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<br />CHAPTER 1 <br /> <br />PURPOSE AND NEED <br /> <br />Montrose Partners and the UVWUA would acquire all lands necessary <br />for constructing and operating the facility. They would contract <br />with engineering firms and others for studies and designs <br />required to complete the facility, contract with equipment <br />manufacturers to provide turbines and other electrical and <br />mechanical equipment, and negotiate agreements for the sale of <br />power. Montrose Partners would raise all funds needed to pay for <br />the above activities and would be responsible for any financial <br />risk for construction, operation, and maintenance of the <br />facility. Revenues from power sales would be distributed among <br />investors in the facility, the UVWUA, and the United States. <br /> <br />In addition to Reclamation's involvement in the facility, other <br />Federal agencies are involved in various development stages. <br />Approximately 1 acre of Federal land administered by the Bureau <br />of Land Management (BLM) would be needed for enlarging the <br />AB Lateral (described later); a Section 404 permit would be <br />needed from the U.S. Army Corps of Engineers (COE); a Section 402 <br />permit would be needed from the Colorado Department of Health; a <br />Biological Opinion has been prepared by the Fish and Wildlife <br />Service (FWS) under the Endangered Species Act; and coordination <br />is ongoing with the FWS under the Fish and Wildlife Coordination <br />Act. BLM and the National Park Service (NPS) are cooperating <br />agencies in the National Environmental Policy Act (NEPA) process. <br /> <br />The Sponsors are also required to comply with applicable city, <br />county, and State rules and regulations regarding land use, <br />water quality protection, and construction. <br /> <br />Purpose of Project <br /> <br />The purpose of the AB Lateral Hydropower Facility is to <br />economically develop the energy potential of water flows from the <br />Gunnison Tunnel to the uncompahgre River. The large difference <br />in elevation between the West Portal of the Gunnison Tunnel and <br />the Uncompahgre River creates the potential for hydropower <br />production. <br /> <br />Need for Project <br /> <br />The Sponsors cite the following needs for the proposed hydropower <br />facility: (1) generating electrical power; (2) developing a <br />renewable resource; (3) improving the existing irrigation system; <br />and (4) enhancing the UVWUA's revenues for debt repayment and <br />system improvement. <br /> <br />1 -3 <br />