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<br />DOO 711 <br /> <br />. <br /> <br />. <br /> <br />the result of the pending litigation, the state engineer has been <br />forced to curtail water diversions in the San Luis Valley. This has <br />resulted in severe economic hardship to an area which is already <br />economically depressed. The resulting bitterness towards state offi- <br />cials and among neighbors in competition over the same water supply <br />is a condition which can be eliminated by construction of the project. <br />Unless remedial action is undertaken, a series of protected legal <br />battles will take place over the next many years, none of which will <br />produce an additional drop of water. <br /> <br />The President has recommended that the sum of $500,000 be appro- <br />priated for FY 1979 to continue advance planninq on the Closed Basin <br />project. Actually, the original time schedule contemplated a construc- <br />tion start in FY 1979. The proposed deQay is a result of the Presi- <br />dent's "no new start" policy for FY 1979. Stage I of the project will <br />be ready for construction during the latter part of FY 1979. <br /> <br />In light of the critical situation in the San Luis Valley and <br />SOme construction capability during next year, it is the staff recom- <br />mendation that the board request the Governor and Colorado's congres- <br />sional delegation to seek a $100,000 construction appropriation for <br />the Closed Basin project for FY 1979, in addition to the President's <br />recommendation of $500,000 for advance planning, as Colorado's <br />priority number two. <br /> <br />FLS : tam <br /> <br />-5- <br />