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Location.-Salt River project is located in the south-central part of Arizona. The project lands are situated on both sides of the Salt River in the vicinity of Phoenix and Maricopa, Ariz. The present water supply is obtained from the natural flow of the Salt and Verde Rivers, supplemented by stored waters of the Salt River. Reservoirs are located in Maricopa and Gila Counties.

Purpose. Existing project works furnish a water supply for the irrigation of 250,000 acres of highly productive farm land and town-site property in the vicinity of Phoenix. In addition to the above-mentioned project lands an area of about 88,000 acres of nonproject lands receive a full or partial water supply from the storage system.

Construction of the Bartlett Dam will conserve the floodwaters of the Verde River and furnish supplemental water for the project, the water supply of which is now inadequate. The other proposed work will increase the safety of the existing dams on the project.

Description. The existing project works consist of the Roosevelt Dam and power plant, Horse Mesa Dam and power plant, Mormon Flat Dam and power plant, Stewart Mountain Dam and power plant, Cave Creek flood-control dam, Granite Reef diversion dam, and canal systems on both sides of the Salt River. The Roosevelt Dam and power plant, the Granite Reef Dam and the canal system were built by the Bureau of Reclamation. In 1917 the project works were turned over to the Salt River Valley Water Users' Association. The Horse Mesa, Mormon Flat, Stewart Mountain, Dams and power plants, and the Cave Creek Dam have been built by the Salt River Valley Water Users' Association since 1917.

A brief description of the present construction program is contained in the following paragraphs.

Bartlett Dam, a reinforced concrete multiple arch structure will be built on the Verde River. The dam has a maximum height of 270 feet and a crest length of 750 feet The outlet works consist of two 72-inch steel pipes and three 6-foot by 7-foot 6-inch high pressure conduits. The spillway, located on the right abutment, will have a capacity of 175,000 second-feet and will be controlled by three 50 by 50 foot gates. The reservoir formed by the dam will have a capacity of about 200,000 acre-feet and cover an area of 3,200 acres.

Roosevelt Dam spillway gates are being lowered about 6 feet in order to increase the spillway capacity to 150,000 second-feet.

Roosevelt power canal and diversion dam are being rehabilitated.

The spillways at the Horse Mesa, Mormon Flat, and Stewart Mountain Dams are being enlarged and completed to furnish a spillway capacity of 150,000 secondfeet at each dam.

Miscellaneous betterments are to be made to the irrigation system to such an extent as funds will allow and as determined by the engineers of the Bureau and association.

Estimated cost and funds available.-Construction work now in progress will cost $6,894,000.

Funds for the commencement of construction on the Bartlett Dam and other features were made available when the President allotted funds to the Bureau from the Emergenev Relief Appropriation Act of 1935. The allotment specificas allocated $4,500,000 to this project. This allocation was later reduced to $3,500,000.

In addition, $200,000 was allotted to the Bureau under the National Industrial Recovery Act of 1933 for use in connection with the construction of Bartlett Dam. This allotment was a part of the $894,000 (20 percent of the cost of Bartlett Dam. that the Office of Indian Affairs is to pay toward construction of the dam, as provided in its contract with the Salt River Valley Water Users' Association, whereby 20 percent of the stored water may be used for irrigation of lands on the Salt River Indian Reservation.

The second session of the Seventy-fourth Congress appropriated $1,500,000 from the reclamation fund for the fiscal year 1937.

A distribution of estimated costs and available funds to the various phys cal features of the project is shown in the table at the end of this report.

Repayment contracts. As previously stated, the Roosevelt Dam, the Granite Reef diversion dam and canal system were built by the Bureau of Reclamation in 1911 and turned over to the Salt River Valley Water Users' Association in i 17. Of the original obligation of $10,210,000, before the present construction progran was inaugurated, the association has repaid 86,811,000 or 67 percent. All payments have been made when due.

On November 26, 1935, the Salt River Valley Water Users' Association executed a contract with the United States providing for the construction of all the work

isted herein. The contract limits the obligation of the association to $6,000,000 and provides for the repayment in 40 annual installments.

As previously mentioned, the Office of Indian Affairs has entered into a contract w: the above-named association to pay 20 percent of the cost of construction of the Bartlett Dam in order to obtain a 20-percent interest in the water stored bend the dam, the stored water to be used on the Salt River Indian Reservation. Construction program through the fiscal year 1987.-A contract for the construction of the Bartlett Dam was awarded on July 2, 1936, and work was started on August 12, 1936. It is estimated that the dam will be about 30 percent completed at the end of the fiscal year.

Work on enlargement of the spillway of the Roosevelt Dam was started on April 13, 1936, and completed on November 17, 1936.

The enlargement of the spillway of the Stewart Mountain Dam was started on January 19, 1936, and completed September 15, 1936.

The diversion dam for the power canal was started on October 23, 1936. This work will be completed early in the calendar year 1937.

On August 26, 1936, work was begun on the enlargement of the spillway at the Horse Mesa Dam. At the end of the fiscal year 1937 this work will be about 85 percent completed.

Bids for the enlargement of the spillway at the Mormon Flat Dam will be opened on January 18, 1937. It is estimated that the work will be about 40 percent completed at the end of the fiscal year.

Construction proposed for the fiscal year 1938.-During the fiscal year 1937, work will be continued on the Bartlett Dam and on the enlargement of the spillways at the Horse Mesa and Mormon Flat Dams. At the end of the fiscal year, the work at the Horse Mesa and Mormon Flat Dams will be completed.

It is estimated that the Bartlett Dam will be approximately 70 percent complete on June 30, 1938.

Estimated cost, available funds and estimate for fiscal year 1938

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100 000 to be supplied from appropriations to the Office of Indian Affairs.

NATURE OF WORK ON SALT RIVER PROJECT

Mr O'NEAL. May I ask about the Salt River project, is that just for extensions or new installation?

Mr. PAGE. That is for the construction of a new reservoir, the repairing of the spillways, the installation of spillways on some of the od dams built there years ago by the Salt River Valley Water Users Association.

Mr O'NEAL. Do I understand that all of the construction and all the cost incident to the Salt River project is to be completely repaid to the Reclamation Service?

Mr. PAGE. The original cost was not completely repaid. It was well along toward completion at the time they incurred this additional

obligation. This new construction and the remainder of the old construction will be repaid by the water users.

Mr. O'NEAL. I do not understand this chart on page 12. It says total amount due and paid. I wish you would explain that a little bit more. I did not understand that on page 14.

Mr. PAGE. This [indicating] means the amount due, representing fees for the water rental charges, and that [indicating] represents the bill which was issued against the water users on the Salt River project for water rental.

Mr. O'NEAL. From the beginning down to date?

Mr. PAGE. Yes; and this amount [indicating] is the amount that has been paid. This [indicating] is the investment.

Mr. O'NEAL. Has anything ever been done toward repayment of any of the investment, and if so, where is that shown?

Mr. PAGE. That is the amount that has been billed, and the amount that has been paid. This [indicating] does not show the balance due the United States.

Mr. O'NEAL. Well, the total construction cost of the Salt River project was much more, $6,800,000.

Mr. KUBACH. The total obligation of the water users for the original construction work was a little more than $10,000,000. They had repaid $6,800,000 before the new obligation was incurred.

Mr. O'NEAL. Is there any table that you have, or that can be furnished to us showing the total cost and the total payments on those projects?

Mr. PAGE. Yes. That table already has been inserted.

Mr. O'NEAL. What does this $6,800,000 represent, on page 12?
Mr. PAGE. That represents the amount of the construction cost
which has become due and payable under the contract with the Salt
River Valley Water Users Association.

Mr. LEAVY. You see, Mr. O'Neal, part of it is not due yet.
Mr. O'NEAL. That is being carried forward to be repaid?

Mr. PAGE. Yes, from year to year. Nothing has been canceled. It will all have to be repaid.

Mr. O'NEAL. Could not the total figure be given to us?

Mr. PAGE. Yes.

Mr. O'NEAL. I think that would be very illuminating.

Mr. PAGE. Yes, sir. It is $9,377,000. This total includes the amount which has not yet become due under the original contract and the new obligation of $6,000,000 for the construction work now under way.

Mr. RICH. The Salt River project in Arizona is an old project that was authorized. The population that you have there at the present time is 155,000. Will there be any additional people coming there? Mr. PAGE. No, sir. The new construction will bring no new people. It is merely the construction of works to provide a supplementary water supply; the construction of one more storage dam which will conserve the winter flow of the Verde River for an additional irrigation supply for the land now under cultivation.

Mr. RICH. Then the cost of that project, $19,638,000, divided by the population, gives you about $1,300 per capita.

Mr. PAGE. Well, I do not just see what criterion that is. It is not a matter of cost per capita. It is a matter of a loan for the development of a community containing that number of people. Your

criterion takes no account of the activities of those people, nor what is produced. Much of the total cost already has been repaid, so the figure you give certainly is not applicable now.

Mr. RICH. Well, the only thing that it does, in my judgment, is to show that the Federal Government is advancing a lot of money for that development, and that the cost per capita is a very large sum of money.

Mr. PAGE. What it amounts to is this: The Federal Government is loaning to 150,000 people, or to the community, a sum of money for the development of that community. The entire community has been created soley by the water that we have applied to the desert land on which they live. The valuation of the entire community of many millions of dollars, was created due to the loan of this Federal money. It is being repaid. I might note that the Salt River project is the very heart of Arizona, supporting almost half of the State's population.

Mr. LEAVY. I want to supplement the record with one question that I think is apropos of Mr. Rich's inquiry, and that is, Has the Salt River project been able, through the years, to pay its current liabilities to the Federal Government?

Mr. PAGE. Yes, sir. It is a little ahead of its required payments. A census down there shows that the Salt River project spends for manufactured articles about $50,000,000 a year from the wealth produced on that irrigated section.

Mr. RICH. It is one of the projects that was started in 1903?
Mr. PAGE. Yes, sir.

Mr. RICH. They ought to be going back on a paying basis. They paid back into the reclamation fund $6,811,000.

PINE RIVER PROJECT, COLORADO

Mr. SCRUGHAM. The next project on the construction list is the Pine River project in Colorado, for which an item of $500,000 is proposed.

Mr. PAGE. I submit the justification as follows:

Appropriation requested for fiscal year 1938, reclamation fund.
Funds available, reclamation fund, fiscal year 1937.
Amount necessary to complete after fiscal year 1938_
Estimated cost...

$500,000 1, 000, 000

1, 500, 000 3, 000, 000

Location. The Pine River project is situated on the Pine River, in the southeastern part of La Plata County, Colo.

Description. The 51,000 acres of irrigable land on the Pine River project lie on both sides of the Pine River in the vicinity of Bayfield and Ignacio, Colo. The area is now served by 17 different canals, all except 1 of which divert directly from the Pine River. Of the total area, 16,000 acres are on the Consolidated Ute Indian Reservation and 35,000 acres are the property of farmers outside the reservation. The water supply is obtained from the unregulated flow of the

Pine River and is inadequate for the irrigable area.

At the present time the irrigated area on the reservation amounts to about 6,000 acres of land. However, the Office of Indian Affairs is expecting to extend the irrigation service to the entire 16,000 acres in the near future. The 35,000 acres outside the reservation have been under cultivation for many years. Most of the area was homesteaded under laws requiring a showing of use of water and the settlers believed they had obtained a right to the water which they had used on their lands. However, on October 25, 1930, a Federal court decree granted to the Ute Indians a right to a flow of 212.75 second-feet for the irrigation of 16,000 acres of land. This decree was given a priority of July 25, 1868. Al

though only 6,000 acres of Indian land are at present irrigated, the canal system on the Indian lands is being extended to cover the entire 16,000 acres. The prior right of the Indians places the lands of the white farmers under an acute shortage of water every year. In fact the natural flow of the stream will not meet the Indian rights in most years. This condition makes it necessary to develop a water supply from storage on the Pine River. The second session of the Seventy-fourth Congress appropriated $1,000,000 for the commencement of construction on the Pine River project for this purpose. The project, as planned, includes the Pine River Dam and Reservoir.

The Pine River Dam is located on the Pine River about 18 miles above Bayfield, Colo. It will be a rolled earth embankment with a rock fill on the downstream slope. The maximum height of the dam will be about 150 feet above the low part of the foundation and the crest length will be about 4,600 feet. The construction will involve the placing of about 2,775,000 cubic yards of rolled embankment and 540,000 cubic yards of rock fill.

The outlet works will be situated in a tunnel through the right abutment. The upper 400 feet of this tunnel will be 18 feet in diameter, while the lower 790 feet will be 20 feet by 15.75 feet horseshoe-shaped sections. Hydraulically controlled gates will be located in a gate chamber at the lower end of the circular section. Below the gates the water will flow through two 86-inch diameter steel pipes located in the horseshoe section of the tunnel. The discharge will be regulated through two 72-inch needle valves.

The spillway will be of the open-channel type, the channel being of a trapezoidal section. Flow will be regulated by three radial gates.

The dam will form a reservoir of 123,000 acre-feet capacity and cover about 2,480 acres of land.

Estimated cost and funds available. -The estimated cost of the Pine River Dam is $3,000,000.

Funds were provided for the investigation and surveys of the project in October 1935, when the Public Works Administration allotted $50,000 to the Office of Indian Affairs for this work.

The second session of the Seventy-fourth Congress appropriated $1,000,000 from the reclamation fund for the purpose of commencing construction on the dam and appurtenant works.

Repayment contracts. At the present time no repayment contracts have been executed. However, the white settlers outside the Indian reservation have organized the Pine River public irrigation district and repayment contracts will be negotiated for the reimbursement of that portion of the construction costs not chargeable to flood control or to Indian lands.

Construction program through the fiscal year 1937.-The surveys and investigations provided for by the Public Works Administration allotment to the Office of Indian Affairs are well along toward completion.

Specifications for the construction of the Pine River Dam and appurtenant works will be ready for publication early in January and bids will be received in February. Actual construction work should start in April.

Construction proposed for the fiscal year 1938.—It is proposed to continue work on the dam and appurtenant works throughout the fiscal year 1938.

Mr. LEAVY. On the Pine River project you are asking for $500,000 this year as against $1,000,000 last year.

Mr. PAGE. Yes, sir.

Mr. LEAVY. Will that complete that project?

Mr. PAGE. No; but that is probably sufficient to carry on the work at a satisfactory rate of progress.

Mr. LEAVY. Does that project have within it any hydroelectric development?

Mr. PAGE. No, sir.

Mr. RICH. Now, about the Pine River project in Colorado. That is to cost eventually $3,000,000. You are asking in this bill $500,000 for it. There are 51,000 acres that will be developed. At this time there are 41,000 acres, and you are bringing into cultivation new lands to the extent of 10,000 acres.

Mr. PAGE. That 10,000 acres is almost wholly Indian lands. It is on a reservation there. This project, as I stated before, is a joint Indian and white project.

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