AUTHORIZING THE FURNISHING OF WATER TO THE YUMA AUXILIARY PROJECT, ARIZONA, THROUGH THE WORKS OF THE GILA PROJECT, ARIZONA

MAY 11, 1949.-Committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Mr. MURDOCK, from the Committee on Public Lands, submitted the

following

REPORT

[To accompany S. 690]

The Committee on Public Lands, to whom was referred the bill (S. 690) to authorize the furnishing of water to the Yuma auxiliary project, Arizona, through the works of the Gila project, Arizona, and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

EXPLANATION OF THE BILL

The purpose of this bill is to authorize the furnishing of water to the Yuma auxiliary irrigation project in Arizona through the works of the Gila project.

The auxiliary project, which was authorized in 1917, adjoins the Yuma Valley project. Its water supply has been taken from the Yuma project.

Another project, the Gila project, since has been developed adjoining the Yuma auxiliary project. Water for the Gila project is diverted at Imperial Dam through the Gila gravity canal. The Gila project has a modern pumping plant that could furnish water to the Yuma auxiliary project at a cheaper cost than the present water supply furnished by the Yuma project. Therefore, the farmers in the Yuma auxiliary project request that they be allowed to obtain their water from the Gila project.

S. 690

The Yuma auxiliary project now consists of 6,319 acres. proposes to reduce the project area to 3,310 acres, most of which is settled and in cultivation. The distribution system was constructed originally for 3,810 acres, 500 acres of which are unentered lands.

The laterals designed to serve the 500 acres have not been used or maintained.

The enactment of S. 690 will permit: (1) a reduction in pumping lift from 72 to 52 feet, (2) the abandonment of approximately 4.5 miles of canal, (3) the abandonment of a small inefficient pumping plant, and (4) a decrease in seepage losses resulting from nonuse of the 4.5 miles of abandoned canal.

The limited auxiliary project still has a contract to repay a portion of its original contract with the United States, and would therefore require something more than 40 years from the present time to repay the cost of the additional works necessary to supply it from the Gila canal system and also the cost of extending and improving the project distribution system. The bill provides for such new contract to run for a period not exceeding 60 years. Such period now applies to the Gila project.

The bill will not affect in any way the Gila project as now authorized, except that a proper share of construction costs and of operation and maintenance of portions of its system will be paid by the auxiliary project.

S. 690 would permit entrymen in the original project to exchange their rights for existing nonentered lands within the 3,310-acre area of the limited project. The Interior Department advises that the lands to be exchanged would not total more than approximately 140

acres.

The bill was amended by the Senate Committee on Interior and Insular Affairs to conform to the recommendations of the Interior Department.

Further detailed information with regard to this bill is set forth below in the favorable report of the Interior Department, addressed to the Senate committee:

Hon. JOSEPH C. O'MAHONEY,

DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington 25. D. C., March 18, 1949.

Chairman, Committee on Interior and Insular Affairs,

United States Senate.

MY DEAR SENATOR O'MAHONEY: I am glad to comply with your request for an expression of my views on S. 690, a bill to authorize the furnishing of water to the Yuma auxiliary project, Arizona, through the works of the Gila project, Arizona, and for other purposes.

The principal purpose of the proposed legislation is to authorize landowners in part I of unit B of the Yuma auxiliary project to contract for water delivery through the irrigation system of the Yuma Mesa division of the Gila project and enable them to abandon their present delivery system through the works of the Yuma project. With enactment of Public Law 272, approved July 30, 1947, the Yuma Mesa division of the Gila project was limited to 40,000 acres, of which 25,000 acres are on the mesa proper. By application of such statutory limit upon the ultimate size of the Gila project, sufficient capacity is available in the Gila project common works and in the lateral system of the Yuma Mesa division thereof to supply lands within the limited Yuma auxiliary project.

Construction of the Yuma auxiliary project was authorized by special legislation contained in the act of January 25, 1917 (39 Stat. 868). The departmental public notice of October 3, 1919, designated 6,319 acres as part I of unit B of the Yuma auxiliary project development which as then contemplated would comprise an ultimate area of 45,000 acres. The public notice fixed the reasonable value of land at $25 per acre and the estimated cost of reclamation works at $160 per irrigable acre plus a proportionate share of the cost of works previously constructed for the Yuma project amounting to $40 per acre. In accordance with that notice, a public auction was authorized by the Secretary beginning December 10, 1919,

during which 438 farm units were disposed of at an average sale value of about $32 per acre. This has been the established price at subsequent private sale. The original act provided for payment of 25 percent of the purchase price at the time of sale, with the remaining 75 percent due in three annual installments with 6 percent interest on deferred payments. That act was amended by a provision enacted on February 21, 1925 (43 Stat. 962), to provide for payment in 10 annual installments at 6 percent interest on the deferred balance. S. 690 would, if enacted, modify the original authorizing legislation, as amended, to the extent of relieving future water right applicants on the limited project of the requirement for payment of a proportionate share of the construction cost of works common to the Yuma auxiliary project and the Yuma project. All water right applicants on the limited Yuma auxiliary project would be relieved of future operation and maintenance costs on account of such works.

The area of the Yuma auxiliary project would be reduced to 3,310 acres under a distribution system originally constructed by the United States in conformance with the public notice of October 3, 1919, to serve 3,810 acres. The lateral system designed to serve approximately 500 acres of unentered land is in such a poor state of repair that its use would require almost complete reconstruction. Furthermore, the land is largely of a nonirrigable class and would probably be unable to repay costs of additional work. Capacity was reserved in the common works of the Yuma project for the 45,000-acre Yuma auxiliary project and costs allocated thereto in contemplation of future development. Subsequent surveys and investigations demonstrated that the then contemplated future development of the Yuma auxiliary project could be most economically served as a part of the Yuma Mesa division of the Gila project.

Under a contract dated October 23, 1918, the Imperial irrigation district agreed to pay the United States the sum of $1,600,000 for the right to construct a canal system connecting with the Laguna Dam of the Yuma project. In pursuance of the act of June 28, 1926 (44 Stat. 776), as amended, a proportionate part of the payments made by the Imperial irrigation district was credited to lands in the Yuma project to which construction charges had been allocated and for which water-right application had been made. Like credit has been made to the waterright-application lands of the Yuma auxiliary project. Section 3 of the bill would authorize me to apply the balance of these credits as an offset against costs originally allocated to the unentered public lands contemplated for ultimate development and for which water-right application as a part of the Yuma auxiliary project is no longer feasible.

As delivery of water to the Yuma auxiliary project lands being severed by this legislation is feasible only through the works of the Gila project, no possibility exists for recovering the cost of Yuma project common works allocated to the acreage outside the reduced area of said auxiliary project. The language of the last sentence in section 1 of the bill would remove any question concerning the requirement for repayment to the United States of amounts in excess of credits referred to in section 3 of the bill.

Section 4 of the proposed legislation would authorize the Secretary to negotiate a repayment contract with a water users' organization on the limited Yuma auxiliary project for recovery of the costs of capacity used in the Gila project system. Such contract would also include the cost of necessary additional connections, rehabilitation of the distribution system, and payment of operation and maintenance charges. Such organization would not be required to underwrite amounts payable to the United States by land and water-right applicants under the act of January 25, 1917, as amended, and the enactment of February 21, 1925, nor would it be required to make payments properly allocable to said lands under this bill prior to the time that water-right application is made. Instead, the United States would retain a prior lien on all lands covered by land and waterright applications, and the repayment organization would be required to apply any payments made to it for the benefit of said lands to the debt owed the United States before applying them to its own assessments. Because of the unusual features of the act of January 25, 1917, as amended, I am of the opinion that the proposed legislation is reasonable in this regard and is not prejudicial to the interests of the United States.

Water is now delivered to the Yuma auxiliary project through the common works of the Yuma project, being diverted from the east main canal of the valley division of the Yuma project into the B supply canal which carries water for 31⁄21⁄2 miles to the B lift pumping plant where water is lifted 72 feet. A pump lift of only 52 feet would be necessary for water delivery through pumping plant No. 1 of the Gila project. With execution of a repayment contract as would

The laterals designed to serve the 500 acres have not been used or maintained.

The enactment of S. 690 will permit: (1) a reduction in pumping lift from 72 to 52 feet, (2) the abandonment of approximately 4.5 miles of canal, (3) the abandonment of a small inefficient pumping plant, and (4) a decrease in seepage losses resulting from nonuse of the 4.5 miles of abandoned canal.

The limited auxiliary project still has a contract to repay a portion of its original contract with the United States, and would therefore require something more than 40 years from the present time to repay the cost of the additional works necessary to supply it from the Gila canal system and also the cost of extending and improving the project distribution system. The bill provides for such new contract to run for a period not exceeding 60 years. Such period now applies to the Gila project.

The bill will not affect in any way the Gila project as now authorized, except that a proper share of construction costs and of operation and maintenance of portions of its system will be paid by the auxiliary project.

S. 690 would permit entrymen in the original project to exchange their rights for existing nonentered lands within the 3,310-acre area of the limited project. The Interior Department advises that the lands to be exchanged would not total more than approximately 140

acres.

The bill was amended by the Senate Committee on Interior and Insular Affairs to conform to the recommendations of the Interior Department.

Further detailed information with regard to this bill is set forth below in the favorable report of the Interior Department, addressed to the Senate committee:

Hon. JOSEPH C. O'MAHONEY,

DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY, Washington 25. D. C., March 18, 1949.

Chairman, Committee on Interior and Insular Affairs,

United States Senate.

MY DEAR SENATOR O'MAHONEY: I am glad to comply with your request for an expression of my views on S. 690, a bill to authorize the furnishing of water to the Yuma auxiliary project, Arizona, through the works of the Gila project, Arizona, and for other purposes.

The principal purpose of the proposed legislation is to authorize landowners in part I of unit B of the Yuma auxiliary project to contract for water delivery through the irrigation system of the Yuma Mesa division of the Gila project and enable them to abandon their present delivery system through the works of the Yuma project. With enactment of Public Law 272, approved July 30, 1947, the Yuma Mesa division of the Gila project was limited to 40,000 acres, of which 25,000 acres are on the mesa proper. By application of such statutory limit upon the ultimate size of the Gila project, sufficient capacity is available in the Gila project common works and in the lateral system of the Yuma Mesa division thereof to supply lands within the limited Yuma auxiliary project.

Construction of the Yuma auxiliary project was authorized by special legislation contained in the act of January 25, 1917 (39 Stat. 868). The departmental public notice of October 3, 1919, designated 6,319 acres as part I of unit B of the Yuma auxiliary project development which as then contemplated would comprise an ultimate area of 45,000 acres. The public notice fixed the reasonable value of land at $25 per acre and the estimated cost of reclamation works at $160 per irrigable acre plus a proportionate share of the cost of works previously constructed for the Yuma project amounting to $40 per acre. In accordance with that notice, a public auction was authorized by the Secretary beginning December 10, 1919,

during which 438 farm units were disposed of at an average sale value of about $32 per acre. This has been the established price at subsequent private sale. The original act provided for payment of 25 percent of the purchase price at the time of sale, with the remaining 75 percent due in three annual installments with 6 percent interest on deferred payments. That act was amended by a provision enacted on February 21, 1925 (43 Stat. 962), to provide for payment in 10 annual installments at 6 percent interest on the deferred balance. S. 690 would, if enacted, modify the original authorizing legislation, as amended, to the extent of relieving future water right applicants on the limited project of the requirement for payment of a proportionate share of the construction cost of works common to the Yuma auxiliary project and the Yuma project. All water right applicants on the limited Yuma auxiliary project would be relieved of future operation and maintenance costs on account of such works.

The area of the Yuma auxiliary project would be reduced to 3,310 acres under a distribution system originally constructed by the United States in conformance with the public notice of October 3, 1919, to serve 3,810 acres. The lateral system designed to serve approximately 500 acres of unentered land is in such a poor state of repair that its use would require almost complete reconstruction. Furthermore, the land is largely of a nonirrigable class and would probably be unable to repay costs of additional work. Capacity was reserved in the common works of the Yuma project for the 45,000-acre Yuma auxiliary project and costs allocated thereto in contemplation of future development. Subsequent surveys and investigations demonstrated that the then contemplated future development of the Yuma auxiliary project could be most economically served as a part of the Yuma Mesa division of the Gila project.

Under a contract dated October 23, 1918, the Imperial irrigation district agreed to pay the United States the sum of $1,600,000 for the right to construct a canal system connecting with the Laguna Dam of the Yuma project. In pursuance of the act of June 28, 1926 (44 Stat. 776), as amended, a proportionate part of the payments made by the Imperial irrigation district was credited to lands in the Yuma project to which construction charges had been allocated and for which water-right application had been made. Like credit has been made to the waterright-application lands of the Yuma auxiliary project. Section 3 of the bill would authorize me to apply the balance of these credits as an offset against costs originally allocated to the unentered public lands contemplated for ultimate development and for which water-right application as a part of the Yuma auxiliary project is no longer feasible.

As delivery of water to the Yuma auxiliary project lands being severed by this legislation is feasible only through the works of the Gila project, no possibility exists for recovering the cost of Yuma project common works allocated to the acreage outside the reduced area of said auxiliary project. The language of the last sentence in section 1 of the bill would remove any question concerning the requirement for repayment to the United States of amounts in excess of credits referred to in section 3 of the bill.

Section 4 of the proposed legislation would authorize the Secretary to negotiate a repayment contract with a water users' organization on the limited Yuma auxiliary project for recovery of the costs of capacity used in the Gila project system. Such contract would also include the cost of necessary additional connections, rehabilitation of the distribution system, and payment of operation and maintenance charges. Such organization would not be required to underwrite amounts payable to the United States by land and water-right applicants under the act of January 25, 1917, as amended, and the enactment of February 21, 1925, nor would it be required to make payments properly allocable to said lands under this bill prior to the time that water-right application is made. Instead, the United States would retain a prior lien on all lands covered by land and waterright applications, and the repayment organization would be required to apply any payments made to it for the benefit of said lands to the debt owed the United States before applying them to its own assessments. Because of the unusual features of the act of January 25, 1917, as amended, I am of the opinion that the proposed legislation is reasonable in this regard and is not prejudicial to the interests of the United States.

Water is now delivered to the Yuma auxiliary project through the common works of the Yuma project, being diverted from the east main canal of the valley division of the Yuma project into the B supply canal which carries water for 31⁄2 miles to the B lift pumping plant where water is lifted 72 feet. A pump lift of only 52 feet would be necessary for water delivery through pumping plant No. 1 of the Gila project. With execution of a repayment contract as would