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. . F.Y. 1971 with funds appropriated in F.Y. 1970, but held in budgetary reserve. Total investigation costs to June 30, 1974, including fea- sibility and advance planning studies, and one year participation in the research and demonstration farm, amount to $1,965,877. Current advance planning investigations have advanced to the point that plan formulation studies have been completed with tentative selec- tion of the project plan. Several alternatives to the plan presented in the authorizing report have been analyzed. These alternatives include sprinkler versus gravity ir~igation for new project lands, increased development of Indian resources on the Ute Mountain Ute Indian reservation, and enhanced recreational and fish and wildlife benefits on the lower Dolores River. Several meetings and a field trip into the Dolores River Canyon have been conducted to air the environmental concerns of the project as it relates to the Dolores River. Impacts of the project relating to white water boating and development of a sustained fishery below McPhee Damsite have been incorporated into the project plan. Conclusions and Recommendations The principal economy of the project area is based upon agricultural 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 precipitation. 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 considerable 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. -5-