Rising to a new peak in its mischief-making against Arizona's attempts to get FPC approval for a state dam, in November 1960, LADWP started thinking of seeking a meeting with Reclamation to discuss a recon of Kanab. This brightened Region 3 up, and it sought permission to review the "tremendous resource potentiality" of Kanab. The situation was that Reclamation over the previous decade had studied Marble, and decided on the 32.8 site; always hopeful about Kanab. 1956 on, Arizona (APA principal) & LADWP were skirmishing in the FPC arena, first over Bridge, and then, after pressure was brought to keep Bridge a federal project, APA focussed on Marble for its state dam.
January 1961, a new, now Democratic, administration took office, with Stewart Udall, formerly Representative from Arizona, as Secretary of the Interior. The next several months would involve Reclamation in three intertwined matters growing out of 1950's work: responding to the APA's FPC application, educating the new Interior officials, and responding to LADWP's initiative on Kanab. Then by 1964, these cards would all be shuffled into the new deck created by the decision in the water suit, Arizona v. California, and the administration's (and many others') response.
Work on Marble had been suspended in 1958, but in 1961, Reclamation made a new estimate of power capacity, 625 mw for 32.8 mile, 700 for 39.5. The APA asked for some Reclamation data from the 1940's. In March, Reclamation commented on the APA's Marble dam that the latter seemed to be aware now of tailwater encroachment, but still were not planning on Paria silt trap, and were not studying Kanab.
In January, LADWP had made its request for Reclamation materials on Kanab, and followed this up in April with an estimate of two routes, the "Park route" and an "upper tunnel route". The significant features were the tunnel through the Park north of Tapeats, with a vertical shaft there and an adit at Fishtail. The construction could go about 50' per day. There was a range of estimates of capacity and cost, including assuming it could be peaking power.