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...... . Current Status Advance planning studies were initiated on the Dallas Creek project in FY 1971. These studies are completed and the report under '::eview.' The draft environmental impact statement has been completed and was distri- buted and filed with the Council on Environmental Quality on March 8, 1976. The final EIS is scheduled for completion this sumner. A repay- ment contract has been drafted, but not completed. Total federal expenditures to June 30, 1975, including feasibility and advance planning, amount to $1,853,410. Approximately $75,000 has been expended by the state of Colorado on the project. By far, the greatest sum has been spent by the Tri-County Water Conservancy Dis- trict, which to date has expended over 4.5 million dollars. This includes the construction of a domestic water system, which is predicated upon the eventual construction of the Dallas Creek project. After Congress authorized the project, the people of the Uncompahgre Valley approved a bond issue to construct a rural water system. This system has now been completed at an approximate cost of 4.5 million dollars and serves 1,432 rural families in three counties. This rural water system was constructed on the basis that project water from the Dallas Creek project would be available by 1979. In the interim period, the water conservancy district entered into a temporary arrangement with the city of Montrose to purchase water from the city for a ten- year period, provided that such water would be available. At the present time, the Montrose area is expanding rapidly. In recent years, the Bureau of Reclamation has constructed a power operation center in Montrose which controls the distribution of power from the entire Colorado River Storage project. The operating headquarters for the Colorado-Ute Electric Association is also situated in Montrose. A major candy-making facility has been constructed in the area by the Russell Stover Company and employs about 600 people. A major residen- tial subdivision, Log Hill Mesa community, is now being developed in the area which plans to get water supplies from the Dallas Creek project. Local Interest Local residents, western slope interests in Colorado, state officials, and outside interests are urgently backing the development of the Dallas Creek project as a means of utilizing undeveloped land, mineral, and water resources of the Uncompahgre River Basin. Project supporters were influential in having the pxoject included in the list of potential developments designated by Congress as having priority in the completion of planning reports in the Colorado River Storage Proj- ect Act of April 11, 1956. Project sponsorship was the primary purpose for organization of the Tri-County Water Conservancy District in September, 1957, by local residents. The district has actively supported the project investigation and has obtained water rights needed for the development. The Colorado Water Conservation Board has made financial contributions for project investigations and has helped coordinate activities of the various agencies engaged in the investigations. The -3-