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<br />between the baseline and recovery scenarios. <br /> <br />The Act draws a distinction between economic impacts arising from the listing of the endangered <br />species and those arising from the designation of critical habitat. Only the latter are to be <br />considered in the fmal determination of the critical habitat. After critical habitat is proposed, and <br />an economic analysis is conducted, an exclusion process is conducted in which the economic <br />impacts of designating critical habitat are evaluated. The Act directs the Secretary of the Interior <br />to consider economic and other relevant impacts based upon biological and economic findings in <br />determining whether to exclude proposed areas from the designated critical habitat,. In this <br />process, the USFWS may exclude areas from critical habitat designation when the benefits <br />(economic impacts avoided) of such exclusion outweigh the benefits (species preservation) of <br />specifying the such area as part of the critical habitat. <br /> <br />In many cases it is difficult to distinguish between economic impacts attributable to listing a <br />species as threatened or endangered and the economic impacts associated with designating <br />critical habitat for that species. Technically, listing impacts are those associated with protecting <br />individual members of a species from harm, while critical habitat impacts are those associated <br />with protecting the species' habitat from harm. A plan to drain a pond filled with endangered <br />fish, however, would harm both individual species members and their habitat, thus posing the <br />dilemma of how to allocate the impacts of not draining the pond to listing versus critical habitat <br />designation. <br /> <br />Because it is difficult to separate the impacts of listing from the impacts of critical habitat <br />designation, the standard approach is to estimate the combined impacts of both and then <br />judgmentally allocate a proportion of total impacts to each cause. 15 The rationale for the <br />allocation method used in the Colorado River and Virgin River studies revolves around the <br /> <br />15 This approach was used in the critical habitat study for the northern spotted owl (Schamberger et al. <br />1992), and to our knowledge all critical habitat studies that have taken place since then. <br /> <br />23 <br />