Planning Report & Environmental Impact

• Contractor Name: Navaho-Gallup Water Supply Project
• Contract Type: Loan
• Loan Projects - Doc Type: Feasibility Study

Navajo-Gallup Water Supply Project
level of analysis. As part of Reclamation's efforts to attain greater transparency and
accountability with regards to its engineering analyses, the cost estimate is being re-
priced. This means that instead of updating the 2005 cost estimates using engineering
cost indices, the components of the proposed project will be individually re-priced in
order to gain greater confidence in the estimate. Once the re-pricing is completed, which
we anticipate to occur during the 90-day public comment period, Reclamation will update
the PR/DEIS through an addendum or potentially the use of errata sheets.
Reclamation historically supports projects for construction after a feasibility report is
completed, which includes a feasibility-level cost estimate. This appraisal-level cost
estimate does not meet that requirement. Additional analysis, detail, and updating of the
appraisal-level cost estimates presented in this draft report are needed before project
construction authorization can be supported. Failure to complete this additional effort
may result in reliance on a cost estimate for the project that is not sufficient to
characterize the expected project cost. The appraisal-level design must be upgraded to
feasibility level before Reclamation would begin construction. The cost of, and time for,
completing this additional work would be substantial.
PURPOSE AND NEED
The proposed project is to provide a long-term (year 2040) supply, treatment, and
transmission of M&I water to the Navajo Nation, the Jicarilla Apache Nation, and the
city of Gallup,New Mexico.
A long-term sustainable water supply is needed for the area to support current and
future populations. The proposed project would be designed to serve a future population
of approximately 250,000 people by the year 2040. Existing groundwater supplies are
dwindling, have limited capacity, and are of poor quality. More than 40 percent of
Navajo households rely on water hauling to meet daily water needs. The city of Gallup's
groundwater levels have dropped approximately 200 feet over the past 10 years, and the
supply is not expected to meet current water demands within the decade. The Jicarilla
Apache people are currently not able to live and work outside the Town of Dulce on the
reservation because of a lack of water supply.
THE NAVAJO-GALLUP WATER SUPPLY PROJECT
The proposed project would convey a reliable M&I water supply to the eastern section of
the Navajo Nation, the southwestern part of the Jicarilla Apache Nation, and the city of
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