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Additional problems in the area have resulted from the increased cost of energy used to pump irrigation water. At the present time, the primary fuel used for pumping is natural gas. Within the last three years natural gas prices have increased from $0.35 per thousand cubic feet (mcf) to $1.85 per mcf. This fivefold 'increase in price coupled with large p~~ping lifts and a requirement of up to 44 inches o~water which must be applied just to leach the salts from the land have resulted in many farmers in the area not being able to produce at a profitable level. The effects of not solving the water supply and water quality problems could result in the area not attaining its full economic potential. The lack of reaching this potential will directly influence the over 42 thousand persons projected to reside in the area by the year 2000 (table 1). Over 17 thousand of these persons were projected to be employed. Since the economy activity within the area would be sufficent to generate this number of jobs without solving the water supply and water quality problems. Table 1. Projected Population, Employment and Per Capita Income in Loving, Pecos, Reeves and Ward Counties 1975 1985 2000 Population 43,238 42,836 42,600 Employment 15,783 16,806 17,242 Per Capita Income $3,278 $4,597 $7,159 In addition to the effects of water supply and quality problems in the area will be effected by the increased costs of the energy required for pumping irrigation water. Recent studies have indicated that the high prices of natural gas along with increased costs of other farm inputs associated with irrigation may preclude crop production in the area. Major adjustments in the agricultural economy of the area could include a change from irrigated crop production to livestock production. Such adjust- ments would have serious regional implications through probable default in land payment. Financial institutions would be adversely - , , . ~ i"\ V',.' t;. to .J 57