Statement of Michael Gabaldon

Director, Policy, Management, and Technical Services

U.S. Bureau of Reclamation

Department of the Interior

Before the

Senate Energy and Natural Resources Committee

Subcommittee on Water and Power

U.S. Senate,

On

H.R. 856 a Bill to Revise the Repayment Contract with

The Tom Green County Water Control and Improvement District,

San Angelo Project, Texas

September 23, 2003

My name is Michael Gabaldon and I am the Director, Policy, Management, and Technical Services of the Bureau of Reclamation.  I am pleased to present the Department's views on H.R. 856 which authorizes the Secretary to revise a repayment contract with the Tom Green County Water Control and Improvement District No. 1 (District) at Reclamation's San Angelo Project, Texas.

The San Angelo Project (Project) was authorized by the Congress in 1957 to provide flood control, municipal and industrial water for the City of San Angelo, recreation, fish and wildlife, and supplemental irrigation supplies to the District.  The Project has been beset by chronic drought conditions since it was constructed in 1963.  These arid conditions have resulted in Reclamation granting a total of seven deferments of the annual installments due on the District's forty-year repayment contract.  Due to the continued drought the District has requested a partial deferment for the 2003 annual installment.  Since 1997, four deferments for the District's annual payment to the United States have been granted because of the unavailability of irrigation water.  The District has not taken any water from the reservoir since 1998.  H.R. 856 provides some immediate financial relief to the District by extending its contract with Reclamation by ten years and thereby reducing its annual payments to the United States by approximately $70,000 per year.  Extension of the repayment period will not likely be a permanent solution to the water scarcity facing this project.  However, taking this action will give Reclamation some time to assess the project's long-term challenges and will aid the District by providing needed repayment relief.

Therefore, the Department supports H.R. 856. 

Mr. Chairman, thank you again for the opportunity to present the Department's views on H.R. 856.