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,!",1---""-- To date, the Southern Ute Indian Tribe has undertaken the native fishery study, and the Ute Mountain Ute Tribe has assisted Reclamation in the collection of field data for the wetland and riparian study. Discussions are currently in progress with the Ute Mountain Ute Tribe concerning assistance to Rec,lamation on an environmental compliance review. Reclamation is preparing an updated economic analysis of the Project, a significant public issue raised during the comment period on the Draft Supplement. The economic analysis is needed for several reasons: . To periodically redetennine costs and benefits of authorized projects prior to construction. · To respond to significant issues raised by the public. · To meet the requests of the Project agricultural water users for updated projections of payment capacity and ability to meet the projected annual operation, maintenance, and replacement costs. The analysis includes updating project constmction costs (using an October 1993 price index) and the operation, maintenance, replacement and energy costs; determining present benefits for the authorized Project purposes of irrigation, municipal and industrial water supply, fish and wildlife, recreation, and area redevelopment; updating the Project cost allocations; detennining the repayment ability of Project irrigators; and analyzing impacts on the local economy. In addition, economic estimates will be developed to mect commitments in the Colorado Ute Indian Waler Rights Settlement. Such "non-use" values are less traditional in terms of economic analysis methods. Contracts with the Colorado Ute Tribes may be used in developing the "non-use" value analysis. Information from the economic analysis will be referred to in the Final Supplement. The economic analysis task leader is Rick Vinton, Bureau of Reclamation, Denver Office, (303) 236-3817, SUMMARY OF ENVIRONMENTAL STUDIES/ACTIVITIES WATER QUALITY - The purpose of this study is to conduct a comprehensive analysis of the Project's effect on water quality and comply with the legal requirement imposed by Public Law 99-294 (as amended) to investigate soil characteristics which might'resu1t in toxic or hazardous irrigation return flows. Water samples from the Animas and La Plata Rivers have been collected to establish adequate baseline infannation and detennine Project effects. Soil samples have been collected and analyzed from lands that will receive Project water to determine the quality of present and future irrigation return flows. Sample fish will be collected from the La Plata River, Jackson Lake, Farmington Lake, and Mannon Reservoir (water bodies in the local area currently receiving irrigation return flows). Water and sediment samples will be collected from throughout the Project area for the trace element study. Water and soil samples have not yet been collected from Ute Mountain Ute lands that would receive Project water in the Mancos and La Plata River drainages. The remaining work for this study is, primarily to complete sampling from the Ute MOlmtain Ute lands, evaluation and interpretation of the data, and preparation of the study report. The study has been closely coordinated with the EPA and the Service. Task Leader: Errol Jensen, Durango Projects Office, (303) 385..6589. INDIAN TRUST ASSESSMENT - The purpose of this assessment is to determine the Project's effect on tmst assets of the affected Indian tribes and is in accord with Reclamation's recently issued policy. Trust assets are a vital part of the Project and a full assessment will be included in the Final Supplement. Input from affected tribes will provide opportnnities for discussion and minimizing impacts. Task Leader: David Redhorse, Denver Office, (303) 236-1175. J_ 2