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Artist's concept of Ridges Basin Dam and Reservoir. 42.800 acres of full and supplemental service land will be irrigated under Phase 1. Preconstruction activities began in 1986 as a prelude to the first major construction activity in 1989. Phase 1 is scheduled to be completed in approximately 12 years. Under Phase 2, water will be diverted from the La Plata River to the Dry Side Canal by the La Plata Diversion Dam during spring runoff. Southern Ute Reservoir, near the Colorado-New Mexico State line will receive water from the Southern Ute Div- ersion Dam and Inlet Canal. This offstream reser- voir will store water for the Southern Ute Indian Tribe for development of coal resources on the reservation and for New Mexico irrigation. The New Mexico Irrigation Canal will carry water re- leased from the reservoir to land in New Mexico. Approximately 2 miles of the Dry Side Canal and 4 pumping plants and pipe laterals will be devel- oped to serve approximately 24,600 acres of land in Colorado and New Mexico. The Economic Base The project will provide jobs for the people and stimulate the economy of La Plata County, Colo- rado, and San Juan County, New Mexico, and benefically influence agriculture and recreation. In the first year of construction on Phase 1, about 10 people will have jobs working for the contractor and the government and will earn $222,000 in salaries. During the peak years of construction, 8 through 10, this number will rise to an average of 860 peo- ple who will earn about $18,500,000 per year. In the final year of construction, this number will total approximately 570 peoplB who will receive about $12,200,000 in salaries. Construction salaries will generate approximately $2,200 annually in sales taxes during the first year, average $185,000 per year during the peak years, and decline to approx- imately $122,000 in the final year. Other jobs and income not related to construction will also be generated as a result of the project.