcham, Thos. W., Tucson, Ariz..

Phoenix Title & Trust Co., Tucson, Ariz., submitted by Franklin H.
Benecke, vice president.

Saunders, C. Allen, Paso Robles Community Association, Tucson,
Ariz

Smith, Madelaine G.

72

74

Snedden, T. A., governor of the Arizona Chapter of the American
Mining Congress__

32

Spaulding, E. D., resident manager of Pima Mining Co., Tucson,
Ariz...

Tognoni, Hale C., on behalf of Chester E. Lewis of Holbrook, Ariz..
Tucson Council of Arizona Small Mine Operators Association,
supplemental..

Walker, Albert A., Tucson, Ariz.

Webster, Calvin___

Zappia, J. Arthur, Tucson, Ariz_ _

Additional data submitted to the committee:

Jacobs Assay Office report dated April 22, 1960, submitted to Mr.
A. T. Smith by Ben P. Jacobs, showing reports with regard to gold,
silver, and copper on 10 samples submitted..

Proposed bill to be submitted to the Arizona Legislature, submitted
by Howard A. Twitty...

Communications submitted to the committee:

Arizona Land Title & Trust Co., letter dated October 13, 1961_.
Goldwater, Hon. Barry, a U.S. Senator from the State of Arizona,
telegram

Interior, Department of the: Speaker of the House, letter dated July
20, 1961, signed by John A. Carver, Jr., Assistant Secretary of the
Interior

Jacobs Exploration Co., letter by Arthur W. Jacobs dated December
12, 1962

73

33

81

29

126

15

4

133

Johnson, Benjamin L., consulting engineer, letter dated December 14,
1961.

111

Jurko, Mr. and Mrs. Andrew G., letters dated December 11, 1961.
Land Title Association of Arizona, letter and resolution submitted by
Willard B. Fleming, secretary..

134

127

Mann, Agnes and Stuart, Ghost River Ranch, Tucson, Ariz., letter
dated November 30, 1961..

129

May, James A., Tucson, Ariz., letter dated December 2, 1961.
Phelps, Harlow D., letter dated November 25, 1961...

Signature Construction Co., letter dated November 30, 1960, signed
by Paul Dvordza__

134

130

118

Stone, Edwin A., Tucson, Ariz., letter dated December 13, 1961...
Tognoni, Hale C., letter dated December 14, 1961__

135

58

Tucson Clearing House Association, letter submitted by H. Richard
Poynter, president, dated November 17, 1961................

130

Utah Mining Association, Miles P. Romney, manager, letter dated
December 12, 1961..

136