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<br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />I . <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />000987 <br /> <br />EXHIBIT E <br /> <br />ENVIRONMENTAL REPORT <br /> <br />GENERAL <br />As shown on Plate A-1, Exhibit A, the Uncompahgre Project is <br />located near Montrose in southwestern Colorado in the Upper <br />Colorado River Basin. Natural features encompassing the <br />project include sparsely vegetated valleys, canyons, forested <br />plateaus, and mountain ranges. Much of the region remains <br />essentially in its natural state, although some areas have been <br />materially affected by the activities of man. Most of the <br />formerly barren valleys contain irrigated farmlands, and many <br />of the mountainous areas are dotted with evidence of past <br />mining activities. Numerous small lakes are found in portions <br />of the region, and reservoirs have been developed by various <br />Federal, State, and local projects to provide storage water for <br />irrigation, recreation, hydroelectric power generation, and <br />municipal use. The towns are located principally in and <br />supported by agricultural developments, but mining, lumbering, <br />tourism, and various forms of recreational activities are <br />important to the local economy.3 <br /> <br />------------------------------------------------------------------ <br /> <br />3 <br />Footnotes refer to references given on Reference List in this <br />Exhibit. <br /> <br />E-1 <br />