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<br />mainstem reservoir is that all of the data available to date indicates the <br />mainstem reservoir offers the most economic potential for water storage. <br /> <br />The environmental studies being completed during the Basin Study <br />Extension are intended to quantify existing aquatic, botanical, terrestrial, <br />cultural, recreation, land use, and aesthetic resources; assess the <br />potential impacts of the proposed project on these resources; and identify <br />possible mitigation measures. The Authority and the District both recognize <br />that these studies do not constitute all of the environmental studies that <br />will need to be completed before a feasible project can be licensed and <br />permitted. However, these environmental studies are the ones requiring the <br />most extensive field work and will address the most critical environmental <br />issues affecting project feasibility. <br /> <br />The engineering and economic studies being conducted during the Basin <br />Study Extension are intended to better define the location and design of <br />project features, proposed project Operations, road relocations, and project <br />costs. Since the results of these studies may affect the scope of <br />environmental studies, the results will be provided to the consulting <br />resource agencies as they become available. <br /> <br />To coordinate and manage the several subconsultants performing the <br />environmental studies, the Authority has retained Envirosphere Company of <br />Bellevue, Washington. Envirosphere has been involved with the detailed <br />environmental studies for the Cache la Poudre Project since the studies were <br />initiated in 1986. The engineering and economic studies are being <br />coordinated by Harza Engineering Company of Denver, Colorado. Harza was the <br />lead consultant for the previous Basin Study conducted by the Authority. <br />Overall management of the environmental, engineering, and economic studies <br />during the Basin Study Extension is being provided jointly by the Authority <br />and the District. <br /> <br />5.0 FERC PRELIMINARY PERMIT AND LICENSE APPLICATION <br /> <br />The District obtained a Preliminary Permit from FERC to conduct <br />feasibility and licensing studies in October of 1985. Assuming the Cache la <br />Poudre Project was feasible, the District had intended to complete all of <br />the necessary studies and submit a license application to FERC in September <br />of 1988, at the end of the permit term. Because the proposed implementation <br />of the project in separate, independent stages changes the scope of the <br />necessary feasibility and licensing studies as well as the project <br />operations being considered, a license application submitted in September of <br />1988 would probably contain a number of unresolved issues. To resolve the <br />issues before submitting a license application to FERC would require <br />additional time beyond September of 1988. However, FERC rules prohibit time- <br />extensions for Preliminary Permits beyond 3 years. <br /> <br />The District believes it would be beneficial to resolve as many issues <br />as possible concerning the staged project before submitting a license <br />application to FERC. Therefore, the District has decided to apply to FERC <br />for a new, two-year Preliminary Permit in September of 1988 rather than <br />submit a license application. Assuming significant issues have been <br /> <br />- 5 - <br />