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~ service lands '- C\1 return flow. The San Miguel Definite Plan Report is scheduled to be completed by December, 1977. A plan of development which recognizes changes since the feasibility plan was authorized and best serves the national and local needs should be selected by December, 1975. . which would . reduce irrigation diversion requirements and Although plan formulation studies for this project are only begin- ning, the opportunity to reformulate the project appears favorable. Preliminary studies indicate that a project plan can be developed that would be responsive to the needs of the area and yet lessen the impact on salinity of return flows over the impact of the plan contained in the Feasibility Report. Water for M&I development and for supplementing the existing agricultural base is strongly supported by the San Miguel Water Con- servancy District and by local political officials. Preliminary studies indicate the possibility of additional development of water supplies from the Lone Cone area for use to expand the agricultural acreage with- out a significant increase in salinity effects. However, the need for development of significant quantities of M&I water as contained in the plan at time of authorization has not been clearly demonstrated. There exists a need to have an authoritative inventory of available mineral resources in the area prepared. This inventory would be helpful to identify if significant quantities of industrial water would be needed in the near future for development of coal, uranium, potash, oil, gypsum, wood pulp, or other mineral resources within the project area. Total investigative costs to June, 1974, including feasibility and advance planning, amount to $1,246,773. Conclusions and Recommendations The entire area of the San Miguel project is encompassed within the boundaries of the Four Corners Economic Development Region because of persistent unemployment and depressed incomes. The area has con- siderable mineral resources and a temporary economic boom occurred in the 1950's as the result of uranium exploration, mining and processing. This activity has tapered off to a relatively low level, leaving many unemployed people. The coal resources are considerable, although of a fairly low quality. A sizable thermal generating plant utilizing local coal resources has been constructed and is being operated by the Co1orado- Ute Electric Association. A potential for much greater energy production exists in the area if adequate water supplies can be provided. The principal enconomy of the area is based upon livestock pro- duction and the associated growing of livestock feeds. The area is quite arid and irrigation is necessary for the production of crops. Local interest for the project has been very strong and persistent. Advance planning on the project up to this time has progressed slowly due to lack of adequate funding. The President has recommended the appropriation of $458,000 for F.Y. 1976 to accelerate the advance planning. It is recommended that the Governor and the members of Colo- rado's congressional delegation be requested to support this recommended appropriation. FLS :mm -3-