Mr. KAZEN. We are indeed happy to receive it, sir.

Mr. BISHOP. Governor Hathaway asked me to express his regret over his inability to be here personally today, and also to reaffirm his strong personal support of the Polecat Bench project.

The Governor's statement brings out a number of significant points that I think are worthy of the time of the committee, and with your permission, Mr. Chairman, I would like to go through the entire statement. It will take 10 minutes or less.

Mr. KAZEN. Without objection, it is so ordered.

Mr. BISHOP. In December of 1966, the regional director of the Bureau of Reclamation at Billings, Mont., submitted to the Commissioner of Reclamation his final report on the "Polecat Bench Area, Shoshone Extensions Unit of the Missouri River Basin Project." That report, showing a benefit-cost ratio based on total benefits of greater than 3-to-1, recommended that the plan of development be approved and the project authorized for early construction. Early in 1967, legislation was introduced in the Congress proposing to authorize the project. However, the report of the Bureau of Reclamation was held up within the Department of the Interior and was not approved and released for comments from the other States of the Missouri Basin until April of 1970. Since 1970, the project has been held up by the Office of Management and Budget due to questions of economic feasibilty related to the various proposals to modify the discount rate and change the basic standards for evaluating water resource projects. During this period of more than 5 years delay the benefit-cost ratio has been cut in half and the estimated construction costs have increased more than one-third. It is obvious that the long and unnecessary delays encountered already have hurt this project seriously. Hopefully the delays are now ended and we can proceed expeditiously through the authorization, funding, and construction stages.

The most recent evaluation of costs and benefits for the Polecat Bench Area, and these figures were presented at the Senate hearing earlier this week, comes up with a ratio of 1.27-to-1 for total benefits and 0.87-to-1 for direct benefits. It is my understanding that these figures are based on a 1972 cost-index, and that the benefits were updated to reflect current conditions. As the members of this committee are well aware, there has been an extensive effort made in the last 2 years to modify the system of evaluating benefits connected with water projects. The Water Resources Council has proposed a method of evaluation which would take into consideration some of the factors such as environmental and social effects, which are not adequately reflected in current procedures. Even with this new approach there is a serious question that all of the benefits can be adequately identified and quantified. How do you place a dollar value on the benefits resulting from a young Wyoming family staving on the farm and producing food and fiber for the Nation rather than migrating to the overpopulated cities and adding to the unmanageable problems of these congested areas? And there are many other diverse spinoff benefits which result from water proiect development which defy a dollars and cents analysis. Even though the new Polecat Bench Area evaluation was made under the old system of analysis, it is important to note that total benefits still exceed the costs. Certainly it is more reasonable to judge a project on the basis of total benefits than any

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other way. And if this analysis had been made by the new procedures there is a good possibility that the cost-benefit ratio would be even more favorable.

The Polecat Bench project has enjoyed the unqualified support of the State of Wyoming since its inception prior to the Flood Control Act of 1944. Local support in Park County for the project has never wavered despite innumerable delays during the past 30 years. More than 5 years ago when it was felt that the authorization of the project was imminent, the Polecat Bench Irrigation District was formed for the sole purpose of contracting with the Federal Government for repayment of costs allocated to irrigation and to assume the responsibility of operating and maintaining the completed irrigation works This enthusiastic support is not surprising considering the merits of the proposal. Polecat Bench is far superior to most reclamation projects in terms of the quality of the land, availability of water and capability of the people to organize into a viable administrative organization.

More than 13,000 acres (about 70 percent of the lands within the project) are class 1, the highest classification of irrigable lands. This percentage is far above the average for reclamation projects throughout the Western States, and is certainly the best project being considered in Wyoming at the present time. The suitability of the Polecat Bench lands for irrigation could be the best among the remaining undeveloped areas, not only in Wyoming but throughout the Western United States.

Water is available from the existing storage provided by Buffalo Bill Reservoir and, as has been outlined by the Bureau witnesses, would be delivered, part of the distance, through the existing Shoshone Canyon Conduit and the Heart Mountain Canal.

The environmental enhancement resulting from the Polecat Bench project will be significant. Additional habitat for birds and other wild game will be provided by the 19,200 acres of crop and hay lands. Moreover, Holden Reservoir has been designed to offer the maximum potential for fishing and other recreational use. The Wyoming Recrea tion Commission, by letter dated August 6, 1970, requested the Commissioner of the Bureau of Reclamation to include the recreationa? aspects in the project and indicated their willingness to comply with the provisions of the Federal Water Projects Recreation Act of 1965, In addition, Mr. Chairman, I have a statement here that was prepared by the Wyoming Game and Fish Commission which outlines their reaction to the various proposals involved in the project. I have only one copy of this information. I do not think there is anything new in here, but it is a restatement of the position and the reaction of the Wyoming Game and Fish Commission to the proposed Polecat Bench project. And I would like to submit that information for the record also.

Mr. RONCALIO. Mr. Chairman, I would only suggest, if I may, that I would like to think that statement ought to follow the full statement of the State engineer, Mr. Bishop, because it does show some fish and wildlife habitat, and can affect the B-C ratio, and I would like to have it included.

Mr. KAZEN. Without objection, it will be included. (The statement referred to follows:)

STATEMENT OF WYOMING GAME AND FISH COMMISSION

The following contained information represents an evaluation of Fish and Wildlife considerations in connection with the Polecat Bench Area, Shoshone Extension Unit, Missouri River Basin Projects, Wyoming, (BR) as endorsed by the Wyoming Game and Fish Commission in a letter dated August 16, 1965 from State Game and Fish Commissioner James B. White to Cecil E. Gibser, Supervisor, Missouri River Basin Studies.

The Wyoming Game and Fish Commission cooperated with the Bureau of Reclamation and the Bureau of Sport Fisheries and Wildlife in the description of fish and wildlife implications in the Polecat Bench Area. All information was prepared under the authority and in accordance with the provisions of the Fish and Wildlife Coordination Act (48 Stat. 401, as amended; 16 U.S.C. 661 et seq.).

The information contained herein represents our best evaluation of the project as we can best understand the proposal at this time. Major alterations in the proposal would, of course, necessitate a re-evaluation of the circumstances and a possible amendment to these remarks.

DESCRIPTION OF THE AREA

Polecat Bench, the main area proposed for irrigation, is a flat sagebrush covered tableland rising about 400 feet above the adjoining Shoshone Project land. The bench is 20 miles long, 4 miles wide at its center, and 2 miles wide near the ends. It lies in a northeasterly-southwesterly direction and ranges from 4,720 to 5,200 feet in elevation. Its use is primarily for grazing at the present time. The slope of the bench is to the northeast, and its topography is favorable for irrigation. The climate of the project area is arid. Precipitation at Powell, Wyoming, the nearest town, averages less than 8 inches annually. The average annual temperature is 46° with extremes of -36° F. and 103° F.

A portion of the acreage proposed to be irrigated is public domain land. Withdrawal of these lands for Reclamation purposes is presently under way. There are also lands owned by the State of Wyoming within the project area. Together, the State and Federal lands total about 30% of the area to be irrigated.

DESCRIPTION OF THE PROJECT

The Polecat Bench development will be, physically, an extension of the existing Shoshone Project, a Bureau of Reclamation irrigation and hydropower development. Reconnaissance surveys were first made on the Polecat and Chapman Benches during 1919-21 as possible additions to the Heart Mountain Division, which was later constructed without the additions. The Shoshone Project consists of Buffalo Bill Dam and Reservoir on the Shoshone River, four irrigation divisions-Garland, Heart Mountain, Frannie, and Willwood-and one power division which includes the Shoshone and Heart Mountain Powerplants. Each of the divisions is dependent on water stored in Buffalo Bill Reservoir, which was completed in 1910. The existing Heart Mountain Canal will deliver water to the origin of the supply works planned for the development of irrigation in the Polecat Bench and Frannie Loop Areas.

The principal features will include the Polecat Siphons, Polecat Canal, two small pumping plants to serve higher areas, Holden Reservoir, Holden Canal, and distribution and drainage facilities for 19,200 acres of irrigable land on Polecat Bench and in the Frannie Loop. Collection drains diverting into canals within the irrigable area will catch return flows for further use in the irrigation system. Terminal wastes will be discharged into Blue Lake, an intermittent, shallow marsh on the Frannie Canal.

Most of the return flow will be reused during the irrigation season, but about 10-15 c.f.s will be spilled from the Frannie Canal wasteway into Sage Creek, which has a summer flow of 130-200 c.f.s. In the winter, all return flows (estimated 20-30 c.f.s) will be spilled into Sage Creek which might double its normal winter flow. The drainage system has also been designed to prevent return flows, both surface and subsurface, from entering drainages leading to the Clarks Fork River, a main tributary of the Yellowstone River.

Some of the structures of the existing Shoshone Project are essential to the proposed development. These include Buffalo Bill Reservoir on the Shoshone River, Shoshone Canyon Conduit, Shoshone River Siphon, and the Heart Moun

tain Canal. Water to irrigate the new lands will initially be stored in Buffalo Bill Reservoir, then released through the Shoshone Canyon Conduit, carried across the Shoshone River via the siphon, and into the Heart Mountain Canal. From the terminus of this canal, water will enter the new system through a series of three siphons and a short tunnel, totalling more than 7 miles in length. to reach the upper end of Polecat Bench. From there, water will be pumped to serve about 3,100 acres, 8,040 acres will be supplied by gravity, and water will also be carried to Holden Reservoir.

The Holden reservoir site is on Polecat Bench in Sections 25. 26, 35. and 36. Township 57 N., Range 99 W. Holden Dam will be a compacted earthfill struc ture approximately 65 feet high, 6,070 feet in length, and with a crest width of 30 feet. A small spillway will be constructed to enter the outlet below its gate control, with a maximum capacity of 100 c.f.s.

Holden Canal will originate at Holden Reservoir, with an initial capacity of 165 c.f.s., and will supply 6,860 acres of irrigable land at the northeast end of Polecat Bench and 1,200 acres in Frannie Loop, directly below the northeast end of the bench. Storage in Holden Reservoir will be necessary to enable the peak irrigation demand to be met when canal capacities are insufficient to supply directly all the required water. This will usually be during July and August.

About 65.000 acre-feet of water will be required annually for irrigation use. Approximately 40.000 acre-feet will be supplied from storage in Buffalo Bill Reservoir after its usual spill. Consequently, annual fluctuation of Buffalo Bill will be increased by about 10 feet-from 37 to 47 feet. The present annual drawdown pattern will not be altered until after July, when the additional drawdown will begin. The winter pool will be approximately 10 feet lower than formerly. The remaining 25,000 acre-feet will be supplied by reducing the volume of water which has previously been wasted during the fill and spill period of Buffalo Bill Reservoir. As a result, the historical total annual flow in the Shoshone River below Buffalo Bill Dam will be depleted by about 7 percent. However, it is planned that a minimum instantaneous release of 50 c.f.s. will be made from Buffalo Bill Reservoir into the Shoshone River through the Shoshone Powerplant. This is sbstantially in excess of historical minimum releases, which have fallen as low as 15 c.f.s.

Sediment is not expected to be a problem in Holden Reservoir. The drainage area surrounding the reservoir site is only about 2 squares miles, and very little sediment will be carried in from the supply canal. A minimum pool of 150 acres, containing 1,400 acre-feet of water, will be provided. The greatest depth of the minimum pool will be about 25 feet. The ultimate winter pool level will be at about elevation 4.992. During the first few years of operation, however, while ground-water movements will be studied, the maximum storage level during the winter months will be held to elevation 4.985. Full pool level, at elevation 5.001.5. will be maintained for two months-May and June. Normal operation of Holden Reservoir after the observation period will then be the same each year.

Fish

FISH AND WILDLIFE RESOURCES

Buffalo Bill Reservoir, the principal feature of the Shoshone Project, is a 6.700-acre impoundment. The dam, approximately 227 feet in height, is situated at the head of Shoshone Canyon, just below the confluence of the North and South Forks of the Shoshone River about 6 miles west of Cody. Historically, the reservoir has supported good populations of cut-throat, rainbow, mackinaw, and brown trout. The fishery is maintained partially by stocking, and partially by natural spawning in the North and South Forks of the Shoshone River and some of their tributaries.

The reservoir offers trout fishing close to a porulation of about 5.000 noonle, Accessibility is good. The entire north shore can be reached by all-weather U.S. Highway 14 and 20, and the south shore can be reached by car during dry weather. Most of the reservoir is open to fishing year-round, and when local streams are closed, fishermen often shift to the impoundment. Most of the fishing pressure occurs in the spring of the year, but a number of fishermen also fish during nog k drawdown when fish are concentrated. The present annual drawdown of Buffalo Bill (about 37 feet) exposes reaches of rocky and gravelly shoreline along much of the reservoir, which provides good access for shore fishermen. However, there are extensive mud flats where the North and South Forks enter which tend to limit use of these areas.

The Shoshone River Canyon from Buffalo Bill Dam to the Heart Mountain Powerplant, a distance of about 21⁄2 miles, is a succession of riffles and deep pools and is the best reach of the river from the fishery standpoint. The rainbow trout is the principal fish taken in the Canyon. As with the reservoir, the stream is open to year-round fishing. However, numerous sulphur containing springs enter the river within Shoshone Canyon and without adequate stream flow these sulphurous waters make the habitat less desirable for fish. This is particularly true during the nonirrigation season when releases from Buffalo Bill Dam into the Shoshone Canyon have frequently been as low as 15 c.f.s. The problem is further complicated when ice covers the stream. Trout have been illed during periods of ice cover when the toxic gases could not escape from the water.

Discharges from Buffalo Bill Reservoir into the Canyon range between 700800 c.f.s. during the irrigation season, of which about 500 c.f.s first passes through the Shoshone Powerplant immediately below the dam. This plant generally operates only during the irrigation season or when the reservoir is full and spilling. The best fishing, and heaviest pressure occurs during the period of irrigation releases and also during the early spring when the reservoir spills. The critical period for fish life, however, is after the flow is drastically reduced at the end of the irrigation season. The flows during the nonirrigation season frequently provide only survival habitat at best, and when ice cover occurs, even this can be lost.

The projected average annual use of the Shoshone River between Buffalo Bill Dam and Heart Mountain Powerplant, without the proposed Polecat Bench development, is 1,000 fisherman-days, evaluated at $3,000.

The Shoshone Canyon Conduit originates in Buffalo Bill Reservoir and bypasses the important 21⁄2 mile reach of river in Shoshone Canyon. The conduit forks just above the Heart Mountain Powerplant. One fork leads into the Shoshone River Siphon and supplies the Heart Mountain Canal. The other fork carries about 300 c.f.s. into the Heart Mountain Powerplant which discharges directly into the Shoshone River. The Heart Mountain Powerplant usually operates the year round and the flow in the Shoshone River below this point is generally sufficient to sustain the limited fishery in this reach of river. The projected average annual use of the Shoshone River between the Heart Mountain Powerplant and Willwood Diversion Dam about 15 miles downstream is 300 fisherman-days, evaluated at $900.

The Clarks Fork River provides good trout fishing above the mouth of Big Sand Coulee. Fishing is poor downstream from this point all the way to the Yellowstone River, at least partially due to silt carried into the river from Big Sand Coulee during the irrigation season and following heavy rains over its highly erodible watershed. There are emergency wasteways on two laterals supplied from the Heart Mountain Canal, which occasionally discharge excess water into the upper end of the Big Sand Coulee drainage. During 1965 the combined waste was 10 c.f.s. on 2 days, 4 to 6 c.f.s on 3 days, and there were several days of 0.5 to 2 c.f.s. In addition, return flows from private irrigation developments enter Big Sand Coulee. This silt-laden water enters the Clarks Fork River near the Wyoming-Montana line, and contributes to the pollution of the Yellowstone River as well as to the Clarks Fork.

The Holden Reservoir site is in an arid basin and supports no fishery.

Wildlife

Buffalo Bill Reservoir, because of its extreme fluctuation, is important to wildlife only as a waterfowl resting area. A moderate amount of duck hunting is associated with the flocks of ducks which rest on the reservoir and fly to adjacent fields for feeding. Although a few beavers and minks are found along the Shoshone River below the dam, its principal wildlife value is for ducks, primarily mallards, which winter by the thousands in this part of the Bighorn Basin and furnish excellent duck hunting.

Sage grouse are the most abundant game species inhabiting Polecat Bench. There are four major strutting grounds within the irrigable area, which also provides critical habitat for wintering birds. One of the strutting grounds lies within the basin of the proposed Holden Reservoir. Sage grouse hunting, both by residents and non-residents, is becoming more popular in Wyoming each year. This largest species of grouse is particularly appealing to hunters since public lands provide a large share of their habitat, and posting is no problem.