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sm.lMARY BEPORT instances Gove1'13lllental agenCies assisted with technical advice or financ- ing. Major natural gas and oil discoveries in the vicinity of the proj" ect in recent years have contributed substantially to the prosperity of the area. Farmers have shared in this prosperity in some instances through mineral leases or royalties" of'f-the..farm e~oyment, higher land VlllJ.ues, and in other ways. This has increased the ability of the farmers to f:1nance irrigation expansion and has provided some incentive for them to do so. Indian agencies have actively extended irrigation service for Indian lands. Under Pine River project operation some lands that received a fUll. supply of irrigation water developed drainage difficulties that severely limited productivity. The experience gained in irrigating these lands was a factor in caUSing some similar lands in the potential project exten- sion area to be eliminated in the 1956-57 studies. Conclusions The findings of the 1956-57 land classification and drainage surveys and of later economic a.naJ.yses have lead. to the conclusion that develop.. ment of the Pine River project extension as a Federal rec~metion ~oject is not justified. Since initial project plans were made irrigation serv- ice has been provided through pr.1vate means to wch of the land that would have been served. Other lands could not be economically developed by irrigation. The remaining areas where development would be economically justified are now being developed or can be developed as private under- takings. A Federal reclamation project would not result in greater resource development than will occur through other means. In further support of these finding and conClusions, additiona..l details concerning two phases of the investigation are presented in the substantiating materials attached to this report. The first section deals with recent investigations concerning the present status of the 8,730 acres in the original extension plan that are located in scattered tracts and. that are now either irrigated or for other reasons should not be included in a FederaJ. reclamation project. The second section is a brief report on a Federal Pine River project extension that would serve the 3,100 acres of class 2 and 3 land that could be reached by an enlarge- ment and extension of the King Consolidated Canal. It shows why such a project could not be justified economically. 3