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001192 . Over 90 percent of the canals and laterals are unlined and moat of the diversion dams and the canal and lateral structures were origin- ally of timber construction. Many of the major structures have been replaced with more permanent concrete and steel construction, but a large number of the more than 5,000 canal and lateral structures are yet of timber construction and are obaolescent, deteriorated, unsafe or unsightly. Over the project operation period, numerous adjustmenta have been made in the project irrigable acreage. These adjustments have been caused by several factors including: soil, drainage, and topographic conditions not fully evaluated at tbe time of initial construction; nonparticipation by owners of some landa; and cbanges in economic conditions. The project presently irrigates 83,800 acres of lsnd. Although tbe project water supply is adequate during most portions of tbe irrigation season, a water sbortage exists during perioda when water requirements of cropa are'the greateat. These abortagea are due primarily to high water conveyance loaaes and limitations in capacities of the Gunnison Tunnel and aome of the project canals and laterals. Possible methods of reducing the water sbortagea include the enlargement of the Gunnison Tunnel, enlargement and lining of some of the canals and laterals, proviaion of additional reservoir storage in the Uncompahgre River drainese, discontinuation of irriga- tion service to aome of the project lands, and improvements in the efficiency of applying present water auppliea. . The Uncompahgre Project area has been reported to be one of the major sources of the saline content of Colorado River water. There is a need to decrease the salinity contributiona from the area. Ways of accomplishing this objective include improvement in the efficiency of irrigation water use and reduction in canal and lateral seepage lossea. Coats of operating and maintaining the project have increaaed abRost continuously due to rising costs of labor and materials, the accelera- ting need for atructure replacementa, and the policy of improving the quality of the structures and the general maintenance. Probable future increaaea in operation and maintenance costs could impair the capability of the Uncompahgre Valley Water Users Aasociation to operate the project and meet contractual repayment obligations. There is a need to modernize the project water eonveyance and distribution system to reduce operation and maintenance eosts, improve the irrigation water supply, reduce selinity contributions, and improve the appear- ance of the area. The repayment history of the project is quite complex due to several factors. These include project additions and rehabili- tation work subsequent to the initial construction, charge-offs due to reclassification of land to a nonproductive status, delin- quencies in payment of assessments, snd deferments during the .