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<br />I <br /> <br />I <br /> <br />employed. For this reason alone, the Dolores project is a must. <br /> <br />The pending water litigation in the federal courts concerning the <br />water in the San Juan basin does not include the Dolores River basin. <br />~lliat claims, if any, the United States intends to assert on behalf <br />of the Ute Mountain Ute Indian tribe for waters of the Dolores River <br />is not yet known at this time. However, the Ute Mountain Ute tribe <br />has indicated a willingness to forego any claims it may have on the <br />Dolores River in return for water from the Dolores project. It is <br />my understanding that a formal expression of support for the project <br />has been made by the Ute Mountain Ute Indian tribe. directors of the <br />Montezuma Irrigation Company, the Dolores Water Conservancy District, <br />and the cities of Dove Creek and Cortez. We are going to need all <br />the help we can muster. Even with all of us working together and <br />everything going our way, it will be tough after the cutback in the <br />federal funds. <br /> <br />For conclusion and summary, the principal economy of the project area <br />is based upon agriculture and livestock production. Most of the <br />project area is now developed to dry farming with pinto beans and <br />wheat as the main crops. The soil in the area is excellent and has <br />a high productive capability. Partial crop failures are frequent <br />due to the lack of adequate precipitation. Considerable versatility <br />in the types of crops and a more certain production will come about <br />as a result of irrigation. That portion of the project lying around <br />Cortez now receives considerable irrigation water through the facil- <br />ities of the Montezuma Valley Irrigation Company. However, shortages <br />under this system are frequent and supplemental water is needed. <br /> <br />Tourism also provides an important base for the area, largely as the <br />result of the nearby Mesa Verde National Park. The proposed McPhee <br />Reservoir would add greatly to the tourism base since the reservoir <br />will lie in a beautiful setting and have a large permanent pool for <br />fishery and recreational purposes. The communities of Cortez, Cahone, <br />Pleasant View. and Dove Creek will all need additional municipal <br />water supplies in the future. During the past drouth years, the town <br />of Dove Creek has been forced to haul water supplies by truck. The <br />Indian community of Towaoc, south of Cortez, is in desperate need of <br />additional water supplies for both municipal and agricultural purposes. <br />The entire project area has been classified as a persistent depressed <br />area. <br /> <br />The problems in the San Juan basin have recently been complicated by <br />the litigation recently filed in the U. S. District Court in which <br /> <br />-16- <br />