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<br /> <br /> <br />UNlTED STATES <br />DEPARTMENT OF THE INTERIOR <br />BUREAU OF RECLAMATION <br />WASHINGTON. D.C. 20240 <br /> <br />IN REPLY <br />REFER TO; <br /> <br />737 <br /> <br />M~.R 1 01966 <br /> <br />The Secre tary <br /> <br />or the Interior <br /> <br />Sir: <br /> <br />This is my proposed report on the' San Miguel Project, Colorado. <br />It is based on and includes the attached feasibility report of the <br />Regional Director dated February 28, 1966, and its appended reports of <br />the Corps of Engineers, Public Health Service, and Bureau of Mines. <br />Field data also were supplied by the Bureau of Sport Fisheries and <br />. Vildlife and the National Park Service for use in preparing the <br />feasibility report. This project is one of the potential <br />participating projects that were given priority in respect to <br />the completion of planning reports by the Colorado River Storage <br />Project Act of April 11, 1956 (70 Stat. 105). <br /> <br />I <br /> <br />The San Miguel Project is a proposed multipurpose water resource <br />development in Hontrose and San Miguel Counties in south<<estern <br />Colorado. The projec t would develop the flOl"S of the San Miguel <br />River for irrigation, municipal, and industrial uses. It '"'QuId also <br />provide flood control, recreation, and fish and wildlife enhancement <br />benefits. Development o~ hydroelectric power as a project purpose <br />was not ~ound to be feasible. <br /> <br />I-jining is the chief source of income in the project area ,.lith <br />agriculture next in importance. The mining industry in the project <br />area has fluctuated over the years and now is in a depressed <br />condition. Mining and milling activities for gold, silver, lead, <br />copper, and zinc have dropped severely in the vicinity of Telluride <br />and Placerville since the early 1900's when the areas were in their <br />heyday. These activities now are undertaken only on a limited scale. <br />Since the 1950's uranium and vanadium ores have been extensively <br />mined in a wide area to the west of the project area, but mining is <br />gradually being curtailed because of decreasing demand for the <br />minerals. Ores still are processed at Uravan at the plant of the <br />Union Carbide Nuclear Company, but a processing plant of the Vanadium <br />Corporation of American at Naturita was closed in 1963. <br /> <br />An expansion of the agricultural base is urgently needed to offset <br />the fluctuating and currently depressing effects of the mining <br /> <br />.1 <br /> <br />