B. Provisions of the Boulder Canyon Project Act Relating to the All-American Canal

Section 1 of the Project Act named as one of the purposes of the legislation:

* providing for storage and for the delivery of the stored waters thereof for reclamation of public lands and other beneficial uses exclusively within the United States.

The same section required that the cost of the canal be

* * *

* reimbursable, as provided in the reclamation law, and shall not be paid out of revenues derived from the sale or disposal of water power or electrie energy at the dam or for water for potable purposes outside of the Imperial and Coachella Valleys: Provided, however, That no charge shall be made for water or for the use, storage, or delivery of water for irrigation or water for potable purposes in the Imperial or Coachella Valleys

that is to say, the All-American Canal was not to benefit by Hoover Dam revenues but was to be paid for by the lands served. Conversely, these lands were not to bear any part of the cost of construction of Hoover Dam for storage purposes, inasmuch as they had vested rights to the natural flow of the river.

Section 5 of the act, a general provision, authorized the Secretary to contract for the storage of water in the reservoir

* * * and for the delivery thereof at such points on the river and on said canal as may be agreed upon.

Section 7 authorized the Secretary, when repayments to the United States of all money advanced for the canal had been made, to-

* transfer the title to the said canal and appurtenant structures, except the Laguna Dam and the main canal and appurtenant structures down to and including Syphon Drop, to the districts or other agencies of the United States having a beneficial interest therein in proportion to their respective capital investments.

Section 7 also provided that

* The said districts or other agencies shall have the privilege at any time of utilizing by contract or otherwise such power possibilities as may exist upon said canal, in proportion to their respective contributions or obligations toward the capital cost of said canal.

In more detail section 7 stipulated that—

* * * The net proceeds from any power development on said canal shall be paid into the fund (Colorado River Dam fund) and credited to said districts or other agencies under said contracts, in proportion to their rights to develop power, until the districts or other agencies using said canal shall have paid thereby and under any contract or otherwise an amount of money equivalent to the operation and maintenance expense and cost of construction thereof.

Section 9 directed the withdrawal from public entry of all public lands of the United States found by the Secretary to be practicable

of irrigation, and their subsequent reopening for entry in tracts not exceeding 160 acres, giving preference to veterans.

C. All-American Canal Contract of Imperial Irrigation District (Appendix 1106)

(1) Negotiation of the All-American Canal repayment contract was initiated in 1930. On November 5, 1930, Secretary Wilbur called on the State (appendix 1002) to recommend an allocation among California water claimants. (See ch. X (D), supra.) This was effected through a seven-party agreement approved by the State August 18, 1931 (appendix 1003).20

Following conclusion of the seven-party water agreement, the AllAmerican Canal contract was drafted, being reduced to final form October 3, 1931.

On October 22, 1931, a hearing was held, upon objections which had been filed against execution of the contract. On November 4, the Secretary signed an opinion (appendix 41, first edition), disposing of these objections, and approved the contract as to form.

This contract contemplated the merger of the Imperial and Coachella areas into one district, retaining a borough form of government for each of the two merged districts.

The contract was approved by the electors of the Imperial Irrigation District, but the Coachella landowners decided not to petition for inclusion. Negotiations were resumed in Washington in November 1932, and changes were ultimately approved by the Secretary resulting in elimination of the requirement that the Coachella lands be included as a condition precedent, and substituting an undertaking by Imperial to include these lands on petition within 30 days after the contract was confirmed in judicial proceedings. The contract was executed by the Imperial Irrigation District and the Secretary of the Interior as of December 1, 1932.

(2) Terms. In general, this contract, the major All-American Canal agreement, provided that the United States should build Imperial Dam and the All-American Canal to the Imperial and Coachella Valleys, at a total cost not to exceed $38,500,000 (art. 7). Capacities of various portions of the canal were stipulated (art. 7); these are tabulated in chapter XI (H), table 5, infra. The district agreed to repay its portion of this investment (art. 10 (a)), determined in general by the ratio of capacities provided for various users (art. 21) in 40 annual installments (art. 12), and to operate and maintain the

20 In Greeson, et al. v. Imperial Irrigation District, 59 F. (2d) 529 (C. C. A. 9, 1932), affirming 55 F. (2d) 321 (D. C. Cal., 1931), an injunction was refused against consummation by Imperial Irrigation District of the seven-party agreement of California water agencies of August 18, 1931 (appendix 1003 herein). 77831-48-10

works (art. 8), subject to a proration of such costs on a basis of capacities (art. 13). The district was granted the right (accorded by section 7 of the project act) to develop power possibilities on the canal (art. 14), except that the United States reserved the right to use for power purposes the water carried in the All-American Canal to Syphon Drop for the Yuma project (art. 15). The district was required to pay for an added 2,000 second-feet of capacity from Imperial Dam to Syphon Drop, to transport this water for the Yuma project (art. 15), and to continue to pay (art. 16) a total of $1,600,000 toward the cost of Laguna Dam (substantially the whole cost of that dam, built in 1909 for the Yuma project), as the district's 1918 contract with the Government (appendix 1103) had required it to do, notwithstanding that the district had never, in fact, utilized Laguna Dam, and was herein obligating itself to pay for a different diversion structure, Imperial Dam. The United States agreed to deliver water at Imperial Dam (art. 17) in accordance with the seven-party California priority agreement (appendix 1003). The Government reserved the right to contract with other users prior to transfer of operation. and maintenance, and increase the capacity of the canal, prorating the financial obligations (art. 21). Title was to remain in the United States except that, as provided in section 7 of the project act, the Secretary may transfer title to the works below Syphon Drop to the beneficiaries after completion of repayment (art. 22). The district was required to enlarge its boundaries to add about 300,000 acres of public lands on the East and West Mesas adjoining Imperial Valley (art. 35). The agreement, of course, was subject to the Colorado River Compact (art. 29).

(3) Validation. The contract of December 1, 1932, was approved in validation proceedings by the Superior Court of Imperial County on May 24, 1933.21 An appeal was taken to the Supreme Court of California by the Coachella Valley County Water District. By stipulation of the parties, the appeal was dismissed by the supreme court on February 14, 1934, an agreement of compromise having been entered into between the two districts (appendix 1107, infra).

D. Agreement of Compromise, Imperial and Coachella Districts, 1934 (Appendix 1107)

By this agreement, dated February 14, 1934, the two districts agreed that Coachella should execute an independent All-American Canal contract with the United States instead of merging with Imperial Irrigation District; that Coachella would dismiss an appeal then pend

21 "In the Matter of the Validation of a Contract Dated December 1, 1932" (No. 15460), and Molan v. Imperial Irrigation District (No. 15454), Superior Court, Imperial County, Calif., opinion dated May 24, 1933 (unreported).

ing from the decree validating Imperial's All-American Canal contract (supra); that Imperial should have the prior right to all waters allocated in the third and sixth priorities set out in the recommendation of the Chief of the Division of Water Resources (appendix 1003), and Coachella the next right. The relative interests of the two districts in power operations on the canal were defined.

This agreement opened the way to a separate All-American Canal contract by the Coachella district, referred to below.

E. All-American Canal Contracts of Coachella Valley County Water District (Appendix 1108)

On October 15, 1934, the Coachella Valley County Water District and the Secretary of the Interior entered into an agreement (appendix 1108) constituting a repayment agreement for a portion of the cost of the All-American Canal chargeable to the lands within the Coachella Valley County Water District, and providing for the delivery of water via the All-American Canal and the Coachella branch to that

area.

Subsequently, the Reclamation Bureau undertook the construction of distribution works for the Coachella project. To facilitate this, the act of June 26, 1947 22 (appendix 1104), authorized such construction, the Secretary made a finding of feasibility July 24, 1947 (appendix 1109), allocating part of the investment in the Coachella Canal embankment to flood control, making some $4,500,000 nonreimbursable, and the United States and the district entered into a contract on December 22, 1947 (appendix 1110), for the repayment of the cost of the distribution works.

F. All-American Canal Contract: City of San Diego (Appendix 1111)

On February 15, 1933, the Secretary had entered into an agreement with the City of San Diego (appendix 1009), providing for the storage and delivery of water to that city, and reciting that the parties proposed to enter into an agreement for the utilization of the All-American Canal for that purpose.

On October 2, 1934, the same parties entered into a contract (appendix 1111), obligating San Diego to pay a pro rata proportion of the investment in the All-American Canal, and entitling the city to utilize 155 second-feet of capacity to take delivery of the water (up to 112,000 acre-feet annually), provided for in its agreement with the Secretary of February 15, 1933 (appendix 1009).

22 Public Law 121 (80th Cong.).

The designs for the canal were accordingly amended to provide for an increased capacity, to serve San Diego, and the canal as constructed provides that capacity.

Later, however, as indicated in chapter XII, San Diego elected to join the Metropolitan Water District and take water via an extension of that district's aqueduct, from the junction at San Jacinto to the City of San Diego reservoir at San Vicente. The city remains obligated for its proportionate part of the All-American Canal costs, notwithstanding.

G. Construction of the All-American Canal

Construction of the main All-American Canal commenced August 8, 1934. Imperial Dam was begun in January 1936. The branch canal to Coachella Valley was started in August 1938. Imperial Dam and the All-American Canal head works were dedicated by the Secretary of the Interior October 18, 1938. The main All-American Canal was dedicated by Commissioner of Reclamation John C. Page on October 12, 1940. The first official delivery of water through the All-American Canal to Imperial Irrigation District occurred October 13, 1940. The entire supply for the Imperial Irrigation District has been furnished through the All-American Canal since March 1942. The Coachella branch canal is scheduled for completion in 1950.

Imperial Dam 23 is a concrete structure in the main stream of the Colorado, about 18 miles above Yuma. In general, the dam and appurtenant structures, having an over-all length of 3,485 feet, may be divided into six divisions: the California abutment, the All-American Canal headworks (which are a part of the canal but built into the dam structure), the sluiceway, the overflow weir, the Gila headworks (which are a part of the Gila main canal but built into the dam structure), the Arizona abutment and dike. The overflow weir constitutes the central portion, 1,197.5 feet long and rising about 43 feet above the stream bed. The dam provides the diversion point for the All-American Canal on the California side and the Gila Canal on the Arizona side. Laguna Dam, about 4 miles downstream, is now in effect a tailwater control for the upper dam. Imperial Dam created a reservoir with an initial capacity of 85,000 acre-feet, but not for storage purposes, as it began to fill rapidly with silt, as anticipated.

The All-American Canal 24 headworks at the western end of Imperial Dam, 386 feet long, provide a diversion of 15,155 cubic feet per second. Four desilting basins (three now in operation) are provided

23 For a description of Imperial Dam in more detail, see 29 Reclamation Era 28 (1939).

24 For a description of the All-American Canal, see hearings, House Committee on Appropriations, on the Interior Department appropriation bill for the fiscal year 1949, p. 1597 et seq. The route and design were based on a report by H. J. Gault (1931).