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<br />which develop downstream mainstem flows. This is particularly <br />so from the point of view of investment costs per acre-foot of <br />yield (i.e., .. water developed for release" in table 17). <br /> <br />While alternatives for the development of downstream <br />mainstem flows are, in general, a more "efficient" means of <br />capturing water (measured in terms of the investment required per <br />acre-foot of yield), none of the alternatives look very <br />attractive from an economic point of view. All alternatives have <br />estimated benefit-cost (B/C) ratios which are much less than <br />unity and net benefits which are uniformly negative (Le., costs <br />exceed benefits as expressed in present val ue terms). <br /> <br />Not all of the benefits sometimes incorporated into an <br />economic evaluation have been accounted for in this aSSessment. <br />That may explain in part the low BIC ratios. On the other hand, <br />extensive sensitivity analyses conducted as a part of the <br />assessment (see Appendix C in the Final Report) demonstrate that <br />use of even the most optimistic of assumptions increased the BIC <br />ratios by only minor amounts. In short, the assessment's <br />results, while not to be taken as definitive, are indicative of <br />the situation which we face throughout the state with respect to <br />the economics of future projects, especially irrigation <br />projects. <br /> <br />Finally, I would note that the assessment was not intended <br />to address the opportunities which may exist for the improved <br />management of already developed waters. Thus, the benefits which <br />might accrue from projects serving this purpose (as .well as the <br />purpose of developing our remaining compact entitlement) have <br />not been identified in this study. <br /> <br />Recommendations <br /> <br />Several projects for developing downstream mainstem flows <br />are already under study (e.g., Narrows, Wildcat Reservoir, and <br />Hardin) and do not require additional resources at this time. <br />The Board will be acting on the S.B. 439 Hardin study later this <br />year of course. Among other potential projects, the proposed <br />Trans-County project has received the most attention. However, <br />it has not yet been studied in any detail. It, too, has the <br />potential to contribute to the use of Colorado's compact <br />entitlement. <br /> <br />The major opportunities for the further development and <br />improved management of the flows of mountain tributaries are <br />already under study. The Board is conducting a S.B. 439 study on <br />the Cache la poudre River, and the St. Vrain and Left Hand Water <br />Conservancy District has recently requested that the Develop'!\ent <br />Authority finance a feasibility study for its proposed Coffintop <br />Dam on the South St. Vrain River. Thus, no further act ion is <br />nee-ied in this area at this time. Although water users on Clear <br /> <br />-3- <br />