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<br />,~.~ <br /> <br />ODJ382 <br /> <br />salinity of the Colorado River. <br /> <br />Advance planning studies will include a comprehensive evaluation <br />of changing conditions and priorities and special emphasis on oil shale <br />to meet energy demands. It is anticipated that the selective plan of <br />development will materially reduce the present allocation of water for <br />irrigation purposes and materially increase the allocation for municipal <br />and industrial purposes. <br /> <br />Federal funds invested in the project to June 30, 1972 amount <br />to $1,011,506. <br /> <br />Conclusions and Recommendations <br /> <br />Agriculture is the principal industry in the area at the present <br />time. Irrigation is required for growing crops on a majority of the proj- <br />ect lands. Studies indicate that the presently irrigated land has had a <br />water shortage of about 55 percent from the ideal requirement. The lack <br />of an adequate irrigation supply has been aggravated by recent reductions <br />of public grazing privileges for the area's farmers and ranchers. <br /> <br />The project could supply a substantial amount of water for the <br />development of oil shale and other fuel sources to meet the imminent <br />energy needs of the area and the region, as well as contributing sub- <br />stantially to the national energy needs. <br /> <br />As a part of the state water planning, we have always considered <br />this project as being essential to the development of any oil shale indus- <br />try in the Grand Valley area. As a matter of fact, the project feasibil- <br />ity is dependent upon the development of a substantial oil shale industry <br />in the area. At this time it is impossible to determine when and if such <br />an industry will develop. Pending a more definitive determination of the <br />status of the oil shale industry, the staff of the board is unable to <br />assign a high priority to the construction of the project at this time. <br />However, at such time as a definite need for water for the oil shale <br />industry is established, the project should be assigned the highest prior- <br />ity. <br /> <br />It is therefore recommended that advance planning on the West <br />Divide project be deferred until F.Y. 1976. At that time it is recommended <br />that an appropriation of $200,000 be sought to initiate advance planning <br />on the project. <br /> <br />FLS:mm <br /> <br />-4- <br />