Mr. JOHNSON of Oklahoma. My notes show an increase of $5,000 from power revenues. There is an increase from $75,000 to $80,000 under this language. Mr. WATHEN. There is an increase of $5,000 under the power-revenue item; $2,000 is the net increase. COMMERCIAL EXPENSES Mr. RICH. Last year, in connection with the Flathead Reservation, you had some commercial expenses, amounting to $35,000. Would they fall in line as an expense again on account of recurring items this year? Mr. WATHEN. Yes, sir. There we are maintaining and operating a quite extensive power system, delivering power to towns in that vicinity and a number of other customers. The additional request for power expense is to take care of the necessary extensions, setting poles, and so forth, and for the regular maintenance and operation of the power system. PURCHASE OF POWER Mr. RICH. Do you buy power at this reservation? Mr. WATHEN. We buy power now from the Montana Power Co., in accordance with the Federal Power Commission license issued to the Rocky Mountain Power Co., and taken over by the Montana Power Co. after the construction of the Flathead River Dam. Mr. RICH. What are you paying for this power? Mr. WATHEN. We secure the first 5,000 horsepower at 1 mill per kilowatt-hour. That is for use on the project. The next 5,000 horsepower we secure at 1 mill per kilowatt-hour, and the next 5,000 horsepower we secure at 21⁄2 mills per kilowatt-hour; so that we are making a profit on what we buy and sell. Mr. RICH. It would seem that the more you use the more they charge. As a rule, the more you use the less the price. Mr. WATHEN. That is true, but in this particular case the 1-mill rate represents a part of the compensation to the Flathead Indians for the use of the power site. Mr. LEAVY. That power site is owned by the Flathead Indian Reservation? Mr. WATHEN. Yes, sir. Mr. LEAVY. Who constructed the power dam there? Mr. WATHEN. The Montana Power Co. Mr. LEAVY. Under a license? Mr. WATHEN. Yes, sir; under a license issued by the Federal Power Commission. Mr. LEAVY. And they get the power output? Mr. WATHEN. Yes, sir. Mr. LEAVY. This power you buy at the rate of 1 mill per kilowatthour is secondary power, or dump power, that you buy at the highwater season? Mr. WATHEN. Yes, sir; we buy it for use during the irrigation season. The second 5,000 kilowatt-hours is prime power. We get that for 1 mill and use it on the project. Mr. LEAVY. What is the price of the other? Mr. WATHEN. The other is 211⁄2 miles per kilowatt-hour. That is also prime power. Mr. LEAVY. Do you know what is the capacity of the plant for prime and secondary power? Mr. WATHEN. The plant consists of three units, of 104,000-kilowatt capacity. Mr. LEAVY. Nearly 150,000 horsepower. Mr. WATHEN. Yes, sir. Mr. LEAVY. After a certain number of years, does this undertaking revert back to the tribe? Mr. SOUTHWORTH. It is 50-year license. Mr. WATHEN. At the end of that time the entire plant reverts to the tribe. IMPROVEMENT AND MAINTENANCE, IRRIGATION SYSTEMS ON THE CROW RESERVATION, MONT. Mr. JOHNSON of Oklahoma. The next item, on page 173, is for the improvement, maintenance, and operation of the irrigation systems on the Crow Reservation, Mont. The current appropriation is $40,000, and the same amount is estimated for 1941. That appears to be a reimbursable item, and there is no change in it. JUSTIFICATION OF ESTIMATE Mr. GREENWOOD. No, sir. I submit the following justification for the record: Appropriation, 1940_ $40,000 40, 000 The Crow irrigation project embraces 13 units or systems all lying within the Crow Indian Reservation. Irrigation facilities were first constructed in 1885, and the work done then is now a part of one of the present units. Since that time extension of irrigation works proceeded more or less continuously until 1925. The water supply for all units with the exception of one has not been entirely satisfactory. Utilization of the irrigable land progressed satisfactorily through the years and has now exceeded the point for which there is an adequate water supply. In this connection there are many private irrigation systems diverting from the same streams supplying the Government systems. Land use was greatly enhanced by the construction of a sugar mill in the vicinity of the project which went into operation during the season of 1937. This has created a demand for better water facilities and has resulted in the initiation of a new phase of irrigation construction work on the reservation, viz, the development of storage to supplement natural stream flow during recurring annual periods of low flow to provide an adequate water supply for lands now under constructed canals and for potentially irrigable lands not now provided with irrigation facilities. At the present time there is under construction a dam to impound 23,000 acrefeet of water which will provide a supply for a part of the irrigable lands of the reservation. Studies are being made looking toward the location of still other storage sites to be developed when the utilization of irrigable land is extended to the point where presently available supplies are again overtaxed. With the completion (spring of 1941) of the present storage development there will be a considerable increase in the demand for water deliveries. Consequently, canals and structures which have fallen into disrepair will be put into operation and will require considerable rehabilitation to function properly. The increase in land use will, of course, be gradual, developing over a period of years; nevertheless, the increased maintenances and rehabilitation work must keep pace and even precede the increased demand for water deliveries in order to maintain satisfactory water service. For the past many years this project has been operated and maintained on a very restricted budget, as reflected in the comparatively low annual operation and maintenance assessments. Maintenance has been neglected wherever possible to defer it with the resulting gradual deterioration of plant. The proposed expenditures for the fiscal year 1941 consist of the following: 1. Distribution system- A summary of project information and statement of collections follow: Date project completed, or approximate date of completion. Construction repayments on cost to June 30, 1939. Operation and maintenance costs to June 30, 1939_ Annual operation and maintenance assessment (per-acre rate)_. $30, 700 3,000 100 4,500 400 1,300 40,000 1885 1945 $2, 189, 661. 89 $23, 342, 25 $1, 627, 985. 67 $0.95 $625, 330.61 PAYMENT TO TONGUE RIVER WATER USERS' ASSOCIATION, MONTANA Mr. JOHNSON of Oklahoma. The next is a new item, and it is reimbursable. This item is "for payment to the Tongue River Water Users' Association, Montana, or the State Water Conservation Board of Montana, in accordance with the provisions of the act of August 11, 1939, $19.500, reimbursable as provided in said act.” JUSTIFICATION OF ESTIMATE Mr. GREENWOOD. I submit the following justification in support of the item: Appropriation, 1940__ Increases requested for 1941: Purchase of water right.. Total estimate, 1941. $19,500 19,500 The act of August 11, 1939 (Public, No. 392, 76th Cong.), authorized the Secre tary of the Interior to enter into a contract with the State Water Conservation Board of Montana and the Tongue River Water Users' Association for participation in the costs and benefits of the Tongue River storage reservoir project for the benefit of lands embraced in the Tongue River Indian Reservation. By this contract there will be acquired a perpetual right to 7,500 acre-feet of water annually. The estimated total cost of the project is $1,200,000 and the cost to the United States $360.750. The latter sum is payable over a period of 37 years, beginning December 15, 1939, the annual payment being $9,750. The amount requested in this estimate will cover the payments due December 15, 1939, and December 15, 1940. The above act also provides for payment by the United States of a pro rata share of the operation and maintenance costs each year. The estimate for the calendar years 1939 and 1940 is $1.500, or $750 per year, and this sum has been included in the 1941 estimate for the operation and maintenance of the Tongue River project. The pertinent provisions of the act of August 11, 1939, are quoted below: That the Secretary of the Interior be, and he is hereby, authorized and directed to execute a contract with the Tongue River Water Users' Association, a Montana corporation, and the State Water Conservation Board of the State of Montana, providing for the acquiring of a right to the use annually of seven thousand five hundred acre-feet of water from the Tongue River Reservoir project for the irrigation of lands on the Tongue River Indian Reservation, Montana, now without an adequate supply of water, and for the payment therefor of a proper proportionate share of the construction costs of the project: Provided. That the cost to the United States shall not exceed a total amount of $369,750, which amount, or so much thereof as may be necessary, is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, to be paid in not to exceed thirty-seven annual installments beginFing on December 15, 1939, and continuing thereafter until the entire construction costs properly assessable against the Indian lands benefited shall have' 211881-40-pt. 2- -17 been paid: Provided further, That said contract shall also make provision for payment of the annual operation and maintenance charges properly assessable against the United States on account of its participation in the benefits of said project, and the necessary money to pay such operation and maintenance charges is hereby authorized to be appropriated out of any money in the Treasury not otherwise appropriated. "SEC. 2. Appropriations made for the purpose of this Act shall be reimbursed to the United States under regulations to be prescribed by the Secretary of the Interior." PAYMENT OF COSTS AND BENEFITS OF TONGUE RIVER STORAGE PROJECT Mr. JOHNSON of Oklahoma. Will you please give us some further explanation of this item? Mr. WATHEN. The act of August 11, 1939, authorized the Secretary of the Interior to enter into a contract with the State Water Conservation Board of Montana and the Tongue River Water Users' Association for participation in the costs and benefits of the Tongue River storage reservoir project for the benefit of lands embraced in the Tongue River Indian Reservation. We are participating in the cost to the extent of an estimated total of $360,750, payable over a period of 37 years. The $19,500 covered by the estimate will be our annual payment over the 37 years. This is the first payment to be made. Mr. JOHNSON of Oklahoma. How much of the area will be operated by the Indians and how much by whites? Mr. WATHEN. The entire area irrigated is on the Tongue River Indian Reservation, and all of it will be operated by Indians, primarily for the raising of forage. Mr. CARTER. Do you mean alfalfa? Mr. WATHEN. Yes, sir; and wild hay. Mr. CARTER. Is all of the $19,500 for water payments, or is a part of it for power? Mr. WATHEN. It is all water. Mr. JOHNSON of Oklahoma. Does alfalfa grow in this area? Mr. WATHEN. Yes, sir; very well. They get about two crops a year. Mr. CARTER. What does the water cost the farmers? Mr. WATHEN. This payment provides for 7,500 acre-feet annually from the Tongue River storage, which was built with P. W. A. funds by the State Water Conservation Board of Montana, and turned over to what is known as the Tongue River storage project for operation. Mr. CARTER. That would be something over $2 per acre-foot. Mr. WATHEN. No, sir; it is $1.30 per acre-foot. Mr. CARTER. You are paying $19,500? Mr. GREENWOOD. That is for 2 years. The annual payment is $9,750 Mr. CARTER. That would be about $1.30 per acre? Mr. WATHEN. Yes, sir. Mr. CARTER. Is that all the water they have for the land, or do they have another supply? Mr. WATHEN. That is the only supply we have. The Tongue River runs down through the reservation, but there are 21 prior appropriators on the stream, and the only water available is from storage. Mr. CARTER. Do they raise corn on that project? Mr. WATHEN. They raise very little corn. They have some greer corn, but the frosts usually occur pretty early there. |