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and the Colorado squawfish, the biological determination was based on the primary <br />constituent elements and existing recovery plans for these species. <br />The second step, which this volume is primarily concerned with, is to determine the potential <br />economic impacts of the species listing and proposed critical habitat designations. The final <br />step is to decide which areas, if any, should be excluded based upon economic or other <br />relevant impacts and to determine costs and benefits associated with the final designation. <br />This final step will be addressed after public comments have been received. <br />The study is complex for several reasons. First, the various management practices and flow <br />requirements needed to recover the four fishes were specified for each critical habitat reach <br />in the Colorado River Basin. Second, a study was made of the multitude of direct economic <br />effects due to listing and designation in a seven-State area. Finally, a set of economic <br />models to project the overall (direct and indirect) economic impacts of managing portions of <br />the Colorado River for the four endangered fishes were developed. <br />The links between the biological requirements and the economic model had to be carefully <br />defined. Proper development of the links between the biological requirements and the <br />economics was critical to the evaluation of the impacts of the proposed critical habitat <br />designation. Only if these links were clearly specified could a dollar value of the impacts of <br />designating critical habitat be determined. <br />The economic analysis proceeded along three principal lines. First, the economics team <br />worked with USFWS biologists to identify the ongoing and future management practices that <br />potentially may be altered in order to ensure that the fishes will be protected. This has <br />included the delineation of flow-related activities such as the alteration of hydroelectric <br />generation and nonflow-related activities such as alterations in mining and oil production <br />activities. <br />II-1-2