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. CRAPrER I GENERAL DISCUSSIONS Industrial Water San Miguel River ~ater is used for po~er generation at both steam- electric and hydroelectric po~erplants and ore processing in the vicinity of the project. The largest po~erplant utilizing the river flo~s is the 37,500-kilo- watt steam-electric plant near Nucla of the Colorado Ute Electric Associ- ation, a cooperative of the Rural Electrification Administration. The water supply for the plant is unregulated and, because of recurring lo~ river flows, plant production is sometimes curtailed and desired expan- sions cannot be made. Hydroelectric power is generated by the Western Colorado Power Company at its 3,6oo-kilowatt Ames plant near the head- waters of the San Miguel River. About 5,730 acre-feet of storage capac- ity for the Ames plant is provided Lake Hope and Trout Lake on the South Fork of the San Miguel River. Ore processing mills are located at Telluride and Uravan,above and below the project area, respectively. Municipal and Domestic Water . Each community in the project area has a piped municipal water sys- tem with means for expansion if necessary. Culinary water for farms is diverted or hauled from nearby streams and canals or is pumped from a fe~ wells scattered throughout the area. Cisterns at the farms are in general use for storaf,e of the culinary supplies. Local Economy Mining is the chief source of income in the project area with agri- culture next in importance. In recent years tourism also has assumed an important place in the area's economy. Some timber is harvested in the Uncompahgre National Forest east of the project area. The mining industry in the project area has fluctuated over the years and no~ is in a depressed condition. Mining and milling activities for gold, silver, lead, copper, and zinc have dropped severely in the Vicin- ity of Telluride and Placerville since the early 1900's when the areas were in their heyday. These activities no~ are undertaken only on a limited scale, chiefly by the Idarado Mining Company. Since the 1950's uranium and vanadium ores have been extensively mined in a wide area to the west of the project area, but mining is gradually being curtailed be- cause of decreasing demand for the minerals. Ores still are processed at Uravan at the plant of the Union Carbide Nuclear Company, but a processing plant of the Vanadium Corporation of America at Naturita was closed in 1963. . 9