B-146690, JAN. 29, 1962

B-146690: Jan 29, 1962

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INC.: FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 10 AND SEPTEMBER 28. YOU HAVE QUESTIONED WHETHER THE PROPOSED INCREASE IN THE INSTALLED CAPACITY OF THE MARKHAM FERRY PROJECT TO 100. OPERATION FOR POWER PRODUCTION OF THIS AND OTHER INSTALLATIONS OF THE GRAND RIVER DAM AUTHORITY ON THE GRAND RIVER IN THE STATE OF OKLAHOMA SHALL BE COORDINATED WITH THE POWER OPERATIONS OF THE FEDERAL PROJECTS IN THE AREA: * * *" IT IS TO BE NOTED THAT PUBLIC LAW 476. THE PROPOSED INCREASE IN INSTALLED CAPACITY IS NOT CONTRARY TO THE PROVISIONS OF PUBLIC LAW 476. WITH A PROVISO THAT SUCH FUNDS SHALL BE ADMINISTERED BY THE CHIEF OF ENGINEERS IN A MANNER WHICH WILL ASSURE THAT THE GRAND RIVER DAM AUTHORITY SHALL COMPLY WITH THE PROVISIONS OF THE ACT.

B-146690, JAN. 29, 1962

TO OKLAHOMA POWER USERS ASSOCIATION, INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 10 AND SEPTEMBER 28, 1961, PERTAINING TO THE PARTICIPATION OF THE FEDERAL GOVERNMENT IN THE MARKHAM FERRY PROJECT OF THE GRAND RIVER DAM AUTHORITY, AN AGENCY OF THE STATE OF OKLAHOMA.

YOU HAVE QUESTIONED WHETHER THE PROPOSED INCREASE IN THE INSTALLED CAPACITY OF THE MARKHAM FERRY PROJECT TO 100,000 KILOWATTS WOULD PRECLUDE THE TRANSFER TO THE GRAND RIVER DAM AUTHORITY OF FEDERAL FUNDS APPROPRIATED FOR FLOOD CONTROL PURPOSES. YOU ALSO INQUIRE AS TO WHETHER AN AGREEMENT BETWEEN THE AUTHORITY AND THE SECRETARY OF THE INTERIOR FOR COORDINATION OF POWER OPERATIONS WOULD BE REQUIRED AS A CONDITION PRECEDENT TO MAKING AVAILABLE SUCH APPROPRIATIONS.

THESE QUESTIONS ARISE FROM THE FOLLOWING PROVISIONS CONTAINED IN SECTIONS 1 AND 2 OF PUBLIC LAW 476, 83D CONGRESS, 68 STAT. 450, WHICH LEGISLATION AUTHORIZED BOTH THE CONSTRUCTION OF THE MARKHAM FERRY PROJECT BY THE GRAND RIVER DAM AUTHORITY AND A MONETARY CONTRIBUTION BY THE FEDERAL GOVERNMENT FOR FLOOD CONTROL STORAGE IN THE PROJECT:

"* * * AND SUCH PROJECT SHALL BE DESIGNED FOR AN ULTIMATE INSTALLED CAPACITY OF NOT LESS THAN SEVENTY-TWO THOUSAND KILOWATTS: * * *

"SEC. 2. TO THE EXTENT THAT IT MAY BE MUTUALLY AGREED BETWEEN THE GRAND RIVER DAM AUTHORITY AND THE SECRETARY OF THE INTERIOR, OPERATION FOR POWER PRODUCTION OF THIS AND OTHER INSTALLATIONS OF THE GRAND RIVER DAM AUTHORITY ON THE GRAND RIVER IN THE STATE OF OKLAHOMA SHALL BE COORDINATED WITH THE POWER OPERATIONS OF THE FEDERAL PROJECTS IN THE AREA: * * *"

IT IS TO BE NOTED THAT PUBLIC LAW 476, SUPRA, PRESCRIBES A FLOOR OR MINIMUM ULTIMATE INSTALLED KILOWATT CAPACITY RATHER THAN A CEILING OR MAXIMUM CAPACITY. HENCE, IN OUR OPINION, THE PROPOSED INCREASE IN INSTALLED CAPACITY IS NOT CONTRARY TO THE PROVISIONS OF PUBLIC LAW 476.

SECTION 3 OF PUBLIC LAW 476 AUTHORIZES THE APPROPRIATION OF FUNDS NOT TO EXCEED $6,500,000 AS A MONETARY CONTRIBUTION BY THE UNITED STATES, WITH A PROVISO THAT SUCH FUNDS SHALL BE ADMINISTERED BY THE CHIEF OF ENGINEERS IN A MANNER WHICH WILL ASSURE THAT THE GRAND RIVER DAM AUTHORITY SHALL COMPLY WITH THE PROVISIONS OF THE ACT. THE PUBLIC WORKS APPROPRIATION ACT, 1956, 69 STAT. 361, INCLUDED AN APPROPRIATION OF $6,300,000 FOR THIS PURPOSE.

AS FOR COORDINATION OF OPERATIONS, WHILE THE LAW AUTHORIZES AN AGREEMENT BETWEEN THE AUTHORITY AND THE SECRETARY OF THE INTERIOR, SUCH AUTHORITY IS COUCHED IN PERMISSIVE LANGUAGE AND IS FOR CONSIDERATION BY THE SECRETARY OF THE INTERIOR.

WE HAVE BEEN ADVISED BY THE DEPARTMENT OF THE ARMY THAT IN CARRYING OUT THE RESPONSIBILITIES ASSIGNED TO HIM, THE CHIEF OF ENGINEERS WOULD NOT CONSIDER EITHER OF THE MATTERS WITH WHICH YOU ARE HERE CONCERNED AS PROVIDING A CAUSE FOR WITHHOLDING FEDERAL FUNDS FROM THE AUTHORITY.