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<br />officials have determined that they must come <br />to some agreement with Arizona in order that <br />both states can progress. Arizona is desperate <br />for additional water supplies. It is in the <br />most desperate situation of any state in the <br />United States today, primarily because of the' <br />overdraft of ground water. <br /> <br />On pending congressional legislation we <br />have the two projects that I have already men- <br />tioned, the Dolores and the Animas-La Plata. <br />However, we have run into a snag on the Dolores <br />project in that the state of utah has now're- <br />quested a restudy of the project to the end that <br />some lands in utah be included in the project. <br />We think this request is about ten years late. <br />The project is now ready to be authorized by <br />Congress. However, we will meet with representa- <br />tives from Utah during the next two weeks to see <br />what can be ironed out insofar as this project <br />is concerned. The Dolores project is perhaps <br />the best reclamation project in Colorado that we <br />have remaining on our schedule. We are, of <br />course, extremely hopeful that we can move ahead <br />with it. But if we cannot, then the Animas-La <br />plata at least is ready, except that the Bureau <br />of the Budget has not submitted its comments <br />upon the project as yet. <br /> <br />On our state budget, I am advised by the <br />Governor's office and by the budget office that <br />our budget as submitted has been approved. So <br />the matter is now up to the Legislature. <br /> <br />One further item that has developed recently, <br />which is not included in the agenda here, is the <br />matter of planning a water supply for oil shale. <br />We have had some conversation with people from <br />the oil shale industry. Through Region 4 Of <br />the Bureau of Reclamation, plans for both the <br />Yellow Jacket and West Divide projects have been <br />reviewed and alternate plans have been suggested <br />which would provide, we think, ample water for <br />the oil shale industry either in the Colorado <br />River Basin or in the White River Basin. Dr. <br />McCandless, if you have a little time today, I'd <br />like to go into that in some detail with you <br /> <br />I <br /> <br />I <br />