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1:"":;,~~:-- - I ! Reservoir (Phase 1) and the loss of approximately 100-450 wetland acres and~mpacts to riparian wetlands due to the Southern Ute Rese~oir and irrigation improvements along the proposed new distribution systems (Phase 2). o We suggest updating information on community water conservation programs and irrigation management practices to maximize benefits from the project. o For the purposes of NEPA, update revised project planning elements completed since 1980 which, as we understand, includes but is not limited to: 1) reoperation of Navajo Reservoir for endangered species investigations, 2) a non- federal cost-sharing agreement for project repayment, 3) the Ute Mountain Ute and Southern Ute Tribal water rights settlement agreement, 4) the National Park Service evaluation for wild and scenic river designation of a portion of the San Juan River under the wild and Scenic Rivers Act, and 5) project implications, if any, resulting from removal of the Durango Uranium mill tailings completed in 1985. (Removal of the Durango Uranium mill tailings in 1985 resulted in the identification of non-uranium slag tailings from older lead smelting in the area which remains on--t-fic 3ire---j-us-t--ups-tream.-of the proposed Animas-LaPlata project pumping location. Reduction of the surface cover on this material may affect leachability of heavy metals into the alluvium adjacent and above the proposed Animas-LaPlata pumping plant location.) We understand from the NOI that in order to comply with Section 404 of the Clean Water Act, Reclamation intends to pursue a Section 404(r) determination on this proposal. Compliance with requirements of CWA Section 404 is determined after a review of a project in light of the criteria in the Section 404(b) (1) . Guidelines. An outline of principal portions of the Guidelines is attached for your information to assist in the preparation of this portion of the Supplemental EIS. We recommend that the 404(b) (1) analysis ~e prepared as a distinct section of the Supplemental Draft EIS. EPA is providing this information early in the process to assist Reclamation in preparing a SDEIS which is adequate for both NEPA and 404(r) purposes. The purpose of CWA Section 404(r) is to provide an exemption for Federal projects specifically authorized by Congress from regulation under CWA sections 301(a), 402 or 404 if information on the effects of the project, including consideration of the Section 404(b) (1) Guidelines, is contained in an EIS for the project. (A copy of the Section 404(b) (1) Guidelines is enclosed for your information). The Council on Environmental Quality (CEQ) has issued guidance on applying CWA Section 404(r), Memorandum for Head of Aqencies, November 17, 1980, enclosed. That guidance prescribes that EPA and the Corps of Engineers 2