from October 1 to April 30. Maximum depth will average 42 feet during this period.

Holden Reservoir should become a popular fishing spot because fishing opportunities are quite limited in the immediate area. The projected average annual use of the impoundment is estimated at 5,000 fisherman-days, evaluated at $10,000. However, the fishery benefits assigned to Holden Reservoir are dependent on its operation essentially. Significant variation from the proposed plan of operation, particularly with regard to decreasing the size and depth of the minimum pool, increasing the period the reservoir is held at minimum pool level, or decreasing the average size and depth of the winter pool, could result in complete loss of the fishery and of the Wyoming Game and Fish Commission's investment in its establishment and management.

As mentioned previously, the drainage system for the collection of irrigation return flows from Polecat Bench has been designed to prevent these return flows from entering Big Sand Coulee and ultimately the Clarks Fork and Yellowstone Rivers. In order to prevent further adverse effects on the Clarks Fork and Yellowstone Rivers from silt-laden irrigation return flows, it is imperative that this remains a definite feature of the project plan. The waste water and return flows proposed to be spilled into Sage Creek might contribute additional silt to the Shoshone River near Lovell, but this will probably cause only a minor increase in the silt load it already carries.

The annual fisherman day-use and values with and without-the-project are summarized below:

There will be no measurable effect on wildlife populations associated with Buffalo Bill Reservoir or the Shoshone River as a result of this project. However, irrigation of 19,200 acres of native sagebrush-grassland types will cause a significant change in wildlife use. Sage grouse can be adversely affected. At least four strutting grounds will be eliminated, along with some wintering and nesting habitat vital to the survival of these birds. This might cause serious losses to sage-grouse populations in the project vicinity since other land-use practices, including sagebrush eradication, are destroying habitat for this species.

The Wyoming Game and Fish Department is now and has for several years contended with a crop depredation problem created by sage grouse in this vicinity. If additional irrigated lands are created in proper relation to large expanses of contiguous brush lands, grouse populations could maintain themselves or even slightly increase. Potential additional crop depradation problems would be dependent upon what crops are grown in the additional irrigated acreage. In short, alfalfa hay could be grown to the benefit of sage grouse populations; whereas, additional depredation problems are anticipated if seed beans, peas, radishes or similar crops are anticipated.

Although the irrigated lands will eventually support a good population of pheasants and could support more hunter days that that now provided by the native birds, the loss of the sage grouse will be disappointing to many hunters. Also, the good pheasant hunting potential will not be realized, despite the presence of a significant number of birds, unless there is reasonably easy access to the irrigated farms, whereas much of the present sage grouse hunting could continue on public land with no access problem. Hungarian partridges will also use the irrigated lands but not in numbers equal to pheasants.

Other species of game and fur animals such as jackrabbits, cottontails, and muskrats will exist in limited numbers and provide some additional recreation. Development of irrigation will have little effect on the minor use currently made of the area by chukar partridge, mule deer, and antelope.

Although Holden Reservoir will inundate one large sage grouse strutting ground, its location between other feeding and resting areas along the Shoshone River should increase duck hunting opportunities. The reservoir will serve primarily as a resting area for ducks.

The projected average annual use of the irrigable area and Holden Reservoir is estimated at 1,200 upland-game hunter-days, evaluated at $2,400, and 100 waterfowl hunter-days, evaluated at $300. The projected value of the fur harvest is not expected to differ significantly from the without-the-project situation. The net effect of the project is estimated at an increase of 600 hunter days-use annually, evaluated at $1,300.

PLAN OF DEVELOPMENT FOR FISH AND WILDLIFE RESOURCES

The low winter flows below Buffalo Bill Dam have persisted for a number of years. The Shoshone Project was constructed long before conservation and de velopment of fish and wildlife resources were considered as integral parts of water development projects. Minimum flows below the dam have been dependent upon the annual runoff of the Shoshone River watershed and irrigation demand during the summer months. Generally, adequate flows have been accidental rather than by design as far as the fishery is concerned. Releases during the nonirrigation season vary, depending upon downstream inflows to supply domestic and industrial demands and for ice control.

As previously mentioned, sulphur gases in the water are particularly toxic, and often lethal, to fish when extremely low water in the Shoshone River becomes cov ered with ice. The good fishery potential of Shoshone River Canyon is thus severely restricted by insufficient flows during periods when releases for irrigation, or power generation at the Shoshone Plant, are not being made. According to the Bureau of Reclamation's 1963 Annual Operating Plan for the Western Division, "Inflow to Buffalo Bill Reservoir during the irrigation season is usu ally in excess of requirements, and the reservoir can be filled in all but extremely low years of runoff." Additional information indicates that the reservoir historically has spilled excess runoff in about eight out of ten years. Therefore, it appears that normally there is sufficient inflow to the reservoir to meet irrigation requirements and also to furnish additional water to the river below. However, the extent to which the surpluses could be made available for a uniform controlled release would depend upon the accuracy of future inflow forecasts.

Current operation of Buffalo Bill Reservoir generally provides adequate flows for the fishery in the Shoshone Canyon reach except for about 2 months each year when the Shoshone Powerplant is shut down. The planned minimum release of 50 c.f.s. with the project will be an improvement; however, even greater benefits to the fishery could be realized if the minimum instantaneous release from Buffalo Bill Reservoir could be increased to 100 c.f.s. This would require about 12,000 acre-feet of water annually for the 2 months that the Shoshone Powerplant is not operating. During the remainder of the year, releases for power and/or irrigation would provide adequate flow. A minimum release of 100 c.f.s. would greatly decrease the chances of the stream freezing over during the winter. It would also provide more habitat, and thus increase fish populations and fishing.

A minimum instantaneous release of 100 c.f.s. would result in an additional benefit, for the 21⁄2 miles of Shoshone River from Buffalo Bill Dam to Heart Mountain Powerplant, of 500 fisherman days-use annually, evaluated at $1.500. Besides improving this reach of river between Buffalo Bill Dam and the Heart Mountain Powerplant, a 100 c.f.s. flow added to the 300 c.f.s. discharged into the river at that powerplant, would improve the quality of habitat in the river downstream between the powerplant and Willwood Dam. The improvement would result from dilution of the sulphurous water which enters from springs in the river between the plant and Sulphur Creek. The water in this stretch is presently too toxic to support much. if any, fish life. An additional net increase of 200 fisherman days-use annually, evaluated at $600, would result from such an improvement in flow.

Any reduction of the silt-laden flow of Big Sand Coulee would contribute to reducing the silt load in the Clarks Fork River and assist in the development of an improved fishery in that stream. Consequently, the plan of development for the Polecat Bench Area should provide for the elimination of all facilities for disposal of water from the Heart Mountain Canal system into the Big Sand Coulee drainage. Any excess water could be disposed of via the Polecat Canal and stored in Holden Reservoir.

An adequate minimum pool at Holden Reservoir has been provided for in the plan of operation. As stated previously, the fishery benefits assigned to this impoundment are based in large part on the understanding that the planned minimum pool will not be decreased. It is to be expected that in occasional very dry years it might not be possible to fill the reservoir completely. Under such conditions, experience indicates that demands will be made by irrigators to supply shortages from the minimum pool. To forestall this problem, and to protect the investment in stocking and management of the reservoir by the Wyoming Game and Fish Commission, the invert elevation of the lowest outlet should be set at, or above, elevation 4,975 feet.

It is recommended that:

RECOMMENDATIONS

(1) The report of the Regional Director, Bureau of Reclamation, include the conservation and development of fish and wildlife resources among the purposes for which the project is to be authorized.

(2) All lands necessary for carrying out the various purposes of the project be acquired in accordance with the provisions of the Joint Policy of the Departments of the Interior and of the Army relative to reservoir project lands of February 16, 1962, and that flowage easements be acquired only on those lands found not to have substantial value for recreation or fish and wildlife purposes. (3) Federal lands and project waters in the project area be open to public use for hunting and fishing so long as title to the lands and structures remains in the Federal Government, except for sections reserved for safety, efficient opera tion, or protection of public property.

(4) Leases of Federal land in the project area reserve the right of public use of such land for hunting and fishing.

(5) A minimum instantaneous release of 100 c.f.s. be maintained from Buffalo Bill Reservoir into the Shoshone River Canyon-such releases not to include seepage through the dam or sectional gain from springs in the dam vicinity. (6) The facilities for wasting water from the Heart Mountain Canal system into Big Sand Coulee he eliminated and any excess water be conveyed into the Polecat Bench distribution system.

(7) The invert of the lowest outlet from Holden Reservoir be set no lower than elevation 4,975 feet.

(8) Facilities for access to the water, including a hard-surface boat ramp, be provided at Holden Reservoir; the facilities to be designed to permit fishermen to get on the reservoir during maximum drawdown periods.

We appreciate the opportunity to provide our views on your proposed plan of development. Please notify us of any significant changes in project plans so that we can revise our report, if necessary.

Mr. RONCALIO. Thank you.

Mr. KAZEN. And without objection, the entire statement of the Governor will be made a part of the record.

(The statement of the Governor of Wyoming follows:)

STATEMENT OF HON. STANLEY K. HATHAWAY, GOVERNOR OF THE STATE OF

WYOMING

Mr. Chairman and members of the committee, I am Floyd Bishop, Wyoming State Engineer, and my testimony is presented on behalf of Governor Stanley K. Hathaway. 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.

In December of 1966, the Regional Director of the Bureau of Reclamation at Billings, Montana, 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 Deparement 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

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project has been held up by the Office of Management and Budget due to questions of economic feasibility 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 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 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 two 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 staying 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 spin-off benefits which result from water project 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 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 thirty years. More than five 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 the quality in to a viable administrative organization.

More than 13,000 acres (70% of the lands within the Project) are Class I. the highest classification of irrigable lands. This percentage is far above the average for reclamation projects throughout the western states. 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 would be delivered, part of the distance, through the existing Shoshone Canyon Conduit and the Heart Mountain Canal. As evidence of local cooperation, owners of large land holdings within the Project Area, have indicated a willingness to dispose of their property to accommodate newly created farming units. 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 Recreation Commission, by letter dated August 6, 1970, requested the Commissioner of the Bureau of Reclamation to include the recreational spects in the project and indicated their willingness to comply with the provisions of the Federal Water Project Recreation Act of 1965. (P.L. 89–72). Another project benefit not considered in the cost-benefit computation, will be the effect on population dispersal, something we talk about but have done little to implement. Possibly the most perplexing problems of our society today are related to overpopulation in the urban areas and the continuing migration of people from the farms and small towns to the cities. This urbanization of our society has been accompanied by the social and economic ills characteristic of

low-income, ghetto-type communities. A reversal of this trend should receive high priority in government policy. Park County is a rural area consisting primarily of family sized farms and ranches, with small towns that are dependent on agricultural activities. Agricultural production on Polecat Bench will provide a boost to the local economy and will help reverse the disturbing out-migration from this rural area.

A very recent phenomenon is the shortage of beef that is now international and could become world wide. Due to rising beef prices, and the fact that farm and ranch operators in this area are basically involved with the beef industry, more land may be dedicated to cattle production than was anticipated in earlier feasibility reports. The irrigated lands of the Polecat Bench Area would expand the capability of cattle feeding operations close to the area where thousands of cattle are raised. The current practice of shipping these local cattle to feed lots in other areas could be reduced and brought closer to home, thereby providing a more efficient operation with obvious economic benefits for the local area. As a result, the irrigation of Polecat Bench will help reduce spiraling meat prices, and for this reason, too, we should encourage this Project.

Another commodity that has recently looked promising is malt barley. The finest soil and sophisticated farming practices are required to raise barley of the high quality necessary for malting. I understand that Coors Brewery is exploring the possibilities of a contract with potential Polecat Bench farmers. The argument that this is just another irrigation project aggravating agricultural surpluses does not hold true for Polecat Bench.

Other benefits which could evolve from this potential development include the possibility of providing a municipal and industrial water supply for the City of Powell, Wyoming. The city administration recently indicated an interest in obtaining water from Holden Reservoir, a feature of the Polecat Bench Area, as one alternative source for its water supply. The inclusion of municipal and industrial water supply as a purpose would have a significant and favorable effect on the economic analysis.

State officials have pointed out, on many occasions, that funding of the Bureau of Reclamation program in Wyoming has been relatively insignificant compared to the massive mineral royalties that Wyoming resources have contributed to the Reclamation Fund. In recent years the contributions from Wyoming to the Reclamation Fund have averaged approximately 10 times the amount of money spent in Wyoming on reclamation projects. Ironically, federal funding for reclamation projects in states not so dependent upon their mineral resources has been far greater than in Wyoming. Using fiscal year 1971 as an example, the contributions to the Reclamation Fund, and the expenditures for reclamation activities in some of our sister states were as follows:

In the interest of equity, Wyoming is obviously entitled to reclamation development which would bring expenditures more nearly in line with contributions. In addition to other purposes, the reclamation program was designed to develop renewable resources simultaneously with the depletion of nonrenewable resources, The reality for Wyoming has been far different. Most of our petroleum reserves have now been exported. The uranium and coal resources will undoubtedly be mined as rapidly as economically feasible. The present outlook for development of the State's land and water to replace a dwindling economy when the minerals are depleted is not encouraging. Polecat Bench, when developed, will still be providing a source of income for Park County farmers and ranchers, when Wyoming's mineral resources are no longer producing jobs or tax revenues. The Missouri River Basin Project Act created a Basin Fund, with contributions from power revenues to help reimburse the federal government for its investment in water projects. Wyoming irrigation projects have received very little assistance from this source to date compared to other Missouri River