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CHAPTER I GENERAL DISCUSSIONS ',' ^',,' '1 i reserves, extending over many decades, has been limited in recent years, as dictated by market conditions. Several coal companies are conducting exploratory work in the area with the view of establishing plants for coal gasification and thermal electric power generation. Companies pres- ently involved in coal development in the area are the Consolidation Coal Company, W.R. Grace and Company, and the Moon Lake Electric Association, Inc. Petroleum, natural gas, and uranium There are three significant oil-producing deposits in the project area. The Rangely oilfield is Colorado's leading producer of petroleum and the Wilson Creek field in the Danforth Hills ranks third in the State. The lIes field is situated in the Axial Basin in Moffat County. Produc- tion reached a peak in the mid-1950's but has declined in recent years. Natural gas production is associated with petroleum, as is common in other areas. Moffat and Rio Blanco are the second and third leading coun- ties of the State in marketed production. Large natural gas reservoirs lie near Piceance Creek, Rangely, and Wilson Creek. . .'\ Uranium deposits are present in the project area, but mining opera- tions have essentially ceased. The production of uranium was greatest in the 1950's, and, if nuclear power generation expands significantly, ur- anium mining and processing may again assume an important position in the local economy. f; - ", Agriculture Agriculture is presently the most important economic activity in the project area although its importance may eventually be overshadowed by mineral production. The type of agriculture now evident has been dictated by the cool, semi-arid climate, and the limited water supply. Agriculture has thus become strongly oriented toward livestock and dry-land wheat pro- duction. Irrigated lands produce alfalfa, meadow grasses for pasture and hay, and small grains which are primarily for the winter feeding of live- stock. Some nonirrigated lands are used in the production of dry-land wheat and improved range grasses, but most of these lands are used for livestock grazing in their native state. The presently irrigated land and nonirrigated land used for dry-land crops are situated along the main stream valleys. " ,-.,.".. Water supply facilities developed for irrigation over the years con- sist of numerous canals and small diversion structures in the White River Basin. The larger canals serve bench lands south of the river near Meeker. The smaller systems serve bottom lands or low-lying bench lands near the larger streams. In the Milk Creek drainage, the canal systems and diversion facilities are somewhat similar but smaller. All of the 6