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003169 fI' CHAPTER II. GENERAL DISCUSSIONS increased farming along the San Juan River and the activity in the oil and natural gas fields around Fawnington. Paradoxically, these conditions have little effect on the project a~ea itself because of its sparsely settled and undeveloped nature, Because of the limited development of agricultural and other natural resources on the Navajo Indian Reservation, economic conditions are poor among the Navajo Indians even when conditions are favorable throughout the Nation as a whole. Past Investigations .. Several investigations of water storage and irrigation possibilities along the San Juan River in the general area of the South San Juan and Shiprock projects have been made since the .turn of the century by Federal, State, and private interests. These investigations have been largely of a reconnaissance nature. In the early investigations no plans sufficiently attractive for development were formulated, In later investigations rather detailed surveys and estimates of storage possibilities in the headwaters of San Juan River and tributaries in connection with plans for transmoun- tain diversions to the Rio Grande Basin were made by the Bureau of Reclamation. Results of these studies are covered in the report on .~ Grande Joint Investigations, 1937.' In 1939 the Bureau of Reclamation began-an-InVestigation of the potential Shiprock project. This investi- gation was discontinued during World War II and later resumed by the Bureau of Indian Affairs, leading to the present plans for the Shiprock project. An inventory of possible water resource developments in the San Juan River Basin was given in the report entitled, The Colorado River, released by the Bureau of Reclamation in March 194~ This report contains the general results of studies mde to that time. Present Investi~tions The present reconnaissance investigation was initiated in 1946. Field work on investigations of the plans described in this report included a reconnaissance land classification, fly-line surveys of canal lines, a topographic survey of Navajo Dam site, and collection of basic economic data. Geologic studies of the Navajo Dam and Reser- voir sites, including diamond drilling and test pit exploration, were made by Bureau of Reclamation personnel for the Bureau of Indian Affairs in connection with tho latter agency's investigations of the Shiprock project. Office work has included the making of detailed water supply studies, the preparatioh of rough plans and cost estimates, the making of rough economic analyses of agricultural development of project lands and repayment abilities, and the compiling of the reconnaissance report. - 20 -~,