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I. , Current status Advance planning studies were initiated on the Dallas Creek project in F.Y. 1971. These studies are nearing completion and the definite plan report is scheduled for completion in March. 1975. Total federal investigation costs to June 30. 1974. including feasibility and advance planning. amount to $1.550.132. Approximately $75.000 has been expended by the state of Colorado on the projgct. By far. the greatest sum has been spent by the Tri-County Water CQnservancy District, which to date has expended approximately 4.5 million dollars on the project. This includes the construction of a domestic water system. which is predicated upon the eventual construction of the Dallas Creek project. After Congress authorized the project. the people of the Uncompahgre Valley approved a bond issue to construct a rural water system. This system has now been completed at an approximate cost of 4.5 million dollars and serves 1.432 rural families in three counties. This rural water system was constructed on the basis that project water from the Dallas Creek project would be available by 1979. In the interim period. the water conservancy district entered into a temporary arrange- ment with the city of Montrose to purchase water from the city for a ten-year period. provided that such water would be available. At the present time. the Montrose area is expanding rapidly. In recent years. the Bureau of Reclamation has constructed a power operation center in Montrose which controls the distribution of power from the entire Colorado River storage project. The operating head- quarters for the Colorado-Ute Electric Association is also situated in Montrose. A major candy-making facility has been constructed in the area by the Russell Stover Company and employs about 600 people. A major residential subdivision. Log Hill Mesa community. is now being developed in the area which plans to get water supplies from the Dallas Creek project. Development of the project is vital to economic growth in the Ridgway-MOntrose-Delta area of western Colorado. which will require substantial additional municipal and industrial water 8upplies. The Kemmerer Coal Company is actively planning a large thermal generating power plant in the area and has contracted for a substantial amount of water from the project. Repayment contract negotiations have begun. The municipal and industrial water has not yet been finalized. that the cost of such water will probably range from 45 to per acre-foot. cost of It appears 150 dollars -4-