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Main canal cast ($480,000).—For progress payments on a construction contract to be awarded early in the fiscal year.

Main canal west ($94,000).—For progress payments on a construction contract to be awarded early in the fiscal year.

Laterals ($645,500).—A contract for construction of the lateral system will be awarded and work started.

Drains ($5.410).-These funds will permit continuation of preconstruction surveys and studies.

Pumping substations ($115,690). This amount will provide for procuring major items of electrical equipment and for initiating construction installation contracts.

General property ($65,000).-For constructing two operators' houses, and for purchase of operating equipment.

MINIDOKA PROJECT, NORTH SIDE PUMPING DIVISION

Mr. KIRWAN. Minidoka project, north side pumping division, Idaho, pages 16 to 20 will be inserted in the record. (The information referred to is as follows:)

CONSTRUCTION AND REHABILITATION

MINIDOKA PROJECT, NORTH SIDE PUMPING DIVISION, IDAHO

Location. Minidoka and Jerome Counties of south-central Idaho, in a crescentshaped area bordering the northern boundary of the Minidoka Irrigation District.

Authorization.-Act of September 30, 1950 (64 Stat. 1083).

Benefit-cost ratio.-3.56 to 1.

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10, 514, 000

Allocation of total estimated project cost: Reimbursable: Irrigation.

9, 869, 863

1 Consists of $700,000 cost of settler assistance and $55,000 excess costs of irrigation pumping in fiscal years 1956 and 1957 prior to availability of Palisades power.

2 $644,137 for substations and transmission to be returned through rate for irrigation pumping power.

Repayment of reimbursable costs

Credits (water rents, grazing, etc.).

By irrigation water users on-site costs_

Subtotal, on-site costs--.

By irrigation water users, allocations: Storage allocation from
American Falls and Palisades Reservoirs----.

$430, 576 9, 439, 287

9, 869, 863

881, 000

Total____

10, 750, 863

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Repayment contracts.-The cost of the irrigation facilities of the North Side pumping division will be repaid by water users. The North Side pumping division consists of public lands. After a reasonable portion of land passes to private ownership, a water users organization will be formed and a repayment contract will be negotiated.

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Status. As of June 30, 1955, drilling of groups 1, 2, and 3 deep wells (unit B) was completed and contracts were awarded for remaining unit B wells (groups 4, 5, 6, and 7). Construction of group 2 laterals was completed with group 3 laterals 59 percent complete. Construction of unit A pumping plant, awarded in May 1955, was approximately 13 percent complete, and unit A main canal was 61 percent complete. During fiscal year 1956 work will be performed on the unit A pump plant and main canal, unit A laterals and relifts, groups 3 and 4 laterals including completion work, and drilling of groups 4, 5, 6, and 7 wells. Also some drainage work in unit B area and general property work will be performed. As of June 30, 1956, the project will be approximately 58 percent complete.

Unit A

WORK PROPOSED, FISCAL YEAR 1957

Main pumping plant ($61,019).-For completion of unit A pumping plant. River diversion and excavation for the plant and discharge pipe is complete and manufacturers of pumps and motors is underway.

Main canal ($2,495). The construction work will be complete on the canal in fiscal year 1956. These funds will cover noncontract costs in priming and puddling.

Unit A laterals ($147,847).—The program provides for completion of unit A laterals and relifts. The contractor is underway on this construction and early completion is promising.

Unit A drains ($10,000).-For start of the necessary drainage works.

Unit B

Deep wells ($1,187,356).—The program provides for the completion of drilling of groups 4, 5, 6, and 7 wells, completion of group 4 pumping unit installations and pumping transformers, and furnishing of pumps, motors, and motor controls on groups 5, 6, and 7.

Unit B laterals ($459,790).—This amount required for the completion of group 4 laterals and the start of construction of groups 5, 6, and 7.

Unit B drains ($40,000).-For drilling drainage wells and construction of drainage channels and structures as required to handle drainage problems as they develop.

Pumping substations ($552,306).-These funds are required for the purchase of group 1 pumping substations, bringing all such small substations to common ownership by the Government, and to complete construction of group 4 pumping substations, and start construction on the pumping substations for group 5, 6, and 7 wells.

General property ($208,300).-Eight houses will be constructed. Four will be ditch rider residences, 2 will serve the unit A pumping plant operators and 2 will be watermaster residences. Operation equipment will be acquired and warehouse buildings and equipment storage buildings will be constructed at the watermaster locations.

Mr. KIRWAN. What are the present power-supply arrangements? Mr. NELSON. The Minidoka north side pumping division will be served by power from Palisades Reservoir now nearing completion on the Snake River.

Mr. KIRWAN. Estimated total cost includes $644,137 for transmission lines and substations. What is the contemplated plan under this item?

Mr. NELSON. In the Minidoka north side project authorization transmission line was provided from American Falls to the project area to service some 179 wells. Since that time a wheeling agreement has been negotiated with the Idaho Power Co. to wheel energy from Goshen substation at the terminal point of Palisades project to the Minidoka project.

MICHAUD FLATS

Mr. DAVIS. Give me the background of the increase in cost of about 800 plus thousand dollars on Michaud Flats.

Mr. NELSON. On the Michaud Flats project following authorization it was necessary to work out very carefully a definite plan report along with a definite repayment contract. In connection with that the final acreage was increased about 500 acres from 11,000 acres to 11,550 acres. Also it was determined that part of the area would need to be served from wells and pressure pipelines which area originally had been contemplated to be served from an open pump lateral, and the final plan requires sprinkler irrigation. That is responsible

for the increase.

Mr. DAVIS. What did that do to the benefit-cost ratio?

Mr. NELSON. The benefit-cost ratio as now calculated is 2.5 to 1.
Mr. DAVIS. That increased cost affected it very little, then?
Mr. NELSON. That is correct, sir.

Mr. DAVIS. That is all I have.

PALISADES PROJECT, IDAHO

Mr. KIRWAN. Palisades project, Idaho, page 22. Pages 22 to 27 for the record.

(The information referred to is as follows:)

CONSTRUCTION AND REHABILITATION

PALISADES PROJECT, IDAHO

Location.-At Calamity Point on the South Fork of the Snake River, about 8 miles west of the Idaho-Wyoming boundary, 57 miles east and upstream from Idaho Falls, Idaho.

Authorizations.-Initially authorized in 1941 as the Palisades Dam and Reservoir project by presentation to the President and Congress of a report and findings by the Secretary of the Interior on December 9, 1941, under the provisions of section 9 of the Reclamation Project Act of 1939 (53 Stat. 1187). The project was reauthorized under the act of September 30, 1950 (64 Stat. 1083). Benefit-cost ratio.-2.25 to 1.00.

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The total estimated cost of the Palisades project has been reduced from $74,400,000 to $63 million. This reduction results from the receipt of bids lower than the engineers' estimates, the adjustment of estimated quantities to actual quantities as disclosed by construction operations, and a reduction in administrative and supervisory costs based on experience to date. Application of these three factors to the major features of the project has resulted in the following rounded-out deductions:

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1 Subsequent to the previous estimate, the Goshen to American Falls, 115-kilovolt transmission line was eliminated from the project plan in favor of a wheeling contract with a private power company.

Total estimated project cost and allocation

Total estimated project cost to be allocated: Total construction cost $63, 000, 000

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1 Includes storage costs allocated to North Side pumping division of the Minidoka project and the Michaud Flats project.

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.36

Annual water user charges: Water service charge (average) ‒‒‒‒‒‒‒‒‒ Repayment. Contracts for 712,000 acre-feet of irrigation space, as $9 per acre-foot, which involve provisions for water savings have been entered into with 41 water users organizations. Agreement has also been reached on the basic principle involving the balance of the space. Processing of the contracts is well underway. The rate of $9 per acre-foot of storage space was based upon studies of the value of the supplemental and insurance water provided by Palisades to the lands under irrigation in the upper Snake River Basin.

Contracts for wheeling services and for the sale of secondary and dump power to the Utah Power & Light Co. and the Idaho Power Co. have been negotiated and are being reviewed for final approval. Preference customers hold future delivery contracts for all Palisades firm power and final sales contracts with these customers will be completed after wheeling arrangements with the Utah Power & Light Co. have been finalized.

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Status.-Preconstruction surveys were started in 1945 and the first 2 contracts were awarded in 1949. Full-scale construction activities started in December 1951, when a contract was awarded to excavate the outlet and power tunnels. The prime contract was awarded in April 1952. One June 30, 1956, the project will be approximately 79 percent complete.

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