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<br />whether it wants to proceed with construction of Three Forks Dam <br />and Reservoir. The wyoming Legislature has authorized further <br />study on two alternatives that were considered in the original <br />plans and this study is underway now. <br /> <br />With respect to Stage II, Cheyenne residents voted in April, <br />1982, to support a city proposal to issue $40 million in general <br />obligation bonds to finance th~ Cheyenne Stage II project. <br />Subsequently, the city received a permit from the u.S. Forest <br />Service to begin construction on the project. After the permits <br />were issued, lawsuits were fil~d against the Forest Service by <br />the ~ational and Wyoming wildlife Federations and by land owners <br />in Colorado and Wyoming (Lidstone and Mattern). The National and <br />Wyoming Wildlife Federations allege that Cheyenne does not have <br />the financial ability to construct the project and that the <br />Forest Service violated the Federal Land policy and Management <br />Act (FLPMA), the Wetlands Prot~ction Act and the Wilderness Act. <br />Lidstone's and Mattern's suit alleges violations of the National <br />Environmental pOlicy Act (NEPA), the FLPMA, the upper Colorado <br />River Basin Compact and the Endangered Species Act. The law <br />suits have been transferred to the U. S. District Court in <br />Cheyenne. A temporary restraining order was denied by the Court <br />and the project is now under construction. Several million <br />dollars worth of construction has been accomplished to date. <br /> <br />BMcD:dm <br /> <br />. <br /> <br />Memorandum <br /> <br />-2- <br /> <br />September 22, 1982 <br />