NAVAJO - FUTURE SALES NUCLEAR COMPETITION Question Regarding the Navajo operation, you stated that you were hopeful of developing additional sales. Do you have any further comment on that, and how will nuclear power affect future Navajo expansion? Answer Regarding the first question, we have noting definite in the works yet, though the utilities are well aware of our reserve position which I would say is the most favorably situated large low-cost reserve of coal in the Southwest. The second key element in any mine mouth power generating plant is, of course, water. Our present Cont'd. water right from Navajo reservor provides ample for the three APS units and for the two new units being put in by WEST. We have recently made application for an additional 48, 000 acre feet of water annually, and this application has been approved by the New Mexico Water Commission and by the Bureau of Reclamation. We anticipate that Secretary Udall will approve this in the near future, at which time it will be ready for Congressional action. It is our understanding that time does not permit it to be placed before Congress this session, but hopefully it will be approved early in 1967. Provided we get this water, I cannot help but believe that the Navajo mine will have an ured position in meeting additional thermal generating requirements. Turning to your second question regarding the competitive position of power