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<br />t"- <br />~ <br />.-I <br /> <br />Environmental Impact <br /> <br />No major environmental problems have been identified as yet in <br />the San Miguel project. Construction of Saltado Reservoir in the San <br />Miguel River Canyon would convert a few miles of stream fishing to reser- <br />voir fishing and sufficient releases downstream would be made to maintain <br />fishery below the dam. Diversion of water from the reservoir to the proj- <br />ect lands would be largely by tunnel. thereby reducing the impact of <br />construction on aesthetics of the surrounding scenic area. Conversion of <br />rangeland to irrigation. as was included in feasibility plans. would have <br />some impact on the deer population in portions of the area and would <br />increase the salinity of the Colorado River downstream from the project. <br />Advance plans are now under way to reduce significantly the new land <br />acreage to be included in the project, which would modify or alleviate <br />these environmental problems. <br /> <br />Current Status <br /> <br />Advance planning studies were initiated in F.Y. 1972 with partial <br />funding derived from F.Y. 1971 appropriations placed in budgetary reserve <br />until F.Y. 1972. Advance planning studies will continue through F.Y. 1973 <br />at which time they will be curtailed until funds are made available. The <br />F.Y. 1974 program of $100.000 is based upon carryover funds from F.Y. 1973 <br />and is to be used to determine the effect of the project on the salinity <br />of the Colorado River and to estimate the cost for facilities to offset <br />salinity effects of the project. <br /> <br />Total investigation costs to June 30, 1972, including feasibility <br />and advance planning, amount to $1,073,880. <br /> <br />Advance planning studies will recognize changing physical con- <br />ditions and priorities that have occurred since completion of the autho- <br />rizing report in order to arrive at a selected plan of development. <br /> <br />Conclusions and Recommendations <br /> <br />The entire area of the San Miguel project is encompassed within <br />the boundaries of the Four Corners Economic Development Region because of <br />persistent unemployment and depressed incomes. The area has considerable <br />mineral resources and a temporary economic boom occurred in the 1950's <br />as the result of uranium exploration. mining and processing. This activ- <br />ity has tapered off to a relatively low level leaving many unemployed <br />people. The coal resources are considerable, although of a fairly low <br />quality. A sizable thermal generating plant utilizing local coal resources <br /> <br />-3- <br />