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Show Completion of Kaiparowits Negotiations Urged Sen. Wallace F. Bennett, R-Utah, R-Utah, this week urged the Interior Department to hasten settlement of a contract for the proposed $600 million Kaiparowits Kai-parowits coal mining operation opera-tion and power plant in Kane county, Utah. "I am becoming very worried wor-ried over the apparent loss of interest in this project," he said. In a letter to Interior Secretary Sec-retary Stewart L. Udall, Sen. Bennett said, "Contract negotiations ne-gotiations with the Resource? Co. for water rights at the Kaiparowits Power Project have been under way for nearly two and one-half years. To my dismay, I find the contract is still being negotiated nego-tiated in the field despite assurances as-surances from your Department Depart-ment when negotiations began be-gan that they would be re- solved speedily." The Utahn explained that, "The water in question is 102.000 acre-feet officially allocated al-located to the Kaiparowits Power Project by the Utah State Engineer in Sept. 1965. "Under terms of the agreement agree-ment with the State, the three southwestern utility firms participating in the project must let bids by 1971 or lose the contract with Utah for the water." Sen. Bennett said, "At stake is a proposed investment invest-ment of $600 million which could ultimately build a power pow-er generating plant for five million kilowatts." The Utah lawmaker said: "It is estimated that some 2.400 jobs would be created bv the eight coal mines sup-lying sup-lying the generating plant, while employment at the plant itself is expected to be about 150. "The construction payroll, for the nroiect is estimated at $95 million over 15 years and the dailv cost of mining and nrocess'n" the coal is estimated es-timated at $239.noo, of which m m will be in wages and salaries." Sen. Bennett stated, "Tn Kane countv, the assessed valuation of taxable property will be increased some 4,000 ppr cent." The Senator said he understands under-stands that differences between be-tween the Interior Denart-ment Denart-ment and the private firms center on. Dower coordination and not on nrice of water and term of the contract. "Even after the contract is sifmed, it will take some tim? before construction actually starts. I cannot overemoha-s7e, overemoha-s7e, therefore, the necessity for a snppdv resolution of d'f-fences." d'f-fences." Son 'Rpnnptt Sn!.1 "I respectfully urge that you do everything in vour power po-wer to effect a mutually a-preeable a-preeable solution to this problem pro-blem at. the earliest possible date." he added. ) |