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<br />mid-1973, a siting study had been completed recommending a site on the Laramie <br />River not far from Wheatland, Wyoming. Construction was to begin in April <br />1975, with a startup date for Unit 1 of January 1, 1979. <br />To complete the project and later to be able to operate the power plant, <br />MBPP required permits from or agreements with a number of state and federal <br />agenc1es--over 25 in all. The most important of these were the following: <br />(1) Permits from the Wyoming Board of Control to store and use water from <br />the Laramie River. <br />(2) A permit from the Wyoming Industrial Siting Council to begin <br />construction. <br /> <br />(3) A "404 Permit" from the US Army Corps of Engineers. <br />(4) A loan guarantee from the Rural Electrification Administration (REA) <br />for part of the cost of construction. <br />The Project first applied to the Wyoming State Engineer in 1973 for direct <br />flow rights to the waters of the Laramie and storage rights for Grayrocks Dam. <br />However, the Laramie is nearly a fully appropriated stream, characterized by a <br />qui te erratic annual flow. The 1973 appropriations do not assure a suffi- <br />ciently reliable supply of water for the power plant, even though Grayrocks <br />Reservoir would allow the storage of over four times the plant's annual esti- <br />mated water consumption. Therefore, MBPP has purchased existing water rights <br />held by upstream agricultural users. Although Basin Electric had hoped that <br />these purchased rights would provide about 10 000 acre-feet per year (acre- <br />ft/yr), subsequent adjudication by the State Board of Control reduced them <br />considerably, and now it is expected that no more than 5000 acre-ft/yr will be <br />provided by these purchased rights. Inasmuch as MBPP will consume up to <br />23 000 acre-ft/yr, the great majority of the plant's water needs will be met <br />from water rights junior to those of all existing upstream users. <br />The construction permit requirement was mandated by the Wyoming Industrial <br />Siting Act of 1975, which established an Industrial Siting Council to review <br />all large-scale industrial projects to ensure that this construction would not <br />impose unreasonable or unanticipated demands on community services and to allow <br />affected third parties to be heard. Hearings were held in February 1976, and <br />a permit was issued in April. The issuance of this permit was challenged by <br />the Laramie River Conservation Counc il and the Powder River Basin Resources <br />Council, but was eventually upheld by the Wyoming Supreme Court. <br /> <br />28 <br />