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~) C) -~ r- ~ deer"population in portions of the area and would increase the salinity of the Colorado River downstream from the project. Advance plans are now under way to reduce significantly the new land acreage to be included in the project, which would modify or alleviate these environmental problems. Current status Plan formulation studies are in full swing with selection of a plan occurring in the near future. Adjustments to the authorized plan are being investigated, but the basic concept of a reservoir on the San Miguel River to store water for the Norwood-Redvale, Lilylands, and Dry Creek basin irrigation areas is still used. The primary change to the authorized plan will be the deletion of all Paradox Valley lands and much of the land in Dry Creek Basin. Other lands are being investigated to replace the project lands which are deleted. Most of the full service lands will be sprinkler irrigated to decrease salinity and lessen the amount of water needed from the San Miguel River. Alternative methods of getting water from the San Miguel River are being investigated. Also alternatives to Saltado Reservoir are being reviewed with the possibility of not inundating Placerville. High elevation runoff collection does not appear to be feasible after reviewing recorded runoff data from last spring and summer. The San Miguel Water Conservancy District Board has stated that its primary objective is to expand the agricultural base as much as possible and current studies indicate this can be done while reducing the project's salinity in return flows. Total investigative costs to June, 1975, including feasibility and advance planning, amount to $1,416,000. The'definite pla~. report and the draft environmental statement are scheduled to be completed in December, 1977. conclusiens and .Recommendations The entire area of the San Miguel project is encompassed within the boundaries of the Four Corners Economic Development Region because of persistent unemployment and depressed incomes. The area has considerable mineral resources and a temporary eco- nomic boom occurred in the 1950's as the result of uranium explora- tion, mining and processing. This activity has tapered off to a relatively low level, leaving many unemployed people. The coal resources are considerable, although of a fairly low quality. A sizable thermal generating plant utilizing local coal resources has -]-