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<br />. <br /> <br />Economic Viability <br />The Webster Hill project will offer economic benefits to the <br />developer, investors, and the surrounding communities. The project <br />will provide a valuable dry-year water supply to a hypothesized water <br />partner and will generate a significant flow of revenue from the sale <br />of power and residual water, providing an attractive rate of return <br />to the developer and investors. The project will also provide an <br />economic benefit to the surrounding communities through higher income <br />and property tax revenues. The project would promote future <br />agricultural, industrial, and recreational development in the <br />vicinity, thus enabling future economic benefits. <br /> <br />. <br /> <br />Environmental Acceptability <br />The environmental impacts identified and addressed in this <br />feasibility report will not be significant enough to prevent approval <br />of the Webster Hill project. The main issues facing the project <br />development are the protection of endangered species and the <br />maintenance of water quality. The preliminary environmental <br />assessment indicates that these issues do not present major problems. <br />Overall, the project should enhance wildl ife and fish habitats, and <br />will create a desirable recreational area with scenic quality. <br /> <br />. <br /> <br />The Federal Energy Regulatory Commission (FERC) is expected to be the <br />lead agency for the preparation of an environmental assessment (EA) <br />or, if necessary, an environmental impact statement (EIS) as pre- <br />scribed by NEPA. The material provided in Exhibit E of the FERC <br />license application will be used by FERC in the environmental review <br />process. Strong participation is expected from the BLM, the Bureau <br />of Reclamation, the Army Corps of Engineers, and the U.S. Fish and <br />Wildl ife Service. The Federal Highway Administration wi 11 become <br />involved due to the proposed elevation of Interstate 70, and the U.S. <br />Forest Service would become involved if any of the water is used in <br />conjunction with the Rifle ski area. State fish, wildlife, and <br />natural resource agencies and county agencies will also provide <br />significant input. These investigations, consultations (with <br />appropriate documentation), and government and publ ic input together <br /> <br />3686-a/3 <br /> <br />S-7 <br />