To All Directors. METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, GENTLEMEN: Pursuant to a request of January 13, 1969, from the Engineering and Operations Committee there is transmitted herewith a copy of my letter of January 14, 1969, to Chairman W. C. Farquhar of your Special Advisory Committee on Nuclear Power and Desalting Plant commenting on certain points outlined by Mr. Farquhar in his communication to this office of January 8, 1969. Very truly yours, HENRY J. MILLS, METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, To Members of Special Advisory Committee on Nuclear Power and Desalting Plant, Messrs. W. C. Farquhar, Chairman; Howard Boylan, Hans H. Doe, W. B. Hellis, Joseph Jensen, William S. Peterson, and Frank H. Wheelock. GENTLEMEN: Reference is made to a letter of January 8, 1969, to this office from Mr. W. C. Farquhar, Chairman of your Special Committee, a copy of which is attached. In his letter Mr. Farquhar listed a total of nine topics on which additional information was desired. Pursuant to instructions from the Engineering & Operations Committee, at its meeting of January 13, 1969, the points listed by Mr. Farquhar in the aforementioned letter of January 8 are discussed in order as follows: 1. The present status of the accounting of expenditures to date and their distribution The allocation of costs is being carried out by the Project Engineers pursuant to instructions of the Project Management Board at its last meeting on November 8, 1968. We are attempting to reconcile our differences with Southern California Edison Company, San Diego Gas & Electric Company and the Department of Water and Power. It appears that we are close to resolving our problems with the first two of the above three utilities. Questions with the Department of Water and Power will probably require some additional discussions. A meeting with Government representatives is scheduled for later this month to review details of invoicing and closing out of the Metropolitan-Government Contract. 2. The timing of the project start and completion and the reasons for selecting dates We have made a re-evaluation of a construction schedule that would permit production of water not later than 1980, pursuant to the General Manager's letter to the Board of November 14, 1968. A schedule on two pages, copy attached, has been prepared using the experience gained on the Bolsa Island Project and fabrication time requirements recently obtained from manufacturers. This schedule indicates that to produce water in January 1980, a firm contract for a nuclear steam supply system should be placed no later than July 1, 1973. To obtain approval of a Preliminary Safety Analysis Report (PSAR) by the Atomic Energy Commission Division of Reactor Licensing to meet this date, it would be necessary to make a submittal of the PSAR and its appurtenant documents by July 1, 1971. In other words, between now and mid-1971 we have time available in which to explore possible courses of action. These might include the following topics: (1) obtain a substantial increase in Government financial participation, (2) obtain an electric utility partner, or (3) obtain financing to "go it alone" (a new bond issue would merit consideration). Expressed another way, we are dealing with an interim period of about one or two years duration before a decision should be made. A more detailed schedule is now being prepared. 3. The type and size of the proposed plant On the basis of current information the multistage flash distillation method is still the most feasible process to choose for large-scale desalting. The size of the contemplated plant is a 50-mgd unit to be followed by a 100-mgd plant, with ultimate possible expansion to double size or 300 mgd. 4. The accumulation of information on the rapidly improving technology and methods proposed to analyze this in relation to the Bolsa plant This is a rapidly moving field and we are attempting to keep abreast of developments in technology as they occur. Professor Bromley's long-tube vertical design is being watched as well as parallel developments on this type of plant emanating from the Office of Saline Water in Washington. Anything significant in the way of new methods will be brought to the attention of your Committee. This includes freezing, reverse osmosis and electrodialysis. On the power side of this problem, we are watching the progress of Gulf General Atomic, Inc. of San Diego in its design and construction of a high temperature gascooled reactor (HTGCR); this design has been pioneered by the British. The Gulf General unit, which uses helium gas, shows considerable promise and is being used by Public Service Company of Colorado for its 330 MWe plant at Fort St. Vrain, Colorado, now under construction. We expect the receipt of cost data shortly from Gulf General Atomic which will be used as a basis for evaluating comparable data for a light water reactor. During the course of a trip to Gulf General Atomic in San Diego on January 7, 1969, members of the staff were advised that this company is now prepared to offer a firm proposal for a high temperature gas-cooled reactor in a size up to 1000 MWe (either as a design project or as a "turnkey" job). Members of the staff continue to make periodic trips to the Chula Vista Test Module of the Office of Saline Water. In addition, several staff members have visited the new 71⁄2 mgd flash distillation plant, now in its final testing stage, at Rosarito Beach, Baja California. This facility is being constructed for the Comision Federal de Electricidad by Aqua-Chem, Inc. of Waukesha, Wisconsin with certain local design work handled by Holmes and Narver of Los Angeles. Concerning this plant, our recent information is that another inspection trip would be appropriate in early March; this might be one in which interested Directors would want to participate. 5. The MWD relationship with Federal Government agencies and with the legislative committees involved At the present time the Metropolitan-Government Contract has been extended to March 31, 1969-this agreement pertains specifically to the Bolsa Island site. Whether the new administration will have had an opportunity to make decisions by this date seems problematical. The termination date can be further extended with Board approval, and by agreement with the Government, if it seems appropriate to do so. 6. The size and quality of the staff required to cope with the project and keep it moving The staff that has been assembled to date in connection with desalination is comparatively small, consisting of a Desalination Project Engineer, three senior engineers, one engineer and one secretary, for a total of six people. Current work assignments in the group include the following: (1) Preparation of a historical report of the project to date (requested by the Government to justify its participation). (2) Accumulation of cost data for new cash flow analyses being prepared by the Advance Planning Group. (3) Obtaining turbine generator prices to combine with a gas-cooled reactor estimate. (4) Laying out power and water lines in conjunction with corridor acquisition by our Right of Way Department. (5) Compiling data on pipe materials suitable for transporting distilled water. (6) Accumulating new information and cost data on the high temperature gas-cooled reactor as well as underground high voltage transmission. (7) Assembling data for a future statement relative to the Department of Interior Site Advisory Committee ("Blue Ribbon" Committee) report particularly where it relates to seismic design and tsunami information. (8) Allocation of costs on the terminated MWD-Utilities Agreement. (9) Determination of the amount of financial participation to date by the Federal Government. 7. Present contractual agreements with consultants, if any The original feasibility study contract of December 15, 1964, with Bechtel, Corporation has been completed. The Project Coordinator Letter of Intent to Bechtel was terminated as of December 31, 1968. The Architect-Engineer Letter of Intent to Bechtel has been extended to March 31, 1969. Per authorization from the Board of December 10, 1968, it is contemplated that the Architect-Engineer Agreement will be followed by a retainer agreement between Metropolitan and Bechtel. On any design work involving the island and causeway we should take maximum advantage of the offer of assistance from the Corps of Engineers, as expressed by Colonel Pehrson, in checking design data and drawings. Design work on nuclear power plants, steam turbine-generators and the desalting plant can probably be done more efficiently by consultants than by the District; otherwise we would have to hire a number of specialists for a short term assignment. Pipeline design work can best be performed by the District. In addition to the above, all parties involved in the Bolsa Islands Project executed a Memorandum of Agreement, effective September 30, 1968, wherein the Project Management Board was continued with the objective of studying possible means of providing a combined desalting and power project in Southern California. This Memorandum of Agreement was authorized by the MWD Board and terminates September 30, 1969, unless amended. 8. Methods of financing Possible means of financing a desalting plant to be in operation by 1980 are now under review by the Advance Planning Group. We are preparing alternative sets of figures for light water and high temperature gas-cooled reactors. This study in turn raises some problems, (1) when will we have an electric utility partner back in the picture, (2) the nature and extent of another bond issue, if this should prove desirable, (3) the impact on tax and water rates if Metropolitan were to actively get into the electric power marketing business. METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, Los Angeles, Calif., January 8, 1969. Mr. HENRY J. MILLS, DEAR MR. MILLS: Thank you for your letter of December 3, 1968, with a copy of the "Times" report of the Orange County Water District Directors statement regarding the Bolsa project. There have been numerous other comments on the MWD proposal to move ahead with engineering, acquisition of sites, and other matters. In order that the Special Advisory Committee be brought up-to-date on this matter I would suggest a meeting of the Committee as soon as possible. Already dates from today on are being filled. I would suggest the subject matter for Committee discussion should include: 1. The present status of the accounting of expenditures to date and their distribution. 2. The timing of the project start and completion and the reasons for selecting dates. 3. The type and size of the proposed plant. 4. The accumulation of information on the rapidly improving technology and methods proposed to analyze this in relation to the Bolsa plant. 5. The MWD relationship with Federal Government agencies and with the legislative committees involved. 6. The size and quality of the staff required to cope with the project and keep it moving. 7. Present contractual agreements with consultants, if any. 8. Method of financing. 9. Any other matters or proposals by the staff. The Apollo project intrigues me and I listened on radio and viewed on television all during the moon flight. I have wondered why a massive and intricate project of this nature could be brought to a splendidly satisfactory finish and a project of desalting seawater, simple compared to the space project, could founder before it got off the ground. I believe we have the answers to some of the causes but I also believe that now that the Board has again approved the project an endeavor should be made to vigorously pursue every step required to bring about a splendidly satisfactory completion of what may become the first of a series of plants. The benefits to be derived are immediate, while for the space project some of the benefits are the immediate vast improvement of technology while other benefits may be still far in the future. There is considerable evidence that MWD will get much support from the Federal Government agencies now involved and from local agencies if the project is vigorously handled now. On this type of project time seems to drift away, as it has done, and therefore it may be deemed essential that the staff involved take serious note of this to avoid repetition. I believe that the Advisory Committee will accept its role in providing quickly any policy decisions that may be required and that it will actively encourage you and your staff to accept this challenge. Very truly yours, Mr. MEEDS. Mr. Chairman W. C. FARQUHAR, Chairman, Special Advisory Committee. Mr. JOHNSON. The gentleman from Washington, Mr. Meeds. Mr. MEEDS. I do not know, Mr. Secretary; maybe someone else can answer this question also, just for my edification. Is it your understanding that the benefits of the enabling or initial legislation in the Office of Saline Water assumes the Trust Territory of the Pacific is included in the terminology of the act, "Territories of the United States"? Mr. KLEIN. I would have to give you an exact answer on that later, Mr. Meeds. Our recollection is that it is the United States, Puerto Rico, and the possessions, but we are questioning the words "trust territory." Mr. MEEDS. The language includes the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States. And, Mr. Secretary, having worked with other legislation in other committees, we have had to specifically include the Trust Territory of the Pacific to make sure that it was included. Mr. KLEIN. I shall be pleased to have an answer. Mr. MEEDS. And tell me-in the event that it was found that it did not include the Trust Territory of the Pacific, would you have any objection to having it included so that all the benefits of the act would be available to it as to the territories? Mr. KLEIN. As a matter of policy, no objection. (Information for the record in answer to Mr. Meeds' TRUST TERRITORIES query follows:) The Solicitor's Office of the Department of the Interior interprets Section 1 of the Saline Water Conversion Act, with respect to the term "United States," as extending to and including the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States. Therefore, the Act does not include the trust territory since the trust territory is a trusteeship of the United Nations and an area over which the United States does not have sovereign jurisdiction. Mr. CAMP. Mr. Chairman, may I ask one question, please? Mr. CAMP. Mr. Secretary, I notice on page 2 of your statement in the middle of the page where you say the size of our water problems and then you go down in some of your statement to solve it, desalting sea or brackish water, do you know of any research of any kind that is going on where we in the midwestern part of the United States have salt water that has been brought to the top of the ground because of the development of our oil situation where they have put it back in the ground and would affect us? Mr. KLEIN. Yes. Mr. CAMP. Do you have any research? Mr. KLEIN. They have been bringing it up but they are doing a great deal of reinjection of the salt water, the brackish water that they bring up with the oil in this area, and this appears to be about the best method that we have in eastern and central Illinois and Indiana of disposing of it, reinject it after testing it to make sure we are not going to have a crystalization when we put it back into the well that would block up the pores of the earth. Mr. CAMP. In other words, at the present time, the best way to handle it is to reinject it and not possibly try to treat it in any way so that it could be used for any purposes. Mr. KLEIN. At the present time, we are not squeezed like the coastal areas and the southwest area is for water supply. If something happened, and I made this statement, we have the Mount Simon aquifer underneath Chicago. If something should ever happen to Lake Michigan, there is enough water there in the Mount Simon aquifer to keep Cook County and Chicago going by desalting processes. Mr. CAMP. Thank you, sir. Thank you, Mr. Chairman. Mr. JOHNSON. Any questions from any member of the staff? We want to thank you, Mr. Klein. If you want to remain here, fine, or if you have to go on Mr. KLEIN. NO. I will stay. As a matter of fact, I have been getting an education this morning. Mr. JOHNSON. Well, so are we. Our next witness will be Dr. Jack A. Hunter, Director of the Office of Saline Water. You may proceed, Dr. Hunter, with your statement. STATEMENT OF DR. JACK A. HUNTER, DIRECTOR OF THE OFFICE OF SALINE WATER, DEPARTMENT OF THE INTERIOR Dr. HUNTER. Thank you, Mr. Chairman, members of the committee. I am pleased to have an opportunity to talk to you again about the Office of Saline Water and to present the fiscal year 1970 research and development program. The fiscal year 1970 program is covered in detail in the prepared statement that has been provided so I will briefly summarize the program at this time. We are requesting a total authorization of $26 million. This amount represents a decrease of $1 million from the amount previously requested. These funds are required for the following purposes: (1) Research and development, $17,223,000; (2) test beds and test facilities, $5,355,000; (3) modules, $1,450,000; (4) administration and support, $1,972,000. We have also requested an increase in the reprograming authority between the various program categories from the now existing 10 percent to 15 percent. We believe this is necessary and appropriate due to the research value of the program we are conducting and to the rapid change in technology which is resulting from the conduct of this program. We believe that some increases in flexibility to move funds from one category to another will allow us to increase the benefits ob |