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The cost assessed any particular project is based upon the amount of water that the project would annually deplete from the UCRB in proportion to the amount available for development. It has been estimated by the Bureau of Reclamation that a total of 1.906 million acre-feet (Maf) remains available for development in the Upper Basin under the Colorado River Compact. Of this amount, 231,000 acre-feet are allocated to Arizona and Yew Mexico and will eventually be diverted from the San Juan River and would not affect areas of currently occupied habitat in the Colorado River and Green River sub-basins. This leaves 1.675 Maf in the UCRB as the value against which project depletions are assessed calculating a project's proportion of the conservation measures. Based upon the average use projection of 5.3 acre-feet per year for the Bear Mine expansion, the amount of contribution Co the Conservation Measures would not exceed $79.00. A contribution of this amount co the conservation fund will offset the impacts of the project depletion of water to listed fishes and will avoid jeopardy for these species. Arrangements for the contribution of these funds should be made as soon as possible, prior to the time that your Federal approval permitting action is finalized. Payment should be made to the Regional Director, U.S. Fish and Wildlife Service, P.O. Box 25486, Denver Federal Center, Denver, Colorado, 80225. Should there be any changes in the amount of water depletion (5.3 acre-feet on an average, annual basis) or any other project change from that which was proposed which may affect any endangered or threatened species, or if there is failure to comply with the Conservation Measures outlined above, then the FWS should be contacted to determine if further consultation is required. Thank you for your interest in conserving endangered species. cc: Bear Coal Company /`L~~~ J,~y~ 1,