39–010 

Calendar No. 40 

109TH CONGRESS REPORT " ! SENATE 1st Session 109–27 

KENDRICK PROJECT, WYOMING 

MARCH 10, 2005.—Ordered to be printed 

Mr. DOMENICI, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 99] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 99) to authorize the Secretary of the Interior 

to contract with the City of Cheyenne, Wyoming, for the storage of 

the city’s water in the Kendrick Project, Wyoming, having considered the same, reports favorably thereon without amendment and 

recommends that the bill do pass. 

PURPOSE OF THE MEASURE

The purpose of S. 99 is to authorize the Secretary of the Interior 

to enter into one or more contracts with the City of Cheyenne, Wyoming, for the storage of the city’s water in the Kendrick Project, 

Wyoming. 

BACKGROUND AND NEED

The Kendrick Project (formerly Casper-Alcova), located in Carbon 

and Natrona Counties in Central Wyoming, provides water from 

the North Platte River for irrigation and electrical power generation. Major features of the project include: the Seminoe Dam, Reservoir, and Powerplant; and the Alcova Dam, Reservoir, and Powerplant. The City of Cheyenne, Wyoming, through its Board of Public Utilities, has developed a water supply system, a component of 

which involves storage at Seminoe Reservoir. 

In 1983, the Bureau of Reclamation and the City of Cheyenne entered into an Interim Water Storage Contract which provided the 

City with 10,000 acre-feet of storage space at Seminoe Reservoir. 

This agreement allowed the City to store water for use in the 

spring and summer months to compensate for water that the City 

2 

released during winter months to fulfill minimum flow requirements for fish habitat. The original agreement was for a term of 

fifteen years, with the option for a five-year renewal. The agreement also provided that the City, like other Kendrick Project users, 

would pay a reasonable sum for storage rights. The original agreement and the five-year extension have now expired. Since the original agreement, the Bureau has only given the City one-year storage contracts. This legislation clarifies the authority of the Bureau 

of Reclamation to enter into long-term contracts with the City of 

Cheyenne for the storage of the City’s water for municipal and industrial use in Seminoe Reservoir. 

LEGISLATIVE HISTORY

S. 99 was introduced by Senator Enzi on January 24, 2005. S. 

99 is identical to S. 943 as passed by the Senate in the 108th Congress. S. 943 was introduced by Senator Enzi on April 29, 2003. 

The Water and Power Subcommittee held a hearing on S. 943 on 

October 15, 2003 (S. Hrg. 108–271). At the business meeting on 

February 11, 2004, the Committee on Energy and Natural Resources ordered S. 943 favorably reported with an amendment in 

the nature of a substitute. S. 943 was passed by the Senate, as 

amended, by unanimous consent on May 19, 2004. At a business 

meeting on February 16, 2005, the Committee on Energy and Natural Resources ordered S. 99 favorably reported. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in an open 

business session on February 16, 2005, by unanimous vote of a 

quorum present, recommends that the Senate pass S. 99. 

SECTION-BY-SECTION ANALYSIS

Section 1(a) defines key terms used in the Act. 

Subsection (b)(1) allows the Secretary to enter into contracts with 

the City of Cheyenne, Wyoming, for annual storage of the City’s 

water for municipal and industrial use in Seminoe Dam and Reservoir. 

Subsection (b)(2) limits the contract term to no more than 40 

years and sets parameters for contract renewal. 

Subsection (b)(2)(B) provides for the disposition of revenues received under the contract. Specifically, operation and maintenance 

charges received under a contract executed under paragraph (1) are 

to be credited against applicable operation and maintenance costs 

of the Kendrick Project. Any other revenues received under such a 

contract shall be credited to the Reclamation Fund as a credit to 

the construction costs of the Kendrick Project. 

Subsection (b)(2)(c) of the bill states that the contract shall not 

adversely affect the Kendrick Project, any existing Kendrick Project 

contractor, or any existing Reclamation contractor on the North 

Platt River System. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office. 

3 

February 22, 2005. 

Hon. PETE V. DOMENICI, 

Chairman, Committee on Energy and Natural Resources, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 99, a bill to authorize the 

Secretary of the Interior to contract with the city of Cheyenne, Wyoming, for the storage of the city’s water in the Kendrick Project, 

Wyoming. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Julie Middleton. This estimate was approved by Peter H. Fontaine, Director for Budget 

Analysis. 

Sincerely, 

DOUGLAS HOLTZ-EAKIN. 

Enclosure. 

S. 99—A bill to authorize the Secretary of the Interior to contract 

with the city of Cheyenne, Wyoming, for the storage of the city’s 

water in the Kendrick Project, Wyoming 

S. 99 would authorize the Secretary of the Interior, through the 

Bureau of Reclamation, to renew a water storage contract with the 

city of Cheyenne, Wyoming, for the storage of the city’s municipal 

and industrial water. The term of this and subsequent contracts 

would be limited to 50 years. 

CBO estimates that implementing S. 99 would have no significant impact on the federal budget. Currently, the bureau provides 

water storage services under a temporary one-year contract to the 

city of Cheyenne through the Kendrick Project on the North Platte 

River. The temporary contract has the same terms as the expired 

contract. Under the temporary contract, the city makes an annual 

payment of $70,000 to the federal government. Under S. 99, the 

city would negotiate a contract with the federal government for 

water storage services. Under that contract, the bureau expects 

that the city would make an annual payment of about $53,000 to 

the federal government. CBO estimates that enacting S. 99 would 

decrease offsetting receipts (a form of direct spending), but the loss 

of such receipts would be less than $500,000 over the 2006–2015 

period. 

S. 99 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Julie Middleton. This 

estimate was approved by Peter H. Fontaine, Director for Budget 

Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 99. 

The bill is not a regulatory measure in the sense of imposing 

Government-established standards or significant economic responsibilities on private individuals and businesses. 

4 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of S. 99, as ordered reported. 

EXECUTIVE COMMUNICATIONS

The testimony provided by the Department of the Interior at the 

Subcommittee hearing on S. 943, as introduced in the 108th Congress, follows: 

STATEMENT OF JOHN W. KEYS III, COMMISSIONER, BUREAU

OF RECLAMATION, DEPARTMENT OF THE INTERIOR

My name is John Keys and I am the Commissioner of 

the Bureau of Reclamation. I appreciate the opportunity to 

provide the Administration’s views on S. 943, legislation to 

authorize the Secretary of the Interior to enter into one or 

more contracts with the City of Cheyenne, Wyoming, for 

the storage of water in the Kendrick Project in the State 

of Wyoming. 

Madam Chairman, the Department could support S. 943 

subject to modifications recommended in this statement. 

The Bureau of Reclamation has several dams and reservoirs located on the North Platte River in Wyoming. The 

North Platte River System is operated to optimize irrigation and power benefits. To accomplish these activities, vacant space becomes available in Seminoe Reservoir as 

water is released to other downstream Reclamation reservoirs. 

By enacting S. 943, the Secretary of the Interior would 

be authorized to enter into long-term contracts with the 

City of Cheyenne to store water in Seminoe Reservoir for 

municipal and industrial use. 

The Department does not support S. 943 as drafted because it is vague regarding whose water is to be stored in 

Seminoe Reservoir and the disposition of revenues received. To provide clarity, the Department recommends the 

amendment attached to my statement be adopted by the 

Committee. 

Thank you for the opportunity to appear before you 

today. To assist the Subcommittee in understanding the 

modifications offered here today, I am including a copy of 

the entire bill with the additions and deletions. Again, 

Madam Chairman, with the above modifications, the Department could support this legislation. 

ATTACHMENT: PROPOSED REVISIONS

1. Modify the Introduction to read: ‘‘To authorize the 

Secretary of the Interior to contract with the city of Cheyenne, Wyoming, for the storage of the City’s water in the 

Kendrick Project, Wyoming.’’

2. Modify Section 1(a)(2) to read: 

‘‘(2) KENDRICK PROJECT.—The term ‘Kendrick 

Project’ shall mean the Bureau of Reclamation project 

on the North Platte River, authorized by a finding of 

5 

feasibility approved by the President on August 30, 

1935, constructed for irrigation and electric power generation whose major features include Seminoe Dam, 

Reservoir, and Powerplant; and Alcova Dam, and Powerplant.’’ 3. Modify Section 1(b) and (c) to read: 

(b) CONTRACTS.—The Secretary is authorized to 

enter into one or more contracts with the City for annual storage of the City’s water for municipal and industrial use in Seminoe Dam and Reservoir of the 

Kendrick Project. 

(c) CONDITIONS.—

(1) TERM; RENEWAL.—Any contract under subsection (b) shall—

(A) have a term of not to exceed 40 years; 

and 

(B) may be renewed upon terms mutually 

agreeable to the Secretary and the City, for 

successive periods not to exceed 40 years 

each. 

(2) REVENUES.—Without regard to the Act of 

May 9, 1938, (52 Stat. 322; U.S.C. § 392a), the revenues received under any contract executed pursuant to this section shall be credited as follows: All 

operation and maintenance charges shall be credited against applicable operation and maintenance 

costs of the Kendrick Project; all remaining revenues shall be credited to the Reclamation Fund as 

a credit to the construction costs of the Kendrick 

Project. 

(3) IMPACTS TO EXISTING CONTRACTORS.—Contracts under subsection (c) shall not negatively impact the Kendrick Project, any existing Kendrick 

Project contractor, or any existing Reclamation 

contractor on the North Platte River System. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, the Committee notes that no changes in existing law are made by the bill S. 99, as ordered reported. 

Æ