The Fallon standard. (Fallon, Nev.) 1920-1958, 1922-12-27
Confirmation News Comes as Surprise to Protestants Who
Believed Matter Held Up Pending Thorough Investigation
Project Manager j. F. Richardson Points Out Advantages
Gained by Federal Action Declares Biggest Thing In
Recent History of Newlands Project Boyle Given Credit

Ivy AZ 0XVCA Nj CAx
work that he could do before retir.
in from office. His work, so he
stated, not only took him from other
important duties in his office, but
necessitated long hours and lot OF
correspondence with the heads In
Washington.
In speaking of the cost of the pro-
ject as contemplated. Mr.. Richard
son said that 1t would require ap-
proximately $4,000,000 to construct
a reservoir holding 100000 acre feet
OF water. In regard to vested rights
he let 1t be known that there would
be no injury or the disruption OF
such rights, and that there would be
no upsetting of the plans for storage
on the upper Carson river. In fact
Mr.. Richardson is convinced that the
action Of the department in taking
the matter in hand, despite protests,
Is the biggest thing that has hap
pened since the Newlands project
was contemplated.
ANALYSIS OF CONTRACT
The contract between the Canyon
Power Company and United States
is in brief as follows:
The government leases tb the COM
pany for term of ten years the
power plant at Lahontan dam; the
company to furnish the government
electric power for irrigation or other
use, but not for resale, a maximum
of rs kilowatts; the price to be Is
per centum plus. The company shall
also furnish the government SO xii.
owatts Of electric energy to be avail
able for resale, but only to such con-
sumers as cannot be served by the
company; the government to pay the
company at a per kilowatt rate of
double the price paid by the company
to the government for the months
during such use. During the term
OF this agreement preferences in the
sale of power shall be given for
municipal purposes.
To Make Repairs
Within ten months the government
is to construct a new penstock at the
dam and install three gate valves
together with improvements neces-
sary to a maximum capacity of 900
horse power for each turbine with
an effective head of o2 feet, the gov
ernment to maintain the spenstock in
good repair. In consideration of the
sum of $4,000 the company is to
stub or reset defective poles and re-
dew or repair the wooden chute
from the Truckee canal to the Carson
river. The $500 to be paid the COM
pany by remitting 10 per centum OF
each monthly bill for power until the
whole sum has been paid. The COM
pany at its own expense is to main
tain the plant in good condition, ex-
cepting the penstock, which is to be
maintained by the government.
Water Supply
The government agrees to furnish
the company at the plant continu-
Gus flow of water to operate the
plant to a capacity of 1.S75 kilowatts
barring the acts of God and unfor-
seen conditions In case of failure
to furnish water either through the
Truckee canal or Lahontan reservoir
there will be remitted to the COM
pany that portion of its guaranteed
payment which would otherwise ac-
crue to the United States for the de-
livery of water. Such remittals shall
be made only when shut downs are
one hour or more of continuous fail
ure. Irrigation shall at all times
take precedence over power use, and
should failure to deliver water for
a period of more than thirty days
occur the company shall have the
right to terminate this lease.
The company shall maintain me-
ters to record watt-hours for the
measurement of all energy delivered
which shall be measured at the dam
Both parties to read meters at the
termination of each thirty days. The
company is to keep a record OF all
business transacted and shall make
full returns to the government each
month.
The company is to operate the
plant In q careful and efficient man
ner. At the termination of this con.
tract the company Is to turn over to
the government the property leased
in as good order as it shall be or
December /, 1924, or shall be by
reason of repairs or contemplated
improvements.
The government shall through au
thorized agents inspect the plant and
property at all times to determine
the true condition of all parts OF the
plant and equipment.
PAYMENTS to the United States
The company agres to pay to the
United States for all power gener'
ated at the plant during the months
Of April, May, June, July, August
and September, at the rate OF three
tenths OF cent per kilowatt hour
and during the months of October
November, December, January. Feb
ruary and March at the rate of four
tenths of cent per kilowatt hour
Payments to be made on or before
the 18th Of each month. The min
imum payments from April to Sep
tember shall be $1,000. In case o.
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