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at an estimated annual equivalent cost of $68.80 per acre-foot, including interest at 3 percent and amortization of the facilities in 50 years. The average annual acre-foot cost given is computed by using incremental costs of enlargement of part of the California Aqueduct. Appropriate allocation of costs between the California Aqueduct and the proposed incremental enlargement under this plan may reflect some increase in this acre-foot value. This plan contemplates diversion of water from several East Side San Joaquin Valley streams by relatively high elevation tunnels. Since this water is now being used downstream, exchange facilities and water supplies will be required. Approval of these exchanges will require negotiations with the downstream water users. Such negotiations could be both lengthy and complex. The reservoir storage systems and related diversions to Sacramento River proposed under this plan should be authorized for construction and operation by the Bureau of Reclamation as part of the Pacific Southwest Water Plan, even though they will be integrated closely with existing and proposed features of the Federal Central Valley Project. The East Side San Joaquin Valley areas are very conscious of their existing and increasing needs for additional water. They will be alert particularly to any plan which proposes increased exportation of water from the Central. Valley Basin unless that plan also includes service to the San Joaquin Valley areas. As 4Epson Perfection 4870 Photo, 400 dpi, 8 bit, 15,955,968 byte