(Governor Exon's statement follows:) STATEMENT OF HON. J. J. EXON, GOVERNOR, STATE OF NEBRASKA Mr. Chairman and Members of the Committee, it is a pleasure to have an opportunity to support the North Loup Reclamation Project before this Committee. Frequently as Governor, I'm requested to support a variety of projects and programs which are either untried or of questionable value. Usually the public is divided and it's sometimes a difficult decision as to what finally deserves strong support. In the case of the North Loup Project this happily is not a problem. I suspect that few projects will come before this Committee with the complete harmony of support that now exists for this project. Mr. Dan Jones, Director of the Nebraska Department of Water Resources, Mr. Dayle Williamson, Executive Secretary of the Soil and Water Conservation Commission, and Mr. Vince Dreeszen of the Conservation and Survey Division of the University of Nebraska are here today and will either be discussing the technical aspects of this project in their testimony or will be available to answer questions. Therefore, instead of discussing the technical aspects of this project, I would like to make a few general points regarding the importance of this project to all of Nebraska and the reason for its great support. As all of you know, Nebraska is predominately a rural state. We have villages and urban areas, but the overwhelming characteristic of the State in terms of area and in terms of our economy is rural. Agriculture dominates today's economy and it appears certain that it will continue to do so for the foreseeable future. Only from the resources of the soil and water can we sustain and improve our economy in Nebraska. We have no metallic minerals which are commercially worthwhile, and our non-metallic minerals mining is very small in size. Our timber industry supplies only a limited local market. The result is that in terms of the alternative opportunities for economic development, both rural and urban, Nebraska cannot look forward to mining and timber nor do we have the ready access to markets or have the industrial complex to bootstrap ourselves up through manufacturing. Our future depends very definitely on increasing and stabilizing our agriculture. For this reason, development of our land and water resources is of unusual importance to Nebraska. This development is absolutely essential if we are to build and maintain the vigorous economy required to hold our youth in the State and on our many family farms. Within the Loup River Basin, the great importance of land and water development is well recognized. Practically the entire economy of the area depends on successful crop production. When crops are unsure or when they fail, the repercussions run throughout the livestock and ag-related industries as well as the cities and villages of the basin. The whole economy of the project area has been depressed for years and we have the opportunity through this project to make rural development a reality. The freedom from drought that this project can provide will be the freedom for the farmer to plan, to invest, and to prosper along with the rest of America. Water is the lifeblood of agriculture and particularly in this area. Where the resources of land can be joined with plentiful water, the opportunity is great. In years past there were differences of opinion between those upstream and those downstream on how the waters of the Loup River Basin should be managed and used. The great need for this project has caused people to put aside their differences. The project as now proposed represents an equitable and reasonable settlement of old differences and is the basis of the harmonious support I described earlier. This upstream-downstream agreement is very significant in developing the environmental aspects of this project. The Twin Loups Reclamation board members willingness to leave the rivers' flows in status quo during all Julys and Augusts is a big step in preserving the environment. The social, economic and human environmental pluses of the project far outweigh any estimated adverse effects. We in Nebraska are convinced of the many benefits which will come from this project. Reclamation is no newcomer to Nebraska and we know that the past projects have had benefits for people far beyond the numbers of the benefitcost ratio. The Missouri River Basin Project envisioned the development of the basin and the State of Nebraska has consistently supported that broad plan of development. Many parts of that major national effort have been completed and have drastically changed our part of the midwest in a most favorable way. I urge you to continue with that overall plan of development through the North Loup Division. Every project faces a series of hurdles on the way to authorization and the North Loup Division has been no exception. It should be pointed out that the project has met all the economic tests but more importantly, it has met the people test. Differences on the project from upstream and downstream have been resolved. The project has been endorsed as a principal part of Nebraska's Statewide plan for developing our water resources. Finally, the Legislature has, without a single objection, endorsed the project and joins me in urging early authorization and funding of the North Loup Division. The reservoirs associated with this project will be a positive addition to the face of our State and I expect that they will be heavily used to provide recreation for Nebraskans and for visitors alike. Mister Chairman and Members of the Committee, the North Loup Division is urgently needed and I wholeheartedly support its authorization. Mr. JOHNSON. Our next witness will be Dan S. Jones, the director of the Department of Water Resources, State of Nebraska. STATEMENT OF DAN S. JONES, DIRECTOR, DEPARTMENT OF WATER RESOURCES, STATE OF NEBRASKA Mr. JONES. Mr. Chairman, members of the committee, I appreciate this opportunity to appear before you in support of H.R. 869. My name is Dan Jones. I am director of the Nebraska Department of Water Resources. This department has jurisdiction over matters pertaining to water rights from natural streams and also jurisdiction in connection with the formation of irrigation districts and reclamation districts. The Twin Loups Recreation District which is within the North Loup Division was formed in 1954. The Twin Loups Irrigation District also in the division was organized in 1958. So with these two districts available, the necessary local entities are there to contract for repayment of the project. Now, previous witnesses have mentioned the fact that the water, the natural flow in July and August, and in some Septembers, to be passed and storage water only will be used for this project. In order to implement this, it would be necessary in granting permits to appropriate water to the Twin Loups District that this be included in those permits. And there was a stipulation entered into between the Twin Loups Districts and the Lower Loup Platte Association regarding this. I am in accord with this stipulation which was entered into on February 19, 1969. It provides that the department in approving the districts' water rights shall impose the condition that no natural flows of the North Loup or Calamus Rivers may be diverted for the irrigation of lands in the North Loup Division during the months of July and August of any year, and also in September if storage water is available at that time. Through this stipulation it is assured that irrigation on the North Loup Division will not deplete the water supply of the Calamus and North Loup Rivers during those months. This concludes my statement and I urge that the committee act favorably on H.R. 869. Mr. JOHNSON. Do you approve of the increased size of the dam to store additional waters which will allow for the natural flow to bypass the dams in the months of July, August, and September? Mr. JONES. That is correct. Mr. JOHNSON. You say that there is going to be a sufficient supply of water to take care of the irrigation of the 52,000 acres, some of it new land and the other a supplemental supply? Mr. JONES. That is true. The water supply is available. Mr. JOHNSON. Now, do you also believe that there is a need for water in the area due to the lowering of the water table? Mr. JONES. Yes, sir. Mr. JOHNSON. The gentleman from Idaho, Mr. McClure. Mr. MCCLURE. Thank you, Mr. Chairman. I assume from your studies you have satisfied yourself that there will be sufficient storage capacity and sufficient average annual runoff to meet the needs of maintaining the flows in the rivers? Mr. JONES. Yes. A long time record indicates that that is true. Mr. McCLURE. Even in the month of September? Mr. JONES. Yes. Using storage water in September. Mr. MCCLURE. Using storage Mr. JONES. Using storage water in some Septembers and parts of September. Mr. McCLURE. To maintain the streamflow? Mr. JONES. No. To supply the project. It is not intended that the storage water will supplement the streamflow. Mr. McCLURE. I had not understood that that was the case but I notice from the stipulation which you referred to that the streamflow is guaranteed for the months of July and August and not really a guarantee for the month of September, is that correct? Mr. JONES. I believe that is the agreement. Other people will talk about that. Members of the Lower Loup Platte Association will follow me and I think they will explain that a little more fully. Mr. McCLURE. From your long association with these problems and your long acquaintance with this district, do you think the 160acre limit is going to pose a difficulty in this area? Mr. JONES. I really have not looked into that, sir. I would not hazard an opinion on it. Mr. McCLURE. Thank you very much. I have no further questions. Mr. JOHNSON. Thank you, Mr. Jones, for your testimony and your appearance here today. Mr. JONES. Thank you, gentlemen. (Mr. Jones' statement follows:) Re H.R. 869. Hon. WAYNE N. ASPINALL, STATE OF NEBRASKA, DEPARTMENT OF WATER RESOURCES, Chairman, Committee on Interior and Insular Affairs, House of Representatives, Longworth House Office Building, Washington, D.C. DEAR MR. CHAIRMAN: The following is a statement that I wish to make on H. R. 869, a bill to re-authorize the North Loup Division of the Pick-Sloan Missouri River Basin Program: My name is Dan S. Jones, Jr., and I am Director of the Nebraska Department of Water Resources, a position I have held for more than twenty years. The Department has jurisdiction over all matters pertaining to water rights for irrigation, power and other useful purposes. It also has jurisdiction in the formation of irrigation districts, reclamation districts and other types of water districts. I have followed closely the plan of the North Loup Division since its inception. The formation of the Twin Loups Reclamation District, a conservancy type district organized within the North Loup Division, was approved by the Department in 1954, and the Twin Loups Irrigation District formation was approved in 1958. With these two districts functioning the necessary local entities are available to enter into repayment contracts with the Bureau of Reclamation for the North Loup Division. I am in accord with the stipulation entered into on February 19, 1969, by the Twin Loups Reclamation District and the Lower Loup Platte Association, which provides that the Department in approving the district's water rights shall impose the condition that no natural flows of the North Loup or Calamus Rivers may be diverted for the irrigation of lands in the North Loup Division during the months of July and August of any year, and also in September if storage water is available at that time for such lands. Through this stipulation it is assured that irrigation on the North Loup Division will not deplete the water supply of the Calamus and North Loup Rivers during those months. The North Loup Project is a desirable one, and I urge that your Committee support its authorization by acting favorably on H. R. 869. Sincerely yours, DAN S. JONES, Jr., Director. Mr. JOHNSON. Our next witness will be Mr. Ted Johnson, the chairman of the Nebraska Soil and Water Conservation Commission. STATEMENT OF TED JOHNSON, CHAIRMAN, NEBRASKA SOIL AND WATER CONSERVATION COMMISSION; ACCOMPANIED BY CARROLL HAMMOND, PLANNING DIVISION, NEBRASKA SOIL AND WATER CONSERVATION COMMISSION Mr. TED JOHNSON. Mr. Chairman, I have with me Mr. Carroll Hammond, of our planning division of the commission. Mr. Chairman, members of the House Subcommittee on Irrigation and Reclamation, I am Ted Johnson, chairman of the Nebraska Soil and Water Conservation Commission. I welcome this opportunity to state the commission's position in favor of authorization of the North Loup District project in Nebraska. Among its several authorities the commission has the responsibility to plan, develop, and encourage the implementation of a comprehensive program of resource development, conservation, and utilization for the soil and water resources of Nebraska. This broad responsibility assigned by the State legislature is reflected in the composition of commission members and advisers which represent municipal and industrial water users; watershed districts; soil and water conservation districts; irrigation districts; health officials; recreation interests; power interests; the Governor's office; and the University of Nebraska. As part of the broad responsibility for water and related land resources planning, the commission is charged with preparation of Nebraska's State water plan. In May 1971, the commission completed and presented to the Nebraska Legislature a report on the framework study which is to act as a broad flexible guide for future water resources development in the State. After review of the framework study report the legislature adopted a resolution accepting the framework study as a flexible guide for in-basin development of the State's water resources. The North Loup project is included in that basic framework for development and is an integral part of Nebraska's State water plan. Just last month the legislature adopted resolution 44 urging the Congress to provide early authorization and funding of the North Loup Division. A copy of that resolution is attached to the statement submitted for the record. Legislative resolution 51 of the last legislative session requested similar action. A copy of that resolution is also attached. Residents of the local area that would be affected by project construction have for nearly 25 years worked enthusiastically for this project. In 1954 the desire for the project was shown by formation of the Twin Loups Reclamation District. Residents of the area to be benefited from the project have worked long and hard to bring the project proposal from an idea in rural Nebraska to where it is before you here today. At the beginning of Nebraska's State water planning activities, this project was examined by the Nebraska Soil and Water Conservation Commission. They issued a policy statement which urged the Congress of the United States to take early action to authorize the North Loup project for construction and operation as part of the Missouri River Basin project. That policy statement was unanimously adopted by the commission on November 2, 1967. It was reaffirmed last month and a copy is attached to the statement submitted for the record. At the field hearings conducted by this subcommittee in Ord, Nebr., on July 17, 1970, the commission, along with four other State agencies and the Governor of Nebraska, presented statements encouraging authorization of the North Loup project. You may recall that at those field hearings support for the project was demonstrated all the way from the individual farmer to the State level. Nothing has changed, the support is still there. Nearly 53,000 acres in the valleys of the Loup and the North Loup Rivers are suitable for irrigation and could be supplied with water from this project. Neither ground nor surface water is presently available to supplement the naturally low precipitation in this area. Irrigation water supplied from this project would provide for the diversification of crops which in turn would help stabilize the rural economy. This area of the State has, in the past, experienced outmigration of population and all of the problems which accompany it. Irrigation and resulting stabilization of the rural economy would help hold the youth in the area and lessen the impact of migration into urban centers. Although this is mainly an irrigation project, recreation, fish and wildlife benefits will be realized. These benefits are estimated to be relatively small, but past experience shows that we generally underestimate these activities around water areas. This does, of course, result in nearly 99 percent of the estimated project costs being reimbursable to the Federal Treasury. In addition, the irrigation district sponsoring the project has provided a letter of intent |