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" - . ~ ~ c.~ t~ 1\.) . . environmental impacts; primarily wetland and wildlife mitigation requirements. Reformulation of a mitigation plan was included because the previously developed mitigation plan was controversial. -.'ll ~1gatron wa!r II~ requ1red for the Winter Water component (under construction) of the authorized LGBU plan. Initially, the previous designs of the five deferred canal and lateral systems on the east side of the Uncompahgre River were reviewed and revisions were made. The Study concept does not call for significant revisions to the authorized plan, which involved the concrete lining of the east side canals and laterals. However, a variet onstruction materia s (i.e. concrete linings, PVC membrane linings pe were evaluated to arrive at the most cost effective and desirable designs. New cost estimates for the canals and laterals were developed based on force account construction methods and in conjunction with the UVWUA's management and staff. Further discussion of the designs and cost estimates is contained in Section II of this repor~. Based on the new designs and a review of the Appendix B of the LGBU FR/FEIS, the hydrosalinity analysis has been revised and is discussed in section III. Meet1ngs have been held with the Denver Office and Upper Colorado Regional Office to gain preliminary approvals of the methodologies and results of supplemental hydrosalinity analysis and for the revised designs and cost estimates. In anticipation of the use of R&B program loans, a new payment capacity analysis and preliminary repayment ability analysis has been completed by Denver Office and is summarized in section VII. - In the environmental arena, the work performed for the FR/FEIS was reviewed along with changed conditions and prospective impacts. A n~w wetland~inventory was completed by the Denver Office as the basis for the formulation of a revised wetland mitigation plan. Activities are currently underway in cooperation with the Fish & Wildlife Service and the Colorado Division of wildlife to identify the value of wetlands and wildlife habitat to be lost and develop alternate mitigation proposals, which would be acceptable to all parties. A preliminary discussion of environmental aspects and anticipated mitigation requirements is contained in Section IV. It is anticipated that an environmental assessment will be completed for inclusion in the draft and final report. As envisioned at the beginning of this Study, the plan would have called for the UVWUA to obtain a R&B loan in order to buy down the cost effectiveness of the entire project or selected components to an acceptable level. Our cost estimates have broken out costs for each individual canal and its lateral system, thereby making the five deferred canal and lateral system components into 5 canal components and 5 lateral system components. Taking into account the salinity reductions 3