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''Ill. , ,: ',";'~r:i ~' ~., >>, ,,-/ ~~1 ::";'k' indicated a willingness to forego any claim it may have on the Dolores River in return for water from the Dolores project. Current Status Advance planning studies were initiated on the Dolores project in F.Y. 1971 with funds appropriated in F.Y. 1970, but held in budgetary reserve. Total investigation costs to June 30, 1975, including fea- sibility and advance planning studies, and one year participation in the research and demonstration farm, amount tn $2,376,000. Conclusions and Recommendations The principal economy of the project area is based upon agricul~ tural and livestock production. Much of the project area is now devoted to dry farming with pinto beans and wheat as the main crops. The soils in the area are excellent and have a high production capability. Partial crop failures are frequent due to the lack of adequate pre- cipitation. Considerable versatility in the type of crops and a more certain production will come about as a result of irrigation. That portion of the project area lying around Cortez now receives consider- able irrigation water through the facilities of the Montezuma Valley Irrigation Company. However, shortages under this system are frequent and supplemental water is needed. Tourism also provides an important economic base for the area, largely as the result of the nearby Mesa Verde National Park. The pro- posed McPhee Reservoir would add greatly to the tourist base since the reservoir would lie in a beautiful setting and have a large permanent pool for fishery and recreational purposes. The communities of Cortez, Cahone, Pleasant View and Dove Creek will all need additional municipal water supplies in the near future. During past drouth years, the town of Dove creek has been forced to haul water supplies by truck. The Indian community of Towaoc, south of Cortez, is in critical need of additional water supplies for both municipal and agricultural purposes. The entire project area has been classified as a persistent depressed area. The Dolores project as reformulated appears to meet the pressing needs of its area of service. Its unique enhancement of the recre- ational potential of the Dolores River Canyon and development of significant Indian resources has enabled it to be given a "National Urgency" classification by the Water Resources Congress. Economic and environmental benefits exceed their costs and result in a plan that has enthusiastic local, tribal, environmental, state, and possibly even national support. This type of support should make the construction of this project a reality in the near future. The following schedule has been discussed by the Dolores Water Conservancy District as one that could be achieved and lead to a con- struction start for the Dolores project in 1977 if write-in funds can be secured. -5-