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2 104 ;:; RUED! DAM AND RESERVOIR, COLO. for recommendation that the development be authorized. However, it has no objection to the idea of stom~e such as proposed at the Ruedi ReservOIr site if it will serve a justified useful purpose for develop- ment in the Colorado River Basin. The Chief of Engineers, Department of the Army, finds that the proposal does not conflict with any existing project or 'plans of the Corps of Engineers. He called attention to the preliminary nature of data furnished by the corps and noted the olDlssion of provisions for flood control operation under regulations to be prescribed in ac- cordance with the Flood Control Act of 1944. These are matters for resolution with that agency during advance planning on the project in accordance with our customary procedures. . The Department of Agriculture concurs in the conclusions of the l'eport concerning the heavy recreational use of the Ruedi Reservoir, hut believes this use will be higher than estimated. As proposed by that Department, the Bureau of Reclamation and National Park Service will collaborate with the Forest Service in a more detailed approach of the needed recreation facilities and a mutually acceptable plan for such improvements following authorization of the project, This collaboration would also achieve the objectives of the language changes in the J'eport which were l'eCOnllIH:~IH.led in that connection. . Comments of other States and Federal agencies are generally favorable toward the proposal. Suggestions received for further coordination of programs with certain agencies and for further studies of specific aspects of the project can be accommodated during the advance planning activities which will be required before construc- tion if the Fryingpan-Arkansas project is authorized. Copies of the. propose.d report were also transmitted to the Depart- ment of .the Navy. That Department, through the Office of Nava] Petroleum and Oil Reserves, contacted a number of individuals and companies known to ha,-e an int.erest in the de,-elopment of an oil shale industry in Colorado. The replies received, copies of wmch are attached to the enclosed Acting Secretary's letter of January 29, 1960, present a valuable appraisal of the future need for a water supply for that industry. It appear< to be the consensus that a large oil shale industry will develop and that, although there is no imme- diate demand for water for that purpose, such water will assuredly be required when the industry be.comes commercially important. As the nature of the comments received is favorable and since no objections were made to the proposal, I conclude that the plan of development for Ruedi Dam and Reservoir, as out.lined in our pro- posed report, and amended herein, is justified and desirable. Ac- cordingly, I recommend that you approve and adopt this as your report on Ruedi Dam and Reservoir, Co]o., and that you t.rnnsmit it, together with attache.d comments, to the President and subsequently to the Congress as pro\'ided by the Reclalllation Project Act of 1939. Respectfully, FLOll> E. D01\.IINY,' Oom1nVJsioner. Appro!,ed and adopted February 25, 1960. FRED A. SEATON, Secretary of the Interior. I:, .1 ... ,I";'