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. CHAPTER I PURPOSE AND NEED FOR ACTION A. INTRODUCTION The Dolores Project (Project) was constructed by the Bureau of Reclamation (Reclamation) to store and regulate flows of the Dolores River for irrigation, municipal and industrial use. The Project also provides hydroelectric power generation, salinity control, flood control, recreation opportunities, fish and wildlife enhancement and mitigation measures, area economic development, and cultural resources mitigation. Construction of the Project began in 1977. 11Jree geographic areas served by the Project are Montezuma Valley in the central part of the project area, Dove Creek to the northwest, and Towaoc to the south (Figure I). These areas are primarily rural and agricultural. The following Project features or activities have been completed: McPhee Dam and Reservoir, including relocations; Great Cut Dike; Great Cut Pumping Plant and switchyards; the Dolores sewage treatment plant; the landfill and protective dike downstream of the town of Dolores; Dove Creek Canal; the plugging of the MVIC Tunnel and the construction of the Dolores Tunnel; Fairview, Delivery 23, Dove Creek, Pleasant View, Ruin Canyon and Cahone Pumping Plants and associated pipeline laterals; South Canal; Towaoc Canal; House Creek Recreation Area; cultural resources salvage; Anasazi Heritage Center; McPhee recreation facilities; House Creek, Dolores-Norwood, Ormiston, and Lone Dome roads; House Creek and McPhee recreation boat ramps; and the acquisition of recreation and wildlife mitigation land. B. PROPOSED ACTION Reclamation proposes to modifY the operation of McPhee Reservoir. McPhee Dam and Reservoir are the key features of the Project and are located on the Dolores River approximately 15 miles north of Cortez, Colorado (Figure I). Construction of McPhee Dam was completed in 1984. The proposed reservoir operation modification applies only to water releases for fish and wildlife pwposes from the reservoir to the Dolores River. Reclamation also proposes to acquire additional water to increase the total volume of project water reserved by the United States for downstream fish and wildlife pwposes. C. PURPOSE AND NEED FOR ACTION There are two pwposes of the proposed action. The first is establishment of a volume of water (hereafter referred to as the managed pool) to be released annually from McPhee Reservoir to the Dolores River to provide suitable habitat for fish and wildlife. The second is acquisition of additional water for the managed pool to provide an adequate volume of water to conserve a cold water fishery in the Dolores River from McPhee Dam to a point approximately twelve miles downstream (Figure 2). The proposed action is being considered because Reclamation needs to evaluate alternative water release criteria for fish and wildlife pwposes to the criteria described in the Project's 1977 Definite Plan Report (DPR) and Final Environmental Statement (FES). Based on events in 1990 using the DPRlFES water release criteria, those criteria provide inadequate habitat in the Dolores River during dry and normal years to maintain the trout fishery. In addition, there is a discrepancy in the original Project operation study regarding the average annual volume of water required from storage to fulfill the 1977 DPRlFES water release criteria. The proposed action is being considered at this time because Reclamation is currently negotiating the terms of a long-term Ooeratin2 Agreement for McPhee Reservoir with the Dolores Water Conservancy District (DWCD). The proposed actioa, and alternative courses of action described in this Environmental Assessment (EA), will determine major portions of the reservoir operation provisions contained in the ODeratin2 A2reemenl. 4