other recently enacted measures authorizing units of the Pick-Sloan Missouri Basin program is recommended in lieu of the several amendments that would be required to conform to H.R. 869.

Portions of the North Loup division were originally authorized as a part of the Missouri River Basin project by the flood control acts of 1944 and 1946. However, the provisions of Public Law 88-442 require reauthorization by the Congress of any units of the Missouri River Basin project on which construction was not underway as of August 14, 1964.

The proposed division, a multiple-purpose water and related land resources development, would provide for irrigation, enhancement of outdoor recreation opportunities, and conservation and development of fish and wildlife resources.

The basic plan of development as presented in House Document No. 491, has been supplemented and modified by a reevaluation statement dated February 1971 which was made a part of the Department's report on H.R. 869.

The North Loup division involves an area where the predominantly agricultural economy has suffered extensively from inadequate natural moisture conditions. This has limited dependable farm production and income and has adversely affected the interdependent urban economy. Lack of both job opportunities in the towns and stable employment on the farms has resulted in substantial outmigration from the area, particularly by the younger people. This has amounted to about 30 percent since 1940, and about 9 percent in the last 10 years.

The map that we have here shows the general location and the plan of the North Loup division in central Nebraska. Principal features of the plan as presented in House Document 491 include: Calamus and Davis Creek dams and reservoirs, Geranium pumping plant, 374 miles of canals and laterals, associated works for irrigation of 52,570 acres of irrigable land, and facilities for recreation and incidental fish and wildlife uses.

Calamus Dam would be an earth-fill structure about 85 feet above streambed with a crest length of about 6,400 feet. Total capacity in Calamus Reservoir at the top of the conservation pool would be 128.200 acre-feet. Davis Creek Dam would also be an earth-fill structure rising about 100 feet above streambed and 2,900 feet long. Total capacity in Davis Creek Reservoir at the top of the conservation pool would be 32,500 acre-feet.

Rights-of-way adequate for construction, operation, and maintenance of Calamus and Davis Creek dams and reservoirs, the principal regulating and storage works, would require the acquisition of approximately 13,450 acres of land.

Changes in the plan of development from that presented in the Secretary's 1962 feasibility report resulted from further consideration of the effect of the proposal on the flows of the Calamus and Loup Rivers, particularly during the summer months. Downstream interests, including a power district, municipalities, irrigators, and others expressed concern over the cumulative effects of upstream irrigation development on the summer flows of the Loup River.

By increasing the conservation capacity in the storage and regu

latory reservoirs, the recommended plan presented in the February 1971 reevaluation statement would allow the project to fulfill its purposes without using water from the Calamus or North Loup Rivers during the critical water months of July and August of every year as well as during most Septembers. Under the proposed plan, the natural flows would be bypassed in those months to alleviate downstream municipalities' concern for river flows to recharge their well fields near the river. Such flows would also maintain downstream environmental conditions. As a result of these changes, the proposal now has the full support of all concerned organizations and local and State agencies. In addition, national objectives would be served by maintaining and enhancing the quality of the environment. Water requirements for the division would average 137,400 acrefeet annually and would consist of direct flow and storage diversions from both the North Loup and Calamus Rivers.

The irrigation service area of 52,570 acres of irrigable land is located in the upland and valley areas along the North Loup and Loup Rivers. Project pumps would be required to serve about 10,000 acres of the higher lying lands, as shown here and the balance would be supplied by gravity. Pick-Sloan Missouri Basin program power would be utilized for pumping energy. Ground water pumping for irrigation in the proposed service area has been increasing, particulary during dry years. Nebraska records of January 1, 1972. list 264 wells in Valley County. Ground water levels have dropped 12 feet in some places since 1967 with an average decline for the period of 1967-71 of 5.6 feet in Valley County. I might point out that about 55 percent of the area is now irrigated from wells or river pumps but they need a dependable supply, and the studies show that it requires about 8 acres of catchment area to maintain the ground water supply for 1 acre of irrigated land. And so the project will be irrigated with a dependable ground water yield.

The project's assured water supply would yield total benefits from irrigation of $3,804,800 annually. There are many additional beneficial impacts, as Congressman Martin has discussed and he discussed the study by the University of Nebraska that pointed out the economic impact, that statewide the dollar of production from irrigated crops produced $6.68 in economic activity. So this project would result in stimulating an additional $38 million of business activity in Nebraska every year. This would result in employment opportunities in many segments of the State's economy.

Not measured by the University of Nebraska, but of recognized importance, is that there would be additional positive economic impact occurring in other parts of the Nation. The stimulative effects of alternative Federal programs have not been analyzed.

In its report (H. Rept. 91-986) on H.R. 780, 91st Congress, to authorize the Merlin division, Rogue River Basin project, Oregon, for construction, the House Interior Committee suggested that testimony in hearings on future reclamation authorizations take note of employment benefits created by the development of the project in any case where unemployment or underemployment in the immediate county or region is greater then the national average. In keeping with that suggestion, we have made such an evaluation within the

constraints of present policy and procedures, but have not included these benefits as a part of the economic analyses in the reevaluation

statement.

Agricultural Economic Report No. 166 of the Department of Agriculture, dated October 1969, shows that in 1960 the economic underemployment of the civilian labor force as measured by the median income was severe for nearly all of Nebraska. For the sixcounty division area, the median income was only 46 percent of the median income for the Nation as a whole. Evidence that this severe underemployment still exists is contained in the 1970 population census. The six counties that the North Loup division would be located in experienced an overall population loss of 9 percent from 1960 to 1970. This loss was during a period when the State was gaining 5 percent in population and the United States was gaining 14 percent. A chronic lack of employment opportunities together with significant underemployment of human resources (low median family income) are major factors contributing to population loss.

Construction and operation and maintenance of the division would provide local employment opportunities for unskilled and semiskilled labor. In addition, there would be a substantial increase in demand for hired farm labor.

Local employment benefits have been computed to be about $318,000 annually.

The Bureau of Outdoor Recreation has estimated that the total annual visitation at the proposed reservoirs would average about 50,000 days annually. Specific recreation facilities would include interior roads, parking areas, picnic areas, sanitation facilities, and boat ramps. These facilities would be located at designated day-use areas, camping areas, and at other specified areas adjacent to the reservoirs. Lands that would be acquired for other reservoir purposes would adequately serve the recreation needs. The recreation benefits have been conservatively estimated at $37,500 annually.

The Bureau of Sport Fisheries and Wildlife recommends that conservation and development of fish and wildlife resources be authorized as a project purpose. Although no specific enhancement measures are proposed, it is estimated the fishing and hunting use would increase by 18,900 fisherman and 170 hunter-days annually as an incidental result of project development. Benefits for this purpose are estimated at $28,700 annually. Mitigation measures would include establishing 150 acres of replacement habitat, and fencing of Hartford Grove, a mature cottonwood grove with an unusual understory growth which is utilized by a large number of great blue herons as a nesting rookery.

Flooding in the Calamus River is unusual because the sandy soils, native grass cover, and the dune-type topography of the drainage basin combine to prevent almost all surface runoff from reaching the river. Davis Creek Dam and Reservoir would be located on a small tributary of Davis Creek and would have only 612 square miles of tributary drainage. In its evaluation, the Corps of Engineers concluded that no significant flood control benefits would result from the construction and operation of the division and that provision of flood control storage in the reservoirs would be neither warranted nor feasible.

The total annual equivalent benefits anticipated from development of the North Loup division are approximately $3.9 million of which about $3.2 million are direct benefits.

The estimated construction cost of the division, based on October 1970 prices, is $73.4 million. In addition, $1.2 million of the PickSloan Missouri Basin program power investment allocated for irrigation pumping has been assigned to the division. The project and assigned costs total $74.6 million. Annual operation, maintenance, and replacement costs are estimated to be $324.000.

The economic justification is based on a Federal investment of $76.5 million which consists of $74.6 million of project and assigned costs and 3.5 million of interest during construction less $1.6 million of preauthorization investment costs. The computed annual equivalent cost associated with this investment, based on a 100-year period of analysis at 314 percent interest, plus the estimated annual operation and maintenance costs total $2.9 million. The ratio of total evaluated annual benefits to the estimated annual equivalent costs is 1.3 to 1.0. The ratio of direct benefits to costs is 1.1 to 1.0.

It is estimated that construction costs have increased by 9 percent since October 1970-the price level used in our reevaluation statement. Total project cost would be increased at the present day to $79,500,000 as of January 1972. Using January 1972 costs, and without any other changes in the economic analysis, benefits would still exceed costs in the ratio of 1.2 to 1 and 1.0 to 1 for total and direct benefits, respectively.

The division costs have been allocated as follows: Irrigation, $71.9 million; recreation, $362,000; and fish and wildlife, $750,000. The irrigation costs would be repaid without interest over a 50-year period of which about $13.8 million would be derived from the local beneficiaries and the remainder from Pick-Sloan Missouri Basin program power revenues.

Power revenues are in prospect which will repay the balance of the reimbursable irrigation costs within 50 years plus a development period.

In accordance with the Federal Water Project Recreation Act, the Twin Loups reclamation division has indicated by letter dated July 28, 1969, its intent to administer the land and water areas of the division for fish and wildlife and recreation and to repay the associated reimbursable costs with interest. The reimbursable costs allocated to recreation amount to $175,000 for construction, $3,000 for interest during construction, and $25,000 for annual operation, maintenance, and replacement. There are no reimbursable costs allocated to fish and wildlife because there are no separable lands or facilities.

The remaining costs allocated to recreation and fish and wildlife would be nonreimbursable as provided by law.

Repayment of irrigation and recreation costs would total about $72.1 million or approximately 99 percent of the total project and assigned costs.

The impact of construction and operation of the North Loup Division upon the human environment has been examined pursuant to the National Environmental Policy Act of 1969. Our studies show

that the impact would be very favorable on both the social and economic environment of the region. Construction of the two reservoirs having a combined surface area of nearly 5,300 acres would create water-oriented outdoor recreation and fish and wildlife resources and provide facilities for the public's use and enjoyment. The existing economy of the area would benefit from the stabilizing effect of irrigation production and from the impact of increased production on the servicing, marketing, and processing industries in Nebraska and the Nation. Employment opportunities in a nonurban environment would be improved.

The adverse effects on the environment would be limited principally to inundating 13 miles of the Calamus River, the loss of natural wildlife habitat and agricultural lands, together with the dislocation of people and existing farming and ranching operations in the two proposed reservoir areas. At present there are nine occupied ranching operations in the two reservoir areas.

As previously mentioned, a unique ecological feature of the area, a mature cottonwood grove having an unusual understory growth and constituting a great blue heron nesting rookery, would be protected and preserved.

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The Federal Water Quality Administration, now the Office of Water Programs, Environmental Protection Agency (EPA), viewed the proposed plan and concluded that the applicable dissolved oxygen standards for the North Loup and Loup Rivers would be met. The return flows from irrigation would cause some increase in the concentration of dissolved solids; however, the resultant water quality would remain well within acceptable State-Federal standards. You might be interested to know that the total dissolved solids (TDS), at the mouth of the North Loup River, vary from 150 to 210 parts per million. Our studies indicate that bringing the land into irrigation would increase this on an average about 15 parts per million.

For instance, the water in Washington, D.C. has a TDS of 170 to 210 parts per million, so the North Loup water would be of high quality.

The EPA also recommended that further revision of the operation plan to make a portion of any excess July flows available in September be considered. No excess July flows at Calamus Dam are anticipated. However, operational criteria for months other than July and August will be studied further during post authorization investigations in an effort to improve the September flow condition, if possible.

A more detailed statement of the effects the proposed development would have on the human environment has been prepared pursuant to section 102(2) (C) of the National Environmental Policy Act of 1969 and submitted to the Council on Environmental Quality as required by the act. A copy of the statement accompanied the Department's legislative report on H.R. 869.

During postauthorization the status of the existing irrigation in the project service area would be reassessed to avoid duplication of facilities and to assure the optimum development of the land and water resources of the area. During this detailed planning period