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SOCIAL, ECONOMIC, AND PHYSICAL IMPACTS <br />The project will have some social impacts as the facility is expected to be utilized for recreational <br />opportunities. No other significant social impacts are expected. <br />The project wi11 have a positive economic impact by ensuring full storage capability for South Gray <br />Reservoir which potentially will save 165 acre-feet of water for irrigation in the Company's service <br />area. <br />The project will have no significant physical impacts except in the immediate vicinity of the <br />construction. These impacts will be minor in nature and will affect an area of less than 5 acres. <br />PERMITTING <br />The Company and the Engineer believe no Environmental Assessment (EA) or Environmental <br />Impact Statement (EIS) will be required. The Corps of Engineers will be contacted concerning 404 <br />permitting but anticipate the work falling under the general permits and will be exempted due to the <br />agriculture use. <br />Water quality and erosion control will have to be considered but no air quality control plan is <br />expected due to the small size of the work area. <br />INSTITUTIONAL CONSIDERATIONS <br />No institutional considerations exist other than the proposed loan from the CWCB. <br />Gray Reservoirs-Feasibility Study Page 13 <br />