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and economically. We are still 65 miles from the nearest stop light, we are quite isolated. Mr. Stapleton: Great. Mr. Ra1e~: The great importance attached to water was reconfirmed during 1 74 when the local planning commission conducted a series of public hearings to set priorities for planning purposes. Water develop- ment and the San Miguel Project were at the top of the priority list. During 1974, the Wright's Mesa Domestic Wacer System Project was started which would initially serve the Town of Norwood and the rural residents on Wright's Mesa. Water from this proposed domestic system will be inadequate to serve the Towns of Nucla and Naturita, so that water will be needed from the San Miguel Project for this purpose. I just can't minimize the strong desire of the local people for the San Miguel Proj- ect. I The San Miguel Project is presently entering the plan formulation stage with a definite plan report due in 1977. A local advisory committee is being organized to provide input into the plan formUlation. I am very pleased to report to you that several of the new proposals that we are considering look very promising for substantially improving the project plan. First of all, we have virtually eliminated salinity contributions. Secondly, all of the new proposals have a cost-benefit ratio well above parity. On proposal includes a peaking power hydroelectric plant which would provide electric energy. As you well know, peaking power facilities are in great demand and are urgently needed to meet the energy crisis. At the suggestion of local people, the Bureau of Reclamation is pres-. ently studying the feasibility of diverting high altitude runoff to an off-stream storage reservoir to irrigate lands in the Dry Creek Basin and Lily1and areas. Preliminary estimates of runoff show that there will be enough water to substantially increase the irrigated acreage in the project. To date there have been no environmental problems associated with the San Miguel Project. The eleven mile Norwood Tunnel is a definite environmental asset because it does not impede wildlife migration, nor cause unsightly excavation. The elimination of the salinity problem is also a tremendous environmental plus. The San Miguel Board also pa1ns to have a public involvement program in the next two year's plan formulation process which would provide a forum for working out environ- mental objections, should any arise. The expansion of irrigated agriculture associated with the San Miguel project is a great asset to the state of Colorado and the nation. Anticipated increase in the production of badly needed feed grains on these new irrigated lands will certainly help with the world-wide food problems and balance of payment problems. It is absolutely essential, in our opinion, that we do everything we can to promote agriculture's place in the state, the nation and the world. And, lest we forget, I -46-