> Statement of Mick Cornett
>
> Mayor, City of Oklahoma City
>
> Representing the McGee Creek Authority and Oklahoma City Water
> Utilities Trust
>
> Before the United States Senate
>
> Committee on Energy and Natural Resources
>
> Subcommittee on Water and Power
>
> On
>
> **S.177/H.R. 2085**
>
> **McGee Creek Project Pipeline and Associated Facilities Conveyance
> Act**
>
> **February 28, 2008 at 2 p.m.**

Chairman Johnson and members of the Subcommittee, thank you for the
opportunity to appear before you today. My name is Mick Cornett, Mayor
of Oklahoma City, and I am here to present the views of the McGee Creek
Authority on S.177/H.R. 2085, *McGee Creek Project Pipeline and
Associated Facilities Conveyance Act*. This act will transfer certain
McGee Creek properties and associated facilities from the Bureau of
Reclamation to the McGee Creek Authority.

> The McGee Creek Authority is a public trust of the State of Oklahoma
> to which the City of Oklahoma City, the City of Atoka and the County
> of Atoka are beneficiaries. All three entities benefit from the water
> rights they hold in the McGee Creek Reservoir in southeastern
> Oklahoma.
>
> The McGee Creek Authority was established in 1978 to finance, operate
> and maintain the reservoir, dam and water pipeline and pumping
> stations. The McGee Creek Reservoir provides many Oklahomans with,
> first and foremost, a dependable water supply and, in addition, a
> myriad of recreational opportunities.

The McGee Creek Authority and I request that the U.S. Senate,
Subcommittee on Water and Power, consider and ultimately approve
S.177/*H.R. 2085, the McGee Creek Project Pipeline and Associated
Facilities Conveyance Act*, which will allow transfer of certain
facilities and properties from the Bureau of Reclamation to the McGee
Creek Authority, namely the water pipeline and pumping facilities,
headquarters office, pole barn, storage building, surge tank, control
and relay stations and associated land that they reside in and on.

The McGee Creek Reservoir and associated water pipeline, pumping
facilities and properties, were built in conjunction with the Bureau of
Reclamation. The McGee Creek Authority operates and maintains the
reservoir and associated water pipeline and pumping facilities and is
obligated to pay the annual operational and maintenance costs and for
its debt. In 1992, the McGee Creek Authority paid to the Bureau of
Reclamation \$88.6 million to fully repay the federal government for its
cost of constructing the McGee Creek water supply related facilities. At
the time the McGee Creek Authority repaid the cost of the water supply
facilities, federal policy required all facilities built through the
Bureau of Reclamation remained the property of the federal government.
The McGee Creek Authority began pursuing the property transfer proposed
in S.177/HR 2085 when we became aware federal law allows it.

The McGee Creek Authority in conjunction with the Bureau of Reclamation
is requesting that Congress authorize the transfer of certain
facilities, including the McGee Creek water pipeline and pumping
facilities and associated facilities and property, specifically:

-   The pole barn, storage building and office structures and the 13.35
    acres on which they are located

-   The pumping plant and maintenance shop and the 10.25 acres on which
    they are located

-   12 miles of 72-inch raw-water pipeline and associated easements for
    this pipeline from the McGee Creek pumping plant to the rate-of-flow
    control station at Lake Atoka

-   Five miles of 66-inch raw-water pipeline and associated easements,
    downstream of the rate-of-flow control station to the rate-of flow
    station at Atoka Lake

-   The rate-of-flow station at Atoka Lake and an associated easement

-   Surge tank connected to the pipeline and the connecting pipeline and
    an associated easement

-   And all other water supply-control structures and related facilities
    with associated easements

The McGee Creek Reservoir itself is not included in the transfer. The
beneficiaries of the McGee Creek Authority, including the City of
Oklahoma City, only hold the right to store water and use the water
supply contained within the McGee Creek Reservoir. The mineral rights in
the lake and reservation are specifically excluded from the transfer.
There will be no impact on oil and gas interests under the proposed
legislation.

We believe the requested transfer of these specific McGee Creek water
facilities and properties will have no adverse affect on the federal
government's involvement with or control of the McGee Creek Reservoir.
The McGee Creek Authority already pays all maintenance and operating
costs associated with these reservoir facilities. The transfer would
vest ownership in these facilities and associated properties in the
McGee Creek Authority and thereby facilitate the ability of the McGee
Creek Authority to finance future operation, maintenance and replacement
of these facilities, particularly the large aging capital structures.
The transfer would lessen the Bureau of Reclamation's responsibility to
provide administrative review of the McGee Creek Authority's ongoing
operations and maintenance functions for these facilities. Going
forward, the McGee Creek Authority will continue providing the same
quality services as in years past.

The McGee Creek Authority believes the transfer of the mentioned
facilities and property is in the best interest of all parties -- the
federal government, Oklahoma residents and businesses, and the
beneficiaries of the McGee Creek Authority, which include the cities of
Oklahoma City and Atoka and the County of Atoka.

On behalf of the McGee Creek Authority and myself, I hereby duly request
your review of the attached supportive documents and, ultimately, Senate
approval of S.177/H.R. 2085 transferring these McGee Creek facilities
and associated properties to the McGee Creek Authority.

Mr. Chairman, that concludes my statement. Thank you for the opportunity
to present the views of the McGee Creek Authority. I would be pleased to
answer any questions that you or other members of the subcommittee may
have.