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ECONOMIC REALITIES OF <br />INSTREAM FLOW--CONSIDERATIONS <br />OF THE 1991 UTAH INSTREAM FLOW <br />LEGISLATIVE TASK FORCE <br />John L. Young, Esquire <br />Director and Stockholder <br />Richards, Brandt, Miller & Nelson <br />50 South Main Street, 7th Floor <br />Salt Lake City, Utah 84144 <br />(801) 531-2000 <br />ABSTRACT <br />The economic evidence clearly demonstrates that fish and <br />wildlife-related recreation constitutes an important part of <br />Utah's economy and contributes significantly to the quality of life <br />in Utah. The enhancement of a fishery creates economic benefits <br />for Utah that are now recognized by government officials and <br />wildlife specialists. Statistical data now exists that confirms the <br />level of economic benefits that can be generated by such <br />enhancement. Such data also allows for comparison of the <br />economic benefits generated from fish and wildlife recreation <br />with the other significant sections of Utah's economy. The data <br />establishes that fish and wildlife recreation is more than a leisure <br />activity-it is a significant economic resource to the state. <br />I was asked to discuss the economic factors that were <br />considered by the Legislative Task Force in adoption of <br />amendments to the Utah Instream-Flow statute. <br />The 1991 Utah lnstream-Flow Legislative Task Force was <br />established to review the existing Utah instream-flow law <br />and analyze the need for, as well as the benefits from, <br />improvement of the Act. From the outset, opposition to <br />expansion of the existing instream-flow legislation centered <br />on the economic interests of owners of vested water rights, <br />whether agricultural, mining, municipal or otherwise. <br />Consequently, the Task Force spent considerable time in <br />discussing and analyzing the existing allocation of surface <br />waters in the state of Utah, and the economic benefits <br />derived from those allocations. In the course of considering <br />the proposed legislative changes, it became clear that a <br />review of the potential economic benefits that would be <br />derived from allocation of surface waters to instream-flow <br />purposes was necessary if changes in existing water law <br />were to occur. <br />Economic Benefits of Instream-Flow Allocation <br />The question was whether it could be clearly demon- <br />strated that dedication of water to instream-flow purposes <br />would economically benefit the state. <br />The best example in Utah of such economic benefits have <br />been demonstrated by management of the Green River. For <br />purposes of the analysis, enhancement of a stream fishery <br />was equated with creation or enhancement of instream <br />flows. <br />The United States Forest Service, Ashley National Forest, <br />issued a report dated April, 1991,' setting forth a history of <br />management of the Green River below Flaming Gorge <br />Dam. The character of the river was changed in 1979, <br />when the Bureau of Reclamation installed selective with- <br />drawal gates in the dam, allowing an increase in the water <br />temperatures in the river below. Dramatic improvements in <br />fishing and the levels of fishing use followed. <br />As set forth in the report: <br />The modification allows water to be released from <br />various lake levels, effectively warming and stabilizing <br />water temperatures through the growing season. The <br />resulting benefits ... have elevated the Green River in this <br />stretch to the status of a nationally recognized premium <br />trout fishery. <br />The study shows that, during the period of 1983 through <br />1990, recreational use of the river increased by 130 <br />percent. The report attributed this increase directly to the <br />enhancement of the fishery and associated activities. For <br />the year ending 1990, the study reported that the mean <br />expenditure per person/per trip was $474. The number of <br />users in 1990 totalled 115,000 people, with 46 percent of <br />them being non-residents. In other words, the Green River <br />fishery below Flaming Gorge Dam contributed $54.51 <br />million to the Utah economy in 1990. Almost half of this <br />economic stimulus was contributed by non-residents. As <br />will be demonstrated in the discussion of the future of <br />recreation in Utah, the economic contributions to Utah's <br />economy from this single fishery will continue to grow. <br />At the 1st Western Regional Instream-Flow Conference <br />held here in October, 1989, Mr. John Turner pointed out <br />that "high value recreational fisheries ... are now real- <br />world economic considerations... We [the U.S. Fish and <br />Wildlife Service] work for fish and wildlife conservation, for <br />the sake of the critters, to be sure; for the sake of the <br />citizens who enjoy them, by all means; but also because the <br />very existence of these wild resources and their habitats <br />now represent important economic factors in our society, <br />important enough that they cannot be summarily reduced <br />or devalued by other economic pursuits."' <br />26