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I I I I I I I I I I I I I I I I I <::> o W ....:I Chapter 1 - Introduction Mancos Formation, a thick strata of marine shale, These soils, referred to locally as "adobe soils," are naturally high in salt content. Figure 1 presents the distribution of soil types within the unit area. Related Projects Construction of the Winter Water Replacement Program (a component of the LGBU) was begun in FY90 and is scheduled to be completed in 1996. The program provides a replacement winter water supply for livestock operators who currently depend upon Uncompahgre Project canals for their livestock watering needs during the winter. Previously, the majority of the livestock operators allowed their livestock to drink directly from the canals or laterals. Winter canal flows are being terminated, and replacement water supplies are being provided to users by extending the existing rural domestic water systems in the unit area. The Uncompahgre Valley Water Users Association (UVWUAl, a nonprofit corporation, together with Montrose Partners, a private company, are planning to develop, construct, and operate a hydropower project which would use the hydropower potential of the irrigation water that flows through existing facilities of the Uncompahgre Project. As currently envisioned, the project would include a 2.9-megawatt (MW) powerplant on the M&D Canal at Shavano Falls and a 50-MW powerplant using water supplied by the AB Lateral, a lateral extending from the South Canal. The powerplants would be designed and operated so they would not interfere with Uncompahgre Project irrigation supplies. The M&D Canal powerplant would operate only during the irrigation season, v.hile the AB Lateral powerplant would operate all year. Related Studies In 1989, a study was initiated under Reclamation's Investigation of Existing Projects (IEPJ program to evaluate alternative methods of financing construction of the five deferred components of the LGBU authorized plan (Public Law 98-569). The concept examined in the study involved the potential combination of funding from the salinity control program with a reimbursable rehabilitation and betterment (R&B) loan, along with cost savings from construction performed by the UVWUA. Significant cost savings in the range of 40 percent (i.e., compared to Reclamation's estimates for construction by a third party contractor) had been realized during past R&B efforts by the UVWUA. Under what is termed as the "force account method," Reclamation would fund the UVWUA through a cooperative agreement to perform construction and associated management and administration activities, Indexed cost estimates along with salinity loadings and anticipated salinity reductions developed in the LGBU FR/FES were used to analyze the 3