is the production of hydroelectric energy which is a potent factor in meeting the expanding industrial development and population growth; and these industrial and population trends are closely related to the utilization of other vital natural resources found in the western half of the United States. This all will result in an expanding national economy, increase in national wealth through the utilization of natural resources, increased tax returns, and, of great importance, new opportunities and homes.

The early day reclamation of land in the West was accomplished by private financing. In 1902 after the smaller and relatively inexpensive irrigation projects were built, it was found that private financing was incapable of meeting the needs for expanding irrigated agriculture in the Western States, and Federal reclamation of arid and semiarid lands was adopted as a national policy. The early reclamation projects were relatively small and devoted, except in a minor degree, solely to the irrigation of land. In comparatively recent years the great multiple-use projects have come into the picture. Such a trend was due to the necessity of building more extensively and expensively for the control of the remaining and available water supplies in order to meet the desirable objective of obtaining every use and benefit which the water resource affords. The situation has become more complicated by the greatly increased costs of construction which has been evidenced in recent years.

Out of the present-day situation in this respect, a problem is posed as to the manner and extent to which the irrigation farmer shall financially participate in the overall Federal reclamation program. His part in this national venture has become entwined in a great undertaking for the best and highest use of undeveloped water supplies for all purposes on a basinwide scope.

This paragraph is confined to a presentation of the association's views, so far as they have thus been formulated, with respect to this problem of the irrigation farmer's obligation for the repayment of Federal reclamation project costs. For the reasons pointed out above, it seems clear that the water resource of the West will be developed as fast as the national economy will permit and that potent forces in the West will continue to demand that their economic conditions be improved as expeditiously as possible through development of the water resource. The western water conservation and utilization program is on the march and cannot, it is believed, be denied. But it is also evident, that if Federal reclamation in the West is to proceed under the conditions herein mentioned, that there must be a liberalization of Federal laws respecting terms and conditions under which irrigation water users agree to pay their share of the investment in a Federal reclamation project. In this connection, these considerations are submitted by the association:

(a) The returns from the sale of hydroelectric energy generated by a reclamation project should aid in returning that part of the construction cost allocated to irrigation which is beyond the ability of the irrigation water users to repay.

12. Power revenues should aid in repayment of irrigation costs.-Since irrigation of arid lands is the major objective in the utilization of the limited and erratic water supplies of western rivers and because the cost of Federal reclamation projects in most cases cannot be fully paid by the irrigation water users, the returns from power revenues must aid in paying project costs allocated to irrigation. It is recognized that the extent of such aid should not result in a power rate which would prevent the marketing of the energy produced; and in this connection due consideration must be given to the principle of affording reasonably low power rates under a Federal project.

The foregoing represents the views, the philosophy, and the policy as approved of the National Reclamation Association on the general subject of basinwide development and the use of power revenues to assist in repayment of irrigation costs.

Respectfully submitted.

WILLIAM E. WELSH,
Secretary-Manager.

Mr. BOWER. I want to thank the committee for your courtesies and want to say that in the Green River Basin of Wyoming we have all of the things that were outlined by Mr. Cory in the basin of Colorado, and our future, as many other parts of this great basin depends upon this project for future development.

Senator WATKINS. Thank you very much.

Do you have any questions, Senator Barrett?
Senator BARRETT. Yes.

I would like to ask you, Mr. Bower, if it is true that the people of Wyoming are nearly unanimously in favor of the Echo Park Reservoir

Mr. BOWER. I think I can state that I have heard no person in our State but what was unanimously in favor of this Echo Park Reservoir. Senator BARRETT. Secondly, I would like to ask you this question, Senator Bower. Wyoming, of course, contributes a relatively small amount, compared at least with Colorado, to the water in the Colorado River. But after all, it is about 14 percent. If we do not have these storage projects up in Wyoming, then it will be impossible for us to reap any benefits whatsoever out of the waters that originate in Wyoming; is that not right?

Mr. BOWER. That is right.

Senator BARRETT. And consequently it would be eminently unfair, solely from the basis of the contributions which we make to the waters of the Colorado, unless the projects included in this legislation are authorized and constructed.

Mr. BOWER. That is right. We feel like, if I might enlarge on that a little, this area is one of the richest in our State in mineral resources, and the energy and water that will be made available by the conclusion of these lower reservoirs will be the thing that will make it possible for us to develop these rich mineral resources that you refer to.

Senator BARRETT. The next thing I want to bring out, and which I am sure you are fully aware of, is this: That at the present moment there are no projects being constructed in Wyoming. On the other hand, as intended in the original objective of the reclamation law, the Congress proposed that the income from the public lands of the Western States should be turned back and used to develop projects which would take the place of the exhaustible resources that provided the revenue to the Treasury of the United States. Isn't it a fact that at the present time the income from the public domain in Wyoming is approximately $14 million a year, and that 5212 percent of that amount goes into the reclamation fund, which would be approximately $8.5 million and in addition 10 percent, or $1,400,000, goes into the Treasury of the United States. So all told, between the contributions to the reclamation fund and to the Treasury, about $10 million a year is coming from the soil of our State.

Consequently, the objective, even, of the original act would not be fulfilled unless we find it possible to construct reclamation projects in our State so that we can have the benefit not only of the water that originates in our confines but also that we can have some new, irreplaceable and continuing resource that would offset the exhaustible resources, to wit, the oil taken from the soil of our State.

Mr. BOWER. I certainly concur in what Senator Barrett said, and I think Wyoming is being very modest when they make the request that we have made this year to get projects started in our State.

Sentor BARRETT. I congratulate you on your fine statement, Senator Bower.

Senator WATKINS. Thank you.

The record should show that Senator Daniels, of Texas, a member of the committee, is also attending the hearings.

We have one other witness, I think, whose testimony will not take long to present, Mr. H. T. Person.

Mr. Person?

Senator BARRETT. Mr. Chairman, the next witness is an old friend of mine. He has been on the University of Wyoming faculty for nearly 30 years. He is presently the dean of the College of Engineering at the University of Wyoming, and a splendid one at that. He is an outstanding man in his field. He has contributed, in addition to his work at the university above and beyond his requirements as dean of the college, a tremendous amount of time and effort for the development of our State. We consider him one of our most valued citizens of Wyoming.

STATEMENT OF H. T. PERSON, DEAN OF ENGINEERING, UNIVERSITY OF WYOMING, LARAMIE, WYO.

Mr. PERSON. Thank you, Senator Barrett.

Mr. Chairman and members of the committee, since Senator Barrett has so kindly outlined my experience, I will skip the first statement. I am making this statement for the Wyoming resources Board and the State engineer's office of Wyoming.

The bill under consideration by the committee proposes the authorization for construction of 5 initial units of the so-called Colorado River storage project and 15 participating projects. Of the 5 storage units included in the bill, none are in Wyoming. Three of the proposed participating projects are in Wyoming.

The proposed storage units included in the bill are essential to make possible the maximum ultimate utilization of the water resources of the upper Colorado River Basin. The storage units are essential to permit the use by the upper basin States of the water allocated to them under the 1922 Colorado River compact. They are necessary to the upper basin States in connection with meeting the minimum flow obligations at Lee Ferry imposed by the 1922 Colorado River compact. The power revenues from the proposed storage units are essential in connection with the proposed irrigation development in the upper basin States, since the irrigation development needs aid from either power revenues or other sources.

The three participating projects in Wyoming are the LaBarge, Lyman, and Sneedskadee projects. These three projects will irrigate about 68,000 acres of new lands, and provide a supplemental water supply to about 40,000 acres of land which are already under irrigation. The total water depletion resulting from these three proposed projects will be about 125,000 acre-feet. With these three projects completed, Wyoming will be using only about 35 percent of the water allocated to it under the 1948 upper Colorado River Basin compact. To make further use of the water allocated to Wyoming will require the Kendall and other storage reservoirs in Wyoming.

The water users under the three proposed participating projects in Wyoming will be able to repay about 21 percent of the cost of these projects in a 50-year period. The remainder of the costs can and we believe should be repaid from power revenues from the units of the Colorado River storage project.

The future economy of the Colorado River Basin in Wyoming is primarily dependent on the use of Wyoming's Colorado River water

resources. Without the Colorado River storage project, the future development of this area would be very limited. The early authorization of the Colorado River storage project and participating projects is especially important to the Rock Springs area. Because of the slump in the coal-mining activities, the Rock Springs area is today an economic distress area. Information in regard to the Rock Springs situation was presented by the Wyoming Natural Resources Board at the House hearings on these projects, and I refer you to pages 295 and 296 of the House hearings on House bills H. R. 4449, H. R. 4443, and H. R. 4463.

The plan of development for the use of the water resources of the upper Colorado River Basin proposed under this bill is, we believe, one that will result in the fullest ultimate development of the basin and its resources. The program is the result of many years of investigation by the Bureau of Reclamation and the upper Colorado River Basin States. The proposed storage units are necessary to permit irrigation development in the upper basin. The storage units will furnish a source of power which will be needed to meet the expanding economy of the area. The storage units will enhance the recreational facilities of the area. The storage units will furnish benefits to fish and wildlife. The storage units will provide benefits to sediment control which will prolong the useful life of Lake Mead. The storage units and participating projects will provide water and power resources of the upper Colorado River Basin.

The completion of the units of the Colorado River storage project and the participating projects proposed and under this bill, will result in a total water use in the upper Colorado River Basin, which will be only about 50 percent of the water use allocated to the upper basin by the 1922 Colorado River compact.

In regard to Echo Park Reservoir-this unit is one of the very important units in the team of storage units necessary for the fullest development of the water resources of the Colorado River Basin. Its strategic location below the confluence of the Green and Yampa Rivers, its low evaporation losses and its contribution to maximum. power production makes it an essential unit to the upper basin development. We acknowledge and appreciate the grandeur—and the spiritual and aesthetic values of the canyons at Echo Park. We do not believe the Echo Park Reservoir will destroy these values. Some of us in Wyoming, but not I, are even daredevils enough to appreciate running the river rapids in the Echo Park area. Echo Park Reservoir will eliminate some sections of these rapids-but there still are hundreds of miles of river rapids in the vast areas of the upper Colorado River Basin. Also we feel that the construction of Echo Park Reservoir will make the grandeur and the recreational values of this vast area available to tens of thousands of people every year-rather than to just the few hundreds that now have the opportunity. We feel that the evidence is clear that the people of this area were given assurance at the time the Dinosaur National Monument was extended to include the Echo Park area, that the establishment of this extensive monument would not interfere with the development of the water resources of the area.

In closing, I might summarize by saying we feel that the authorization of the Colorado River storage project and participating projects proposed under this bill is the essential first step in making pos

sible the use of the water resources of the upper Colorado River Basin. It is a step that determines the future economy of the area in Wyoming, and every other State of the upper basin. It is an important step in the development of the mineral resources of the entire upper Colorado River Basin. It is an important step in the development and fullest utilization of the recreational resources of the basin. Thank you.

That concludes my statement, Mr. Chairman. Thank you.
Senator WATKINS. Thank you, Mr. Person.

Senator BARRETT. Mr. Chairman, I would like to ask Dean Person a couple of questions. Isn't it true, Dean Person, that we have a shortage of power throughout Wyoming at the present time? Mr. PERSON. Yes, sir; it is, Senator Barrett.

Senator BARRETT. And is it not also true, Dean Person, that in southwestern Wyoming there has been a considerable change in the employment possibilities for our people over there, first, because of the fact that the coal mines have been curtailed and in some instances closed down permanently, and secondly, that there has been chemical developments over there that have provided employment for a good many other people?

Mr. PERSON. Yes.

Senator BARRETT. And the possibility, then, of the development of a chemical industry in southwestern Wyoming will depend largely upon the amount of power that will be available and, of course, the cost of that power?

Mr. PERSON. I think that is unquestionably true, Senator Barrett. Senator BARRETT. For that reason we in Wyoming are extremely interested in having this project constructed, first so that we can use the water to bring more irrigation underway, and secondly, that we can have the power for the economic development of Wyoming, and thirdly, so that the power will help pay the cost of the project? Mr. PERSON. Yes, sir.

Senator BARRETT. I want to congratulate you, Dean Person, on your statement. I think it is an excellent statement.

Senator WATKINS. I join with Senator Barrett. Thank you very much.

Mr. PERSON. Thank you, gentlemen.

Senator WATKINS. At this point we will hear witnesses from the State of Texas.

Senator Daniel, whom I have already mentioned, will make a presentation before calling the first witness.

STATEMENT OF HON. PRICE DANIEL, UNITED STATES SENATOR FROM THE STATE OF TEXAS

Senator DANIEL. Could I ask Mr. Gregg and the other witnesses to come up to the table so you will be closer?

I may need your help for my own statement.

I regret to be in the position of objecting to any portion of this bill. I would like to be able to support the bill that is finally reported out of this committee. But I cannot do it with one project which is included in the bill but which was eliminated by the House committee.