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In addition, I would like to file a statement by Mr. Weston B. Grimes, of Kerr Gifford & Co., who have our port district grain elevator on the lakes.

Mr. Hand. Without objection, it will go in.

(The statement referred to follows:) SACRAMENTO River SHIP CHANNEL PROJECT STATEMENT OF MR. Weston B. GRIMES

My name is Weston B. Grimes. I am a lawyer with offices in Washington, D. C., representing the Kerr Gifford & Co., Inc., of California, grain merchants and exporters. On September 19, 1949, the Kerr Gifford & Co., Inc., entered into a lease with the Sacramento-Yolo Port District, Sacramento, Calif., leasing for a period of 30 years a 500,000-bushel capacity grain elevator to be constructed by the Sacramento-Yolo Port District. This plant was constructed on schedule and is now operated by Kerr-Gifford.

About 6 weeks prior to that date the Federal Government had broken ground and started construction of a Sacramento deepwater channel project with the completion date scheduled for early 1953. The plans for this project provided a shallow draft barge canal so that the Sacramento River could be utilized for barge transportation of grain for more than 100 miles upstream from Sacramento to the grain elevator. Plans also called for an overhead conveyor from the grain elevator to deep sea and shallow draft shipping in the deepwater turning basin.

The Kerr Gifford & Co., Inc., are handicapped by the delay in completion of both the deepwater channel project and the connecting shallow draft barge canal. When we leased this elevator it was expected that the Federal Government would complete the project program within approximately 4 years, but this has not been done. We realize the Korean war is largely responsible for the delay but we feel that the time has now arrived when construction should be resumed and this project completed without delay. Incidentally, the major market for California grain in the foreseeable future appears to be in the Orient and eastern Asia where more people are starving than elsewhere throughout the world. It is increasingly necessary, therefore, that this deepwater channel project be completed quickly in order that we may have the benefit of deep-sea transportation for grain export.

We urge your committee, therefore, to give favorable consideration to the request for appropriation of funds for resumption of construction.

I thank you for this opportunity of appearing before the committee in this respect.

Mr. STONE. May I urge you to give consideration to making an appropriation in any adequate amount for resumption of construction in order that the local interests may proceed with their construction program. We are handicapped in our further construction until the Federal Government proceeds.

I thank you for the opportunity of appearing before you.
Mr. HAND. We will be glad to give you consideration.
Thank you very much for your appearance, Congressman Moss.

FRIDAY, FEBRUARY 19, 1954.

RED RIVER OF THE NORTH

WITNESSES

HON. OTTO KRUEGER, A REPRESENTATIVE IN CONGRESS FROM

THE STATE OF NORTH DAKOTA OSCAR LUNSETH, MAYOR, CITY OF GRAND FORKS, N. DAK. BYRON ROCKWOOD, CITY MANAGER, GRAND FORKS, N. DAK. FRED J. FREDRICKSON, VALLEY CITY, N. DAK., REPRESENTING

GREATER NORTH DAKOTA ASSOCIATION

Mr. HAND. The committee is glad to have with us this afternoon Congressman Krueger and a group of associated witnesses to testify on problems concerning the Red River of the North.

Nr. KRUEGER. Thank you very much for your kindness in arranging this hearing for the North Dakota witnesses. It is appreciated by the gentlemen here and myself. Our State is a long way from Washington, and it is really a courtesy on your part to accommodate these people at this time.

It was a pleasure to have an opportunity to visit with some of the committee members in Bismarck and at the Garrison damsite, for which we are asking an appropriation at this time.

The three witnesses will present information regarding the various Red River flood-control projects and the Garrison Dam. Their statements are brief.

In addition to the items recommended in the budget, I would like to urge that the review survey of the Pembina River previously recommended be completed. I understand it will take less than $25,000 to complete the survey.

GARRISON DAM For the information of the committee members, and substantiating the need for the high pool level at Garrison, I am attaching copies of telegrams received from rural electric cooperatives throughout the State, strongly supporting the 1,850-foot level.

As a further example of the sentiment and feelings throughout North Dakota in support of the high pool level of 1,850 feet at Garrison, I would like to submit the following editorials and articles from: The Bismarck Tribune, Bismarck; the Minot Daily News, Minot; the Fargo Forum, Fargo, and a letter from the McLean Electric Cooperative, Inc. (The matter referred to follows:)

FEBRUARY 17, 1954. Congressman OTTO KRUEGER,

Washington, D. C.: Please be advised that the Fessenden Civic and Commerce Association strongly urges a Garrison Dam level of 1,850 feet. We understand this level will assure us of adequate irrigation benefits.

H. C. PRIS, Secretary, Civic and Commerce Association.

FEBRUARY 11, 1954. Congressman Otto KRUEGER,

Washington, D. O.: The board of directors of the Baker Electric Co-Op representing 4,400 members in Towner, Ramsey, Pierce, Rolette, and Wells Counties on February 10 unanimously went on record as favoring the 1,850-feet level for the Garrison Reservoir and urge you to support this high level in the future.

BAKER ELECTRIC CO-OP., INC.

FEBRUARY 14, 1954. Hon. OTTO KRUEGER,

United States Representative: Understand 1,850 level Garrison Reservoir vigorously protested. Request your support this level to assure adequate power supply North Dakota Rural Electric Cooperatives. We presently serve 1,635 members with monthly load peak of 1,540 kilowatts. By 1963 will serve 2,087 members with monthly load estimate of 13,098 kilowatts due to oil load development.

MOUNTRAIL ELECTRIC COOPERATIVE, INC.,

Stanley, N. Dak,

FEBRUARY 9, 1954. Hon. OTTO KRUEGER,

United States House of Representatives: This cooperative with 2,200 members requests that you help provide for our future power needs by supporting an 1,850-foot pool level for Garrison Reservoir.

SLOPE ELECTRIC CO-OP., INC.,
N. GROSS, Manager.

FEBRUARY 8, 1954. Representative OTTO KRUEGER,

Washington, D. C.: We urge Garrison Reservoir level at 1,850 for adequate power. Co-op represents 2,400 members.

SHEYENNE VALLEY ELECTRIC CO-OP., Inc.,
LYLE BRYNGELSON, Temporary Manager.

FEBRUARY 8, 1954. Congressman OTTO KRUEGER :

Have asked local rural electric cooperatives wire support 1,850-foot level Garri. son Reservoir. Adequate power and irrigation so important to us. Thanks kindly for continued interest in our program.

NORTH DAKOTA ASSOCIATION OF RURAL ELECTRIC COOPERATIVES,
R. G. HARENS.

Representative OTTO KRUEGER,

Washington, D. C.: Support 1,850-foot level Garrison Reservoir to insure adequate power for 4,400 farms in cooperative area.

E. M, ARNTSON,
Tri-County Electric Co-operative.

FEBRUARY 9, 1954. Congressman OTTO KRUEGER,

House of Representatives, Washington, D. 0.: I sincerely hope you will make every effort to see that 1,850 elevation be used for water level at Garrison. My understanding according to Army engineers estimate that 1,830 level would result in a loss of 20,000 kilowatts of firm power from this dam. That loss to the United States Government would amount to more than $112 million per year and increased benefits from 1,850 water level would be 7 times the savings brought about by 1,830 level. Power so desperately needed by rural cooperatives and others should not be lost by the lower water level.

GEORGE W. CORNOG, Manager, Kem Electric Co-operative, Inc., Linton, N. Dak.

[The Sunday Fargo (N. Dak.), Forum, February 7, 1954)

EDITORIALS

ELECTRIC CO-OPS, FARMS, CITIES NEED HIGH-LEVEL GARRISON POOL

The time has come for all of North Dakota to become extremely interested in the operating height of the reservoir to be formed behind Garrison Dam.

The city of Williston has been particularly interested in the height of the pool. It has been carrying on an 8-year fight to limit the level to 1,830 feet above sea level. The Corps of Army Engineers constructed the dam and planned its flood-control and hydroelectric operations on the basis of a maximum operating level of 1,850 feet above sea level.

Williston's fight for the lower pool is based primarily on the fact that the high level would require the construction of some dikes around the city to protect the city water filtration plant. There are also some Missouri River bottom lands involved and the possibility that Williston would have to construct a sewagetreatment plant if the reservoir is filled to the 1,850 level.

But everything that Williston protests against can be taken care of with dikes and protective works and some incidental projects for which the Federal Gorernment probably would bear at least part of the costs.

But the State of North Dakota would lose 10 to 100 times what Williston sares if the pool level is restricted to 1,830 or even 1,840 feet. The principal losers actually would be rural electric cooperatives throughout the State.

These co-ops are making an extremely vocal protest on new marketing policies set up by the Department of the Interior. Their spokesmen claim that the new power policy might at some future time permit private utilities to bus power generated at Garrison Dam. We wonder why these same people are so silent as far as the pool level is concerned. If the pool level is restricted to 1,830 feet, the power output of the dam would be drastically curtailed and the co-ops would lose more power every year than they would ever lose through private utility purchases.

In addition to the electric co-ops, farmers throughout central North Dakota should be concerned if North Dakota is to get widespread irrigation benefits from the water to be provided by the Garrison Dam Reservoir. With the reservoir level at 1,830 feet, the pumping costs for irrigation would be mans times as great as they would be at an 1,850 level. This water is intended to irrigate farms stretching from the Mouse River loop north of Minot, along the Sheyenne and James Rivers and possibly someday around the western edge of the Red River Valley.

The Department of the Interior approved last week a pilot pumping irrigation project at Oakes, in south central North Dakota, with the idea that Garrison Dam water would soon be available for over a million acres of irrigated land in the State. A million acres of irrigation in North Dakota would strengthen the State's economy to a greater degree than all the oil now being found in the Williston area.

The residents of Devils Lake had best be concerned about the pool level if their dream of a fresh, water, high level Devils Lake is to come true. The people of such cities as Fargo and Grand Forks must be concerned about the Garrison Dam level because only by diversion of Missouri River waters from the Garrison Reservoir to the Red River watershed will these cities have a guaranteed water supply to take care of future population and industrial er. pansion.

Just last week W. S. Davidson, Sr., of Williston, returned from Washing. ton, D. C., with the report that "our case looks good.”'

Mr. Davidson had met in Washington with Harry E. Polk of Williston, former president of the National Reclamation Association; Representative Usher L. Burdick and Senators Milton R. Young and William Langer, of North Dakota. He went there to oppose the 1.850-foot level. As the result of a meeting between Mr. Polk and Representative John Taber, chairman of the House Appropriations Committee, Mr. Davidson said he felt assured that the Williston interests and an excellent chance of winning the fight.

The Williston interests will appear before the House appropriations group in support of the lower level sometime this month. There is so much at stake in this simple question of whether the Garrison pool should be 20 feet shallower · than planned that all of North Dakota must convince Congress that the greater good would be served by the higher level.

[The Bismarck (N. Dak.) Tribune, February 16, 1954)

OUR STAKE IN GARRISON DAN

Arguments against a maximum efficiency operating pool level for Garrison Reservoir will be continued before a House Appropriation Subcommittee in Washington this week.

The issue is whether the water level in the reservoir shall be permitted to rise, in unusual years, as high as 1,850 feet above sea level, or whether it should be restricted to a maximum in the neighborhood of 1,840 feet above sea level.

Right here we might point out that also at issue, to a certain degree, is the economic feasibility of some of the State's rural electric power cooperatives, which look to Garrison Dam for the cheap power essential to their success.

Such opposition as there is to the higher level comes almost entirely from a few people in the Williston area, who assert the opinion that dikes planned in connection with the larger level would not give adequate protection to the city and nearby irrigation projects and add to this other minor objections. There is a growing feeling that such opinion in Williston or at the very least that a substantial number of people there have no objection to the higher level but that those who do are doing all the talking.

From the standpoint of the overall good of all North Dakota, there is no choice at all. A few statistics show why.

One of the primary benefits expected from Garrison Dam will be the hydroelectric power that will be generated there.

At 1,850, the dependable power capacity of Garrison generators is figured by the Army's Corps of Engineers, which is building the dam, at 250,000 kilowatts.

At 1,850, the annual power output of Garrison generators is estimated at 1,720 million kilowatt-hours.

At 1,840, this would be cut to 1,601 million kilowatt-hours-a' loss of 119 million kilowatt-hours.

No one should be more interested in these facts than the rural electric cooperatives of North Dakota and other Missouri Basin States,

It would be from them that this power would be taken. Any official or member of a power cooperative can take a look at the 20,500-kilowatt loss mentioned above, compare it with the power use of his cooperative, and see immediately what it amounts to.

Secretary of the Interior McKay recently announced that applicants for basin power seek more than double the anticipated supply through 1956. Applications ask for 747,000 kilowatts whereas only 325,000 is expected to be available.

The applications from preference customers alone total 523,000 kilowatts. Thus the anticipated supply falls 198,000 kilowatts short of meeting the heginning needs of preference customers alone, to say nothing of nonpreference applicants.

If the maximum normal operating pool level of Garrison is lowered, the disrarity between what preference customers-largely rural electric cooperatives— need and what they'll be able to get will be even greater. • On the basis of present rates, for each kilowatt-hour of power not generated at Garrison, REA's would pay about 13 mills instead of the 543 it would cost them if they got it from Garrison.

Since power costs are a sizable portion of the annual budget of every cooperative, the difference specified in the foregoing paragraph would be just about the difference between operating in the black and operating in the red.

Ob wously, the REA's must be on the side of the higher level. Yet the strange fact is that so far their spokesmen, though so violently critical of other aspects of the power program not nearly so important to them, haven't asserted their interest in this matter.

Beyond these losses of course, there would be others.

The lower reservoir at Garrison would mean less efficient river-flow regulation, reducing power output at downstream dams.

It would cut 3,600,000 acre-feet from the water-storage capacity of Garrison Reservoir, enough to put 2 feet of water on a million acres of irrigated land for a year and a half of drought.

It would increase the cost of diverting Missouri River waters to eastern and central North Dakota because more power would be needed to pump water the additional height. Power so used could not be sold, and so cooperatives would lose its benefits, and revenues which would be derived from its sale could not be

41866_54-pt. 253

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