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• 21. [Image] Three great factors in Oregon's development

  	An article on the agricultural, industrial and economic development of the state of Oregon in the early 20th century
  	Citation × Citation Citation Abstract Copy Title: Three great factors in Oregon's development Author: Moon, A.W. Year: 1906, 2004 An article on the agricultural, industrial and economic development of the state of Oregon in the early 20th century Title: Three great factors in Oregon's development Author: Moon, A.W. Year: 1906, 2004 An article on the agricultural, industrial and economic development of the state of Oregon in the early 20th century Close

• 22. [Image] Klamath

  	An article summarizing the abundant natural resources of the Klamath region and the plans for irrigation and further settlement of the area
  	Citation × Citation Citation Abstract Copy Title: Klamath Author: White, Frank Ira Year: 1906, 2004 An article summarizing the abundant natural resources of the Klamath region and the plans for irrigation and further settlement of the area Title: Klamath Author: White, Frank Ira Year: 1906, 2004 An article summarizing the abundant natural resources of the Klamath region and the plans for irrigation and further settlement of the area Close

• 23. [Image] The South Portal Project : creating a sense of arrival

  	"Holistic planning for Lake Ewauna & the south entry to the City of Klamath Falls"
  	Citation × Citation Citation Abstract Copy Title: The South Portal Project : creating a sense of arrival Author: Carpenter Design, Inc. Year: 2005 "Holistic planning for Lake Ewauna & the south entry to the City of Klamath Falls" Title: The South Portal Project : creating a sense of arrival Author: Carpenter Design, Inc. Year: 2005 "Holistic planning for Lake Ewauna & the south entry to the City of Klamath Falls" Close

• 24. [Image] Public notice opening public lands to entry

  	E R R A T A S H E E T August 6, 19U6 TO ACCOMPANY PUBLIC NOTICE NO. U3 DATED AUGUST 1, 19U6 OPENING PUBLIC LANDS TO ENTRY ON THE KLAMATH IRRIGATION PROJECT, OREGON - CALIFORNIA TULE LAKE DIVISION The following ...
  	Citation × Citation Citation Abstract Copy Title: Public notice opening public lands to entry Author: United State. Bureau of Reclamation Year: 1946, 2004 E R R A T A S H E E T August 6, 19U6 TO ACCOMPANY PUBLIC NOTICE NO. U3 DATED AUGUST 1, 19U6 OPENING PUBLIC LANDS TO ENTRY ON THE KLAMATH IRRIGATION PROJECT, OREGON - CALIFORNIA TULE LAKE DIVISION The following paragraphs are hereby substituted for the corresponding para-graphs 5 ( c) and 5 ( d) as written in the copy of the above Public Notice: Paragraph 5 ( c) The applicant must demonstrate that he possesses a minimum of # 2,000 in unencumbered assets applicable or convertible to the needs of farming in this area. This may be determined by an itemized list of assets and liabilities and must be corroborated by a statement from an official of a bank or other responsible and reputable private or public credit agency. Paragraph $ ( d) The applicant must submit a certificate of medical exami-nation which will contain a statement by an examining physician assuring the applicant's physical ability to operate a farm. Paragraph 9 ( lines k and 5) in the Summary of Requirements and Procedures states, in part: "... which will entitle the entryman to three acre- feet of water per irrigable acre." This should be changed to read: "... which will entitle the entryman to 2g acre- feet of water per irrigable acre." UNITED . STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION WASHINGTON Klamath Irrigation Project, Oregon - California Tule Lake Division PUBLIC NOTICE OPENING PUBLIC LANDS TO ENTRY oo U3 August 1, 191* 6 1. Public land for which water i£ available and for whichi entry may be made.— In pursuance of the act of June 17, 1902 ( 32 Stat. 38b1), and acts amendatory thereof or supplemental thereto, TE" is hereby announced that water will be available in the irrigation season of 191* 7 and thereafter, and beginning September 15>, 19l* 6, entry may be made in accordance with this notice for the following- described public lands under the Tule Lake Division of the Klamath Irrigation Project, Oregan- California, as shown on farm unit plats of Township 1* 7 North, Ranges £ and 6 East and Township 1* 8 North, Range 5 East, Mount Diablo Meridian, California, to wit: Mount Diablo Meridian, California Total Irrigable Acreage 8U. 0 101.2 73o5 73.7 73 » 3 5 76.0 76o2 75.8 66.8 68.3 66.8 68.3 7U. 7 73.8 7U. 1 73o8 127.9 73.8 80.0 137.5 129.6 87.8 9h. B 98.0 109 o 6 7li. O lh. 3 7li. 6 7JU. 3 73.9 7U. 2 73.9 7U. 2 7U. 5 714.2 7U. 67.2 73.3 7U. 9 73.2 7U. 7 100.7 91.3 Township 1* 7 North Range Farm Unit A BA B CDE F G H A B C D EF G HCD E B A A B G H C D E F A B CD E FG * H L A BCD E F * T. 1* 7 N., R. 6 E., M. D. £ East Section 1 2 2 2 2 2 2 2 2 11 11 11 11 11 11 11 11 12 12 12 12 12 7* 13 18* 13 18* 13 18* 13 18* 13 13 13 13 11* H* Hi ll* H* ll* ll* ll* 16 23 23 23 23 23 23 26 27 . M. • . Description Lots 16 &' 17 Lot 20 & W| swi Lot 1 & SEzNEi Lot 2 & SWINEJ Lot 3 & SEzNWz Lot k & SW| NW § EJSWJ WISEJ EgSEz, Lot 1 & SEzNEz Lot 2.& SWJNEJ Lot 3 j& SEJNWJ Lot k & SW} NW| wisWz EJSWJ WtSEf EiSEt Lots 6, 16 & SW^ NWj w^ swj Lots 10 & 2X-* Lots 17, 18 & WiSE| Lots 9 & 12 Lots 12 & 13 Lot 1 & NW^ NEj Lot 10 Lot 2 & SWjNEi Lot 11 Lot 3 & NWjSEj Lot ll* Lot 1* & SWjSEj Lot 1^ EiNWi W4NW} wlswf : v EI- SIVJ EJNEJ ;.; mttl E| SW} l/ feSE'z E| SE| WyNWj Ef NEi W| NEI EiNV/ z WJMWTI-Lots 3, 1* & 6 Lot ^ Lot 20 Lots 18 & 20 1. Farm Unit DCEF B A G A B A E C DE F G H A T. 18 N., R, 5 E., F G L G H J K Section 2k 2k 2k 2k 2k 19* 21 19* 21 25 27 27 28 28 28 28 28 28 28 33 28 27 33 M. D. M. 25 26 26 26 • 27 27 27 28 27 31 27 26 33 3h 28 33 33 33 3k 33 3k 3k 3k 3k 3k 3k 3$ 35 Description EJNWJ Lots 9, Lots 7, 10 & NEjSWj- 8 & NWiSEz Lots 5 & SW- jNEi Lot 10 Lot k & Lot 9 Lots 12 Lots 19 Lots 10, Lots 11 Lot, 1 & Lot 2 & Lot 3 & Lot I & E|- SW| W- JSE § Lot 20 Lot 5 Lot 31 Lots 10, NW^ NEJ & 13 • & 20 , 23, 2k, 27 & & 32 SEiNEi SWfNEi S E J M J smriNwJ , 15 & 16 Lots 16 & 17 Lot 7 & E| W- JSEi Ejswi & W?- W1SE| i, NjsEiswi, NWJSEJ NEJSEJ & N- ISEISEI Lots 2 & 3 Total Irrigable Acreage 75.0 73.2 77.5 76.8 91.8 109.0 ' 7a. 2 . 83.9 80.9 78. k TS. k . 78.3 60.8 60.8 77.6 86.3 70.1 73.5 120 111 III 103 105 110 .9 .1 .3 .5 • 5 • J .8 113.8 109 113 113 109 10U 111 .9 .8 ,7 .7 .6 • 0 96.8 99.5 98.8 96.6 M., R. 6 E., M. D. M. 2. Total Farm Unit Section Description Irrigable Acreage sIsE- jNWi 99. k 35 Lots 2, 3 i j i 99 o 6 B 35 | J, 36 Lots 13 & lii 126o8 G 35 Lot U & NEjSEj 36 Lot 20 103 o 9 A 36 Lots 5, 6, 12, 15 & 16 9lu2± The farm unit plats referred to above were approved on the date of this notice and are on file in the Office of the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon, and in the district land office at Sacramento, California, - where they may be examined by any person desiring to make application hereundero 2. Preference rights to honorably discharged veterans of World War II.— Pursuant to the provisions of the Act of September 27, 19hk, and The Act of June 25, 19^ 6 ( Public Law Ul| 0 - 79th~ Congress, 2nd Session), and related legislation,-"- and until 2: 00 p. m., December 15, 19U6, the lands described above will be open to entry only by persons who have served not less than 90 days in the Army or Navy of the United States in World War II and have been honorably separated or discharged therefrom or placed in the regular Army or Naval Reserve; provided, however, that they must be qualified to make'entry under the homestead laws and also possess the qualifications as to industry, experience, character, capital, and physical fitness required of all applicants under this notice. Farm applica-tions received prior to 2: 00 p. m., September 15, 19U6, will be considered as simultaneously filed. Farm applica-tions received after 2: 00 p. m., September 15, 19l; 6, will be filed and considered in the order of their receipt0 3. Limit of acreage for which entry may be made.— The limit of area of public land per entry, representing the acreage which", in the opinion of the SeereTary of the Interior, may be reasonably required for the support of a family upon such land, is fixed at the amounts shown upon the farm unit plats for the respective farm units above listed. k. Applicants must be qualified.— No entry shall be accepted or allowed by the Register of the district land office until the applicant"~ therefor has satisfied the Examining Board appointed for the Klamath Project to consider such matters, that he is possessed of such qualifications ( in addition to the qualifications required under the homestead law) as to industry, experience, character, capital and physical fitness as in the opinion of the Board are necessary to give reasonable assurance of success by the prospective settler. A digest of the qualifications required by the homestead laws is contained in the attachment to this notice. Complete information may be secured from the District Land Office in Sacramento, California, or from the Bureau of Land Management, Washington, D. Co 5. Requirements as_ to Industry, Experience, Character, and Capital.— The following are established as minimum qualification^ Tailure to meet them in. all respects will be sufficient cause to reject an application. No credit will be given for qualifications in excess of the minimum required: ( a) Each applicant must submit as part of his farm application three testimonials concerning his character and covering such points as honesty, temperate habits, thrift, industry, seriousness of purpose, record of good moral conduct in the past and a sincere desire to lead a bona fide farm life. These may be prepared and signed by an ordained minister, including chaplains in the armed service, any commanding officer under whom the applicant served for six months or more, a teacher or administrative official of any recognized high school or college, present or previous employer, or any comparable, responsible individual or official, not a relative, who is personally acquainted with the applicant. These may be the individuals listed in paragraph 17 of the Farm Appli-cation Blank. ( b) The applicant must have had at least two years1 full- time farm experience after the age of 15 and within the last seven years of civilian life; or must have lived and wox~ ked on a farm for five years continuously after reaching the age of 12 and within the last 10 years of civilian life. Time spent in active military service will not be included in the time used in computing farm experience. Two years of study in agricultural courses in an accredited agricultural college or two years of responsible technical work in agriculture which might help fit the applicant for operation of a farm may be credited as one year of farm experience except that. no more than one year of farm experience may be credited from such sources. One year of farm experience must be obtained by actual residence and work on a farm. A farm youth over the age of 15 attending school but actually residing and working on the farm may credit such time as actual farm experience. In support of his claim to meeting this requirement of farm experience, the applicant must supply three written statements signed by the county agent, F. S « AO county supervisor, A0AoA. County Chairman, official of any local farm organization, or comparable individuals, who have personal knowledge of the applicant's farm experience or have verified it to his complete satisfaction, testifying theretoo ( c) The applicant must demonstrate that he possesses a minimum of $ 2,000 in unencumbered assets applicable or convertible to the needs of farming in this area. This may be determined by an itemized listing of assets and liabilities in space provided on the application blank. ( d) The applicant must be in physical condition to operate a farm successfully, including the manual labor involved. If physically handicapped or afflicted with ailments making this condition questionable, a detailed statement by an examining physician should accompany the application. *" Including Soldiers' and Sailors' Civil Relief Act of 191* 0, as amended ( 51* Stat. 1178, 1186; % Stat. 769, 776; 50 U. S. C. App. 560- 572)." 3. 6. When and how to file an application for a farm unit.— ( a) A Farm Application Blank is attached to this notice. Additional blanks may be secured from the Superintendent, Klamath Falls, Oregon; the Regional Director, P. 0. Box 2^ 11, Sacramento, California, or the Commissioner, Bureau of Reclamation, Washington 2^, D. C. Full answer must be made to each question on the Farm Application Blank. The applicant may state the particular farm unit desired and may also include alternate choices or the choice may be left open to the examining boarde ( b) If the applicant claims a preference right on account of military service, he shall attach to his appli-cation an affidavit setting forth such military service. The affidavit shall state the applicant's time of service, the unit of which he was a member, the date on which he was honorably discharged, or separated, or transferred to the regular Army or Naval Reserve, and that he did not refuse to wear the uniform of such service or to perform the duties thereof. Providing that they qualify in other respects, women veterans have equal rights and will receive equal consideration in their application for farm unitso ( c) An application for a farm unit listed in this notice, together with the proof to be furnished by veterans, must be filed with the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon, in person, if con-venient, or by mail, or otherwise, prior to 2: 00 p. m., September l£, ± 9h6, if the applicant desires to qualify under the terms of this notice. No advantage will accrue to an applicant presenting his application in person rather than by mail. All applications received prior to 2: 00 p. m., September'l£, 19U6, will be held and treated as simultaneously filed. Applications received after 2: 00 p. m., September l£, 19U6, will be considered only as provided in paragraphs 2 and 12 of this public order. 7. Examining Board.— An Examining Board of five members, including the Superintendent of the Klamath Project who will act as Secretary of the Board, has been approved by the Commissioner of Reclamation to consider the fit-ness of each applicant to undertake the development and operation of a farm on the Klamath Project. Careful investigation shall be made to verify the statements and representations made by the applicants to the end that no misunderstanding may prevail, either regarding the applicant's fitness or his appreciation of the problem before him. Any falsification will automatically cause the application to be discarded from consideration*, 8. Selection of Qualified Applicants.— To determine whether an applicant for a farm unit is eligible under the provisions of subsection " C" of Section k of the Act of December 5, 192k, his application will be reviewed on the basis of whether or not he is qualified as an entryman. Applicants will be judged on the qualifications of character, industry, farming experience and capital and no applicant will be considered eligible who does not qualify in all respects, or who does not, in the opinion of the Examining Board, possess the health and vigor for active farm work. 9. Showing of applicants and selection thereofc— ( a) Where the applicant, in the original application which he files fails to make a prima facie case— that is, where the applicant ( l) does not possess good health; or ( 2) fails to make the necessary showing as to character; or ( 3) fails to make the necessary showing as to industry; or ( U) fails to make the necessary showing as to citizenship, or ( 5) dees not show at least two years' farm experience; or ( 6) does not show at least $ 2-, 000 in unencumbered assets; or ( 7) is disqualified because of having already made homestead entry; or ( 8) is the owner of more than 160 acres of land in the United States; or ( 9) is otherwise disqualified, the application for a farm unit shall be rejected, and the applicant notified thereof by registered mail, with return receipt demanded, and of his right to appeal to the Regional Director of the Bureau of Reclamation within 10 days from . receipt of such notification. All appeals allowed under this Public Notice No. h3 must be filed in the office of the Superin-tendent at Klamath Falls, Oregon, within 10 days from receipt by applicants of rejection notices. The Superinten-dent will forward such appeals promptly to the Regional Director. ( b) After the expiration of the appeal period fixed by the above- mentioned notices, if any are required, to applicants who failed to make prima facie cases, and in the absence of any pending appeals, the Board shall pro-ceed to select the 86 successful applicants ( there being 86 farm units described in paragraph 1 subject to entry) o All applicants in the group filing prior to 2: 00 pom;, September l£, 19U6, and who possess minimum qualifications as outlined in paragraph 5>, will be considered equally. From the names of all qualified applicants in the group considered as simultaneously filed, there shall be drawn 172 names ( twice the number of homesteads to be awarded). These 172 applicants shall be closely investigated, in the order in which selected, and any falsehood or mis-representation shall be grounds for the Board to disqualify the applicant and to pass on to the next in order until the 86 successful applicants have been determined, plus a sufficient number of alternates to replace those in the first group of 86 who fail to complete their transactions. In the event that there are remaining units to be awarded, consideration will be given to Veteran applications, in the order of filing, prior to 2: 00 p. mc, December l£, 19^ 6, as provided in paragraph 2 above. Remaining units, if any, will be awarded, in the order of filing of applications, as provided in paragraph 12 of this order. ( c) Applicants from among the group of 172 selected in paragraph 9( b) above who subsequently are disquali-fied as a result of investigation by the Board shall be sent a notice by registered mail, with return receipt demanded, unless delivered in person, setting forth the reasons thereof and of the right to appeal to the Regional Director within 10 days from receipt of such notice as provided in paragraph 9( a) above, ( d) Immediately following the selection of the 86 successful applicants, the Board shall send a notice by registered mail with return receipt demanded, to each of the ether qualified applicants, advising him of his standing, as alternate or otherwise, and that since the number of qualified applicants exceeds the number of available farms, his application must be held for rejection. In the event that any of the 86 applicants awarded a farm unit fails to fulfill the requirements of paragraph 10 hereof, the Board will select other applicants in the order of their standing on the list of alternates to replace those failing to complete their transactions0 10* Notification of Applicant that he has been selected.— After the expiration of the period or periods fixed by notices to applicants in the conTTngencies named in paragraph 9 above, or any other that may arise, and upon completion of action which may become necessary because of such notices, the Board shall notify each appli-cant selected for a farm, by registered mail with return receipt demanded, unless delivered to him in person, that he has been selected for a farm unito Whenever practicable, and within the time allowance stated on the notice, the Board shall allow the successful applicants to exercise a choice of farms as listed on their application blanks and in the order of their standing in the drawing. However, the Government reserves the right to assign the farms regardless of individual preferences. After a farm has been selected, the Board shall send tne applicant, by r egistered nail with return receipt demanded, unless delivered to him in person, a water rental application for the farm selected, which rvust be executed by the applicant and returned to the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon, within 10 days from receipt, together with payment of the minimum water rental charge, as specified in paragraph 15 hereof. The Secretary of the Examining Board will furnish each such applicant by registered mail, unless delivered to him in person, a certificate' stating that his qualifications to enter public lands, as required by sub- section " C" of Section h of the Act of December 5, 192U ( U3 Stat. 702), have been passed upon and approved by that Board. Such certificate must be attached by the applicant to his homestead application when he files such application at the District Land Office at Sacramento, California. Such homestead application shall be filed within ]£ days from the date of the receipt by the applicant of the said certificate. Failure to pay the water rental charge or to make application for homestead entry within the periods specified herein will render the application subject to rejection. 11. Failure of selected applicant to - complete transaction.— If the applicant to whom a farm has been awarded fails to comply witH" any of the requirements named above, the Board will select the next listed alternate. 12. General entry.— After all applications received prior to 2: 00 p. m., December 15, 19^ 6, have been con-sidered and awards of farm units made to all qualified applicants, any farm units described in paragraph 1 above which remain unentered, shall be subject to entry under this order by any person having the necessary qualifications. If, on September 15, 19U6, prior to 2: 00 p. m., the number of applications filed exceeds the number of available farm units, then the right to make entry for any such farm unit shall be determined in accordance with paragraphs 2 and 9 of this order, the provisions of which shall continue in effect in a s imilar manner in the future if the number of applications at any time exceeds the number of remaining available farm units. 13. Warning against unlawful settlement.~- No person shall be permitted to gain or exercise any right under any settlement or occupation of any of the public lands covered by this order except under the terms and conditions prescribed by this order, provided, however, that this shall not affect any valid existing right obtained by settle-ment or entry while the land was subject thereto. 111. Construction charges,— Section 15 of the Act of May 25, 1926 ( hk Stat. 639) authorizes and directs the Secretary, when announcement is made of the construction charges for this division, to fix and allocate the con-struction cost per acre in accordance with the findings and recommendations of the Board of Survey and Adjustments as shown on page 26 of House Document No. 201, 69th Congress, 1st Session. As recited on page 26 of said Document No. 201, the Board found that the total gross cost of construction charged to the division, as of June 30, 1925, is $ l, 6hO, 9h9; and that this cost should be allocated on the basis of 37,500 acres and not upon 2l±, 2OO as hereto-fore; and that a deduction of'$ 23h, U07 should be made from the cost named. Applying the deduction of $ 23h9hD7 would leave a remainder of $ l, lio6,5> li2 and the Board's report at this point recites: " The net cost would be 31,1* 06,51* 2, and this amount divided by 37,500 acres, would give an average construction cost of $ 37.50 per acre. This per acre cost of $ 37.5 » O does not include any costs for future construction work which will be necessary to complete this division, and this should be particularly noted." The estimate of cost to complete the works for 33,000 acres which are considered irrigable, is $ 1,678,000 or a per acre cost of $ 50.85. This amount added to the per acre cost to June 30, 1925, of $ 37.50 would make e total per acre cost of £ 88.35. A summary of the construction estimate for work after June 30, 1925, is attached to and made a part of this order. If the actual cost of future work is less than the estimate of $ 1,678,000 named above, the construction charge will be proportionately reduced, but the expenditure of $ 1,678,000 will not be exceeded without the water users agreeing to repay all sums in excess » of this amount. In arriving at the per acre rate of $ 88.35, and as shown above, the write- off of $ 23U, UO7 authorized in Section 15 of the Act of May 25, 1926, has been deducted from the total cost, but before this write- off may be actually accomplished, the Secretary of the Interior must require, as set forth in Section h$ of the said Act of May 25, 1926, a contract with a water users1 association or irrigation district whereby such association or irrigation district shall be required to pay the entire charges against all productive lands within the division without regard to default in the payment of charges against any individual tract of land; also as provided in Section U5 of the Act named, there must be executed a contract of the character described, before the ^ 0- year repayment plan as authorized in this Section may be made effective. Since the Tule Lake Division, with the exception of a few tracts, embraces only public land it would not be possible to make such a contract until the lands are opened and entered. Under the circumstances, the division will be operated on a water- rental basis until its agricultural development has advanced sufficiently to permit of a district organization, at which time a so- called joint liability contract will be required and the construction charge will be'announced at $ 88.35 per acre payable over a l± Q- year period. Should the entrymen or water users fail, or refuse, to proceed in the manner required under the Act of May 25, 1926, it will become necessary to issue public notice under the Extension Act of August lii, 191k ( 38 Stat. 686), without regard to the write- off and under a 2G- year- repayment plan. This would result in a per acre charge of $ U9• 70 instead of $ 37.50 for the cost to June 30, 1925, which added to the per acre cost to complete of $ 50.85, would fix the construction charge at $ 100.55 per acre payable in 20 years* 1^° Water- rental charges.— The minimum water- rental charge for the irrigation season of 19ii7 shall be two dollars and eighty cents ($ 2.50) per acre for each irrigable acre of land in the farm unit, whether water is used or not, which will entitle the entryman to 2j acre- feet of water per irrigable acre. Additional water will be furnished during the said irrigation season up to a limit of 3$- acre- feet per irrigable acre at the rate of fifty cents ( 50f) per acre- foot, and all further quantities at seventy- five cents C75#) per acre- foot, payable on December 1, 19U7. Payment of the minimum charge of two dollars and eighty cents ($ 2.80) per acre for the irrigation season of 191+ 7 shall be nade at the time of filing of water- rental applications: provided, that when water- rental application is filed after June 15, 19hl, payment shall be of a minimum charge of two dollars and eighty cents ($ 2.80) per acre, which payment shall apply as a credit on the minimum charge for the follow-ing irrigation season. If payment for water used in addition to the allowance under the minimum charge is not made on or before December 1 as herein provided, there shall be added to the amount unpaid a penalty of one-half of 1 per centum thereof, and there shall be added a like penalty of one- half of 1 per centum on the first day of each month thereafter so long as such default shall continue. No water will be delivered to the • 5. entryman in subsequent years until such charge shall have been paid in full. Future charges will be announced by future order or public notice. 16. Place and manner of payment of water charge,— All water charges must be paid at the office of the Bureau of Reclamation at Klamath Falls, OregonJ by cash or bank draft, cashier's check, certified check, or postal or express money order, payable to Treasurer of the United States, 17o Water- right application under public notice0— Within three months after date of public notice announcing the construction charges for the land described in this order, each entryman, if required to do so by the Secretary of the Interior, shall make a formal water- right application covering his farm unit. Upon failure to do so, the Secretary may, at his option, cancel the entry in question, with all rights acquired thereunder. 18 • All land to be included in irrigation district .— Each water rental application for land covered by this order shall be made"~ onTorm 7- 2b19 and the following clause shall be inserted at the bottom of said form: " I agree to the inclusion of my land in an irrigation district and I agree also to participate in the organization of an irrigation district at the earliest practicable date." 19, Reservation _ of rights _ of way for county highways..— Rights of way are reserved for county highways across the farm units shown on the farm unit plats along all red lines shown on said plats, said rights of way being 30 feet in width on each side of said lines in all cases where lines are drawn in red solid lines and 60 feet in width out of the farm units crossed by lines drawn in red broken lines. Rights of way are reserved for highways across the farm units abutting the northeasterly side of the Central Pacific Railroad Company's right of way, the said highway right of way being a strip of 100 feet in width, parallel to and touching the said railroad right of way. 20. Effect of relinquishment.— In the event that any entry of public land shall be relinquished prior to 2: 00 p. m., December 15, the lands so relinquished shall be subject to entry in accordance with paragraphs 2 and 9 of this notice. In the event that any entry of public land shall be relinquished subsequent to 2: 00 p. m., December l£, and at any time prior to. actual proving up of the land through necessary residence, cultivation and other homestead requirements, the lands so relinquished shall not be subject to entry for a period of 60 days after the filing and notation of the relinquishment in the local land office. During the 10- day period next succeeding the expiration of such 60- day period, any person having the necessary qualifications may file application for said public land. If, on the tenth day of said' 10- day period, prior to 2: 00 p. m., the number of applications filed exceeds the number of available farm units, then the right to make entry for such farm units shall be determined in accordance with the procedure described in paragraph 9 of this notice. 21. Waiver o£ mineral rights .— All homestead entries for any of the above- described farm units will be subject to the laws of the United States governing mineral land and all homestead applicants under this notice must waive the right to the mineral content of the land, if required to do so by the Bureau of Land Management, otherwise the homestead application will be rejected or the homestead entry cancelled. Assistant Secretary SUMARY OF REQUIREMENTS AND PROCEDURES PUBLIC LANDS OPENED TO HOMESTEAD ENTRY KUMATH PROJECT— 19U6 1. Applicant must possess qualifications established by Bureau of Reclamation in addition to those required under homestead law. 2. Lands will be opened to entry at 2: 00 p. m., September 15, 19k6* Veterans of World War II have a preference right for 90 days following the date of opening. Applications received prior to 2: 00 p. m., September 15 > 19U6, shall be considered as simultaneously filed. After September 15, 19U6, applications will be considered in1 the ordef^ of filing. Applications from other than Veterans of World Yfar II may not be considered prior to 2: 00 p. m., December 15, 19U6. 3. Copies of the Public Notice, together with the Farm Application Blank, may be secured from the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon, or from the Commissioner, Bureau of Reclamation, Washington, D. C. Applications for a farm unit must be filed with the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon. U. Homestead law requirements of entrymen. ( a) Must be 21 years of age or head of a family or have been honorably discharged from the armed forces of the United States after a period of at least 90 days1 service during World War II. ( b) Must be a citizen of the United States or have declared intentions to become a citizen. ( c) Must not own more than 160 acres of land in the United States ( certain exceptions are allowed). ( d) Must establish residence within six months after allowance of entry ( extension of six months may be allowed). Residence must be maintained for a period of three years except honorably discharged veterans who served not less than 90 days are entitled to have the term of service, not exceeding two years, deducted from the three years1 residence requirements. ( e) Land must be_ cultivated for a period of at least two years covering one- sixteenth of area second year and one- eighth of area during the third year and until final proof. ( f) Entryman must have habitable house on land when submitting proof. ( g) Proof as to meeting requirements must be submitted within five years from date of entry. 5. Bureau of Reclamation requirements of applicants. ( a) Must possess standards of character, including honesty, temperance, thrift, industry, moral conduct and seriousness of purposes. References submitted must be individuals prepared to certify to character of witness. ( b) Must have had at least two years' full- time farm experience after age of 15 and within the last. seven years of civilian lifej or during last 10 years of civilian life must have lived and worked on a farm contin-uously for five years after reaching the age of 12. Two or more sworn testimonials must be supplied in support of applicant's claim to meeting this requirement. ( c) Must possess a minimum of $ 2,000 in unencumbered assets applicable or convertible to the needs of farming in the area. ( d) Must be in physical condition to operate a farm including manual labor involved. ( e) Affidavits as to character, farm experience, financial resources and physical condition are required of each applicant. 6. An Examining Board approved by the Commissioner of Reclamation, composed of local citizens and includ-ing the Project Superintendent will consider the fitness of each applicant in line with paragraphs h and 5 above. Applicants disqualified by the Board may appeal within 10 days of receipt of notification. 7. All qualified applicants will be given an equal chance in a drawing to select 172 names ( twice the number of homesteads to be awarded). These 172 shall be closely investigated, in the order in which drawn, and any falsehood or misrepresentation shall be grounds for the Board to disqualify the applicant and pass on to the next in order until the 86 successful applicants have been selected, plus a sufficient number of alternates to replace those in the first group of 86 who fall to complete their transactions. 8. The Examining Board shall notify a successful applicant that he has been selected for a farm unit and, within the time allowance stated on the notice, shall allow the successful applicants to exercise a choice of farms in the order of their standing. However, the Government reserves the right to assign the farms regardless of individual preferences. 9. After a farm has been selected, the Examining Board shall send the applicant a water rental application - which must be executed and returned to the Project Superintendent TntLthin 10 days from receipt, together with payment of the minimum water rental charge. The minimum water rental charge for the irrigation season of 19U7 shall be $ 2.80 per acre for each irrigable acre of land in the farm unit, whether water is used or not, which will entitle the entryman to three acre- feet of water per irrigable acre. Additional water will be furnished during the 19U7 season up to a limit of 3 § acre- feet per irrigable acre at the rate of 50 cents per acre- foot, and all further quantities for 75 cents per acre- foot. 10. The Examining Board will furnish each applicant a certificate stating that his qualifications to enter public land have been approved by the Board. Such certificate must be attached by the applicant to his homestead application which must be filed at the District Land Office, Sacramento, California, within 15 days of receipt of the certificate. 11. Failure to pay the water rental charges or to make application for homestead entry within the periods specified will render the application subject to rejection. 12. Construction charges on the lands to be opened total $ 88.35 per acre, payable within UO years, providing a water users1 association or irrigation district is formed. Should the entrymen or water users fail to form such a district or association, charges will be $ 100.55 per acre, payable within 20 years. 2. Title: Public notice opening public lands to entry Author: United State. Bureau of Reclamation Year: 1946, 2004 E R R A T A S H E E T August 6, 19U6 TO ACCOMPANY PUBLIC NOTICE NO. U3 DATED AUGUST 1, 19U6 OPENING PUBLIC LANDS TO ENTRY ON THE KLAMATH IRRIGATION PROJECT, OREGON - CALIFORNIA TULE LAKE DIVISION The following paragraphs are hereby substituted for the corresponding para-graphs 5 ( c) and 5 ( d) as written in the copy of the above Public Notice: Paragraph 5 ( c) The applicant must demonstrate that he possesses a minimum of # 2,000 in unencumbered assets applicable or convertible to the needs of farming in this area. This may be determined by an itemized list of assets and liabilities and must be corroborated by a statement from an official of a bank or other responsible and reputable private or public credit agency. Paragraph $ ( d) The applicant must submit a certificate of medical exami-nation which will contain a statement by an examining physician assuring the applicant's physical ability to operate a farm. Paragraph 9 ( lines k and 5) in the Summary of Requirements and Procedures states, in part: "... which will entitle the entryman to three acre- feet of water per irrigable acre." This should be changed to read: "... which will entitle the entryman to 2g acre- feet of water per irrigable acre." UNITED . STATES DEPARTMENT OF THE INTERIOR BUREAU OF RECLAMATION WASHINGTON Klamath Irrigation Project, Oregon - California Tule Lake Division PUBLIC NOTICE OPENING PUBLIC LANDS TO ENTRY oo U3 August 1, 191* 6 1. Public land for which water i£ available and for whichi entry may be made.— In pursuance of the act of June 17, 1902 ( 32 Stat. 38b1), and acts amendatory thereof or supplemental thereto, TE" is hereby announced that water will be available in the irrigation season of 191* 7 and thereafter, and beginning September 15>, 19l* 6, entry may be made in accordance with this notice for the following- described public lands under the Tule Lake Division of the Klamath Irrigation Project, Oregan- California, as shown on farm unit plats of Township 1* 7 North, Ranges £ and 6 East and Township 1* 8 North, Range 5 East, Mount Diablo Meridian, California, to wit: Mount Diablo Meridian, California Total Irrigable Acreage 8U. 0 101.2 73o5 73.7 73 » 3 5 76.0 76o2 75.8 66.8 68.3 66.8 68.3 7U. 7 73.8 7U. 1 73o8 127.9 73.8 80.0 137.5 129.6 87.8 9h. B 98.0 109 o 6 7li. O lh. 3 7li. 6 7JU. 3 73.9 7U. 2 73.9 7U. 2 7U. 5 714.2 7U. 67.2 73.3 7U. 9 73.2 7U. 7 100.7 91.3 Township 1* 7 North Range Farm Unit A BA B CDE F G H A B C D EF G HCD E B A A B G H C D E F A B CD E FG * H L A BCD E F * T. 1* 7 N., R. 6 E., M. D. £ East Section 1 2 2 2 2 2 2 2 2 11 11 11 11 11 11 11 11 12 12 12 12 12 7* 13 18* 13 18* 13 18* 13 18* 13 13 13 13 11* H* Hi ll* H* ll* ll* ll* 16 23 23 23 23 23 23 26 27 . M. • . Description Lots 16 &' 17 Lot 20 & W| swi Lot 1 & SEzNEi Lot 2 & SWINEJ Lot 3 & SEzNWz Lot k & SW| NW § EJSWJ WISEJ EgSEz, Lot 1 & SEzNEz Lot 2.& SWJNEJ Lot 3 j& SEJNWJ Lot k & SW} NW| wisWz EJSWJ WtSEf EiSEt Lots 6, 16 & SW^ NWj w^ swj Lots 10 & 2X-* Lots 17, 18 & WiSE| Lots 9 & 12 Lots 12 & 13 Lot 1 & NW^ NEj Lot 10 Lot 2 & SWjNEi Lot 11 Lot 3 & NWjSEj Lot ll* Lot 1* & SWjSEj Lot 1^ EiNWi W4NW} wlswf : v EI- SIVJ EJNEJ ;.; mttl E| SW} l/ feSE'z E| SE| WyNWj Ef NEi W| NEI EiNV/ z WJMWTI-Lots 3, 1* & 6 Lot ^ Lot 20 Lots 18 & 20 1. Farm Unit DCEF B A G A B A E C DE F G H A T. 18 N., R, 5 E., F G L G H J K Section 2k 2k 2k 2k 2k 19* 21 19* 21 25 27 27 28 28 28 28 28 28 28 33 28 27 33 M. D. M. 25 26 26 26 • 27 27 27 28 27 31 27 26 33 3h 28 33 33 33 3k 33 3k 3k 3k 3k 3k 3k 3$ 35 Description EJNWJ Lots 9, Lots 7, 10 & NEjSWj- 8 & NWiSEz Lots 5 & SW- jNEi Lot 10 Lot k & Lot 9 Lots 12 Lots 19 Lots 10, Lots 11 Lot, 1 & Lot 2 & Lot 3 & Lot I & E|- SW| W- JSE § Lot 20 Lot 5 Lot 31 Lots 10, NW^ NEJ & 13 • & 20 , 23, 2k, 27 & & 32 SEiNEi SWfNEi S E J M J smriNwJ , 15 & 16 Lots 16 & 17 Lot 7 & E| W- JSEi Ejswi & W?- W1SE| i, NjsEiswi, NWJSEJ NEJSEJ & N- ISEISEI Lots 2 & 3 Total Irrigable Acreage 75.0 73.2 77.5 76.8 91.8 109.0 ' 7a. 2 . 83.9 80.9 78. k TS. k . 78.3 60.8 60.8 77.6 86.3 70.1 73.5 120 111 III 103 105 110 .9 .1 .3 .5 • 5 • J .8 113.8 109 113 113 109 10U 111 .9 .8 ,7 .7 .6 • 0 96.8 99.5 98.8 96.6 M., R. 6 E., M. D. M. 2. Total Farm Unit Section Description Irrigable Acreage sIsE- jNWi 99. k 35 Lots 2, 3 i j i 99 o 6 B 35 | J, 36 Lots 13 & lii 126o8 G 35 Lot U & NEjSEj 36 Lot 20 103 o 9 A 36 Lots 5, 6, 12, 15 & 16 9lu2± The farm unit plats referred to above were approved on the date of this notice and are on file in the Office of the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon, and in the district land office at Sacramento, California, - where they may be examined by any person desiring to make application hereundero 2. Preference rights to honorably discharged veterans of World War II.— Pursuant to the provisions of the Act of September 27, 19hk, and The Act of June 25, 19^ 6 ( Public Law Ul| 0 - 79th~ Congress, 2nd Session), and related legislation,-"- and until 2: 00 p. m., December 15, 19U6, the lands described above will be open to entry only by persons who have served not less than 90 days in the Army or Navy of the United States in World War II and have been honorably separated or discharged therefrom or placed in the regular Army or Naval Reserve; provided, however, that they must be qualified to make'entry under the homestead laws and also possess the qualifications as to industry, experience, character, capital, and physical fitness required of all applicants under this notice. Farm applica-tions received prior to 2: 00 p. m., September 15, 19U6, will be considered as simultaneously filed. Farm applica-tions received after 2: 00 p. m., September 15, 19l; 6, will be filed and considered in the order of their receipt0 3. Limit of acreage for which entry may be made.— The limit of area of public land per entry, representing the acreage which", in the opinion of the SeereTary of the Interior, may be reasonably required for the support of a family upon such land, is fixed at the amounts shown upon the farm unit plats for the respective farm units above listed. k. Applicants must be qualified.— No entry shall be accepted or allowed by the Register of the district land office until the applicant"~ therefor has satisfied the Examining Board appointed for the Klamath Project to consider such matters, that he is possessed of such qualifications ( in addition to the qualifications required under the homestead law) as to industry, experience, character, capital and physical fitness as in the opinion of the Board are necessary to give reasonable assurance of success by the prospective settler. A digest of the qualifications required by the homestead laws is contained in the attachment to this notice. Complete information may be secured from the District Land Office in Sacramento, California, or from the Bureau of Land Management, Washington, D. Co 5. Requirements as_ to Industry, Experience, Character, and Capital.— The following are established as minimum qualification^ Tailure to meet them in. all respects will be sufficient cause to reject an application. No credit will be given for qualifications in excess of the minimum required: ( a) Each applicant must submit as part of his farm application three testimonials concerning his character and covering such points as honesty, temperate habits, thrift, industry, seriousness of purpose, record of good moral conduct in the past and a sincere desire to lead a bona fide farm life. These may be prepared and signed by an ordained minister, including chaplains in the armed service, any commanding officer under whom the applicant served for six months or more, a teacher or administrative official of any recognized high school or college, present or previous employer, or any comparable, responsible individual or official, not a relative, who is personally acquainted with the applicant. These may be the individuals listed in paragraph 17 of the Farm Appli-cation Blank. ( b) The applicant must have had at least two years1 full- time farm experience after the age of 15 and within the last seven years of civilian life; or must have lived and wox~ ked on a farm for five years continuously after reaching the age of 12 and within the last 10 years of civilian life. Time spent in active military service will not be included in the time used in computing farm experience. Two years of study in agricultural courses in an accredited agricultural college or two years of responsible technical work in agriculture which might help fit the applicant for operation of a farm may be credited as one year of farm experience except that. no more than one year of farm experience may be credited from such sources. One year of farm experience must be obtained by actual residence and work on a farm. A farm youth over the age of 15 attending school but actually residing and working on the farm may credit such time as actual farm experience. In support of his claim to meeting this requirement of farm experience, the applicant must supply three written statements signed by the county agent, F. S « AO county supervisor, A0AoA. County Chairman, official of any local farm organization, or comparable individuals, who have personal knowledge of the applicant's farm experience or have verified it to his complete satisfaction, testifying theretoo ( c) The applicant must demonstrate that he possesses a minimum of $ 2,000 in unencumbered assets applicable or convertible to the needs of farming in this area. This may be determined by an itemized listing of assets and liabilities in space provided on the application blank. ( d) The applicant must be in physical condition to operate a farm successfully, including the manual labor involved. If physically handicapped or afflicted with ailments making this condition questionable, a detailed statement by an examining physician should accompany the application. *" Including Soldiers' and Sailors' Civil Relief Act of 191* 0, as amended ( 51* Stat. 1178, 1186; % Stat. 769, 776; 50 U. S. C. App. 560- 572)." 3. 6. When and how to file an application for a farm unit.— ( a) A Farm Application Blank is attached to this notice. Additional blanks may be secured from the Superintendent, Klamath Falls, Oregon; the Regional Director, P. 0. Box 2^ 11, Sacramento, California, or the Commissioner, Bureau of Reclamation, Washington 2^, D. C. Full answer must be made to each question on the Farm Application Blank. The applicant may state the particular farm unit desired and may also include alternate choices or the choice may be left open to the examining boarde ( b) If the applicant claims a preference right on account of military service, he shall attach to his appli-cation an affidavit setting forth such military service. The affidavit shall state the applicant's time of service, the unit of which he was a member, the date on which he was honorably discharged, or separated, or transferred to the regular Army or Naval Reserve, and that he did not refuse to wear the uniform of such service or to perform the duties thereof. Providing that they qualify in other respects, women veterans have equal rights and will receive equal consideration in their application for farm unitso ( c) An application for a farm unit listed in this notice, together with the proof to be furnished by veterans, must be filed with the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon, in person, if con-venient, or by mail, or otherwise, prior to 2: 00 p. m., September l£, ± 9h6, if the applicant desires to qualify under the terms of this notice. No advantage will accrue to an applicant presenting his application in person rather than by mail. All applications received prior to 2: 00 p. m., September'l£, 19U6, will be held and treated as simultaneously filed. Applications received after 2: 00 p. m., September l£, 19U6, will be considered only as provided in paragraphs 2 and 12 of this public order. 7. Examining Board.— An Examining Board of five members, including the Superintendent of the Klamath Project who will act as Secretary of the Board, has been approved by the Commissioner of Reclamation to consider the fit-ness of each applicant to undertake the development and operation of a farm on the Klamath Project. Careful investigation shall be made to verify the statements and representations made by the applicants to the end that no misunderstanding may prevail, either regarding the applicant's fitness or his appreciation of the problem before him. Any falsification will automatically cause the application to be discarded from consideration*, 8. Selection of Qualified Applicants.— To determine whether an applicant for a farm unit is eligible under the provisions of subsection " C" of Section k of the Act of December 5, 192k, his application will be reviewed on the basis of whether or not he is qualified as an entryman. Applicants will be judged on the qualifications of character, industry, farming experience and capital and no applicant will be considered eligible who does not qualify in all respects, or who does not, in the opinion of the Examining Board, possess the health and vigor for active farm work. 9. Showing of applicants and selection thereofc— ( a) Where the applicant, in the original application which he files fails to make a prima facie case— that is, where the applicant ( l) does not possess good health; or ( 2) fails to make the necessary showing as to character; or ( 3) fails to make the necessary showing as to industry; or ( U) fails to make the necessary showing as to citizenship, or ( 5) dees not show at least two years' farm experience; or ( 6) does not show at least $ 2-, 000 in unencumbered assets; or ( 7) is disqualified because of having already made homestead entry; or ( 8) is the owner of more than 160 acres of land in the United States; or ( 9) is otherwise disqualified, the application for a farm unit shall be rejected, and the applicant notified thereof by registered mail, with return receipt demanded, and of his right to appeal to the Regional Director of the Bureau of Reclamation within 10 days from . receipt of such notification. All appeals allowed under this Public Notice No. h3 must be filed in the office of the Superin-tendent at Klamath Falls, Oregon, within 10 days from receipt by applicants of rejection notices. The Superinten-dent will forward such appeals promptly to the Regional Director. ( b) After the expiration of the appeal period fixed by the above- mentioned notices, if any are required, to applicants who failed to make prima facie cases, and in the absence of any pending appeals, the Board shall pro-ceed to select the 86 successful applicants ( there being 86 farm units described in paragraph 1 subject to entry) o All applicants in the group filing prior to 2: 00 pom;, September l£, 19U6, and who possess minimum qualifications as outlined in paragraph 5>, will be considered equally. From the names of all qualified applicants in the group considered as simultaneously filed, there shall be drawn 172 names ( twice the number of homesteads to be awarded). These 172 applicants shall be closely investigated, in the order in which selected, and any falsehood or mis-representation shall be grounds for the Board to disqualify the applicant and to pass on to the next in order until the 86 successful applicants have been determined, plus a sufficient number of alternates to replace those in the first group of 86 who fail to complete their transactions. In the event that there are remaining units to be awarded, consideration will be given to Veteran applications, in the order of filing, prior to 2: 00 p. mc, December l£, 19^ 6, as provided in paragraph 2 above. Remaining units, if any, will be awarded, in the order of filing of applications, as provided in paragraph 12 of this order. ( c) Applicants from among the group of 172 selected in paragraph 9( b) above who subsequently are disquali-fied as a result of investigation by the Board shall be sent a notice by registered mail, with return receipt demanded, unless delivered in person, setting forth the reasons thereof and of the right to appeal to the Regional Director within 10 days from receipt of such notice as provided in paragraph 9( a) above, ( d) Immediately following the selection of the 86 successful applicants, the Board shall send a notice by registered mail with return receipt demanded, to each of the ether qualified applicants, advising him of his standing, as alternate or otherwise, and that since the number of qualified applicants exceeds the number of available farms, his application must be held for rejection. In the event that any of the 86 applicants awarded a farm unit fails to fulfill the requirements of paragraph 10 hereof, the Board will select other applicants in the order of their standing on the list of alternates to replace those failing to complete their transactions0 10* Notification of Applicant that he has been selected.— After the expiration of the period or periods fixed by notices to applicants in the conTTngencies named in paragraph 9 above, or any other that may arise, and upon completion of action which may become necessary because of such notices, the Board shall notify each appli-cant selected for a farm, by registered mail with return receipt demanded, unless delivered to him in person, that he has been selected for a farm unito Whenever practicable, and within the time allowance stated on the notice, the Board shall allow the successful applicants to exercise a choice of farms as listed on their application blanks and in the order of their standing in the drawing. However, the Government reserves the right to assign the farms regardless of individual preferences. After a farm has been selected, the Board shall send tne applicant, by r egistered nail with return receipt demanded, unless delivered to him in person, a water rental application for the farm selected, which rvust be executed by the applicant and returned to the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon, within 10 days from receipt, together with payment of the minimum water rental charge, as specified in paragraph 15 hereof. The Secretary of the Examining Board will furnish each such applicant by registered mail, unless delivered to him in person, a certificate' stating that his qualifications to enter public lands, as required by sub- section " C" of Section h of the Act of December 5, 192U ( U3 Stat. 702), have been passed upon and approved by that Board. Such certificate must be attached by the applicant to his homestead application when he files such application at the District Land Office at Sacramento, California. Such homestead application shall be filed within ]£ days from the date of the receipt by the applicant of the said certificate. Failure to pay the water rental charge or to make application for homestead entry within the periods specified herein will render the application subject to rejection. 11. Failure of selected applicant to - complete transaction.— If the applicant to whom a farm has been awarded fails to comply witH" any of the requirements named above, the Board will select the next listed alternate. 12. General entry.— After all applications received prior to 2: 00 p. m., December 15, 19^ 6, have been con-sidered and awards of farm units made to all qualified applicants, any farm units described in paragraph 1 above which remain unentered, shall be subject to entry under this order by any person having the necessary qualifications. If, on September 15, 19U6, prior to 2: 00 p. m., the number of applications filed exceeds the number of available farm units, then the right to make entry for any such farm unit shall be determined in accordance with paragraphs 2 and 9 of this order, the provisions of which shall continue in effect in a s imilar manner in the future if the number of applications at any time exceeds the number of remaining available farm units. 13. Warning against unlawful settlement.~- No person shall be permitted to gain or exercise any right under any settlement or occupation of any of the public lands covered by this order except under the terms and conditions prescribed by this order, provided, however, that this shall not affect any valid existing right obtained by settle-ment or entry while the land was subject thereto. 111. Construction charges,— Section 15 of the Act of May 25, 1926 ( hk Stat. 639) authorizes and directs the Secretary, when announcement is made of the construction charges for this division, to fix and allocate the con-struction cost per acre in accordance with the findings and recommendations of the Board of Survey and Adjustments as shown on page 26 of House Document No. 201, 69th Congress, 1st Session. As recited on page 26 of said Document No. 201, the Board found that the total gross cost of construction charged to the division, as of June 30, 1925, is $ l, 6hO, 9h9; and that this cost should be allocated on the basis of 37,500 acres and not upon 2l±, 2OO as hereto-fore; and that a deduction of'$ 23h, U07 should be made from the cost named. Applying the deduction of $ 23h9hD7 would leave a remainder of $ l, lio6,5> li2 and the Board's report at this point recites: " The net cost would be 31,1* 06,51* 2, and this amount divided by 37,500 acres, would give an average construction cost of $ 37.50 per acre. This per acre cost of $ 37.5 » O does not include any costs for future construction work which will be necessary to complete this division, and this should be particularly noted." The estimate of cost to complete the works for 33,000 acres which are considered irrigable, is $ 1,678,000 or a per acre cost of $ 50.85. This amount added to the per acre cost to June 30, 1925, of $ 37.50 would make e total per acre cost of £ 88.35. A summary of the construction estimate for work after June 30, 1925, is attached to and made a part of this order. If the actual cost of future work is less than the estimate of $ 1,678,000 named above, the construction charge will be proportionately reduced, but the expenditure of $ 1,678,000 will not be exceeded without the water users agreeing to repay all sums in excess » of this amount. In arriving at the per acre rate of $ 88.35, and as shown above, the write- off of $ 23U, UO7 authorized in Section 15 of the Act of May 25, 1926, has been deducted from the total cost, but before this write- off may be actually accomplished, the Secretary of the Interior must require, as set forth in Section h$ of the said Act of May 25, 1926, a contract with a water users1 association or irrigation district whereby such association or irrigation district shall be required to pay the entire charges against all productive lands within the division without regard to default in the payment of charges against any individual tract of land; also as provided in Section U5 of the Act named, there must be executed a contract of the character described, before the ^ 0- year repayment plan as authorized in this Section may be made effective. Since the Tule Lake Division, with the exception of a few tracts, embraces only public land it would not be possible to make such a contract until the lands are opened and entered. Under the circumstances, the division will be operated on a water- rental basis until its agricultural development has advanced sufficiently to permit of a district organization, at which time a so- called joint liability contract will be required and the construction charge will be'announced at $ 88.35 per acre payable over a l± Q- year period. Should the entrymen or water users fail, or refuse, to proceed in the manner required under the Act of May 25, 1926, it will become necessary to issue public notice under the Extension Act of August lii, 191k ( 38 Stat. 686), without regard to the write- off and under a 2G- year- repayment plan. This would result in a per acre charge of $ U9• 70 instead of $ 37.50 for the cost to June 30, 1925, which added to the per acre cost to complete of $ 50.85, would fix the construction charge at $ 100.55 per acre payable in 20 years* 1^° Water- rental charges.— The minimum water- rental charge for the irrigation season of 19ii7 shall be two dollars and eighty cents ($ 2.50) per acre for each irrigable acre of land in the farm unit, whether water is used or not, which will entitle the entryman to 2j acre- feet of water per irrigable acre. Additional water will be furnished during the said irrigation season up to a limit of 3$- acre- feet per irrigable acre at the rate of fifty cents ( 50f) per acre- foot, and all further quantities at seventy- five cents C75#) per acre- foot, payable on December 1, 19U7. Payment of the minimum charge of two dollars and eighty cents ($ 2.80) per acre for the irrigation season of 191+ 7 shall be nade at the time of filing of water- rental applications: provided, that when water- rental application is filed after June 15, 19hl, payment shall be of a minimum charge of two dollars and eighty cents ($ 2.80) per acre, which payment shall apply as a credit on the minimum charge for the follow-ing irrigation season. If payment for water used in addition to the allowance under the minimum charge is not made on or before December 1 as herein provided, there shall be added to the amount unpaid a penalty of one-half of 1 per centum thereof, and there shall be added a like penalty of one- half of 1 per centum on the first day of each month thereafter so long as such default shall continue. No water will be delivered to the • 5. entryman in subsequent years until such charge shall have been paid in full. Future charges will be announced by future order or public notice. 16. Place and manner of payment of water charge,— All water charges must be paid at the office of the Bureau of Reclamation at Klamath Falls, OregonJ by cash or bank draft, cashier's check, certified check, or postal or express money order, payable to Treasurer of the United States, 17o Water- right application under public notice0— Within three months after date of public notice announcing the construction charges for the land described in this order, each entryman, if required to do so by the Secretary of the Interior, shall make a formal water- right application covering his farm unit. Upon failure to do so, the Secretary may, at his option, cancel the entry in question, with all rights acquired thereunder. 18 • All land to be included in irrigation district .— Each water rental application for land covered by this order shall be made"~ onTorm 7- 2b19 and the following clause shall be inserted at the bottom of said form: " I agree to the inclusion of my land in an irrigation district and I agree also to participate in the organization of an irrigation district at the earliest practicable date." 19, Reservation _ of rights _ of way for county highways..— Rights of way are reserved for county highways across the farm units shown on the farm unit plats along all red lines shown on said plats, said rights of way being 30 feet in width on each side of said lines in all cases where lines are drawn in red solid lines and 60 feet in width out of the farm units crossed by lines drawn in red broken lines. Rights of way are reserved for highways across the farm units abutting the northeasterly side of the Central Pacific Railroad Company's right of way, the said highway right of way being a strip of 100 feet in width, parallel to and touching the said railroad right of way. 20. Effect of relinquishment.— In the event that any entry of public land shall be relinquished prior to 2: 00 p. m., December 15, the lands so relinquished shall be subject to entry in accordance with paragraphs 2 and 9 of this notice. In the event that any entry of public land shall be relinquished subsequent to 2: 00 p. m., December l£, and at any time prior to. actual proving up of the land through necessary residence, cultivation and other homestead requirements, the lands so relinquished shall not be subject to entry for a period of 60 days after the filing and notation of the relinquishment in the local land office. During the 10- day period next succeeding the expiration of such 60- day period, any person having the necessary qualifications may file application for said public land. If, on the tenth day of said' 10- day period, prior to 2: 00 p. m., the number of applications filed exceeds the number of available farm units, then the right to make entry for such farm units shall be determined in accordance with the procedure described in paragraph 9 of this notice. 21. Waiver o£ mineral rights .— All homestead entries for any of the above- described farm units will be subject to the laws of the United States governing mineral land and all homestead applicants under this notice must waive the right to the mineral content of the land, if required to do so by the Bureau of Land Management, otherwise the homestead application will be rejected or the homestead entry cancelled. Assistant Secretary SUMARY OF REQUIREMENTS AND PROCEDURES PUBLIC LANDS OPENED TO HOMESTEAD ENTRY KUMATH PROJECT— 19U6 1. Applicant must possess qualifications established by Bureau of Reclamation in addition to those required under homestead law. 2. Lands will be opened to entry at 2: 00 p. m., September 15, 19k6* Veterans of World War II have a preference right for 90 days following the date of opening. Applications received prior to 2: 00 p. m., September 15 > 19U6, shall be considered as simultaneously filed. After September 15, 19U6, applications will be considered in1 the ordef^ of filing. Applications from other than Veterans of World Yfar II may not be considered prior to 2: 00 p. m., December 15, 19U6. 3. Copies of the Public Notice, together with the Farm Application Blank, may be secured from the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon, or from the Commissioner, Bureau of Reclamation, Washington, D. C. Applications for a farm unit must be filed with the Superintendent, Bureau of Reclamation, Klamath Falls, Oregon. U. Homestead law requirements of entrymen. ( a) Must be 21 years of age or head of a family or have been honorably discharged from the armed forces of the United States after a period of at least 90 days1 service during World War II. ( b) Must be a citizen of the United States or have declared intentions to become a citizen. ( c) Must not own more than 160 acres of land in the United States ( certain exceptions are allowed). ( d) Must establish residence within six months after allowance of entry ( extension of six months may be allowed). Residence must be maintained for a period of three years except honorably discharged veterans who served not less than 90 days are entitled to have the term of service, not exceeding two years, deducted from the three years1 residence requirements. ( e) Land must be_ cultivated for a period of at least two years covering one- sixteenth of area second year and one- eighth of area during the third year and until final proof. ( f) Entryman must have habitable house on land when submitting proof. ( g) Proof as to meeting requirements must be submitted within five years from date of entry. 5. Bureau of Reclamation requirements of applicants. ( a) Must possess standards of character, including honesty, temperance, thrift, industry, moral conduct and seriousness of purposes. References submitted must be individuals prepared to certify to character of witness. ( b) Must have had at least two years' full- time farm experience after age of 15 and within the last. seven years of civilian lifej or during last 10 years of civilian life must have lived and worked on a farm contin-uously for five years after reaching the age of 12. Two or more sworn testimonials must be supplied in support of applicant's claim to meeting this requirement. ( c) Must possess a minimum of $ 2,000 in unencumbered assets applicable or convertible to the needs of farming in the area. ( d) Must be in physical condition to operate a farm including manual labor involved. ( e) Affidavits as to character, farm experience, financial resources and physical condition are required of each applicant. 6. An Examining Board approved by the Commissioner of Reclamation, composed of local citizens and includ-ing the Project Superintendent will consider the fitness of each applicant in line with paragraphs h and 5 above. Applicants disqualified by the Board may appeal within 10 days of receipt of notification. 7. All qualified applicants will be given an equal chance in a drawing to select 172 names ( twice the number of homesteads to be awarded). These 172 shall be closely investigated, in the order in which drawn, and any falsehood or misrepresentation shall be grounds for the Board to disqualify the applicant and pass on to the next in order until the 86 successful applicants have been selected, plus a sufficient number of alternates to replace those in the first group of 86 who fall to complete their transactions. 8. The Examining Board shall notify a successful applicant that he has been selected for a farm unit and, within the time allowance stated on the notice, shall allow the successful applicants to exercise a choice of farms in the order of their standing. However, the Government reserves the right to assign the farms regardless of individual preferences. 9. After a farm has been selected, the Examining Board shall send the applicant a water rental application - which must be executed and returned to the Project Superintendent TntLthin 10 days from receipt, together with payment of the minimum water rental charge. The minimum water rental charge for the irrigation season of 19U7 shall be $ 2.80 per acre for each irrigable acre of land in the farm unit, whether water is used or not, which will entitle the entryman to three acre- feet of water per irrigable acre. Additional water will be furnished during the 19U7 season up to a limit of 3 § acre- feet per irrigable acre at the rate of 50 cents per acre- foot, and all further quantities for 75 cents per acre- foot. 10. The Examining Board will furnish each applicant a certificate stating that his qualifications to enter public land have been approved by the Board. Such certificate must be attached by the applicant to his homestead application which must be filed at the District Land Office, Sacramento, California, within 15 days of receipt of the certificate. 11. Failure to pay the water rental charges or to make application for homestead entry within the periods specified will render the application subject to rejection. 12. Construction charges on the lands to be opened total $ 88.35 per acre, payable within UO years, providing a water users1 association or irrigation district is formed. Should the entrymen or water users fail to form such a district or association, charges will be $ 100.55 per acre, payable within 20 years. 2. Close

• 25. [Image] Land use and vegetation community changes at Beswick Ranch, Klamath River Canyon, California from 1955 to 2003 : focus on relationship between the irrigation and the vegetation and the land use cover

  	Humans have altered the Klamath River Canyon in many ways. This study focuses on the years from 1955 to 2003. One substantial alteration is the conversion of terraces into irrigated pastures for agriculture ...
  	Citation × Citation Citation Abstract Copy Title: Land use and vegetation community changes at Beswick Ranch, Klamath River Canyon, California from 1955 to 2003 : focus on relationship between the irrigation and the vegetation and the land use cover Author: Bilka, Monika N. Year: 2002, 2005 Humans have altered the Klamath River Canyon in many ways. This study focuses on the years from 1955 to 2003. One substantial alteration is the conversion of terraces into irrigated pastures for agriculture and cattle ranching. This research project explains the relationships between the irrigation network and the vegetation and land use cover patterns that existed in the past and that exist today at Beswick Ranch. Data sources such as aerial photographs, maps, and other historical information are used to create Geographic Information System (GIS) maps and models of the area. Due to time constraints, the final maps and models are not complete at this time. However, the completed models were synthesized with observational data to come to preliminary conclusions. While the ditches of Shovel Creek Pasture have undergone little to no change at all since 1955, ranchers have added ditches to Faye Pasture. Ranch workers have also increased the amount of agricultural land use cover and decreased in tree cover of Faye Pasture. Conversely, ranchers increased the tree cover and non-agricultural land cover, and they have decreased the agricultural cover. The GIS coverages of Shovel Pasture remain in the preliminary stage, and further analyses of the calculated areas of land use cover and ditch lengths are needed to complete this study. In partnership with PacifiCorp and the BLM, this project aims to provide information about the impacts of the current and historical irrigation systems used on the pastures and riparian zones within this reach of the Klamath River Canyon from 1955 to 2003. Even at this stage, the preliminary coverages provide insight into the relationships between irrigation, vegetation communities, and land use cover that have occurred during the study period. Title: Land use and vegetation community changes at Beswick Ranch, Klamath River Canyon, California from 1955 to 2003 : focus on relationship between the irrigation and the vegetation and the land use cover Author: Bilka, Monika N. Year: 2002, 2005 Humans have altered the Klamath River Canyon in many ways. This study focuses on the years from 1955 to 2003. One substantial alteration is the conversion of terraces into irrigated pastures for agriculture and cattle ranching. This research project explains the relationships between the irrigation network and the vegetation and land use cover patterns that existed in the past and that exist today at Beswick Ranch. Data sources such as aerial photographs, maps, and other historical information are used to create Geographic Information System (GIS) maps and models of the area. Due to time constraints, the final maps and models are not complete at this time. However, the completed models were synthesized with observational data to come to preliminary conclusions. While the ditches of Shovel Creek Pasture have undergone little to no change at all since 1955, ranchers have added ditches to Faye Pasture. Ranch workers have also increased the amount of agricultural land use cover and decreased in tree cover of Faye Pasture. Conversely, ranchers increased the tree cover and non-agricultural land cover, and they have decreased the agricultural cover. The GIS coverages of Shovel Pasture remain in the preliminary stage, and further analyses of the calculated areas of land use cover and ditch lengths are needed to complete this study. In partnership with PacifiCorp and the BLM, this project aims to provide information about the impacts of the current and historical irrigation systems used on the pastures and riparian zones within this reach of the Klamath River Canyon from 1955 to 2003. Even at this stage, the preliminary coverages provide insight into the relationships between irrigation, vegetation communities, and land use cover that have occurred during the study period. Close

• 26. [Image] Klamath Falls Resource Area resource management plan and environmental impact statement : final : Volume 1

  	Proposed resource management plan/final environmental impact statement for the Klamath Falls Resource Area
  	Citation × Citation Citation Abstract Copy Title: Klamath Falls Resource Area resource management plan and environmental impact statement : final : Volume 1 Author: United States. Bureau of Land Management. Klamath Falls Resource Area Office Year: 1994, 2005, 2004 Proposed resource management plan/final environmental impact statement for the Klamath Falls Resource Area Title: Klamath Falls Resource Area resource management plan and environmental impact statement : final : Volume 1 Author: United States. Bureau of Land Management. Klamath Falls Resource Area Office Year: 1994, 2005, 2004 Proposed resource management plan/final environmental impact statement for the Klamath Falls Resource Area Close

• 27. [Image] National irrigation as a social problem

  	Includes two scenic photos "The great gates on the Minidoka Project through which Snake River is now passing" and "From Smiley Heights, Redlands - the result of irrigation" ; The author of this article ...
  	Citation × Citation Citation Abstract Copy Title: National irrigation as a social problem Author: Newlands, Francis G. Year: 1906, 2005, 2004 Includes two scenic photos "The great gates on the Minidoka Project through which Snake River is now passing" and "From Smiley Heights, Redlands - the result of irrigation" ; The author of this article was the Senator of Nevada. Title: National irrigation as a social problem Author: Newlands, Francis G. Year: 1906, 2005, 2004 Includes two scenic photos "The great gates on the Minidoka Project through which Snake River is now passing" and "From Smiley Heights, Redlands - the result of irrigation" ; The author of this article was the Senator of Nevada. Close

• 28. [Image] Work of the Reclamation service in Washington and Oregon

  	The article was written by the Supervising Engineer of the United States Reclamation Service. It includes a photo of the author.
  	Citation × Citation Citation Abstract Copy Title: Work of the Reclamation service in Washington and Oregon Author: Henny, D.C. Year: 1906, 2005, 2004 The article was written by the Supervising Engineer of the United States Reclamation Service. It includes a photo of the author. Title: Work of the Reclamation service in Washington and Oregon Author: Henny, D.C. Year: 1906, 2005, 2004 The article was written by the Supervising Engineer of the United States Reclamation Service. It includes a photo of the author. Close

• 29. [Image] The necessity for irrigation

  	An article espousing the efficiency and benefits of irrigation in agriculture. Includes photos of "Waiting for water: scene on the Truckee-Carson Project" and "Irrigation in southern California"
  	Citation × Citation Citation Abstract Copy Title: The necessity for irrigation Author: Pardee, George C. Year: 1906, 2005, 2004 An article espousing the efficiency and benefits of irrigation in agriculture. Includes photos of "Waiting for water: scene on the Truckee-Carson Project" and "Irrigation in southern California" Title: The necessity for irrigation Author: Pardee, George C. Year: 1906, 2005, 2004 An article espousing the efficiency and benefits of irrigation in agriculture. Includes photos of "Waiting for water: scene on the Truckee-Carson Project" and "Irrigation in southern California" Close

• 30. [Image] Final economic analysis of critical habitat designation for the bull trout

  	FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT September 2004 FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT Prepared for: Division of Economics U. ...
  	Citation × Citation Citation Abstract Copy Title: Final economic analysis of critical habitat designation for the bull trout Author: U.S. Fish and Wildlife Service Year: 2004, 2005 FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT September 2004 FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT Prepared for: Division of Economics U. S. Fish and Wildlife Service 4401 N. Fairfax Drive Arlington, VA 22203 Prepared by: Bioeconomics, Inc. 315 S. 4th E. Missoula, MT 59801 TABLE OF CONTENTS EXECUTIVE SUMMARY ES- 1 1 INTRODUCTION AND BACKGROUND 1- 1 1.1 Description of Species and Habitat 1- 2 1.2 Proposed Critical Habitat 1- 5 1.3 Framework and Methodology 1- 6 1.3.1 Types of Economic Effects Considered 1- 6 1.3.2 Defining the Baseline 1- 9 1.3.3 Direct Compliance Costs 1- 10 1.3.4 Indirect Costs 1- 10 1.3.5 Benefits 1- 14 1.3.6 Analytic Time Frame 1- 15 1.3.7 General Analytic Steps 1- 15 1.4 Information Sources 1- 16 2 RELEVANT BASELINE INFORMATION 2- 1 2.1 Socioeconomic Profile of the Critical Habitat Areas 2- 1 2.1.1 Population 2- 1 2.1.2 Land Ownership and Major Uses 2- 2 2.1.3 Employment 2- 12 2.1.4 Economic and Demographic Characteristics of the 74 Counties Containing Bull Trout Critical Habitat 2- 15 2.1.5. Tribes of the Columbia and Klamath Basins 2- 18 2.2 Baseline Elements 2- 21 2.2.1 Recovery Plan 2- 21 2.2.2 Overlap with Other Listed Species 2- 22 2.2.3 Federal and State Statutes and Regulations 2- 25 2.2.4 Summary Discussion of Impacts of Baseline Regulations on Economic Analysis 2- 40 2.2.5 Discussion: Impacts of Existing Fisheries Policies on Timber and Grazing Activities 2- 43 3 FORECASTED ECONOMIC IMPACTS 3- 1 3.1 Categories of Economic Impacts 3- 1 3.1.1 Section 7 Consultations 3- 2 3.1.2 Technical Assistance 3- 4 3.1.3 Project Modifications 3- 5 3.1.4 Distributional and Regional Economic Effects 3- 5 3.2 Consultation History for Bull Trout Since Listing 3- 7 3.2.1 Action Agencies and Activities Involved in Past Bull Trout Consultations 3- 7 3.2.2 Formal Section 7 Consultations History on Bull Trout Since Listing . 3- 13 3.2.3 Informal Section 7 Consultations History on Bull Trout 3- 15 3.3 Project Modifications 3- 16 3.3.1 Modifications to FHWA Bridge Projects 3- 16 3.3.2 Modifications to Grazing Permits 3- 17 3.3.3 Modifications to Timber Harvest 3- 18 3.3.4 Modifications to Mining Operations 3- 20 3.3.5 Modifications to Agricultural Irrigation Projects 3- 21 3.3.6 Modifications to Dams and Hydroelectric Projects 3- 24 3.3.7 Modifications to Forest Management and Road Maintenance Projects 3- 29 3.3.8 Activities Unlikely to Involve Significant Modification 3- 29 3.4 Projected Future Section 7 Consultations Involving the Bull Trout 3- 29 3.4.1 Projected Future Formal Section 7 Consultations 3- 33 3.4.2 Projected Future Informal Section 7 Consultations 3- 36 ESTIMATING THE CO- EXTENSIVE COSTS OF THE DESIGNATION 4- 1 4.1 Summary of Estimated Impacts 4- 2 4.1.1 Annual Administrative Costs of Consultation 4- 2 4.1.2 Costs Associated with Development of HCPs Within Proposed Bull Trout Critical Habitat 4- 3 4.1.3 Annual Bull Trout Project Modification Costs 4- 4 4.1.4 Proposed Critical Habitat Units Expected to Generate the Greatest Economic Impacts 4- 5 4.2 Discussion of Impacts by Action Agency 4- 6 4.2.1 Army Corps of Engineers 4- 7 4.2.2 Bureau of Land Management 4- 9 4.2.3 Bonneville Power Administration 4- 10 4.2.4 Bureau of Reclamation 4- 25 4.2.5 Federal Highway Administration 4- 29 4.2.6 Federal Energy Regulatory Commission 4- 31 4.2.7 U. S. Forest Service 4- 52 4.2.8 Other Action Agencies 4- 79 4.3 Potential Impacts on Small Entities 4- 79 4.3.1 Identifying Activities That May Involve Small Entities 4- 81 4.3.2 Costs Associated with Agriculture Water Diversions 4- 83 4.3.3 Hydroelectric Facility Re- licensing 4- 84 4.3.4 Mining 4- 87 4.4 Potential Impacts on the Energy Industry 4- 88 4.4.1 Evaluation of Whether the Designation will Result in a Reduction in Electricity Production in Excess of One Billion Kilowatt- Hours Per Year or in Excess of 500 Megawatts of Installed Capacity 4- 89 4.4.2 Evaluation of Whether the Designation will Result in an Increase in the Cost of Energy Production in Excess of One Percent 4- 91 APPENDIX A: Detailed Description of Critical Habitat Units A- l APPENDIX B: Ownership of Lands Adjacent to Proposed Critical Habitat Unit and Subunit B- l APPENDIX C: Overlap of Proposed Bull Trout Critical Habitat and Salmon and Steelhead Habitat C- l APPENDIX D: Listing of All Suggested Project Modifications Found in Formal Biological Opinions: By Activity Type D- l APPENDIX E: Length ( stream) and area ( lakes) of proposed designated bull trout critical habitat that is within U. S. Forest Service Land and Forest Service Wilderness Areas E- l APPENDIX F: Breakdown of Total Annual Estimated Costs by Proposed Critical Habitat Unit F- l EXECUTIVE SUMMARY 1. The purpose of this report is to identify and analyze the potential economic impacts associated with the designation of critical habitat for the Columbia River and Klamath River Distinct Population Segments ( DPSs) of bull trout ( Salvelinus confluentus), hereafter " bull trout." This report was prepared by Bioeconomics, Inc. of Missoula, Montana, for the U. S. Fish and Wildlife Service's ( the Service) Division of Economics. 2. Section 4( b)( 2) of the Endangered Species Act ( the Act) requires the Service to designate critical habitat on the basis of the best scientific data available, after taking into consideration the economic impact, and any other relevant impact, of specifying any particular area as critical habitat. The Service may exclude areas from critical habitat designation when the benefits of exclusion outweigh the benefits of including the areas within critical habitat, provided the exclusion will not result in extinction of the species. KEY FINDINGS Total costs associated with both listing and critical habitat designation for the bull trout are forecast to be $ 200 million to $ 260 million over the next ten years. Total costs associated with both listing and critical habitat designation for the bull trout within the proposed Klamath Distinct Population Segment are forecast to be $ 5.3 million to $ 7.3 million over the next ten years. Total costs associated with both listing and critical habitat designation for the bull trout within the proposed Columbia Distinct Population Segment are forecast to be $ 195 million to $ 253 million over the next ten years. Federal agencies are expected to bear 70 to 75 percent of these costs; private entities will incur the remaining 25 to 30 percent. Project modification costs account for as much as 63 percent of forecast costs. Administrative cost represent the remaining 37 percent. U. S. Forest Service and Army Corps of Engineer- related activities account for approximately 70 percent of forecast project modification costs. Activities experiencing the greatest costs include timber harvesting, irrigation diversions, and dam and reservoir operations. Dam and reservoir- related consultations, including power facility re- licensing, account for 42 percent of forecast project modification costs ( excluding the cost associated with reduced irrigation diversions). Timber harvest, irrigation diversions, habitat conservation plans, and mining account for 29 percent, 12 percent, eight percent, and three percent of forecast costs, respectively. In terms of river miles, approximately 18 percent of the total forecast costs are associated with one percent of the proposed designation, 25 percent with five percent of the proposed designation, and 45 percent with ten percent of the proposed designation. When expressed in terms of the expected cost per river mile, the two most costly units are the Willamette River Basin ( Unit 4) and the Malheur River Basin ( Unit 13). ES- 1 Framework for the Analysis 3. The primary purpose of this analysis is to estimate the economic impact associated with the designation of critical habitat for the bull trout. This information is intended to assist the Secretary in making decisions about whether the benefits of excluding particular areas from the designation outweigh the benefits of including those areas in the designation. 1 This economic analysis considers the economic efficiency effects that may result from the designation, including habitat protections that may be co- extensive with the listing of the species. It also addresses distribution of impacts, including an assessment of the potential effects on small entities and the energy industry. This information can be used by decision- makers to assess whether the effects of the designation might unduly burden a particular group or economic sector. 4. This analysis focuses on the direct and indirect costs of the rule. However, economic impacts to land use activities can exist in the absence of critical habitat. These impacts may result from, for example, local zoning laws, State and natural resource laws, and enforceable management plans and best management practices ( BMPs) applied by other State and Federal agencies. For example, as discussed in detail in this report, regional management plans, such as the Northwest Forest Plan, PACFISH and INFISH provide significant protection to bull trout and its habitat while imposing significant costs within the region. Economic impacts that result from these types of protections are not included in this assessment as they are considered to be part of the regulatory and policy " baseline." 5. The measurement of direct compliance costs focuses on the implementation of section 7 of the Act. This section requires Federal agencies to consult with the Service to ensure that any action authorized, funded, or carried out will not likely jeopardize the continued existence of any endangered or threatened species or result in the destruction or adverse modification of critical habitat. The administrative costs of these consultations, along with the costs of project modifications resulting from these consultations, represent the direct compliance costs of designating critical habitat. Importantly, this analysis does not differentiate between consultations that result from the listing of the species ( i. e., the jeopardy standard) and consultations that result from the presence of critical habitat ( i. e., the adverse modification standard). 6. The analysis examines activities taking place both within and adjacent to the proposed designation. It estimates impacts based on activities that are " reasonably foreseeable," including, but not limited to, activities that are currently authorized, permitted, or funded, or for which proposed plans are currently available to the public. Accordingly, the analysis bases estimates on activities that are likely to occur within a ten- year time frame, beginning on the day that the current proposed rule became available to the public ( November 30, 2002). The ten- year time frame was chosen for the analysis because, as the time horizon for an economic analysis is expanded, the assumptions on which the projected number of projects and cost impacts associated with those projects becomes increasingly 1 16U. S. C. § 1533( b)( 2). ES- 2 speculative. An exception to the 10 year analysis time horizon used in this analysis is for Federal Energy Regulatory Commission ( FERC) licenses, which are renewed for up to 50 years. Accordingly, this analysis estimates the annualized costs of the expected impacts associated with section 7 bull trout consultations involving FERC re- licensing over a 50 year time horizon. 7. The analysis is based on a wide range of information sources. Numerous individuals were contacted from the Service, as well as from the U. S. Forest Service ( USFS), Federal Highway Administration ( FHWA), Bureau of Land Management ( BLM), Army Corps of Engineers ( ACOE), Bureau of Reclamation ( BOR), Bonneville Power Administration ( BPA), Natural Resources Conservation Service ( NRCS), U. S. Environmental Protection Agency ( EPA), National Oceanic and Atmospheric Administration ( NOAA) and other Federal agencies. The analysis of the hydroelectric facilities and other dam structures in the region also relied in information from the Northwest Power and Conservation Council ( NWPCC), the Pacific Northwest Utility Coordinating Council as well as information from utilities owning dams in bull trout proposed critical habitat ( e. g., Avista Corporation ( Avista), Eugene Water and Electric Board, Pacificorp and Portland General Electric ( PGE)). Native American Tribes ( e. g., Confederated Salish and Kootenai Tribes), State agencies ( e. g., State Departments of Environmental Quality ( DEQ) and State Departments of Transportation ( DOTs)) and industry organizations ( e. g., American Forest Resource Council, American Farm Bureau and Northwest Mining Association) were also contacted, as were numerous individuals in the private sector on topics ranging from irrigation to forestry to bull trout conservation. Census Bureau and other Department of Commerce data was relied on to characterize the regional economy. 8. The bull trout was listed as a threatened species in 1998.2 Since that time, numerous Action agencies have participated in well over 200 formal consultations and thousands of informal consultations involving bull trout. The past consultation record was used as a starting point from which to predict future consultation activity. Action agencies provided additional information on likely changes in future consultation activity following designation of critical habitat. In some cases these agencies saw little change in future consultation levels. For example, FHWA projects are planned for many years in advance and bridge or road- related bull trout consultations are generally quite certain and foreseeable. In some cases ( e. g., mining activity, irrigation diversions) it was determined that the historical consultation record understated the potential level of future consultation activity for the species and adjustments to future predicted consultation levels were made. For dam and reservoir operations, a wide spectrum of information from agency representatives, as well as the actual FERC re- licensing schedules for privately operated hydropower facilities were used to augment historical consultation rates and develop future annual cost estimates associated with bull trout consultations on dam, reservoir and power- related activities. 2 This economic analysis applies only to the Columbia River and Klamath River DPSs of bull trout and is not a rangewide analysis. The rangewide listing of the bull trout occurred in 1999 and critical habitat will be proposed for the remainder of the range at a later date. ES- 3 Exhibit ES. l provides a summary of the wide range of activities that may be impacted by bull trout- related consultations. Exhibit ES. l PROJECTED ACTIVITIES AFFECTED BY BULL TROUT Action Agency Army Corps of Engineers Bureau of Land Management Bonneville Power Administration Bureau of Reclamation Federal Highway Commission Federal Energy Regulatory Commission U. S. Forest Service Other agencies, including NPS, BIA, U. S. Department of Agriculture ( USDA), U. S. Geological Survey ( USGS), U. S. Fish and Wildlife Service and NOAA Fisheries Activities Consulted on Dam and reservoir operations, streambank stabilization, dredging, bridge replacement, stream restoration. Forest management, grazing, timber harvest, resource maintenance and road construction, weed management, streambank stabilization, flood control projects. Federal Columbia River Power System ( FCRPS)- dam operation, fisheries restoration and augmentation, agricultural practices and irrigation systems. Dam and reservoir operations, irrigation diversions. Highway bridge replacement. Dam re- licensing and removal. Timber harvest, grazing, mining, resource maintenance and road construction, weed management, streambank stabilization, recreation, special use permits, watershed restoration, road decommissioning, irrigation diversions, culvert replacement, and prescribed fuel reduction programs. Assorted activities, primarily fisheries and stream and wetland restoration. Results of the Analysis 9. The economic impacts associated with the designation of critical habitat for the bull trout are expected to range from $ 200 million to $ 260 million over the next ten years ($ 20 million to $ 26 million per year). Federal agencies are expected to bear approximately 70 to 75 percent of the total costs of this designation. A significant portion of the land adjacent to the proposed designation is Federally owned ( 58 percent), 36 percent is under private ownership and the remainder is comprised of Tribal, State or local interests. Of the Federal lands, the majority is managed by the USFS ( 85 percent) and the BLM ( 12 percent). The remaining 25 to 30 percent of costs are expected to be borne by private entities. Exhibit ES. 2 shows the location of USFS and BLM managed land within the proposed designation. ES- 4 Exhibit ES. 2 ES- 5 10. In some cases, the cost associated with consultation is not borne by the Action agency, but passed onto other parties. For example, while farmers and ranchers do not consult on the operation of Federal irrigation impoundments, irrigators could be impacted by potential reductions in water deliveries to maintain instream flow during dry years. While the unit location of USFS- related water diversions is uncertain, it is likely to occur in the Salmon River ( Unit 16), Clark Fork ( Unit 2), Southwest Idaho River and Clearwater River ( Unit 15) Basins, as these units contain the largest portion of USFS managed lands. 11. Consultations that may involve private entities include those related to timber harvest, grazing, mining and power facility re- licensing. Some of the costs associated with these consultations, however, are expected to be borne directly by or passed onto the Federal government ( e. g., increased logging and yarding costs passed onto the USFS through lower stumpage bids for timber). Most of the forecast project modification costs resulting from designation ( 42 percent) are dam and reservoir related ( excluding USFS water diversions). These costs result from consultations on ACOE and BOR dams and reservoirs, BPA consultations on the FCRPS, and FERC re- licensing consultations. Exhibit ES. 3 illustrates the location of major dams within the proposed critical habitat. The remaining project modification costs are associated with timber harvest ( 29 percent), USFS- related water diversions ( 12 percent), habitat conservation plans ( eight percent), and placer gold mining ( three percent). Grazing, forest management, road and bridge construction and maintenance and other activities each account for less than two percent of forecast project modification costs. Exhibit ES. 4 provides the distribution of total costs by activity. 12. Costs can be expressed in terms of unit or river mile; both of these metrics are useful in describing economic impacts. 3 On a cost per unit basis the largest portion of forecast costs are expected to occur in Unit 4, the Willamette River Basin ( 18 percent). These costs are attributable to fish passage and temperature control projects and annual operating and maintenance and fish study costs at ACOE's facilities in the Upper Willamette River System ( Dexter, Lookout Point, Hills Creek and Blue River Dams). The next most costly unit is Unit 16, the Salmon River Basin ( 12 percent). Because this is the largest unit in terms of river miles and proportion of USFS managed land, and because future USFS activities are expected to generate approximately 70 percent of the consultation activity, this unit bears the greatest number of future bull trout- related consultations. Therefore, the administrative costs account for a large portion of the costs in this unit. Together, these two units account for 30 percent ( approximately $ 8.2 million) of forecast costs. The next three most costly units, Hells Canyon complex ( Unit 12) and the Clark Fork River ( Unit 2) and Malheur River ( Unit 13) Basins, each account for eight percent ( a unit cost range of approximately $ 2.1 million to $ 2.3 million) of forecast costs. In total, these five units account for almost 55 percent of forecast costs ( approximately $ 14.8 million). 3 Twelve of the units also contain more than 500,000 lake acres of critical habitat. These units account for approximately 55 percent of the potential economic impacts associated with the proposed designation ($ 15.4 million). The Clark Fork River Basin ( Unit 2) contains almost 60 percent of the lake acres ( more than 300,000 acres) and accounts for eight percent of the cost ( approximately $ 3 million). Because all 25 units contain river miles, the costs are expressed in terms of dollars per river mile for comparison. ES- 6 ES- 7 ES- 8 13. Project modifications or other restrictions that engender cost and revenue impacts involving commercial enterprises can have a subsequent detrimental effect on other sectors of the local economy, especially when the affected industry is central to the local economy. Industries within a geographic area are interdependent in the sense that they purchase output from other industries and sectors, while also supplying inputs to other businesses. Therefore, direct economic effects on a particular enterprise can affect regional output and employment in multiple industries. The extent to which regional economic impacts are realized depends largely on whether a significant number of projects are stopped or fundamentally altered. For example, impacts to the timber or grazing industries depend on whether required project modifications substantially reduce output within economic sectors below that which would be seen in the absence of the trout consultation. 14. Examination of BOs involving timber harvest and grazing show only small and sporadic reductions in either grazing opportunity or available timber harvest. Therefore, this analysis assumes that regional economic impacts associated with these activities will be unpredictable ( in terms of geographic location and timing) and small in the context of the overall economy of the Columbia River Basin. In the case of agricultural water diversions on Forest Service lands, regional economic impacts are not modeled due to uncertainty about the magnitude and potential location of impacts. 15. Exhibit ES- 5 highlights the relative contributions of each unit to total forecast costs. Exhibit ES- 6 then presents the unit cost by river mile. Considering the cost per river mile, the Willamette River ( Unit 4) and Malheur River ( Unit 13) Basins are the most costly units. Together these two units account for 25 percent of the costs ( approximately $ 7.0 million, annualized) over two percent of the proposed miles of the designation ( 451 miles). Overall, 10 percent of the river miles ( 1,910 miles) in eight units account for approximately 45 percent of the total costs ( approximately $ 12.5 million, annualized). 4 4 In terms of cost per lake acre, the Willamette River Basin is the most expensive unit ( Unit 4), followed by the Northeast Washington River ( Unit 22) and Upper Columbia River ( Unit 21) Basins. These three units account for approximately 25 percent of the cost ($ 6.8 million) and five percent of the river miles ( 1,020 miles) in the proposed designation. ES- 9 tn m W GO 16. Consideration of the regulatory baseline is particularly pertinent in the context of estimating economic costs attributable to section 7 for bull trout. Specifically, existing regulations such as the Federal Power Act ( FPA) and Wilderness Act of 1964, fisheries management directives ( Northwest Forest Plan, INFISH and PACFISH) and the presence of other listed species ( especially anadromous fish) provide for the protection of areas that could contribute to the recovery of bull trout and improve riparian habitat and water quality throughout the proposed designation. Thus, the costs of this designation is limited by the extent to which existing regulations already impose requirements on land use and resource management within the proposed designation. In addition, the cost estimates developed in this report reflect various allocations made throughout the analysis for projects benefitting more than one listed species. Since these allocations are important to the analysis, Exhibit ES. 7 describes how forecasted costs were allocated among bull trout and other listed species. Exhibit ES. 7 ALLOCATION OF ESTIMATED FUTURE PROJECT MODIFICATION COSTS Agency / Project ACOE - Upper Willamette River Dams and Reservoirs BPA - Federal Columbia River Power System FERC - re- licensing hydroelectric facilities USFS activities Allocation NOAA Fisheries and the Service are currently consulting on salmon, steelhead and bull trout in this proposed area. No clear allocation of costs can be made between these species, as most of the projects modifications would be sought under both the NOAA and Service consultations. Therefore, one- third of estimated costs are allocated to each species. This is likely to overstate the cost of bull trout conservation rather than understate it, since the primary driving force behind these project modifications is the salmon. While there is extensive discussion of the relative magnitude of potential bull trout versus salmon mitigation actions, because of the relatively modest project modification costs ( up to $ 400,000 associated with fishery studies) there is no allocation of costs to salmon. The estimation of section 7 bull trout costs associated with FERC re- licensing includes allocation of mitigation costs for specific dams to salmon, as well as to other aquatic species. As a result, a little more than 40 percent of total fishery-related costs are allocated to bull trout, and five percent specifically to bull trout section 7 consultation. While certain costs in the sample of timber consultations were allocated to other listed species ( e. g. grizzlies and cutthroat trout), there is no allocation of costs to anadromous species. Summary of Costs 17. Exhibit ES. 8 provides a detailed summary of the co- extensive costs of designation of critical habitat for the bull trout. These costs are presented on an annualized basis. A map of the watersheds that encompass each unit is provided in Exhibit ES. 9 to assist the reader in understanding the location and distribution of estimated costs. A detailed discussion of the estimated administrative and project modification costs by critical habitat unit is presented in the unit- by- unit summary section following Exhibit ES. 8. ES- 12 Exhibit ES. 8 SUMMARY OF SECTION 7 COSTS FOR THE BULL TROUT ( Annualized) Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Unit 25 - Snake River Basin Multiple unit or unknown a Estimated Range of Cost ($ l, 000fs) $ 529 to $ 733 $ 1,321 to $ 2,192 $ 328 to $ 402 $ 4,497 to $ 4,891 $ 328 to $ 413 $ 430 to $ 719 $ 51 to $ 56 $ 446 to $ 600 $ 98 to $ 211 $ 467 to $ 580 $ 559 to $ 605 $ 1,939 to $ 2,338 $ 2,006 to $ 2,095 $ 429 to $ 693 $ 995 to $ 1,676 $ 2,059 to $ 3,319 $ 1,004 to $ 1,867 $ 150 to $ 176 $ 385 to $ 494 $ 391 to $ 494 $ 196 to $ 505 $ 965 to $ 1,397 $ 230 to $ 287 $ 243 to $ 504 $ 135 $ 1,303 Notes: These estimates include all section 7 costs, including those co- extensive with the listing and designation of critical habitat for the bull trout. Costs are reported in 2003 dollars. A more detailed presentation of these costs is provided in Appendix F. a Miscellaneous costs ($ 213,000 annually) and the costs associated with development of habitat conservation Dlans ($ 1,090,000 annuallv) have not been allocated to the unit level due to uncertainty as to their location. ES- 13 Exhibit ES- 9 ES- 14 Unit- bv- Unit Summary 18. The following discussion presents a unit- by- unit synopsis of the co- extensive costs of designation of critical habitat for the bull trout. Details on how these cost estimates were developed is provided in Section 4 of this report. 19. From an aggregate perspective, forecast project modification costs are dominated by dam related activities, totaling about 42 percent of all estimated costs. Typical costs include fish passage, changes in operations, habitat protection or restoration, and fishery studies at 36 FERC- licensed hydroelectric facilities and at more than 30 major Federal hydropower, irrigation and flood projects. The second largest category of costs is associated with timber harvest on Federal lands, representing about 29 percent of all estimated costs. These costs include harvest reduction, fishery study and monitoring costs, costs related to roads and culverts, and changes to log yarding systems. The remaining costs are split among a large number of activities including the development of habitat conservation plans, mining, agriculture and irrigation diversions, grazing, bridge construction and maintenance, and general forest management. Accordingly, the primary factor driving the distribution of costs across units is the location of significant dam projects for power, irrigation, and flood control. This factor is highlighted in the following unit- by- unit discussion. The second most important factor is the occurrence of federally- owned acreage within a given unit, particularly the acreage of non- wilderness lands managed by the USFS. This factor drives both timber costs and administrative consultation costs. 20. A significant component of the total estimated cost of this designation are the administrative costs associated with conducting both formal and informal consultations on the species ( approximately 37 to 50 percent of total forecast bull trout- related costs). These costs accrue to the Service as well as to action agencies and the public. In some cases these administrative costs constitute a majority of the estimated costs for a unit, suggesting that there will be many activities consulted on but few resulting project modifications. 21. This discussion is presented on a unit by unit basis. A perspective on how the units compare, in both absolute terms and in terms of cost per river mile of proposed critical habitat, is provided in Exhibits ES- 6 and ES- 7. For purposes of this summary, proposed units with per mile costs ( after adjusting each unit's costs for its respective unoccupied habitat) forecast to be less than half of the proposed designation- wide average are described as having " relatively low costs." Units with per mile costs forecast to be between 50 percent and 200 percent ( i. e., twice) the designation- wide average costs are described as having " relatively moderate costs." Units with per- mile costs forecast to be greater than twice the designation- wide average costs are described as having " relatively high costs." Note that these descriptors are intended as a general guide, and refer to total cost only. Individual economic sectors and entities within a unit may bear disproportionate shares of these costs, as discussed in Section 4. 22. Unit 1: Klamath River Basin - The Klamath River Basin is located in south- central Oregon. Proposed critical habitat within this unit includes 475 km ( 295 mi) of streams and ES- 15 3,775 ha ( 9,327 ac) of lake habitat. The Klamath River Basin Unit is largely contained within Klamath County Oregon. The town of Klamath Falls is the largest community within the county. The Klamath River Basin Unit has a relatively high percentage of proposed critical habitat that is currently either unoccupied or of unknown occupancy ( 72 percent). Approximately 69 percent of the stream miles proposed for designation are within Federal land. 23. The Klamath River Basin Unit is a relatively moderate cost unit. Estimated total annual bull trout- related costs within this unit range between $ 529,000 and $ 733,000. These estimates include $ 425,000 per year in administrative costs. It is estimated that costs associated with consultations on timber harvest and agricultural irrigation withdrawals will constitute the large majority of potential future project modification costs in the unit ( estimated at between 73 percent and 87 percent of total annual project modification costs). These agricultural diversion- related costs are expected to result from reductions in available irrigation water. Other activities are individually estimated to each account for less than $ 15,000 dollars per year in project modification costs. 24. Unit 2: Clark Fork River Basin - The Clark Fork River Basin Unit is the largest unit within the proposed designation. This unit includes most of Western Montana and the Idaho panhandle. This Unit includes the Missoula and Bitterroot River Valleys in Western Montana, the Kalispell- Flathead Lake Region, and the Lake Pend Orielle Region of North Idaho. These areas contain many of the larger towns and communities within Western Montana and North Idaho. Approximately 54 percent of the proposed streams and 33 percent of proposed lakes in Clark Fork Unit are within Federal lands. There is no unoccupied habitat within the proposed Clark Fork Critical Habitat Unit. 25. Forecast total annual costs associated with the bull trout within this unit are between $ 1.3 million and $ 2.2 million. These estimates include $ 800,000 per year in administrative costs. In addition, a number of agencies and activities will incur significant annual project modification costs associated with the bull trout in this unit. Specifically, • Timber harvest activity is expected to generate the largest share of future project modification costs in this unit ($ 270,000 to $ 680,000 per year). These costs include harvest reduction, fishery study and monitoring costs, costs related to road and culverts, and changes to log yarding systems. • Costs associated with forecast project modifications to irrigation diversions within this unit range from zero to $ 280,000. These costs represent potential costs to agricultural producers associated with reductions in available irrigation water. 26. Other significant forecast project modification costs within this unit are associated with mining ( up to $ 100,000 annually, principally involving watershed assessment costs), FERC hydro re- licensing ($ 50,000 to $ 91,000 annually), and FHWA bridge and road work ($ 45,000 per year, generally involving constraints on in- stream work periods). Forecast FERC- related costs are associated with several major hydroelectric facilities within the unit, ES- 16 including Kerr Dam on the Flathead River and Thompson Falls Dam on the Clark Fork. Additionally, bull trout- related modifications on operation of the FCRPS have resulted in changes in operations at Hungry Horse Dam ( a BOR facility on the S. Fork of the Flathead) and Albeni Falls ( an ACOE facility that controls the level of Lake Pend Orielle). Bull trout study costs specific to the Clark Fork Unit and associated with FCRPS consultation are expected to cost up to $ 97,000 annually. 27. Although the proposed Clark Fork River Basin Critical Habitat Unit has significant forecast total annual costs, these costs should be viewed in light of the large size of this proposed unit. In fact, the Clark Fork Unit is forecast to be one of the lowest cost units, when expressed per river mile of habitat proposed for designation. 28. Unit 3: Kootenai River Basin - A short stretch of the Kootenai River lies in the U. S., looping down out of British Columbia. The Kootenai Unit thus comprises only the northwestern corner of Montana, including Libby Dam, and the northeastern tip of the Idaho panhandle. This unit is contained within two counties, Boundary County, Idaho and Lincoln County, Montana. Within this proposed critical habitat unit, approximately 53 percent of the rivers and streams proposed for designation are on Federal land. There is no unoccupied bull trout habitat within this unit. 29. The Kootenai River Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Total forecast annual costs associated with the bull trout within this unit are between $ 328,000 and $ 402,000. Of this amount, the majority, approximately $ 290,000 annually, are forecast administrative costs. In addition, it is estimated that project modification costs within the Kootenai River Unit will total between $ 38,000 and $ 112,000 annually. Costs associated with timber harvest are expected to be the largest category of future project modification costs in this unit ($ 27,000 to $ 69,000 per year, including costs of harvest reduction, fishery study and monitoring costs, costs related to roads and culverts, and changes to log yarding systems). Costs resulting from modifications to agricultural irrigation diversions ( primarily reductions in irrigation withdrawals) could range from zero to $ 28,000. Other activities are individually estimated to each account for less than $ 5,000 per year in project modification costs. Bull trout- related modifications to operations of the FCRPS have resulted in changes in operations at Libby Dam. 30. Unit 4: Willamette River Basin - The Willamette River Basin Unit includes 337 km ( 209 mi) of stream and 1,600 ha ( 3,954 ac) of lake habitat in the McKenzie River and Middle Fork Willamette River subbasins of Western Oregon. The unit is located primarily within Lane County, but also extends into Linn County. The unit contains Eugene, Oregon and surrounding areas. Approximately 46 percent of the proposed waters within this unit are on Federal land and about 23 percent of the waters in the unit are currently either unoccupied by the bull trout or of unknown occupancy. 31. Forecast total annual costs associated with the bull trout within this unit are between $ 4.5 million and $ 4.9 million. Of this amount, approximately $ 125,000 are forecast ES- 17 administrative costs. Thus, most of the costs for this unit are associated with required project modifications. While project modification costs are forecast to be associated with timber harvest activities and agricultural diversions within this unit ( estimated between $ 22,000 and $ 55,000 annually), the vast majority of forecast costs are associated with dam and reservoir operations in the unit. 32. The ACOE is currently in consultation on 13 flood control facilities located in the Upper Willamette River system. Potential future costs of required modifications for bull trout will likely be driven by provisions for temperature control facilities at the Lookout Point, Hills Creek, and Blue River dams, and trap and haul passage at Lookout Point, Hills Creek, and possibly a fish ladder at Dexter Dam. It is estimated that these passage and temperature control modifications and operation at ACOE operated impoundments in the unit will cost between $ 4.3 and $ 4.5 million per year. It is further estimated that annual project modification costs associated with FERC re- licensing of hydroelectric facilities in the unit will cost between $ 70,000 and $ 144,000 annually. These costs are associated with several hydroelectric facilities operated by the City of Eugene: Trail Bridge and Carmen on the McKenzie River, and Blue River Dam. 33. The Willamette River Unit is the highest cost of the proposed units in terms of forecast cost per river mile of habitat proposed for designation ( greater than $ 20,000 per river mile, annually). These costs are associated with dam and reservoir modifications to ACOE projects. However, the ACOE is also consulting with NOAA Fisheries on the impacts of these facilities on chinook salmon and steelhead, these costs might occur even absent the bull trout. 34. Unit 5: Hood River Basin - The Hood River Unit lies entirely within Hood River County, Oregon and contains the communities of Hood River and The Dalles among a number of smaller towns. The Unit includes the mainstem Hood River and three major tributaries: the Clear Branch Hood River, West Fork Hood River, and East Fork Hood River. A relatively high 43 percent of the proposed habitat in the Hood River Unit is currently either unoccupied or of unknown occupancy. Overall, about 48 percent of the waters proposed for designation within this unit are located on Federal lands. 35. The Hood River Unit is a relatively moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 328,000 and $ 413,000. Of this amount, a substantial portion are forecast administrative costs ( approximately $ 282,000). The remainder of the forecast costs are associated with required project modifications. Costs associated with FERC re- licensing of hydroelectric facilities ($ 24,000 to $ 67,000) and timber harvest on USFS lands ($ 16,000 to $ 40,000 per year) are expected to be the most significant categories of future project modification costs in the unit. FERC licensed facilities include Powerdale on the Hood River. Agricultural irrigation diversions in the unit could experience up to $ 16,000 in annual project modification costs. Other activities are individually estimated to account for less than $ 5,000 per year in project modification costs. ES- 18 36. Unit 6: Deschutes River Basin - The Deschutes River Basin Unit in central Oregon contains two critical habitat subunits: the lower Deschutes and the upper Deschutes, separated by Big Falls, an impassible barrier on the Deschutes River. The Lower Deschutes critical habitat subunit is in Wasco, Sherman, Jefferson, Deschutes, and Crook Counties. The Upper Deschutes River critical habitat subunit is located in Deschutes, Crook, and Klamath counties. Approximately 801 km ( 498 mi) of stream habitat in the Deschutes River basin is proposed for critical habitat designation. Overall, a relatively high 37 percent of the proposed habitat within the Deschutes River Unit is unoccupied. The entire upper Deschutes River Critical Habitat subunit is currently unoccupied by the species. A relatively low portion ( 35 percent) of the waters proposed for designation within this unit are on Federal land. This unit also has a substantial amount of Tribal land ( 23 percent of proposed waters). 37. The Deschutes River Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. It is forecast that total annual costs associated with the bull trout within this unit will be between $ 431,000 and $ 719,000. A relatively small portion of this amount, approximately $ 102,000 annually, are forecast administrative costs. The vast majority of these costs are associated with required project modifications. Specifically, costs associated with operation of BOR irrigation impoundments ($ 159,000 annually, largely associated with fishery studies), FERC re- licensing of hydroelectric facilities, ($ 106,000 to $ 280,000) and timber harvest on USFS lands ($ 42,000 to $ 105,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems) are expected to be the most significant categories of future project modification costs in this unit. The BOR- related costs are for studies at Crane Prairie and Wickiup Reservoirs on the Upper Deschutes River. Since both of these reservoirs are in the currently unoccupied Upper Deschutes subunit, dam and reservoir modifications are not reasonably foreseeable. Projected FERC re- licensing costs are for bull trout studies and passage at the Pelton- Round Butte Project on the Deschutes River. Agricultural irrigation diversion project modification costs associated with potential reductions in irrigation water availability could range from zero to $ 43,000 annually. Other activities are individually estimated to account for less than $ 15,000 dollars per year in project modification costs. 38. Unit 7: Odell Lake - The Odell Lake Unit in central Oregon lies entirely within the Deschutes National Forest in Deschutes and Klamath counties. This unit is the smallest of the proposed units within the designation. Total proposed critical habitat includes approximately 2,675 ha ( 6,611 ac) of lake habitat and 18.1 km ( 11.3 mi) of streams. There is no unoccupied habitat within this unit. 39. Total annual costs associated with the bull trout within the unit are forecast to be between $ 51,000 and $ 56,000. Of this amount, almost all ( approximately $ 50,000 annually) will be associated with the administrative costs of the consultation process. It is estimated that project modification costs within the Odell Lake Unit will total less than $ 5,000 annually. These project modification costs are forecast to be largely associated with USFS activities. ES- 19 40. Unit 8: John Day River Basin - The John Day River Basin Unit in eastern Oregon includes the North Fork, the Middle Fork, and mainstem portions of the John Day River and their tributary streams in Wheeler, Grant, and Umatilla counties. A total of 1,080 km ( 671 mi) of stream habitat is proposed for designation as critical habitat. Overall, 19 percent of the proposed areas within the John Day River Unit are currently unoccupied by the species. Approximately 54 percent of the waters proposed for designation within the John Day Unit are located on Federal land. 41. The John Day River Unit is a relatively low cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Total annual costs associated with the bull trout within this unit are forecast to be between $ 446,000 and $ 600,000. Of this amount, a large portion, approximately $ 278,000 annually, will be made up of administrative costs. The remainder of the forecast costs are associated with required project modifications. Specifically, project modifications associated with timber harvest on USFS lands ($ 57,000 to $ 143,000 per year from reductions in harvest, fisheries studies, road and culvert costs, and changes in yarding systems) and placer mining on USFS lands ( up to $ 88,000 per year associated with requirements for and limitations on allowed stream crossing activity) are expected to generate the greatest share of project modification costs in this unit. Costs associated with agricultural irrigation diversion reductions could range from zero to $ 58,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. The John Day River Basin is one of two units identified in this study as a setting where bull trout related project modifications could have a significant impact on a small placer mining business, the other is the Hells Canyon Complex ( Unit 12). 42. Unit 9: Umatilla- Walla Walla River Basins - The Umatilla and Walla Walla Rivers Unit is located in northeastern Oregon and southeastern Washington. The unit includes 636 km ( 395 mi) of streams extending across portions of Umatilla, Union, and Wallowa counties in Oregon, and Walla Walla and Columbia counties in Washington. Overall, 17 percent of the proposed critical habitat within this unit is currently unoccupied by the species. A relatively low portion ( 32 percent) of the waters proposed for designation within the Umatilla- Walla Walla Unit are located on Federal land. 43. The Umatilla- Walla Walla River Unit is among the lowest cost units, in terms of consultation- related cost per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within this unit will be between $ 98,000 and $ 211,000. Of this amount, approximately $ 59,000 annually will be associated with the administrative costs of the consultation process and the remainder with required project modifications. Specifically, fisheries studies associated with FCRPS consultations could cost up to $ 43,000 annually. Project modification associated with timber harvest on USFS lands is expected to be another significant category of future costs in this unit ($ 26,000 to $ 65,000 per year). Agricultural irrigation diversions could experience up to $ 26,000 in annual project modification costs within this unit. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. In addition to the consultation and project modification costs, the Walla Walla Drainage is in ES- 20 the final stages of developing a basin- wide habitat conservation plan to protect bull trout, among other species. The plan has cost approximately $ 4 million to develop, and it is expected an additional $ 1 million will be spent to complete the plan during the next year or two. 44. Unit 10: Grande Ronde River Basin - The Grande Ronde Unit extends across Union, Wallowa, and Umatilla counties in northeastern Oregon, and Asotin, Columbia, and Garfield counties in southeastern Washington. This unit includes the Grande Ronde River from its headwaters to the confluence with the Snake River and a number of its tributaries, the largest being the Wallowa River. Approximately 1,030 km ( 640 mi) of stream habitat in the Grande Ronde River basin is proposed for critical habitat designation. Overall, seven percent of the proposed critical habitat within the Grand Ronde River Unit is currently unoccupied by the species. Approximately 52 percent of the waters proposed for designation within this unit are located on Federal land. 45. The Grand Ronde River Unit is a low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit will be between $ 467,000 and $ 580,000. Of this amount, the vast majority, approximately $ 417,000 annually, are forecast to be administrative costs. The remainder of the forecast costs are associated with required project modifications. Specifically, fisheries studies within the unit associated with FCRPS consultations could cost up to $ 19,000 annually. Timber harvest on USFS lands is expected to be another significant source of future project modification costs in this unit ($ 34,000 to $ 87,000 per year resulting from reduced harvest, fisheries studies, and road and culvert costs, and changes in yarding systems). Agricultural irrigation diversion costs could be up to $ 35,000. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 46. Unit 11: Imnaha/ Snake River Basins - The Imnaha/ Snake Unit extends across Wallowa, Baker, and Union counties in northeastern Oregon and Adams and Idaho counties in western Idaho. The unit contains approximately 306 km ( 190 mi) of proposed critical habitat. All of the proposed habitat within the Imnaha- Snake River Unit is currently occupied by the species. Approximately 51 percent of the waters proposed for designation within this unit are located on Federal land. 47. The Imnaha/ Snake River Unit is a moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 559,000 and $ 605,000. Of this amount, the large majority are made up of administrative costs ( approximately $ 544,000, annually). The remainder of the forecast costs are associated with required project modifications. Specifically, fishery studies within the unit associated with FCRPS consultations could cost up to $ 18,000 annually. Timber harvest activities on USFS lands are expected to be another significant category of future project modification costs ($ 10,000 to $ 26,000 per year). Agricultural irrigation diversion related project modification costs could range from zero ES- 21 to $ 11,000. Other activities are individually estimated to each account for less than $ 5,000 dollars per year in project modification costs. 48. Unit 12: Hells Canyon Complex - The Hells Canyon Complex Unit encompasses basins in Idaho and Oregon draining into the Snake River and its associated reservoirs, from Hells Canyon Dam upstream to the confluence of the Weiser River. The Hells Canyon Complex unit includes a total of approximately 1,000 km ( 621 mi) of streams proposed as critical habitat. A relatively high portion ( about 48 percent) of the proposed critical habitat within the Hells Canyon Complex Unit is currently unoccupied by the species. Approximately 47 percent of the waters proposed for designation within this unit are located on Federal land. 49. The Hells Canyon Complex Unit is a relatively moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. It is forecast that total annual costs associated with the bull trout within this unit will be between $ 1.9 million and $ 2.3 million. Of this amount, a majority are expected to be made up of administrative costs ( approximately $ 1.4 million, annually). In addition, significant categories of forecast project modification costs within this unit are associated with timber harvest on USFS lands ($ 92,000 to $ 233,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems), placer mining on USFS land ($ 69,000 associated with requirements for and limitations on allowed stream crossing activity), FERC hydroelectric re- licensing ($ 111,000 to $ 259,000), and BOR reservoir activities ($ 192,000 annually, primarily for study related costs). The BOR reservoirs in the unit include Phillips Reservoir and Thief Valley Reservoir; projected costs are for bull trout related studies. Major FERC- licensed hydroelectric facilities in the unit include Hells Canyon, Brownlee and Oxbow. Agricultural irrigation diversions could experience up to $ 95,000 in annual project modification costs within this unit. Other activities are individually estimated to each account for less than 20,000 dollars per year in project modification costs. The Hells Canyon complex is one of two units identified in this study as a setting where bull trout related project modifications could have a significant impact on a small placer mining business, the other is the John Day River Basin ( Unit 8). 50. Unit 13: Malheur River Basin - The Malheur Unit is in the Malheur River Basin in eastern Oregon, in Grant, Baker, Harney, and Malheur counties. A total of 389 km ( 241 mi) of streams and two reservoirs are proposed for critical habitat. About 25 percent of the proposed critical habitat within the Malheur River Unit is currently unoccupied by the species. Approximately 63 percent of the waters proposed for designation within the Malheur River Unit are located on Federal land. 51. The Malheur River Unit is the second highest cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 2.0 million and $ 2.1 million. Project modification costs make up a small portion of these costs, between $ 179,000 and $ 268,000 annually. The rest of the forecast costs are associated with administrative requirements. Major categories of forecast project modification costs within this unit are associated with ES- 22 timber harvest on USFS lands ($ 33,000 to $ 83,000 per year) and BOR reservoir activities ($ 133,000 annually). The BOR costs are for research as well as trap and haul fish passage that is ongoing at Beulah Reservoir on the Malheur River, and estimated research costs at Warm Springs Reservoir, which is currently unoccupied by bull trout. Possible reductions in agricultural irrigation diversions could cost from zero to $ 34,000 annually . Other activities are individually estimated to each account for less than $ 5,000 per year in project modification costs. 52. Unit 14: Coeur d'Alene Lake Basin - The Coeur d'Alene Lake Basin Unit in Idaho is broken into two subunits. The Coeur d'Alene Lake subunit lies within Kootenai, Shoshone, Benewah and Bonner counties. The St. Joe River subunit includes streams in Shoshone, Benewah, and Latah counties, Idaho. Thirty stream reaches or tributaries ( 677 km ( 421 mi)) and lakes comprising 12,727 ha ( 31,450 ac) of surface area are proposed as critical habitat within this unit. Of this, a relatively high portion ( 46 percent) is currently unoccupied by the species. Approximately 58 percent of the waters proposed for designation within this Unit are located on Federal land. 53. The Coeur d'Alene Lake Unit is relatively low cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 429,000 and $ 693,000. A large share of this amount, approximately $ 287,000 annually, is forecast to be made up of administrative costs. In addition, major categories of forecast project modification costs within the unit are associated with timber harvest on USFS lands ($ 97,000 to $ 245,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems), and FHWA bridge and road work ($ 23,000 associated with limitations on in- stream work periods). Modifications to agricultural irrigation diversions could result in costs from zero to $ 100,000. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 54. Unit 15: Clearwater River Basin - The Clearwater River Unit includes 3,063 km ( 1,904 mi) of streams and 6,722 ha ( 16,611 ac) of lakes proposed as critical habitat for bull trout in north- central Idaho. This large unit extends from the Snake River confluence at Lewiston on the west to headwaters in the Bitterroot Mountains along the Idaho/ Montana border on the east. About 13 percent of the proposed critical habitat within the Clearwater River Unit is currently unoccupied by the species. Approximately 78 percent of the waters proposed for designation within the Unit are located on Federal land. 55. Total forecast costs associated with consultation on bull trout within this unit are between $ 1.0 million and $ 1.7 million annually. Of this amount, approximately $ 572,000 is associated with administrative costs. In addition, major categories of forecast project modification costs within this unit are associated with timber harvest on USFS lands ($ 252,000 to $ 635,000 per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems), recreational suction mining on USFS land ($ 115,000 associated with reduced availability of stream access due to seasonal closures), highway bridge and road work ($ 25,000), and USFS management activities ($ 35,000 ES- 23 annually). Agricultural irrigation diversion project modification costs could range from zero up to $ 259,000 annually. These costs may result from reductions in irrigation deliveries. Other activities are individually estimated to each account for less than $ 15,000 dollars per year in project modification costs. 56. Although the proposed Clearwater River Basin Critical Habitat Unit is forecast to experience significant costs associated with the bull trout, these costs should be viewed in light of the large size of the proposed unit. In fact, the Clearwater Unit is one of the lowest cost of the proposed units, in terms of forecast costs per river mile of habitat proposed for designation. 57. Unit 16: Salmon River Basin - The Salmon River basin is a geographically large unit that extends across central Idaho from the Snake River to the Montana border. The critical habitat unit includes 7,688 km ( 4,777 mi) of streams extending across portions of Adams, Blaine, Custer, Idaho, Lemhi, Nez Perce, and Valley counties in Idaho. About six percent of the proposed critical habitat within the Salmon River Unit is currently unoccupied by the species. Approximately 86 percent of the waters proposed for designation within the Unit are located on Federal land. 58. Forecast total annual costs associated with the bull trout within this unit are between $ 2.1 million and $ 3.3 million. Of this amount, approximately $ 1.3 million is associated with administrative costs, with the rest made up of project modification costs. Major categories of forecast project modification costs are associated with timber harvest on USFS lands ($ 465,000 to $ 1.2 million per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems), highway bridge and road work ($ 57,000), and USFS general forest management activities ($ 65,000 annually). The cost of modifications to agricultural irrigation water deliveries could range from zero up to $ 479,000 annually. Costs associated with mining activities at Hecla Mining Company's Grouse Creek and Thompson Creek mines are estimated at $ 132,000 annually. Other activities are individually estimated to each account for less than $ 25,000 dollars per year in project modification costs. 59. Although the proposed Salmon River Basin Critical Habitat Unit has significant forecast costs associated with the bull trout, these costs should be viewed in light of the large size of the proposed unit. In fact, the Salmon River Unit is also one of the lowest cost of the proposed units, in terms of forecast costs per river mile of habitat proposed for designation. 60. Unit 17: Southwest Idaho River Basins - The Southwest Idaho Unit includes a total of approximately 2,792 km ( 1,735 mi) of streams in the Boise, Payette, and Weiser River basins. A number of southern Idaho counties are wholly or partially within this unit, including Ada, Adams, Boise, Camas, Canyon, Elmore, Gem, Payette, Valley, and Washington counties. The counties within the southern Idaho unit include both a significant portion of productive agricultural land as well as the largest population center in the state ( the Boise Valley). About 24 percent of the proposed critical habitat within the Southwest ES- 24 Idaho Unit is currently unoccupied by the species. Approximately 78 percent of the proposed streams and 66 percent of proposed lakes and reservoirs within the Southwest Idaho River Basins Unit are located on Federal land. 61. The Southwest Idaho River Basins Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 1.0 million and $ 1.9 million. Total administrative costs are forecast to be a relatively small portion of this total ($ 328,000 annually). The remainder of the forecast costs are expected to result from forecast project modifications. Specifically, project modification costs within this unit are forecast to be associated with timber harvest on USFS lands ($ 309,000 to $ 781,000 per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems) and BOR reservoir activities ($ 263,000 annually). Major BOR reservoirs in this unit include Anderson Ranch and Arrowrock Reservoirs on the Boise River, Cascade Reservoir on the North Fork Payette, and Deadwood Reservoir on the Payette River. Forecast project modification costs include bull trout life- cycle studies and monitoring at all the reservoirs, and trap and haul passage around the Boise River reservoirs. Costs associated with FERC relicensing at the Lucky Peak facility on the Boise River, and power facilities at the Cascade impoundment, are expected to cost between $ 31,000 and $ 58,000 annually. Modifications to agricultural irrigation diversions could range from zero to $ 318,000 annually. These costs could potentially be associated with reductions in irrigation water withdrawals. Other activities are individually estimated to each account for less than $ 30,000 dollars per year in project modification costs. 62. Unit 18: Little Lost River Basin - The Little Lost River Unit is within Butte, Custer, and Lemhi counties in east- central Idaho. Approximately 184.6 km ( 115.4 mi) of stream habitat in the Little Lost River Basin is proposed for critical habitat designation. About eight percent of the proposed critical habitat within the Little Lost River Unit is currently unoccupied by the species. Approximately 76 percent of the proposed streams within the Little Lost River Basin Unit are located on Federal land. 63. The Little Lost River Unit is forecast to be a relatively inexpensive unit compared to others in the designation, and is a moderate- cost unit in terms of forecast costs per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within this unit will be between $ 150,000 and $ 176,000. Of this amount, a large share, approximately $ 136,000 annually, is forecast to be comprised of administrative costs, with the remainder made up of project modification costs. The largest category of project modification costs within this unit is forecast to be associated with timber harvest on USFS lands ($ 10,000 to $ 24,000 per year). Project modifications to agricultural irrigation diversions could result in costs from zero to $ 10,000 annually. Other activities are individually estimated to each account for less than $ 5,000 dollars per year in project modification costs. 64. Unit 19: Lower Columbia River Basin - The Lower Columbia Unit consists of portions of the Lewis, White Salmon, and Klickitat Rivers, and associated tributaries in ES- 25 southwestern and south- central Washington. The unit extends across Clark, Cowlitz, Klickitat, Skamania, and Yakima counties. Approximately 340 km ( 210 mi) of streams and three reservoirs covering 5,054 ha ( 12,488 ac) are proposed for critical habitat designation. About 20 percent of the proposed critical habitat within the Lower Columbia River Unit is currently unoccupied by the species. A low portion ( 18 percent) of the proposed streams and 29 percent of the proposed lakes and reservoirs within the Lower Columbia River Basin Unit are located on Federal land. 65. When forecast total costs for this unit are viewed in light of its size, the Lower Columbia River Basins Unit is a moderate- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within the unit will be between $ 385,000 to $ 494,000. Total administrative costs associated with the consultation process are estimated to be a relatively large fraction of these costs ($ 304,000 annually). In addition, project modification costs are forecast to be associated with FERC hydroelectric facility re- licensing activities ($ 67,000 to $ 153,000 annually). These FERC re- licensing costs are for the significant hydroelectric developments on the Lewis River, including Yale, Merwin, Swift No. 1, and Swift No. 2. These costs are projected to include study costs, trap and haul passage, and habitat acquisition. Swift No, 2 is one of two hydroelectric projects identified in this study where bull trout- related project modifications could have a significant impact on a small business; the other is Box Canyon in the Northeast Washington River Basin ( Unit 22). Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 66. Unit 20: Middle Columbia River Basin - The Middle Columbia River unit encompasses the entire Yakima River basin located in south central Washington, draining approximately 15,900 square km ( 6,155 square mi). The basin occupies most of Yakima and Kittitas counties, about half of Benton County, and a small portion of Klickitat County. Approximately 846 km ( 529 mi) of stream habitat and 6,066 ha ( 14,986 ac) of lake and reservoir surface area are proposed as critical habitat within this unit. About 13 percent of the proposed critical habitat within the Middle Columbia River Unit is currently unoccupied by the species. Approximately 44 percent of the waters proposed for designation within the Middle Columbia River Basin Unit are located on Federal land. 67. The Middle Columbia River Unit is a relatively low- cost unit in terms of cost per stream mile. Forecast costs associated with the bull trout within this unit are between $ 391,000 and $ 494,000 annually. Of this amount, a very small portion, approximately $ 50,000 annually, will be associated with the administrative costs of the consultation process, while the remainder will be associated with project modifications. While there are projected to be project modification costs associated with timber harvest activities ( through consultation with the USFS; estimated to be between $ 36,000 and $ 91,000 annually), the majority of forecast costs for this unit are associated with dam and reservoir operations. The BOR operates a system of five dams in this basin ( Cle Elum Lake, Kachess Lake, Keechelus Lake, Tieton Dam, and Bumping Lake) which provide power and irrigation for this agriculturally important region. It is estimated that project modification costs ( periodic trap- ES- 26 and- haul passage to allow genetic interchange between isolated bull trout populations) at the BOR operated impoundments in the unit will cost approximately $ 290,000 per year. Other activities are individually estimated to account for a small portion of forecast annual project modification costs. 68. TheMiddle Columbia River Unit is a relatively low- cost unit in terms of cost per stream mile. 69. Unit 21: Upper Columbia River Basin - The Upper Columbia River Basin includes three subunits in central and northern Washington: the Wenatchee River subunit in Chelan County; the Entiat River subunit in Chelan County; and the Methow River subunit in Okanogan County. A total of 909.7 km ( 565.4 mi) of streams and 1,010 ha ( 2,497 ac) of lake surface area are proposed for critical habitat. About nine percent of the proposed critical habitat within the Upper Columbia River Unit is currently unoccupied by the species. Approximately 58 percent of the proposed streams and 41 percent of the proposed lakes and reservoirs within the Upper Columbia River Basin Unit are located on Federal land. 70. The Upper Columbia River Basins Unit is a low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are between $ 196,000 to $ 505,000 annually. Total administrative costs associated with the consultation process are estimated to be $ 122,000, with the remainder of the forecast costs made up of project modification requirements. Major categories of forecast project modification costs within this unit are associated with FCRPS fisheries studies ( zero to $ 155,000 per year), and USFS timber harvest activities ($ 57,000 to $ 144,000 annually resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems). The FCRPS fisheries studies are for bull trout radio telemetry, snorkel and general monitoring study costs in the Entiat, Methow, and Wenatchee Rivers. In addition, modifications to agricultural irrigation diversions could result in costs from zero to $ 59,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 71. Unit 22: Northeast Washington River Basins - The Northeast Washington unit includes bull trout above Chief Joseph Dam on the Columbia River. A total of 373.1 km ( 231.9 mi) of streams and 1,166 ha ( 2,880 ac) of lake surface area are proposed as critical habitat within this unit. A high proportion ( 54 percent) of the proposed critical habitat within the Northeast Washington River Basins Unit is currently unoccupied by the species, and approximately 58 percent of the proposed streams and reservoirs within this unit are located on Federal land. 72. The Northeast Washington River Basins Unit is forecast to be a relatively high- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are between $ 965,000 to $ 1.4 million annually. Total annual administrative costs are estimated to be a large share of these costs ($ 676,000), with the remainder associated with project modifications. A major category of ES- 27 annual project modification costs within this unit involves FERC hydroelectric facility re-licensing activities ( up to $ 540,000 annually). The estimated FERC re- licensing costs are related to two major hydroelectric facilities on the Pend Orielle River: Box Canyon and Boundary. The Box Canyon re- licensing terms are currently in continuing settlement negotiations, and likely costs specific to this facility are not currently available. However, a recent FERC environmental impact statement ( EIS) estimates that the present value of bull trout related project modifications ( including habitat acquisition) could total upwards of $ 60 million for this relatively small ( 60 MW) facility. Box Canyon is one of two hydroelectric projects identified in this study where bull trout- related project modifications could have a significant impact on a small business; the other is Swift No. 2 in the Lower Columbia River Basin ( Unit 19). Modifications to agricultural irrigation diversions could impose costs from zero to $ 46,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 73. Unit 23: Snake River Basin in Washington - The Snake River Washington Unit includes two critical habitat subunits located in southeast Washington: the Tucannon River subunit located in Columbia and Garfield counties, and the Asotin Creek subunit within Garfield and Asotin counties. A total of 326 km ( 203 mi) of stream reaches are proposed as critical habitat within this unit. About 23 percent of the proposed critical habitat within the Snake River Basin in Washington Unit is currently unoccupied by the species. Approximately 52 percent of the proposed streams within the Snake River Basin Unit are located on Federal land. 74. The Snake River Basin Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within the unit will be between $ 230,000 to $ 287,000. Total annual administrative costs associated with the bull trout are estimated to be a large portion of this total ($ 201,000). The major category of project modification costs within this unit is forecast to be associated with USFS timber harvest activities ($ 21,000 to $ 53,000 annually). Agricultural irrigation diversions could see up to $ 22,000 in annual project modification costs within this unit. Other activities are estimated to each account for less than $ 5,000 dollars per year in project modification costs. 75. Unit 24: Columbia River - This unit is located in the states of Oregon and Washington and includes Clatsop, Columbia, Multnomah, Hood River, Wasco, Sherman, Gilliam, Morrow, and Umatilla counties in Oregon and Pacific, Wahkiakum, Cowlitz, Clark, Skamania, Klickitat, Benton, Walla Walla, Franklin, Yakima, Grant, Kittitas, Chelan, Douglas, and Okanogan counties in Washington. All of this stretch of the Columbia River is currently considered occupied by the bull trout. A relatively low share of the land adjacent to the river in this unit is made up of Federally managed lands ( approximately 39 percent). 76. The Columbia River Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast total costs associated with the bull trout within this unit will be between $ 243,000 to $ 504,000 annually. Total annual ES- 28 administrative costs associated with this unit are relatively low ($ 50,000). The major category of annual project modification costs within the unit are forecast to be associated FERC hydroelectric facility re- licensing activities ( up to $ 362,000 annually). Major FERC-licensed hydroelectric projects on the mainstem Columbia River include Priest Rapids, Rocky Reach, and Wells. These very large facilities are operated by PUD's. Other activities are individually forecast to account for less than $ 15,000 dollars per year in project modification costs. 77. Unit 25: Snake River - The lower Snake River is located in Washington ( Franklin, Walla Walla, Columbia, Whitman, and Asotin counties) from its mouth to the confluence with the Clearwater River at the cities of Clarkston, Washington and Lewiston, Idaho. The Snake River forms the border between Washington and Idaho from Clarkston/ Lewiston upstream to the Oregon border. The Snake River forms the boundary between Idaho and Oregon from that point upstream to the limit of this critical habitat unit. This portion of the Snake River is within Nez Perce, Idaho, Adams, and Washington counties in Idaho, and Wallowa, Baker, and Malheur counties in Oregon. About 20 percent of the proposed critical habitat within the Snake River Unit is currently unoccupied by the species. Approximately 50 percent of the habitat proposed for designation within the Snake River Unit is located on Federal land. 78. The Snake River Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are approximately $ 135,000. Administrative costs associated with the consultation process are estimated to be nearly all of that amount, or $ 125,000 annually. Small Business Effects 79. Under the Regulatory Flexibility Act ( RFA) ( as amended by the Small Business Regulatory Enforcement Fairness Act ( SBREFA) of 1996), whenever a Federal agency is required to publish a notice of rulemaking for any proposed or final rule, it must prepare and make available for public comment a regulatory flexibility analysis that describes the effect of the rule on small entities ( i. e., small businesses, small organizations, and small government jurisdictions). The following summarizes the potential effects of critical habitat designation on small entities: Reductions in contractual USFS water deliveries could significantly impact five ranching/ farming operations annually. However, the location of the reduction in water deliveries within the critical habitat designation is uncertain. Small hydroelectric producers in Washington, Oregon, Idaho and Montana could be affected by project modification costs at the time of facility re- licensing. Specifically, the resulting project modifications could have a significant economic impact on the financial operations of Cowlitz County public utility district ( PUD) ( Unit 19 - Lower Columbia River) and Pend Orielle County PUD ( Unit 22 - Northeast Washington River). ES- 29 • Section 7- related costs associated with instream work is expected to affect approximately 15 placer mines annually in the John Day River Basin ( Unit 8) and Hells Canyon Complex ( Unit 12). While the financial characteristics of these mining operations are unknown, this analysis assumes the economic effect will be significant for those operations that are impacted. Energy Industry Impacts 80. Pursuant to Executive Order No. 13211, Federal agencies are required to submit a summary of the potential effects of regulatory actions on the supply, distribution and use of energy. Two criteria are relevant to this analysis: 1) reductions in electricity production in excess of 1 billion kilowatt- hours per year or in excess of 500 megawatts ( MWs) of installed capacity and 2) increases in the cost of energy production in excess of one percent. The constraints placed on energy production within the region from compliance with bull trout section 7 consultations will not result in significant decreases in production or increases in energy costs within the region. Changes From Draft Economic Analysis 81. Information supplied though public comments to the Draft Economic Analysis along with additional information from Action agency and Service personnel on issues raised through public comment led to several changes to the analysis. This Final Economic Analysis contains the following significant changes from the draft report. 1) Additional information on Habitat Conservation Plans ( HCPs) currently under development within the proposed designation has been incorporated. Additional costs on the order of one million dollars annually have been added to the estimated costs reported. 2) The BOR supplied extensive comments on current and potential costs associated with consultation on its impoundments. Costs associated with potential project modifications to Yakima Drainage dams ( as well as for other BOR impoundments within the proposed designation) have been reduced in response to the new BOR information. 3) Information from Hecla Mining Company identified additional consultation- related costs for the Hecla Grouse Creek and Thompson Creek mines. These costs have been included in the section 4 discussion of USFS mining activity. 4) Information from USFS personnel from the Wallowa/ Whitman National Forest identified impacts associated with limitations on in- stream work windows for placer mining operations as baseline State of Oregon regulations that are independent of bull trout section 7 consultation. Estimated impacts to Oregon placer mining have been adjusted accordingly. ES- 30 5) Additionally, corrections to minor errors within the report, not impacting final cost estimates, have been made in response to public comments. Caveats to Economic Analysis 82. Exhibit ES. 10 presents the key assumptions of this economic analysis, as well as the potential direction and relative scale of bias introduced by the assumptions. 83. These caveats below describe factors that introduce uncertainty into the results of this analysis. ES. 10 CAVEATS TO THE ECONOMIC ANALYSIS Key Assumption Projected USFS timber harvest activity is based on recent regional history and ignores the declining long- term trend of the industry. USFS water diversion reductions occur annually and representative water costs reflect the high- end of water lease rates in Washington. Cost of USFS water diversion reductions and timber harvest project modifications are distributed across the units in proportion to USFS non- wilderness acreage. While this may have no effect on the total cost estimate, it may have an effect on the unit cost estimate. Total costs of providing technical assistance is expected to be small relative to other economic impacts; therefore, this analysis does not quantify the instances and costs of technical assistance efforts. Project modifications incorporating measures suggested by the Service and voluntarily agreed to by the applicant during the informal consultation process in order to minimize impact to the bull trout and/ or its habitat are not quantified in this analysis. Amortization of fishery- related capital investments are based on the life of the project rather than a shorter revenue recovery period. Changes in hydroelectric power revenues attributable to reductions in operational flexibility at Libby and Hungry Horse dams is not quantified Most of the project modification costs will either be borne directly by or passed onto the Federal government. The FPA, the Pacific Northwest Electric Power Planning and Conservation Act, and fisheries management directives ( Northwest Forest Plan, INFISH and PACFISH) provide baseline protection. Project modification costs allocated between bull trout and other listed species. Limited consultation with the NRCS is anticipated and based on a the record of past formal and informal consultation activity on the bull trout Effect on Cost Estimate + + +/- - - - - +/- +/- +/- - -: This assumption may result in an underestimate of real costs. + : This assumption may result in an overestimate of real costs. +/-: This assumption has an unknown effect on estimates. ES- 31 Estimated Cost of the Final Designation 84. The analysis contained in this report is consistent with the designation as described in the proposed rule; 5 however, the Service is expected to exclude some proposed areas of habitat to arrive at a final designation. The purpose of this section is to detail the expected changes to the proposed designation and show the implication of these changes on estimated consultation and project modification costs. 85. Exhibit ES. ll compares the spatial extent of the proposed and expected final designations for bull trout critical habitat for both river and stream miles and lake and reservoir acres. Overall, 1,925 miles of rivers and streams and approximately 55,000 acres of lakes and reservoirs are expected to be excluded from critical habitat in the final designation. The greatest reductions in critical habitat stream miles are expected to occur in the Deschutes River Unit ( 60.5 percent reduction), Hood River Unit ( 33.2 percent), Southwest Idaho River Basins Unit ( 32.8 percent), and the Hells Canyon Complex Unit ( 21.3 percent). Most of the reductions in lake and reservoir critical habitat acres are expected to occur in the Deschutes River, Southwest Idaho River Basins and Malheur River Units, all with more than a 70 percent reduction in designated lake and reservoir critical habitat compared to the original proposed designation. ExhibitES. il SUMMARY OF CHANGES IN BULL TROUT CRITICAL HABITAT FROM PROPOSED TO FINAL DESIGNATION Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Proposed Designation Stream Miles 296 3,372 368 200 103 439 15 639 396 644 191 599 233 403 Lake and Reservoir Acres 33,939 304,226 30,094 8,899 91 23,314 6,439 0 0 0 0 0 5,926 27,296 Final Designation Stream Miles 280 3,368 368 200 69 173 13 563 348 625 191 471 214 403 Lake and Reservoir Acres 33,939 304,225 30,094 8,899 91 3,407 6,439 0 0 0 0 0 1,769 27,296 5 U. S. Fish and Wildlife Service, Proposed Designation of Critical Habitat for the Klamath River and Columbia River Distinct Population Segments of Bull Trout, November 29, 2002 ( 67 FR 71235- 71284). ES- 32 Exhibit ES. ll SUMMARY OF CHANGES IN BULL TROUT CRITICAL HABITAT FROM PROPOSED TO FINAL DESIGNATION Unit Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Unit 25 - Snake River Basin Total Proposed Designation Stream Miles 1,904 4,296 1,657 113 171 523 591 232 204 537 343 18,468 Lake and Reservoir Acres 16,610 3,683 41,307 0 12,078 14,987 2,553 1,279 0 0 0 532.724 Final Designation Stream Miles 1,655 3,835 1,114 110 145 519 578 232 189 537 343 16,543 Lake and Reservoir Acres 16,610 3,487 10,651 0 12,000 15,548 2,553 1,279 0 0 0 478,188 86. As noted, the costs reported in the body of this report are consistent with the proposed designation. Expected changes to the proposed designation and the impact of these exclusions on costs are summarized in Exhibit ES. 12, where estimates of annual section 7- related consultation costs for both the proposed and expected final bull trout critical habitat designations are shown. The expected changes to the final designation impacts estimated costs in two ways. 87. First, where future consultation and project modification costs were estimated for dams and reservoirs located within stream reaches that are expected to be excluded from the final critical habitat designation, the costs associated with these anticipated consultations are removed. Three critical habitat units have dams and reservoirs located on waters expected to be excluded in the final designation. The previously quantified costs associated with consultations on Lucky Peak and Cascade Dams and Reservoirs, and Warm Springs, Crane Prairie, and Wickiup Reservoirs have therefore been removed from the forecast total costs associated with the final critical habitat designation. Costs associated with consultations on Lucky Peak and Cascade Dams and Reservoirs have been removed from estimates for the Southwest Idaho River Basins Units, costs associated with consultation on Warm Springs Reservoir have been removed from estimates for the Malheur River Unit, and costs associated with consultations on Crane Prairie and Wickiup Reservoirs have been removed from estimates for the Deschutes River Unit. 88. Second, because the Service is expected to exclude areas of unknown occupancy from the final designation, the spatial extent of unoccupied habitat in each critical habitat ES- 33 unit is adjusted to reflect the expected final designation ( see Appendix F, Exhibit F. 11), and the forecast costs of the expected final designation reflect these changes. 89. Exhibit ES. 12 presents a summary of the annualized forecast total costs, by unit, likely to be associated with the final critical habitat designation over the next ten years. Overall, the removal of waters from the proposed to the expected final bull trout designation is expected to lower forecast section 7- related consultation and project modification costs by approximately $ 18 to $ 24 million over the next ten years ( nine percent). In six units where no changes in the proposed designation were made, there is no change in forecast costs. As a percentage of unit costs, the greatest reduction in forecast costs resulting from the exclusions is expected to occur in the Deschutes River Basin Unit, where forecast costs of the expected final designation are 43 to 55 percent of the costs originally forecast for the proposed designation. 90. The economic impacts associated with the final designation, discounted to present value using a rate of seven percent, are forecast to range from approximately $ 180 to $ 245 million over the next ten years, or $ 18.0 to $ 24.5 million annually. Total costs associated with the final designation for the Klamath Distinct Population Segment of bull trout are forecast to range from approximately $ 5 million to $ 7 million over the next ten years ($ 0.5 to 0.7 million annually), while costs associated with the final designation for the Columbia Distinct Population Segment of bull trout are forecast to range from approximately $ 175 million $ 235 million ($ 17.5 to $ 23.5 million annually). 91. These costs will be incurred primarily by Federal agencies responsible for section 7 consultations ( approximately 65 percent of forecast costs) and the Service ( approximately five to ten percent of forecast costs); private entities will incur the remaining 25 to 30 percent. Project modification costs account for as much as 50 to 60 percent of forecast costs, and administrative costs the remaining 40 to 50 percent. Dam and reservoir- related consultations, including power facility re- licensing, account for approximately 42 percent of forecast project modification costs ( excluding the cost associated with reduced irrigation diversions). Timber harvest, irrigation diversions, habitat conservation plans, and mining account for 20 percent, 12 percent, nine percent, and three percent of forecast project modification costs, respectively. 92. The main text of the report discusses impacts to small businesses expected under the rulemaking as proposed. Impacts to small businesses are primarily related to potential reductions in USFS water deliveries to farmers/ ranchers, project modifications triggered during hydroelectric facility re- licensing, and costs associated with activity restrictions for placer mining. Under the final designation, the reduction in small business impacts would parallel the extent to which these activities occur in habitat removed from the final designation and losses related to these activities reduced. ES- 34 Exhibit ES. 12 SUMMARY COMPARISON OF PROPOSED AND FINAL CRITICAL HABITAT DESIGNATION SECTION 7 COSTS FOR THE BULL TROUT ( Annualized $ l, 000fs) Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Estimated Range of Cost Proposed Critical Habitat Designation Low Estimate $ 529 1,321 328 4,497 328 430 51 446 98 467 559 1,939 2,006 429 995 2,059 1,004 150 385 391 196 965 230 243 High Estimate $ 733 2,192 402 4,891 413 719 56 600 211 580 605 2,338 2,095 693 1,676 3,319 1,867 176 494 494 505 1,397 287 504 Estimated Range of Cost Final Critical Habitat Designation Low Estimate $ 507 1,321 328 3,463 248 195 51 411 81 444 559 1,443 1,792 279 881 1,942 698 144 308 376 178 663 177 243 High Estimate $ 703 2,192 402 3,766 312 401 56 553 175 551 605 1,740 1,874 450 1,483 3,130 1,348 169 396 475 460 959 221 504 ES- 35 Exhibit ES. 12 SUMMARY COMPARISON OF PROPOSED AND FINAL CRITICAL HABITAT DESIGNATION SECTION 7 COSTS FOR THE BULL TROUT ( Annualized $ l, 000fs) Unit Unit 25 - Snake River Basin Multiple unit or unknown a Estimated Range of Cost Proposed Critical Habitat Designation Low Estimate 135 1,303 High Estimate 135 1,303 Estimated Range of Cost Final Critical Habitat Designation Low Estimate 135 1,303 High Estimate 135 1,303 Notes: These estimates include all section 7 costs, including those co- extensive with the listing and designation of critical habitat for the bull trout. Costs are reported in 2003 dollars. a Miscellaneous costs ($ 213,000 annually) and the costs associated with development of HCP's ($ 1,090,000 annually) have not been allocated to the unit level due to uncertainty as to their location. ES- 36 INTRODUCTION AND BACKGROUND SECTION 1 93. In November 2002, the Service proposed to designate critical habitat for the Columbia River and Klamath River DPSs of bull trout ( Salvelinus confluentus), hereafter " bull trout." 6 The purpose of this report is to identify and analyze potential economic impacts associated with the proposed critical habitat designation. This report was prepared by Bioeconomics, Inc. of Missoula, Montana. 94. Section 4( b)( 2) of the Act requires the Service to designate critical habitat on the basis of the best scientific data available, after taking into consideration the economic impact, and any other relevant impact, of specifying any particular area as critical habitat. The Service may exclude areas from critical habitat designation when the benefits of exclusion outweigh the benefits of including the areas within critical habitat, provided the exclusion will not result in extinction of the species. 95. Under the listing of a species, section 7( a)( 2) of the Act requires Federal agencies to consult with the Service in order to ensure that activities they fund, authorize, permit, or carry out are not likely to jeopardize the continued existence of the species. The Service defines jeopardy as any action that would appreciably reduce the likelihood of both the survival and recovery of the species. For designated critical habitat, section 7( a)( 2) also requires Federal agencies to consult with the Service to ensure that activities they fund, authorize, permit, or carry out do not result in destruction or adverse modification of critical habitat. Adverse modification of critical habitat is currently construed as any direct or indirect alteration that appreciably diminishes the value of critical habitat for conservation of a listed species. 6 On January 26,2001, the Alliance for the Wild Rockies, Inc. and Friends of the Wild Swan, Inc. filed a lawsuit in the U. S. District Court of Oregon challenging the Service's failure to designate critical habitat for bull trout. The Service entered into a settlement agreement on January 14, 2002, which stipulated that the Service would make critical habitat determinations for five populations of bull trout ( Civil Case No: CV 01- 127- JO). The Service has proposed critical habitat for the Columbia River and Klamath River populations, which are the subject of this analysis. 1- 1 1.1 Description of Species and Habitat7 96. Bull trout { Salvelinus confluentus, family Salmonidae) is a char native to waters of western North America. The historic range of bull trout includes major river basins in the Pacific Northwest from about 41° north to 60° north latitude, extending south to the McCloud River in northern California and the Jarbidge River in Nevada, and north to the headwaters of the Yukon River in Northwest Territories, Canada. To the west, bull trout range includes Puget Sound, various coastal rivers of British Columbia, Canada, and southeast Alaska. Bull trout occur in portions of the Columbia River and Snake River basins, extending east to headwater streams in Montana and Idaho, and into Canada. Bull trout also occur in the Klamath River basin of south- central Oregon. East of the Continental Divide in Canada, the bull trout's range includes the headwaters of the Saskatchewan River in Alberta, and the MacKenzie River system in Alberta and British Columbia. 97. Bull trout were first described as Salmo spectabilis by Girard in 1856 from a specimen collected on the lower Columbia River near The Dalles, Oregon, and subsequently described under a number of names such as Salmo confluentus and Salvelinus malma. Bull trout and Dolly Varden ( Salvelinus malma) were previously considered a single species. However, in 1980, the American Fisheries Society formally recognized bull trout and Dolly Varden as separate species. Two of the most useful characteristics in separating the two species are the shape and size of the head. The head of bull trout is more broad and flat on top, unlike Dolly Varden. Bull trout have an elongated body and large mouth, with the maxilla ( jaw) extending beyond the eye and with well- developed teeth on both jaws and head of the vomer ( a bone in teleost fishes that form the front part of the roof of the mouth and often bears teeth). Bull trout have 11 dorsal fin rays, nine anal fin rays, and the caudal fin is slightly forked. Although they are often olive green to brown with paler sides, color is variable with locality and habitat. 98. Bull trout exhibit both resident and migratory life history strategies. Resident bull trout complete their entire life cycle in the tributary streams where they spawn and rear. Migratory bull trout spawn in tributary streams where juvenile fish rear from one to four years before migrating to either a larger river or lake, where they spend their adult life, returning to the tributary stream only to spawn. These migratory forms occur in areas where conditions allow for movement from upper watershed spawning streams to larger downstream waters that contain greater foraging opportunities. Bull trout that migrate to a downstream river are referred to as " fluvial" fish, while the term " adfluvial" is used to describe fish that migrate to a lake or reservoir. Resident and migratory forms may spawn in the same areas and either form can produce resident or migratory offspring. 7 Information on the bull trout and its habitat is taken from the U. S. Fish and Wildlife Service, Proposed Designation of Critical Habitat for the Klamath River and Columbia River Distinct Population Segments of Bull Trout, November 29, 2002 ( 67 FR 71235- 71284). 1- 2 99. The Klamath River population segment consists of bull trout in the Upper Klamath Lake, Sprague River, and Sycan River watersheds in Oregon. Historical records suggest that bull trout were once widely distributed and exhibited diverse life- history traits in the Klamath River basin. Currently, bull trout in this basin are non- migratory fish that are confined to headwater streams. The local populations that remain reside in an estimated 21 percent of the historic range of bull trout in the Klamath River basin, and they are isolated from one another. 100. The Columbia River population segment includes bull trout residing in portions of Oregon, Washington, Idaho, and Montana. The Bull Trout Draft Recovery Plan ( Draft Recovery Plan) ( Service 2002) identifies 22 recovery units within the Columbia River basin: the Willamette River ( upper tributaries including the McKenzie River), Lower Columbia River ( principally the Lewis, White Salmon, and Klickitat Rivers), Hood River, Deschutes River, Odell Lake, John Day River, Umatilla and Walla Walla Rivers, Middle Columbia River ( principally the Yakima River), Snake River ( including Asotin Creek and Tucannon River), Grande Ronde River, Clearwater River, Salmon River, Little Lost River, Imnaha River, Hells Canyon ( including Powder River), Malheur River, Southwest Idaho, Upper Columbia River ( principally the Wenatchee, Entiat, and Methow Rivers), Northeast Washington, Clark Fork River, Kootenai River, and Coeur d'Alene Lake. Bull trout are estimated to have once occupied about 60 percent of the Columbia River basin; they presently occur in approximately 45 percent of their historic range. Although still somewhat widely distributed in the Columbia River basin, bull trout occur in low numbers in many areas and populations are considered depressed or declining across much of their range. 101. Many factors have contributed to the decline of bull trout in the Columbia and Klamath River basins. However, several appear to be particularly significant: ( 1) fragmentation and isolation of local populations due to dams and water diversions that have eliminated habitat, altered water flow and temperature regimes, and impeded migratory movements; ( 2) degradation of spawning and rearing habitat in upper watershed areas, particularly alterations in sedimentation rates and water temperature resulting from past forest and rangeland management practices and intensive development of roads; and ( 3) the introduction and spread of non- native species, particularly brook trout ( Salvelinusfontinalis) and lake trout ( Salvelinus namaycush), which compete with bull trout for limited resources and, in the case of brook trout, hybridize with bull trout. 102. Bull trout have more specific habitat requirements than most other salmonids. Habitat components that influence bull trout distribution and abundance include water temperature, cover, channel form and stability, spawning and rearing substrate conditions, and migratory corridors. 103. Bull trout are found primarily in cold streams; water temperatures above 15° Celsius ( C) ( 59° Fahrenheit ( F)) are believed to limit bull trout distribution. Adult bull trout have been observed in large rivers throughout the Columbia River basin in water temperatures up to 20° C ( 68° F); however, there are documented steady and substantial declines in 1- 3 abundance in stream reaches where water temperature ranged from 15° to 20° C ( 59° to 68° F). In large rivers, bull trout are often observed " dipping" into the lower reaches of tributary streams, and it is suspected that cooler waters in these tributary mouths may provide important thermal refugia, allowing them to forage, migrate, and overwinter in waters that would otherwise be, at least seasonally, too warm. 104. Preferred spawning habitat consists of low- gradient stream reaches with loose, clean gravel, and water temperatures that range from 4° to 10° C ( 39° to 51° F). Such areas are often associated with cold- water springs or groundwater up- welling. Because bull trout eggs incubate about seven months in the gravel, they are especially vulnerable to fine sediments and water quality degradation. Increases in fine sediment appear to reduce egg survival and emergence. Juveniles are likely similarly affected, as they also live on or within the stream bed cobble. 105. Throughout their lives, bull trout require complex forms of cover, including large woody debris, undercut banks, boulders, and pools. Bull trout are opportunistic feeders, with food habits that are primarily a function of size and life- history strategy. Resident and juvenile migratory bull trout prey on terrestrial and aquatic insects, macro- zooplankton, and small fish. Adult migratory bull trout feed almost exclusively on other fish. 106. The ability to migrate is important to the persistence of bull trout. Maintaining the full complement of bull trout life history forms appears to be important for long- term population persistence in a dynamic and unpredictable environment. Migratory bull trout become much larger than resident fish in the more productive waters of larger streams and lakes, leading to increased reproductive potential. Migration also results in increased dispersion of the population which facilitates gene flow among local populations when individuals from different local populations interbreed, stray, or return to non- natal streams. Local populations that are extirpated by catastrophic events may also become re- established by bull trout migrants. 107. Introduced brook trout threaten bull trout through hybridization, competition, and possibly predation. Hybridization between brook trout and bull trout has been reported in Montana, Oregon, Washington, and Idaho. In addition, brook trout mature at an earlier age and have a higher reproductive rate than bull trout. This difference appears to favor brook trout over bull trout when they occur together, often leading to the decline or extirpation of bull trout. Brook trout also appear to adapt better to degraded habitat than bull trout and are more tolerant of high water temperatures. Non- native lake trout also negatively affect bull trout. In a study of 34 lakes in Montana, Alberta, and British Columbia, lake trout appeared to limit foraging opportunities and reduce the distribution and abundance of migratory bull trout in mountain lakes. 108. The Service determined the primary constituent elements of bull trout habitat from studies of their habitat requirements, life history characteristics, and population biology, as outlined above. These primary constituent elements are: 1- 4 Permanent water and associated substrate having low levels of contaminants such that normal reproduction, growth and survival are not inhibited; Water temperatures ranging from 2° to 15° C ( 37° to 59° F). Adequate thermal refugia may be necessary for persistence of bull trout if water temperatures commonly exceed this range. Specific temperatures within this range will vary depending on bull trout life history stage and form, geography, elevation, diurnal and seasonal variation, shade, such as that provided by riparian habitat, and local groundwater influence; • Complex stream channels with features such as woody debris, side channels, pools, and undercut banks to provide a variety of depths, velocities, and instream structures; • Substrates of sufficient amount, size, and composition to ensure success of egg and embryo overwinter survival, fry emergence, and young- of- the- year and juvenile survival. A minimal amount of fines less than 0.63 cm ( 0.25 in) in diameter and minimal substrate embeddedness are characteristic of these conditions; • A natural hydrograph, including high, low, peak, and base flows within historic ranges or, if regulated, a hydrograph that demonstrates the ability to support bull trout populations; • Springs, seeps, groundwater sources, and subsurface water connectivity to contribute to water quality and quantity; • Migratory corridors with minimal physical, biological or chemical barriers between spawning, rearing, overwintering, and foraging habitats, including intermittent or seasonal barriers induced by high water temperatures or low flows; • An abundant food base including terrestrial organisms of riparian origin, aquatic macroinvertebrates, and forage fish; and • Few or no predatory, interbreeding, or competitive non- native species present. An area need not include all of these elements to qualify for designation as critical habitat. 1.2 Proposed Critical Habitat 109. The areas proposed for designation as critical habitat for the bull trout provide one or more of the primary constituent elements described above. All of the proposed areas require special management considerations to ensure their contribution to the conservation of the bull trout. The critical habitat area consists of 18,469 river miles and 532,721 acres of lake and reservoir habitat within 25 units. While the lateral extent of proposed riverine 1- 5 critical habitat is the width of the stream channel defined by its bankfull elevation, the designation of critical habitat is expected to impact inland activity. How far inland the designation's effects extend is a more or less a site specific issue. For example, with regards to land- based activities such as timber sales or grazing practices, it is a matter of site specific physical processes such as sediment transport, the local topography, and the size of the drainage basin. Descriptions of each critical habitat unit are provided in Appendix A. 1.3 Framework and Methodology 110. The primary purpose of this analysis is to estimate the economic impact associated with the designation of critical habitat for bull trout. 8 This information is intended to assist the Secretary in making decisions about whether the benefits of excluding particular areas from the designation outweigh the benefits of including those areas in the designation. 9 In addition, this information allows the Service to address the requirements of Executive Orders 12866 and 13211, the RFA, as amended by the SBREFA. 10 111. This chapter provides the framework for this analysis. First, it defines the economic effects considered in the analysis. Second, it establishes the baseline against which these effects are measured. Third, it describes the measurement of direct compliance costs, which include costs associated with, and generated as a result of, section 7 consultations. Fourth, it identifies potential indirect economic effects of the rule resulting from ( 1) compliance with other parts of the Act potentially triggered by critical habitat, ( 2) compliance with other laws, and ( 3) time delays and regulatory uncertainty. Fifth, it discusses the need for an economic assessment of the benefits of critical habitat designation. Finally, the section concludes by discussing the time frame for the analysis and the general steps followed in the analysis. 1.3.1 Types of Economic Effects Considered 112. This economic analysis considers both the economic efficiency and distributional effects. For the purpose of this analysis, economic efficiency effects generally reflect the " opportunity costs" associated with the commitment of resources required to comply with the Act. For example, if the activities that can take place on a parcel of private land are limited as a result of a designation, and thus the market value of the land reduced, this reduction in value represents one measure of opportunity cost or change in economic efficiency. Similarly, the costs incurred by a Federal Action agency to consult with the Service under section 7 represent economic opportunity costs. 8 This analysis considers the effects of the regulatory action as proposed in the Federal Register on November 29, 2002 ( 67 FR 71236). M6U. S. C. § 1533( b)( 2). 10 Executive Order 12866, " Regulatory Planning and Review," September 30, 1993; Executive Order 13211, " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," May 18, 2001; 5 U. S. C. § § 601 etseq; and Pub Law No. 104- 121. 1- 6 113. This analysis also addresses how the impacts are distributed, including an assessment of any local or regional economic impacts and the potential effects on small entities and the energy industry. This information can be used by decision- makers to assess whether the effects might unduly burden a particular group or economic sector. 114. For example, while the designation may have a relatively small impact when measured in terms of changes in economic efficiency, individuals employed in a particular sector of the economy in the geographic area of the designation may experience relatively greater effects. The difference between economic efficiency effects and distributional effects, as well as their application in this analysis, are discussed in greater detail below. Efficiency Effects 115. At the guidance of the OMB and in compliance with Executive Order 12866 " Regulatory Planning and Review," Federal agencies measure changes in economic efficiency in order to understand how society, as a whole, will be affected by a regulatory action. 11 In the context of this regulatory action, these efficiency effects represent the opportunity cost of resources used or benefits foregone by society as a result of critical habitat designation and other co- extensive regulations. 12 Economists generally characterize opportunity costs in terms of changes in producer and consumer surpluses in affected markets. 13 116. In some instances, compliance costs may provide a reasonable approximation for the efficiency effects associated with a regulatory action. For example, a landowner or manager may need to enter into a consultation with the Service to ensure that a particular activity will not adversely modify critical habitat. The effort required for the consultation represents an economic opportunity cost, because the landowner or manager's time and effort would have been spent in an alternative activity had the parcel not been included in the designation. When compliance activity is not expected to significantly affect markets — that is, not result in a shift in the quantity of a good or service provided at a given price, or in the quantity of a good or service demanded given a change in price ~ the measurement of compliance costs can provide a reasonable estimate of the change in economic efficiency. 11 Executive Order 12866, " Regulatory Planning and Review," September 30,1993; U. S. Office of Management and Budget, " Circular A- 4," September 17, 2003. 12 The term " co- extensive" is discussed in greater detail in Section 1.3.3. 13 For additional information on the definition of " surplus" and an explanation of consumer and producer surplus in the context of regulatory analysis, see Gramlich, Edward M, A Guide to Benefit- Cost Analysis ( 2nd Ed.), Prospect Heights, Illinois: Waveland Press, Inc., 1990; and U. S. EPA, Guidelines for Preparing Economic Analyses, EPA 240- R- 00- 003, September 2000, available at http:// yosemite. epa. gov/ ee/ epa/ eed. nsf/ webpages/ Guidelines. html. 1- 7 117. Where a designation is expected to significantly impact a market, it may be necessary to estimate changes in producer and consumer surpluses. For example, a designation that precludes the development of large areas of land may shift the price and quantity of housing supplied in a region. In this case, changes in economic efficiency can be measured by considering changes in producer and consumer surplus in the real estate market. 118. This analysis begins by measuring reasonably foreseeable compliance costs. As noted above, in some cases, compliance costs can provide a reasonable estimate of changes in economic efficiency. However, if the designation is expected to significantly impact markets, the analysis will consider potential changes in consumer and/ or producer surplus in affected markets. Distributional and Regional Economic Effects 119. Measurements of changes in economic efficiency focus on the net impact of the regulation, without consideration for how certain economic sectors or groups of people are affected. Thus, a discussion of efficiency effects alone may miss important distributional considerations concerning groups that may be disproportionately affected. OMB encourages Federal agencies to consider distributional effects separately from efficiency effects. 14 This analysis considers the potential for several types of distributional effects, including impacts on small entities; impacts on energy supply distribution and use; and regional economic impacts. It is important to note that these are fundamentally different measures of economic impact than efficiency effects, and thus cannot be added to or compared with estimates of changes in economic efficiency. Impacts on Small Entities and Energy Supply, Distribution and Use 120. This analysis considers how small entities, including small businesses, organizations, and governments, as defined by the RFA, might be affected by critical habitat designation and other co- extensive regulatory actions. 15 In addition, in response to Executive Order 13211 " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," this analysis considers the impacts of critical habitat on the energy industry and its customers. 16 14 U. S. Office of Management and Budget, " Circular A- 4," September 17, 2003. 155U. S. C. § 60\ etseq. 16 Executive Order 13211, " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," May 18, 2001. 1- 8 Regional Economic Effects 121. Regional economic impact analysis provides an assessment of the potential localized effects of critical habitat designation and other co- extensive regulations. Specifically, regional economic impact analysis produces a quantitative estimate of the potential magnitude of the initial change in the regional economy resulting from a regulatory action. Regional economic impacts are commonly measured using regional input/ output models. These models rely on multipliers that mathematically represent the relationship between a change in one sector of the economy ( e. g., hydroelectric power generation) and the effect of that change on economic output, income, or employment in other local industries ( e. g., manufacturers relying on the electricity generated). These economic data provide a quantitative estimate of the magnitude of shifts of jobs and revenues in the local economy. 122. The use of regional input/ output models can overstate the long- term impacts of a regulatory change. Most importantly, these models provide a static view of the economy of a region. That is, they measure the initial impact of a regulatory change on an economy but do not consider long- term adjustments that the economy will make in response to this change. For example, these models provide estimates of the number of jobs lost as a result of a regulatory change, but do not consider re- employment of these individuals over time. In addition, the flow of goods and services across the regional boundaries defined in the model may change as a result of the designation, compensating for a potential decrease in economic activity within the region. 123. Despite these and other limitations, in certain circumstances regional economic impact analysis may provide useful information about the scale and scope of localized impacts. It is important to remember that measures of regional economic effects generally reflect shifts in resource use rather than efficiency losses. These types of distributional effects, therefore, should be reported separately from efficiency effects ( i. e., not summed). In addition, measures of regional economic impact cannot be compared with estimates of efficiency effects. 1.3.2 Defining the Baseline 124. The purpose of this analysis is to measure the economic impact of compliance with the protections derived from the designation of critical habitat, including habitat protections that may be " co- extensive" with the listing of the species ( the term " co- extensive" is described in greater detail in the following section). Economic impacts to land use activities may exist in the absence of co- extensive protections. These impacts may result from, for example: • Local zoning laws; • State and natural resource laws; and 1- 9 • Enforceable management plans and BMPs applied by other State and Federal agencies. 125. Economic impacts that result from these types of protections are not included in this assessment; they are considered to be part of the " baseline." Existing laws, regulations, and policies are described in greater detail in Section 2.3 of this analysis. 1.3.3 Direct Compliance Costs 126. The measurement of direct compliance costs focuses on the implementation of section 7 of the Act. This section requires Federal agencies to consult with the Service to ensure that any action authorized, funded, or carried out will not likely jeopardize the continued existence of any endangered or threatened species or result in the destruction or adverse modification of critical habitat. The administrative costs of these consultations, along with the costs of project modifications resulting from these consultations, represent the direct compliance costs of designating critical habitat. 127. This analysis does not differentiate between consultations that result from the listing of the species ( i. e., the jeopardy standard) and consultations that result from the presence of critical habitat ( i. e., the adverse modification standard). Consultations resulting from the listing of the species, or project modifications meant specifically to protect the species as opposed to its habitat, may occur even in the absence of critical habitat. However, in 2001, the U. S. 10th Circuit Court of Appeals instructed the Service to conduct a full analysis of all of the economic impacts of critical habitat designation, regardless of whether those impacts are attributable co- extensively to other causes. 17 Given the similarity in regulatory definitions between the terms " jeopardy" and " adverse modification," in practice it can be difficult to pre- determine the standard that drives a section 7 consultation. Consequently, in an effort to ensure that this economic analysis complies with the instructions of the 10th Circuit as well as to ensure that no costs of the proposed designation are omitted, the potential effects associated with all section 7 impacts in or near proposed critical habitat are fully considered. In doing so, the analysis ensures that any critical habitat impacts that are co- extensive with the listing of the species are not overlooked. 1.3.4 Indirect Costs 128. A designation may Title: Final economic analysis of critical habitat designation for the bull trout Author: U.S. Fish and Wildlife Service Year: 2004, 2005 FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT September 2004 FINAL ECONOMIC ANALYSIS OF CRITICAL HABITAT DESIGNATION FOR THE BULL TROUT Prepared for: Division of Economics U. S. Fish and Wildlife Service 4401 N. Fairfax Drive Arlington, VA 22203 Prepared by: Bioeconomics, Inc. 315 S. 4th E. Missoula, MT 59801 TABLE OF CONTENTS EXECUTIVE SUMMARY ES- 1 1 INTRODUCTION AND BACKGROUND 1- 1 1.1 Description of Species and Habitat 1- 2 1.2 Proposed Critical Habitat 1- 5 1.3 Framework and Methodology 1- 6 1.3.1 Types of Economic Effects Considered 1- 6 1.3.2 Defining the Baseline 1- 9 1.3.3 Direct Compliance Costs 1- 10 1.3.4 Indirect Costs 1- 10 1.3.5 Benefits 1- 14 1.3.6 Analytic Time Frame 1- 15 1.3.7 General Analytic Steps 1- 15 1.4 Information Sources 1- 16 2 RELEVANT BASELINE INFORMATION 2- 1 2.1 Socioeconomic Profile of the Critical Habitat Areas 2- 1 2.1.1 Population 2- 1 2.1.2 Land Ownership and Major Uses 2- 2 2.1.3 Employment 2- 12 2.1.4 Economic and Demographic Characteristics of the 74 Counties Containing Bull Trout Critical Habitat 2- 15 2.1.5. Tribes of the Columbia and Klamath Basins 2- 18 2.2 Baseline Elements 2- 21 2.2.1 Recovery Plan 2- 21 2.2.2 Overlap with Other Listed Species 2- 22 2.2.3 Federal and State Statutes and Regulations 2- 25 2.2.4 Summary Discussion of Impacts of Baseline Regulations on Economic Analysis 2- 40 2.2.5 Discussion: Impacts of Existing Fisheries Policies on Timber and Grazing Activities 2- 43 3 FORECASTED ECONOMIC IMPACTS 3- 1 3.1 Categories of Economic Impacts 3- 1 3.1.1 Section 7 Consultations 3- 2 3.1.2 Technical Assistance 3- 4 3.1.3 Project Modifications 3- 5 3.1.4 Distributional and Regional Economic Effects 3- 5 3.2 Consultation History for Bull Trout Since Listing 3- 7 3.2.1 Action Agencies and Activities Involved in Past Bull Trout Consultations 3- 7 3.2.2 Formal Section 7 Consultations History on Bull Trout Since Listing . 3- 13 3.2.3 Informal Section 7 Consultations History on Bull Trout 3- 15 3.3 Project Modifications 3- 16 3.3.1 Modifications to FHWA Bridge Projects 3- 16 3.3.2 Modifications to Grazing Permits 3- 17 3.3.3 Modifications to Timber Harvest 3- 18 3.3.4 Modifications to Mining Operations 3- 20 3.3.5 Modifications to Agricultural Irrigation Projects 3- 21 3.3.6 Modifications to Dams and Hydroelectric Projects 3- 24 3.3.7 Modifications to Forest Management and Road Maintenance Projects 3- 29 3.3.8 Activities Unlikely to Involve Significant Modification 3- 29 3.4 Projected Future Section 7 Consultations Involving the Bull Trout 3- 29 3.4.1 Projected Future Formal Section 7 Consultations 3- 33 3.4.2 Projected Future Informal Section 7 Consultations 3- 36 ESTIMATING THE CO- EXTENSIVE COSTS OF THE DESIGNATION 4- 1 4.1 Summary of Estimated Impacts 4- 2 4.1.1 Annual Administrative Costs of Consultation 4- 2 4.1.2 Costs Associated with Development of HCPs Within Proposed Bull Trout Critical Habitat 4- 3 4.1.3 Annual Bull Trout Project Modification Costs 4- 4 4.1.4 Proposed Critical Habitat Units Expected to Generate the Greatest Economic Impacts 4- 5 4.2 Discussion of Impacts by Action Agency 4- 6 4.2.1 Army Corps of Engineers 4- 7 4.2.2 Bureau of Land Management 4- 9 4.2.3 Bonneville Power Administration 4- 10 4.2.4 Bureau of Reclamation 4- 25 4.2.5 Federal Highway Administration 4- 29 4.2.6 Federal Energy Regulatory Commission 4- 31 4.2.7 U. S. Forest Service 4- 52 4.2.8 Other Action Agencies 4- 79 4.3 Potential Impacts on Small Entities 4- 79 4.3.1 Identifying Activities That May Involve Small Entities 4- 81 4.3.2 Costs Associated with Agriculture Water Diversions 4- 83 4.3.3 Hydroelectric Facility Re- licensing 4- 84 4.3.4 Mining 4- 87 4.4 Potential Impacts on the Energy Industry 4- 88 4.4.1 Evaluation of Whether the Designation will Result in a Reduction in Electricity Production in Excess of One Billion Kilowatt- Hours Per Year or in Excess of 500 Megawatts of Installed Capacity 4- 89 4.4.2 Evaluation of Whether the Designation will Result in an Increase in the Cost of Energy Production in Excess of One Percent 4- 91 APPENDIX A: Detailed Description of Critical Habitat Units A- l APPENDIX B: Ownership of Lands Adjacent to Proposed Critical Habitat Unit and Subunit B- l APPENDIX C: Overlap of Proposed Bull Trout Critical Habitat and Salmon and Steelhead Habitat C- l APPENDIX D: Listing of All Suggested Project Modifications Found in Formal Biological Opinions: By Activity Type D- l APPENDIX E: Length ( stream) and area ( lakes) of proposed designated bull trout critical habitat that is within U. S. Forest Service Land and Forest Service Wilderness Areas E- l APPENDIX F: Breakdown of Total Annual Estimated Costs by Proposed Critical Habitat Unit F- l EXECUTIVE SUMMARY 1. The purpose of this report is to identify and analyze the potential economic impacts associated with the designation of critical habitat for the Columbia River and Klamath River Distinct Population Segments ( DPSs) of bull trout ( Salvelinus confluentus), hereafter " bull trout." This report was prepared by Bioeconomics, Inc. of Missoula, Montana, for the U. S. Fish and Wildlife Service's ( the Service) Division of Economics. 2. Section 4( b)( 2) of the Endangered Species Act ( the Act) requires the Service to designate critical habitat on the basis of the best scientific data available, after taking into consideration the economic impact, and any other relevant impact, of specifying any particular area as critical habitat. The Service may exclude areas from critical habitat designation when the benefits of exclusion outweigh the benefits of including the areas within critical habitat, provided the exclusion will not result in extinction of the species. KEY FINDINGS Total costs associated with both listing and critical habitat designation for the bull trout are forecast to be $ 200 million to $ 260 million over the next ten years. Total costs associated with both listing and critical habitat designation for the bull trout within the proposed Klamath Distinct Population Segment are forecast to be $ 5.3 million to $ 7.3 million over the next ten years. Total costs associated with both listing and critical habitat designation for the bull trout within the proposed Columbia Distinct Population Segment are forecast to be $ 195 million to $ 253 million over the next ten years. Federal agencies are expected to bear 70 to 75 percent of these costs; private entities will incur the remaining 25 to 30 percent. Project modification costs account for as much as 63 percent of forecast costs. Administrative cost represent the remaining 37 percent. U. S. Forest Service and Army Corps of Engineer- related activities account for approximately 70 percent of forecast project modification costs. Activities experiencing the greatest costs include timber harvesting, irrigation diversions, and dam and reservoir operations. Dam and reservoir- related consultations, including power facility re- licensing, account for 42 percent of forecast project modification costs ( excluding the cost associated with reduced irrigation diversions). Timber harvest, irrigation diversions, habitat conservation plans, and mining account for 29 percent, 12 percent, eight percent, and three percent of forecast costs, respectively. In terms of river miles, approximately 18 percent of the total forecast costs are associated with one percent of the proposed designation, 25 percent with five percent of the proposed designation, and 45 percent with ten percent of the proposed designation. When expressed in terms of the expected cost per river mile, the two most costly units are the Willamette River Basin ( Unit 4) and the Malheur River Basin ( Unit 13). ES- 1 Framework for the Analysis 3. The primary purpose of this analysis is to estimate the economic impact associated with the designation of critical habitat for the bull trout. This information is intended to assist the Secretary in making decisions about whether the benefits of excluding particular areas from the designation outweigh the benefits of including those areas in the designation. 1 This economic analysis considers the economic efficiency effects that may result from the designation, including habitat protections that may be co- extensive with the listing of the species. It also addresses distribution of impacts, including an assessment of the potential effects on small entities and the energy industry. This information can be used by decision- makers to assess whether the effects of the designation might unduly burden a particular group or economic sector. 4. This analysis focuses on the direct and indirect costs of the rule. However, economic impacts to land use activities can exist in the absence of critical habitat. These impacts may result from, for example, local zoning laws, State and natural resource laws, and enforceable management plans and best management practices ( BMPs) applied by other State and Federal agencies. For example, as discussed in detail in this report, regional management plans, such as the Northwest Forest Plan, PACFISH and INFISH provide significant protection to bull trout and its habitat while imposing significant costs within the region. Economic impacts that result from these types of protections are not included in this assessment as they are considered to be part of the regulatory and policy " baseline." 5. The measurement of direct compliance costs focuses on the implementation of section 7 of the Act. This section requires Federal agencies to consult with the Service to ensure that any action authorized, funded, or carried out will not likely jeopardize the continued existence of any endangered or threatened species or result in the destruction or adverse modification of critical habitat. The administrative costs of these consultations, along with the costs of project modifications resulting from these consultations, represent the direct compliance costs of designating critical habitat. Importantly, this analysis does not differentiate between consultations that result from the listing of the species ( i. e., the jeopardy standard) and consultations that result from the presence of critical habitat ( i. e., the adverse modification standard). 6. The analysis examines activities taking place both within and adjacent to the proposed designation. It estimates impacts based on activities that are " reasonably foreseeable," including, but not limited to, activities that are currently authorized, permitted, or funded, or for which proposed plans are currently available to the public. Accordingly, the analysis bases estimates on activities that are likely to occur within a ten- year time frame, beginning on the day that the current proposed rule became available to the public ( November 30, 2002). The ten- year time frame was chosen for the analysis because, as the time horizon for an economic analysis is expanded, the assumptions on which the projected number of projects and cost impacts associated with those projects becomes increasingly 1 16U. S. C. § 1533( b)( 2). ES- 2 speculative. An exception to the 10 year analysis time horizon used in this analysis is for Federal Energy Regulatory Commission ( FERC) licenses, which are renewed for up to 50 years. Accordingly, this analysis estimates the annualized costs of the expected impacts associated with section 7 bull trout consultations involving FERC re- licensing over a 50 year time horizon. 7. The analysis is based on a wide range of information sources. Numerous individuals were contacted from the Service, as well as from the U. S. Forest Service ( USFS), Federal Highway Administration ( FHWA), Bureau of Land Management ( BLM), Army Corps of Engineers ( ACOE), Bureau of Reclamation ( BOR), Bonneville Power Administration ( BPA), Natural Resources Conservation Service ( NRCS), U. S. Environmental Protection Agency ( EPA), National Oceanic and Atmospheric Administration ( NOAA) and other Federal agencies. The analysis of the hydroelectric facilities and other dam structures in the region also relied in information from the Northwest Power and Conservation Council ( NWPCC), the Pacific Northwest Utility Coordinating Council as well as information from utilities owning dams in bull trout proposed critical habitat ( e. g., Avista Corporation ( Avista), Eugene Water and Electric Board, Pacificorp and Portland General Electric ( PGE)). Native American Tribes ( e. g., Confederated Salish and Kootenai Tribes), State agencies ( e. g., State Departments of Environmental Quality ( DEQ) and State Departments of Transportation ( DOTs)) and industry organizations ( e. g., American Forest Resource Council, American Farm Bureau and Northwest Mining Association) were also contacted, as were numerous individuals in the private sector on topics ranging from irrigation to forestry to bull trout conservation. Census Bureau and other Department of Commerce data was relied on to characterize the regional economy. 8. The bull trout was listed as a threatened species in 1998.2 Since that time, numerous Action agencies have participated in well over 200 formal consultations and thousands of informal consultations involving bull trout. The past consultation record was used as a starting point from which to predict future consultation activity. Action agencies provided additional information on likely changes in future consultation activity following designation of critical habitat. In some cases these agencies saw little change in future consultation levels. For example, FHWA projects are planned for many years in advance and bridge or road- related bull trout consultations are generally quite certain and foreseeable. In some cases ( e. g., mining activity, irrigation diversions) it was determined that the historical consultation record understated the potential level of future consultation activity for the species and adjustments to future predicted consultation levels were made. For dam and reservoir operations, a wide spectrum of information from agency representatives, as well as the actual FERC re- licensing schedules for privately operated hydropower facilities were used to augment historical consultation rates and develop future annual cost estimates associated with bull trout consultations on dam, reservoir and power- related activities. 2 This economic analysis applies only to the Columbia River and Klamath River DPSs of bull trout and is not a rangewide analysis. The rangewide listing of the bull trout occurred in 1999 and critical habitat will be proposed for the remainder of the range at a later date. ES- 3 Exhibit ES. l provides a summary of the wide range of activities that may be impacted by bull trout- related consultations. Exhibit ES. l PROJECTED ACTIVITIES AFFECTED BY BULL TROUT Action Agency Army Corps of Engineers Bureau of Land Management Bonneville Power Administration Bureau of Reclamation Federal Highway Commission Federal Energy Regulatory Commission U. S. Forest Service Other agencies, including NPS, BIA, U. S. Department of Agriculture ( USDA), U. S. Geological Survey ( USGS), U. S. Fish and Wildlife Service and NOAA Fisheries Activities Consulted on Dam and reservoir operations, streambank stabilization, dredging, bridge replacement, stream restoration. Forest management, grazing, timber harvest, resource maintenance and road construction, weed management, streambank stabilization, flood control projects. Federal Columbia River Power System ( FCRPS)- dam operation, fisheries restoration and augmentation, agricultural practices and irrigation systems. Dam and reservoir operations, irrigation diversions. Highway bridge replacement. Dam re- licensing and removal. Timber harvest, grazing, mining, resource maintenance and road construction, weed management, streambank stabilization, recreation, special use permits, watershed restoration, road decommissioning, irrigation diversions, culvert replacement, and prescribed fuel reduction programs. Assorted activities, primarily fisheries and stream and wetland restoration. Results of the Analysis 9. The economic impacts associated with the designation of critical habitat for the bull trout are expected to range from $ 200 million to $ 260 million over the next ten years ($ 20 million to $ 26 million per year). Federal agencies are expected to bear approximately 70 to 75 percent of the total costs of this designation. A significant portion of the land adjacent to the proposed designation is Federally owned ( 58 percent), 36 percent is under private ownership and the remainder is comprised of Tribal, State or local interests. Of the Federal lands, the majority is managed by the USFS ( 85 percent) and the BLM ( 12 percent). The remaining 25 to 30 percent of costs are expected to be borne by private entities. Exhibit ES. 2 shows the location of USFS and BLM managed land within the proposed designation. ES- 4 Exhibit ES. 2 ES- 5 10. In some cases, the cost associated with consultation is not borne by the Action agency, but passed onto other parties. For example, while farmers and ranchers do not consult on the operation of Federal irrigation impoundments, irrigators could be impacted by potential reductions in water deliveries to maintain instream flow during dry years. While the unit location of USFS- related water diversions is uncertain, it is likely to occur in the Salmon River ( Unit 16), Clark Fork ( Unit 2), Southwest Idaho River and Clearwater River ( Unit 15) Basins, as these units contain the largest portion of USFS managed lands. 11. Consultations that may involve private entities include those related to timber harvest, grazing, mining and power facility re- licensing. Some of the costs associated with these consultations, however, are expected to be borne directly by or passed onto the Federal government ( e. g., increased logging and yarding costs passed onto the USFS through lower stumpage bids for timber). Most of the forecast project modification costs resulting from designation ( 42 percent) are dam and reservoir related ( excluding USFS water diversions). These costs result from consultations on ACOE and BOR dams and reservoirs, BPA consultations on the FCRPS, and FERC re- licensing consultations. Exhibit ES. 3 illustrates the location of major dams within the proposed critical habitat. The remaining project modification costs are associated with timber harvest ( 29 percent), USFS- related water diversions ( 12 percent), habitat conservation plans ( eight percent), and placer gold mining ( three percent). Grazing, forest management, road and bridge construction and maintenance and other activities each account for less than two percent of forecast project modification costs. Exhibit ES. 4 provides the distribution of total costs by activity. 12. Costs can be expressed in terms of unit or river mile; both of these metrics are useful in describing economic impacts. 3 On a cost per unit basis the largest portion of forecast costs are expected to occur in Unit 4, the Willamette River Basin ( 18 percent). These costs are attributable to fish passage and temperature control projects and annual operating and maintenance and fish study costs at ACOE's facilities in the Upper Willamette River System ( Dexter, Lookout Point, Hills Creek and Blue River Dams). The next most costly unit is Unit 16, the Salmon River Basin ( 12 percent). Because this is the largest unit in terms of river miles and proportion of USFS managed land, and because future USFS activities are expected to generate approximately 70 percent of the consultation activity, this unit bears the greatest number of future bull trout- related consultations. Therefore, the administrative costs account for a large portion of the costs in this unit. Together, these two units account for 30 percent ( approximately $ 8.2 million) of forecast costs. The next three most costly units, Hells Canyon complex ( Unit 12) and the Clark Fork River ( Unit 2) and Malheur River ( Unit 13) Basins, each account for eight percent ( a unit cost range of approximately $ 2.1 million to $ 2.3 million) of forecast costs. In total, these five units account for almost 55 percent of forecast costs ( approximately $ 14.8 million). 3 Twelve of the units also contain more than 500,000 lake acres of critical habitat. These units account for approximately 55 percent of the potential economic impacts associated with the proposed designation ($ 15.4 million). The Clark Fork River Basin ( Unit 2) contains almost 60 percent of the lake acres ( more than 300,000 acres) and accounts for eight percent of the cost ( approximately $ 3 million). Because all 25 units contain river miles, the costs are expressed in terms of dollars per river mile for comparison. ES- 6 ES- 7 ES- 8 13. Project modifications or other restrictions that engender cost and revenue impacts involving commercial enterprises can have a subsequent detrimental effect on other sectors of the local economy, especially when the affected industry is central to the local economy. Industries within a geographic area are interdependent in the sense that they purchase output from other industries and sectors, while also supplying inputs to other businesses. Therefore, direct economic effects on a particular enterprise can affect regional output and employment in multiple industries. The extent to which regional economic impacts are realized depends largely on whether a significant number of projects are stopped or fundamentally altered. For example, impacts to the timber or grazing industries depend on whether required project modifications substantially reduce output within economic sectors below that which would be seen in the absence of the trout consultation. 14. Examination of BOs involving timber harvest and grazing show only small and sporadic reductions in either grazing opportunity or available timber harvest. Therefore, this analysis assumes that regional economic impacts associated with these activities will be unpredictable ( in terms of geographic location and timing) and small in the context of the overall economy of the Columbia River Basin. In the case of agricultural water diversions on Forest Service lands, regional economic impacts are not modeled due to uncertainty about the magnitude and potential location of impacts. 15. Exhibit ES- 5 highlights the relative contributions of each unit to total forecast costs. Exhibit ES- 6 then presents the unit cost by river mile. Considering the cost per river mile, the Willamette River ( Unit 4) and Malheur River ( Unit 13) Basins are the most costly units. Together these two units account for 25 percent of the costs ( approximately $ 7.0 million, annualized) over two percent of the proposed miles of the designation ( 451 miles). Overall, 10 percent of the river miles ( 1,910 miles) in eight units account for approximately 45 percent of the total costs ( approximately $ 12.5 million, annualized). 4 4 In terms of cost per lake acre, the Willamette River Basin is the most expensive unit ( Unit 4), followed by the Northeast Washington River ( Unit 22) and Upper Columbia River ( Unit 21) Basins. These three units account for approximately 25 percent of the cost ($ 6.8 million) and five percent of the river miles ( 1,020 miles) in the proposed designation. ES- 9 tn m W GO 16. Consideration of the regulatory baseline is particularly pertinent in the context of estimating economic costs attributable to section 7 for bull trout. Specifically, existing regulations such as the Federal Power Act ( FPA) and Wilderness Act of 1964, fisheries management directives ( Northwest Forest Plan, INFISH and PACFISH) and the presence of other listed species ( especially anadromous fish) provide for the protection of areas that could contribute to the recovery of bull trout and improve riparian habitat and water quality throughout the proposed designation. Thus, the costs of this designation is limited by the extent to which existing regulations already impose requirements on land use and resource management within the proposed designation. In addition, the cost estimates developed in this report reflect various allocations made throughout the analysis for projects benefitting more than one listed species. Since these allocations are important to the analysis, Exhibit ES. 7 describes how forecasted costs were allocated among bull trout and other listed species. Exhibit ES. 7 ALLOCATION OF ESTIMATED FUTURE PROJECT MODIFICATION COSTS Agency / Project ACOE - Upper Willamette River Dams and Reservoirs BPA - Federal Columbia River Power System FERC - re- licensing hydroelectric facilities USFS activities Allocation NOAA Fisheries and the Service are currently consulting on salmon, steelhead and bull trout in this proposed area. No clear allocation of costs can be made between these species, as most of the projects modifications would be sought under both the NOAA and Service consultations. Therefore, one- third of estimated costs are allocated to each species. This is likely to overstate the cost of bull trout conservation rather than understate it, since the primary driving force behind these project modifications is the salmon. While there is extensive discussion of the relative magnitude of potential bull trout versus salmon mitigation actions, because of the relatively modest project modification costs ( up to $ 400,000 associated with fishery studies) there is no allocation of costs to salmon. The estimation of section 7 bull trout costs associated with FERC re- licensing includes allocation of mitigation costs for specific dams to salmon, as well as to other aquatic species. As a result, a little more than 40 percent of total fishery-related costs are allocated to bull trout, and five percent specifically to bull trout section 7 consultation. While certain costs in the sample of timber consultations were allocated to other listed species ( e. g. grizzlies and cutthroat trout), there is no allocation of costs to anadromous species. Summary of Costs 17. Exhibit ES. 8 provides a detailed summary of the co- extensive costs of designation of critical habitat for the bull trout. These costs are presented on an annualized basis. A map of the watersheds that encompass each unit is provided in Exhibit ES. 9 to assist the reader in understanding the location and distribution of estimated costs. A detailed discussion of the estimated administrative and project modification costs by critical habitat unit is presented in the unit- by- unit summary section following Exhibit ES. 8. ES- 12 Exhibit ES. 8 SUMMARY OF SECTION 7 COSTS FOR THE BULL TROUT ( Annualized) Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Unit 25 - Snake River Basin Multiple unit or unknown a Estimated Range of Cost ($ l, 000fs) $ 529 to $ 733 $ 1,321 to $ 2,192 $ 328 to $ 402 $ 4,497 to $ 4,891 $ 328 to $ 413 $ 430 to $ 719 $ 51 to $ 56 $ 446 to $ 600 $ 98 to $ 211 $ 467 to $ 580 $ 559 to $ 605 $ 1,939 to $ 2,338 $ 2,006 to $ 2,095 $ 429 to $ 693 $ 995 to $ 1,676 $ 2,059 to $ 3,319 $ 1,004 to $ 1,867 $ 150 to $ 176 $ 385 to $ 494 $ 391 to $ 494 $ 196 to $ 505 $ 965 to $ 1,397 $ 230 to $ 287 $ 243 to $ 504 $ 135 $ 1,303 Notes: These estimates include all section 7 costs, including those co- extensive with the listing and designation of critical habitat for the bull trout. Costs are reported in 2003 dollars. A more detailed presentation of these costs is provided in Appendix F. a Miscellaneous costs ($ 213,000 annually) and the costs associated with development of habitat conservation Dlans ($ 1,090,000 annuallv) have not been allocated to the unit level due to uncertainty as to their location. ES- 13 Exhibit ES- 9 ES- 14 Unit- bv- Unit Summary 18. The following discussion presents a unit- by- unit synopsis of the co- extensive costs of designation of critical habitat for the bull trout. Details on how these cost estimates were developed is provided in Section 4 of this report. 19. From an aggregate perspective, forecast project modification costs are dominated by dam related activities, totaling about 42 percent of all estimated costs. Typical costs include fish passage, changes in operations, habitat protection or restoration, and fishery studies at 36 FERC- licensed hydroelectric facilities and at more than 30 major Federal hydropower, irrigation and flood projects. The second largest category of costs is associated with timber harvest on Federal lands, representing about 29 percent of all estimated costs. These costs include harvest reduction, fishery study and monitoring costs, costs related to roads and culverts, and changes to log yarding systems. The remaining costs are split among a large number of activities including the development of habitat conservation plans, mining, agriculture and irrigation diversions, grazing, bridge construction and maintenance, and general forest management. Accordingly, the primary factor driving the distribution of costs across units is the location of significant dam projects for power, irrigation, and flood control. This factor is highlighted in the following unit- by- unit discussion. The second most important factor is the occurrence of federally- owned acreage within a given unit, particularly the acreage of non- wilderness lands managed by the USFS. This factor drives both timber costs and administrative consultation costs. 20. A significant component of the total estimated cost of this designation are the administrative costs associated with conducting both formal and informal consultations on the species ( approximately 37 to 50 percent of total forecast bull trout- related costs). These costs accrue to the Service as well as to action agencies and the public. In some cases these administrative costs constitute a majority of the estimated costs for a unit, suggesting that there will be many activities consulted on but few resulting project modifications. 21. This discussion is presented on a unit by unit basis. A perspective on how the units compare, in both absolute terms and in terms of cost per river mile of proposed critical habitat, is provided in Exhibits ES- 6 and ES- 7. For purposes of this summary, proposed units with per mile costs ( after adjusting each unit's costs for its respective unoccupied habitat) forecast to be less than half of the proposed designation- wide average are described as having " relatively low costs." Units with per mile costs forecast to be between 50 percent and 200 percent ( i. e., twice) the designation- wide average costs are described as having " relatively moderate costs." Units with per- mile costs forecast to be greater than twice the designation- wide average costs are described as having " relatively high costs." Note that these descriptors are intended as a general guide, and refer to total cost only. Individual economic sectors and entities within a unit may bear disproportionate shares of these costs, as discussed in Section 4. 22. Unit 1: Klamath River Basin - The Klamath River Basin is located in south- central Oregon. Proposed critical habitat within this unit includes 475 km ( 295 mi) of streams and ES- 15 3,775 ha ( 9,327 ac) of lake habitat. The Klamath River Basin Unit is largely contained within Klamath County Oregon. The town of Klamath Falls is the largest community within the county. The Klamath River Basin Unit has a relatively high percentage of proposed critical habitat that is currently either unoccupied or of unknown occupancy ( 72 percent). Approximately 69 percent of the stream miles proposed for designation are within Federal land. 23. The Klamath River Basin Unit is a relatively moderate cost unit. Estimated total annual bull trout- related costs within this unit range between $ 529,000 and $ 733,000. These estimates include $ 425,000 per year in administrative costs. It is estimated that costs associated with consultations on timber harvest and agricultural irrigation withdrawals will constitute the large majority of potential future project modification costs in the unit ( estimated at between 73 percent and 87 percent of total annual project modification costs). These agricultural diversion- related costs are expected to result from reductions in available irrigation water. Other activities are individually estimated to each account for less than $ 15,000 dollars per year in project modification costs. 24. Unit 2: Clark Fork River Basin - The Clark Fork River Basin Unit is the largest unit within the proposed designation. This unit includes most of Western Montana and the Idaho panhandle. This Unit includes the Missoula and Bitterroot River Valleys in Western Montana, the Kalispell- Flathead Lake Region, and the Lake Pend Orielle Region of North Idaho. These areas contain many of the larger towns and communities within Western Montana and North Idaho. Approximately 54 percent of the proposed streams and 33 percent of proposed lakes in Clark Fork Unit are within Federal lands. There is no unoccupied habitat within the proposed Clark Fork Critical Habitat Unit. 25. Forecast total annual costs associated with the bull trout within this unit are between $ 1.3 million and $ 2.2 million. These estimates include $ 800,000 per year in administrative costs. In addition, a number of agencies and activities will incur significant annual project modification costs associated with the bull trout in this unit. Specifically, • Timber harvest activity is expected to generate the largest share of future project modification costs in this unit ($ 270,000 to $ 680,000 per year). These costs include harvest reduction, fishery study and monitoring costs, costs related to road and culverts, and changes to log yarding systems. • Costs associated with forecast project modifications to irrigation diversions within this unit range from zero to $ 280,000. These costs represent potential costs to agricultural producers associated with reductions in available irrigation water. 26. Other significant forecast project modification costs within this unit are associated with mining ( up to $ 100,000 annually, principally involving watershed assessment costs), FERC hydro re- licensing ($ 50,000 to $ 91,000 annually), and FHWA bridge and road work ($ 45,000 per year, generally involving constraints on in- stream work periods). Forecast FERC- related costs are associated with several major hydroelectric facilities within the unit, ES- 16 including Kerr Dam on the Flathead River and Thompson Falls Dam on the Clark Fork. Additionally, bull trout- related modifications on operation of the FCRPS have resulted in changes in operations at Hungry Horse Dam ( a BOR facility on the S. Fork of the Flathead) and Albeni Falls ( an ACOE facility that controls the level of Lake Pend Orielle). Bull trout study costs specific to the Clark Fork Unit and associated with FCRPS consultation are expected to cost up to $ 97,000 annually. 27. Although the proposed Clark Fork River Basin Critical Habitat Unit has significant forecast total annual costs, these costs should be viewed in light of the large size of this proposed unit. In fact, the Clark Fork Unit is forecast to be one of the lowest cost units, when expressed per river mile of habitat proposed for designation. 28. Unit 3: Kootenai River Basin - A short stretch of the Kootenai River lies in the U. S., looping down out of British Columbia. The Kootenai Unit thus comprises only the northwestern corner of Montana, including Libby Dam, and the northeastern tip of the Idaho panhandle. This unit is contained within two counties, Boundary County, Idaho and Lincoln County, Montana. Within this proposed critical habitat unit, approximately 53 percent of the rivers and streams proposed for designation are on Federal land. There is no unoccupied bull trout habitat within this unit. 29. The Kootenai River Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Total forecast annual costs associated with the bull trout within this unit are between $ 328,000 and $ 402,000. Of this amount, the majority, approximately $ 290,000 annually, are forecast administrative costs. In addition, it is estimated that project modification costs within the Kootenai River Unit will total between $ 38,000 and $ 112,000 annually. Costs associated with timber harvest are expected to be the largest category of future project modification costs in this unit ($ 27,000 to $ 69,000 per year, including costs of harvest reduction, fishery study and monitoring costs, costs related to roads and culverts, and changes to log yarding systems). Costs resulting from modifications to agricultural irrigation diversions ( primarily reductions in irrigation withdrawals) could range from zero to $ 28,000. Other activities are individually estimated to each account for less than $ 5,000 per year in project modification costs. Bull trout- related modifications to operations of the FCRPS have resulted in changes in operations at Libby Dam. 30. Unit 4: Willamette River Basin - The Willamette River Basin Unit includes 337 km ( 209 mi) of stream and 1,600 ha ( 3,954 ac) of lake habitat in the McKenzie River and Middle Fork Willamette River subbasins of Western Oregon. The unit is located primarily within Lane County, but also extends into Linn County. The unit contains Eugene, Oregon and surrounding areas. Approximately 46 percent of the proposed waters within this unit are on Federal land and about 23 percent of the waters in the unit are currently either unoccupied by the bull trout or of unknown occupancy. 31. Forecast total annual costs associated with the bull trout within this unit are between $ 4.5 million and $ 4.9 million. Of this amount, approximately $ 125,000 are forecast ES- 17 administrative costs. Thus, most of the costs for this unit are associated with required project modifications. While project modification costs are forecast to be associated with timber harvest activities and agricultural diversions within this unit ( estimated between $ 22,000 and $ 55,000 annually), the vast majority of forecast costs are associated with dam and reservoir operations in the unit. 32. The ACOE is currently in consultation on 13 flood control facilities located in the Upper Willamette River system. Potential future costs of required modifications for bull trout will likely be driven by provisions for temperature control facilities at the Lookout Point, Hills Creek, and Blue River dams, and trap and haul passage at Lookout Point, Hills Creek, and possibly a fish ladder at Dexter Dam. It is estimated that these passage and temperature control modifications and operation at ACOE operated impoundments in the unit will cost between $ 4.3 and $ 4.5 million per year. It is further estimated that annual project modification costs associated with FERC re- licensing of hydroelectric facilities in the unit will cost between $ 70,000 and $ 144,000 annually. These costs are associated with several hydroelectric facilities operated by the City of Eugene: Trail Bridge and Carmen on the McKenzie River, and Blue River Dam. 33. The Willamette River Unit is the highest cost of the proposed units in terms of forecast cost per river mile of habitat proposed for designation ( greater than $ 20,000 per river mile, annually). These costs are associated with dam and reservoir modifications to ACOE projects. However, the ACOE is also consulting with NOAA Fisheries on the impacts of these facilities on chinook salmon and steelhead, these costs might occur even absent the bull trout. 34. Unit 5: Hood River Basin - The Hood River Unit lies entirely within Hood River County, Oregon and contains the communities of Hood River and The Dalles among a number of smaller towns. The Unit includes the mainstem Hood River and three major tributaries: the Clear Branch Hood River, West Fork Hood River, and East Fork Hood River. A relatively high 43 percent of the proposed habitat in the Hood River Unit is currently either unoccupied or of unknown occupancy. Overall, about 48 percent of the waters proposed for designation within this unit are located on Federal lands. 35. The Hood River Unit is a relatively moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 328,000 and $ 413,000. Of this amount, a substantial portion are forecast administrative costs ( approximately $ 282,000). The remainder of the forecast costs are associated with required project modifications. Costs associated with FERC re- licensing of hydroelectric facilities ($ 24,000 to $ 67,000) and timber harvest on USFS lands ($ 16,000 to $ 40,000 per year) are expected to be the most significant categories of future project modification costs in the unit. FERC licensed facilities include Powerdale on the Hood River. Agricultural irrigation diversions in the unit could experience up to $ 16,000 in annual project modification costs. Other activities are individually estimated to account for less than $ 5,000 per year in project modification costs. ES- 18 36. Unit 6: Deschutes River Basin - The Deschutes River Basin Unit in central Oregon contains two critical habitat subunits: the lower Deschutes and the upper Deschutes, separated by Big Falls, an impassible barrier on the Deschutes River. The Lower Deschutes critical habitat subunit is in Wasco, Sherman, Jefferson, Deschutes, and Crook Counties. The Upper Deschutes River critical habitat subunit is located in Deschutes, Crook, and Klamath counties. Approximately 801 km ( 498 mi) of stream habitat in the Deschutes River basin is proposed for critical habitat designation. Overall, a relatively high 37 percent of the proposed habitat within the Deschutes River Unit is unoccupied. The entire upper Deschutes River Critical Habitat subunit is currently unoccupied by the species. A relatively low portion ( 35 percent) of the waters proposed for designation within this unit are on Federal land. This unit also has a substantial amount of Tribal land ( 23 percent of proposed waters). 37. The Deschutes River Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. It is forecast that total annual costs associated with the bull trout within this unit will be between $ 431,000 and $ 719,000. A relatively small portion of this amount, approximately $ 102,000 annually, are forecast administrative costs. The vast majority of these costs are associated with required project modifications. Specifically, costs associated with operation of BOR irrigation impoundments ($ 159,000 annually, largely associated with fishery studies), FERC re- licensing of hydroelectric facilities, ($ 106,000 to $ 280,000) and timber harvest on USFS lands ($ 42,000 to $ 105,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems) are expected to be the most significant categories of future project modification costs in this unit. The BOR- related costs are for studies at Crane Prairie and Wickiup Reservoirs on the Upper Deschutes River. Since both of these reservoirs are in the currently unoccupied Upper Deschutes subunit, dam and reservoir modifications are not reasonably foreseeable. Projected FERC re- licensing costs are for bull trout studies and passage at the Pelton- Round Butte Project on the Deschutes River. Agricultural irrigation diversion project modification costs associated with potential reductions in irrigation water availability could range from zero to $ 43,000 annually. Other activities are individually estimated to account for less than $ 15,000 dollars per year in project modification costs. 38. Unit 7: Odell Lake - The Odell Lake Unit in central Oregon lies entirely within the Deschutes National Forest in Deschutes and Klamath counties. This unit is the smallest of the proposed units within the designation. Total proposed critical habitat includes approximately 2,675 ha ( 6,611 ac) of lake habitat and 18.1 km ( 11.3 mi) of streams. There is no unoccupied habitat within this unit. 39. Total annual costs associated with the bull trout within the unit are forecast to be between $ 51,000 and $ 56,000. Of this amount, almost all ( approximately $ 50,000 annually) will be associated with the administrative costs of the consultation process. It is estimated that project modification costs within the Odell Lake Unit will total less than $ 5,000 annually. These project modification costs are forecast to be largely associated with USFS activities. ES- 19 40. Unit 8: John Day River Basin - The John Day River Basin Unit in eastern Oregon includes the North Fork, the Middle Fork, and mainstem portions of the John Day River and their tributary streams in Wheeler, Grant, and Umatilla counties. A total of 1,080 km ( 671 mi) of stream habitat is proposed for designation as critical habitat. Overall, 19 percent of the proposed areas within the John Day River Unit are currently unoccupied by the species. Approximately 54 percent of the waters proposed for designation within the John Day Unit are located on Federal land. 41. The John Day River Unit is a relatively low cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Total annual costs associated with the bull trout within this unit are forecast to be between $ 446,000 and $ 600,000. Of this amount, a large portion, approximately $ 278,000 annually, will be made up of administrative costs. The remainder of the forecast costs are associated with required project modifications. Specifically, project modifications associated with timber harvest on USFS lands ($ 57,000 to $ 143,000 per year from reductions in harvest, fisheries studies, road and culvert costs, and changes in yarding systems) and placer mining on USFS lands ( up to $ 88,000 per year associated with requirements for and limitations on allowed stream crossing activity) are expected to generate the greatest share of project modification costs in this unit. Costs associated with agricultural irrigation diversion reductions could range from zero to $ 58,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. The John Day River Basin is one of two units identified in this study as a setting where bull trout related project modifications could have a significant impact on a small placer mining business, the other is the Hells Canyon Complex ( Unit 12). 42. Unit 9: Umatilla- Walla Walla River Basins - The Umatilla and Walla Walla Rivers Unit is located in northeastern Oregon and southeastern Washington. The unit includes 636 km ( 395 mi) of streams extending across portions of Umatilla, Union, and Wallowa counties in Oregon, and Walla Walla and Columbia counties in Washington. Overall, 17 percent of the proposed critical habitat within this unit is currently unoccupied by the species. A relatively low portion ( 32 percent) of the waters proposed for designation within the Umatilla- Walla Walla Unit are located on Federal land. 43. The Umatilla- Walla Walla River Unit is among the lowest cost units, in terms of consultation- related cost per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within this unit will be between $ 98,000 and $ 211,000. Of this amount, approximately $ 59,000 annually will be associated with the administrative costs of the consultation process and the remainder with required project modifications. Specifically, fisheries studies associated with FCRPS consultations could cost up to $ 43,000 annually. Project modification associated with timber harvest on USFS lands is expected to be another significant category of future costs in this unit ($ 26,000 to $ 65,000 per year). Agricultural irrigation diversions could experience up to $ 26,000 in annual project modification costs within this unit. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. In addition to the consultation and project modification costs, the Walla Walla Drainage is in ES- 20 the final stages of developing a basin- wide habitat conservation plan to protect bull trout, among other species. The plan has cost approximately $ 4 million to develop, and it is expected an additional $ 1 million will be spent to complete the plan during the next year or two. 44. Unit 10: Grande Ronde River Basin - The Grande Ronde Unit extends across Union, Wallowa, and Umatilla counties in northeastern Oregon, and Asotin, Columbia, and Garfield counties in southeastern Washington. This unit includes the Grande Ronde River from its headwaters to the confluence with the Snake River and a number of its tributaries, the largest being the Wallowa River. Approximately 1,030 km ( 640 mi) of stream habitat in the Grande Ronde River basin is proposed for critical habitat designation. Overall, seven percent of the proposed critical habitat within the Grand Ronde River Unit is currently unoccupied by the species. Approximately 52 percent of the waters proposed for designation within this unit are located on Federal land. 45. The Grand Ronde River Unit is a low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit will be between $ 467,000 and $ 580,000. Of this amount, the vast majority, approximately $ 417,000 annually, are forecast to be administrative costs. The remainder of the forecast costs are associated with required project modifications. Specifically, fisheries studies within the unit associated with FCRPS consultations could cost up to $ 19,000 annually. Timber harvest on USFS lands is expected to be another significant source of future project modification costs in this unit ($ 34,000 to $ 87,000 per year resulting from reduced harvest, fisheries studies, and road and culvert costs, and changes in yarding systems). Agricultural irrigation diversion costs could be up to $ 35,000. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 46. Unit 11: Imnaha/ Snake River Basins - The Imnaha/ Snake Unit extends across Wallowa, Baker, and Union counties in northeastern Oregon and Adams and Idaho counties in western Idaho. The unit contains approximately 306 km ( 190 mi) of proposed critical habitat. All of the proposed habitat within the Imnaha- Snake River Unit is currently occupied by the species. Approximately 51 percent of the waters proposed for designation within this unit are located on Federal land. 47. The Imnaha/ Snake River Unit is a moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 559,000 and $ 605,000. Of this amount, the large majority are made up of administrative costs ( approximately $ 544,000, annually). The remainder of the forecast costs are associated with required project modifications. Specifically, fishery studies within the unit associated with FCRPS consultations could cost up to $ 18,000 annually. Timber harvest activities on USFS lands are expected to be another significant category of future project modification costs ($ 10,000 to $ 26,000 per year). Agricultural irrigation diversion related project modification costs could range from zero ES- 21 to $ 11,000. Other activities are individually estimated to each account for less than $ 5,000 dollars per year in project modification costs. 48. Unit 12: Hells Canyon Complex - The Hells Canyon Complex Unit encompasses basins in Idaho and Oregon draining into the Snake River and its associated reservoirs, from Hells Canyon Dam upstream to the confluence of the Weiser River. The Hells Canyon Complex unit includes a total of approximately 1,000 km ( 621 mi) of streams proposed as critical habitat. A relatively high portion ( about 48 percent) of the proposed critical habitat within the Hells Canyon Complex Unit is currently unoccupied by the species. Approximately 47 percent of the waters proposed for designation within this unit are located on Federal land. 49. The Hells Canyon Complex Unit is a relatively moderate- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. It is forecast that total annual costs associated with the bull trout within this unit will be between $ 1.9 million and $ 2.3 million. Of this amount, a majority are expected to be made up of administrative costs ( approximately $ 1.4 million, annually). In addition, significant categories of forecast project modification costs within this unit are associated with timber harvest on USFS lands ($ 92,000 to $ 233,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems), placer mining on USFS land ($ 69,000 associated with requirements for and limitations on allowed stream crossing activity), FERC hydroelectric re- licensing ($ 111,000 to $ 259,000), and BOR reservoir activities ($ 192,000 annually, primarily for study related costs). The BOR reservoirs in the unit include Phillips Reservoir and Thief Valley Reservoir; projected costs are for bull trout related studies. Major FERC- licensed hydroelectric facilities in the unit include Hells Canyon, Brownlee and Oxbow. Agricultural irrigation diversions could experience up to $ 95,000 in annual project modification costs within this unit. Other activities are individually estimated to each account for less than 20,000 dollars per year in project modification costs. The Hells Canyon complex is one of two units identified in this study as a setting where bull trout related project modifications could have a significant impact on a small placer mining business, the other is the John Day River Basin ( Unit 8). 50. Unit 13: Malheur River Basin - The Malheur Unit is in the Malheur River Basin in eastern Oregon, in Grant, Baker, Harney, and Malheur counties. A total of 389 km ( 241 mi) of streams and two reservoirs are proposed for critical habitat. About 25 percent of the proposed critical habitat within the Malheur River Unit is currently unoccupied by the species. Approximately 63 percent of the waters proposed for designation within the Malheur River Unit are located on Federal land. 51. The Malheur River Unit is the second highest cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 2.0 million and $ 2.1 million. Project modification costs make up a small portion of these costs, between $ 179,000 and $ 268,000 annually. The rest of the forecast costs are associated with administrative requirements. Major categories of forecast project modification costs within this unit are associated with ES- 22 timber harvest on USFS lands ($ 33,000 to $ 83,000 per year) and BOR reservoir activities ($ 133,000 annually). The BOR costs are for research as well as trap and haul fish passage that is ongoing at Beulah Reservoir on the Malheur River, and estimated research costs at Warm Springs Reservoir, which is currently unoccupied by bull trout. Possible reductions in agricultural irrigation diversions could cost from zero to $ 34,000 annually . Other activities are individually estimated to each account for less than $ 5,000 per year in project modification costs. 52. Unit 14: Coeur d'Alene Lake Basin - The Coeur d'Alene Lake Basin Unit in Idaho is broken into two subunits. The Coeur d'Alene Lake subunit lies within Kootenai, Shoshone, Benewah and Bonner counties. The St. Joe River subunit includes streams in Shoshone, Benewah, and Latah counties, Idaho. Thirty stream reaches or tributaries ( 677 km ( 421 mi)) and lakes comprising 12,727 ha ( 31,450 ac) of surface area are proposed as critical habitat within this unit. Of this, a relatively high portion ( 46 percent) is currently unoccupied by the species. Approximately 58 percent of the waters proposed for designation within this Unit are located on Federal land. 53. The Coeur d'Alene Lake Unit is relatively low cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 429,000 and $ 693,000. A large share of this amount, approximately $ 287,000 annually, is forecast to be made up of administrative costs. In addition, major categories of forecast project modification costs within the unit are associated with timber harvest on USFS lands ($ 97,000 to $ 245,000 per year resulting from reduced harvest, fishery studies, road and culvert costs, and changes in yarding systems), and FHWA bridge and road work ($ 23,000 associated with limitations on in- stream work periods). Modifications to agricultural irrigation diversions could result in costs from zero to $ 100,000. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 54. Unit 15: Clearwater River Basin - The Clearwater River Unit includes 3,063 km ( 1,904 mi) of streams and 6,722 ha ( 16,611 ac) of lakes proposed as critical habitat for bull trout in north- central Idaho. This large unit extends from the Snake River confluence at Lewiston on the west to headwaters in the Bitterroot Mountains along the Idaho/ Montana border on the east. About 13 percent of the proposed critical habitat within the Clearwater River Unit is currently unoccupied by the species. Approximately 78 percent of the waters proposed for designation within the Unit are located on Federal land. 55. Total forecast costs associated with consultation on bull trout within this unit are between $ 1.0 million and $ 1.7 million annually. Of this amount, approximately $ 572,000 is associated with administrative costs. In addition, major categories of forecast project modification costs within this unit are associated with timber harvest on USFS lands ($ 252,000 to $ 635,000 per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems), recreational suction mining on USFS land ($ 115,000 associated with reduced availability of stream access due to seasonal closures), highway bridge and road work ($ 25,000), and USFS management activities ($ 35,000 ES- 23 annually). Agricultural irrigation diversion project modification costs could range from zero up to $ 259,000 annually. These costs may result from reductions in irrigation deliveries. Other activities are individually estimated to each account for less than $ 15,000 dollars per year in project modification costs. 56. Although the proposed Clearwater River Basin Critical Habitat Unit is forecast to experience significant costs associated with the bull trout, these costs should be viewed in light of the large size of the proposed unit. In fact, the Clearwater Unit is one of the lowest cost of the proposed units, in terms of forecast costs per river mile of habitat proposed for designation. 57. Unit 16: Salmon River Basin - The Salmon River basin is a geographically large unit that extends across central Idaho from the Snake River to the Montana border. The critical habitat unit includes 7,688 km ( 4,777 mi) of streams extending across portions of Adams, Blaine, Custer, Idaho, Lemhi, Nez Perce, and Valley counties in Idaho. About six percent of the proposed critical habitat within the Salmon River Unit is currently unoccupied by the species. Approximately 86 percent of the waters proposed for designation within the Unit are located on Federal land. 58. Forecast total annual costs associated with the bull trout within this unit are between $ 2.1 million and $ 3.3 million. Of this amount, approximately $ 1.3 million is associated with administrative costs, with the rest made up of project modification costs. Major categories of forecast project modification costs are associated with timber harvest on USFS lands ($ 465,000 to $ 1.2 million per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems), highway bridge and road work ($ 57,000), and USFS general forest management activities ($ 65,000 annually). The cost of modifications to agricultural irrigation water deliveries could range from zero up to $ 479,000 annually. Costs associated with mining activities at Hecla Mining Company's Grouse Creek and Thompson Creek mines are estimated at $ 132,000 annually. Other activities are individually estimated to each account for less than $ 25,000 dollars per year in project modification costs. 59. Although the proposed Salmon River Basin Critical Habitat Unit has significant forecast costs associated with the bull trout, these costs should be viewed in light of the large size of the proposed unit. In fact, the Salmon River Unit is also one of the lowest cost of the proposed units, in terms of forecast costs per river mile of habitat proposed for designation. 60. Unit 17: Southwest Idaho River Basins - The Southwest Idaho Unit includes a total of approximately 2,792 km ( 1,735 mi) of streams in the Boise, Payette, and Weiser River basins. A number of southern Idaho counties are wholly or partially within this unit, including Ada, Adams, Boise, Camas, Canyon, Elmore, Gem, Payette, Valley, and Washington counties. The counties within the southern Idaho unit include both a significant portion of productive agricultural land as well as the largest population center in the state ( the Boise Valley). About 24 percent of the proposed critical habitat within the Southwest ES- 24 Idaho Unit is currently unoccupied by the species. Approximately 78 percent of the proposed streams and 66 percent of proposed lakes and reservoirs within the Southwest Idaho River Basins Unit are located on Federal land. 61. The Southwest Idaho River Basins Unit is a relatively low- cost unit, in terms of forecast costs per river mile of habitat proposed for designation. Forecast total annual costs associated with the bull trout within this unit are between $ 1.0 million and $ 1.9 million. Total administrative costs are forecast to be a relatively small portion of this total ($ 328,000 annually). The remainder of the forecast costs are expected to result from forecast project modifications. Specifically, project modification costs within this unit are forecast to be associated with timber harvest on USFS lands ($ 309,000 to $ 781,000 per year resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems) and BOR reservoir activities ($ 263,000 annually). Major BOR reservoirs in this unit include Anderson Ranch and Arrowrock Reservoirs on the Boise River, Cascade Reservoir on the North Fork Payette, and Deadwood Reservoir on the Payette River. Forecast project modification costs include bull trout life- cycle studies and monitoring at all the reservoirs, and trap and haul passage around the Boise River reservoirs. Costs associated with FERC relicensing at the Lucky Peak facility on the Boise River, and power facilities at the Cascade impoundment, are expected to cost between $ 31,000 and $ 58,000 annually. Modifications to agricultural irrigation diversions could range from zero to $ 318,000 annually. These costs could potentially be associated with reductions in irrigation water withdrawals. Other activities are individually estimated to each account for less than $ 30,000 dollars per year in project modification costs. 62. Unit 18: Little Lost River Basin - The Little Lost River Unit is within Butte, Custer, and Lemhi counties in east- central Idaho. Approximately 184.6 km ( 115.4 mi) of stream habitat in the Little Lost River Basin is proposed for critical habitat designation. About eight percent of the proposed critical habitat within the Little Lost River Unit is currently unoccupied by the species. Approximately 76 percent of the proposed streams within the Little Lost River Basin Unit are located on Federal land. 63. The Little Lost River Unit is forecast to be a relatively inexpensive unit compared to others in the designation, and is a moderate- cost unit in terms of forecast costs per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within this unit will be between $ 150,000 and $ 176,000. Of this amount, a large share, approximately $ 136,000 annually, is forecast to be comprised of administrative costs, with the remainder made up of project modification costs. The largest category of project modification costs within this unit is forecast to be associated with timber harvest on USFS lands ($ 10,000 to $ 24,000 per year). Project modifications to agricultural irrigation diversions could result in costs from zero to $ 10,000 annually. Other activities are individually estimated to each account for less than $ 5,000 dollars per year in project modification costs. 64. Unit 19: Lower Columbia River Basin - The Lower Columbia Unit consists of portions of the Lewis, White Salmon, and Klickitat Rivers, and associated tributaries in ES- 25 southwestern and south- central Washington. The unit extends across Clark, Cowlitz, Klickitat, Skamania, and Yakima counties. Approximately 340 km ( 210 mi) of streams and three reservoirs covering 5,054 ha ( 12,488 ac) are proposed for critical habitat designation. About 20 percent of the proposed critical habitat within the Lower Columbia River Unit is currently unoccupied by the species. A low portion ( 18 percent) of the proposed streams and 29 percent of the proposed lakes and reservoirs within the Lower Columbia River Basin Unit are located on Federal land. 65. When forecast total costs for this unit are viewed in light of its size, the Lower Columbia River Basins Unit is a moderate- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. It is estimated that total annual costs associated with the bull trout within the unit will be between $ 385,000 to $ 494,000. Total administrative costs associated with the consultation process are estimated to be a relatively large fraction of these costs ($ 304,000 annually). In addition, project modification costs are forecast to be associated with FERC hydroelectric facility re- licensing activities ($ 67,000 to $ 153,000 annually). These FERC re- licensing costs are for the significant hydroelectric developments on the Lewis River, including Yale, Merwin, Swift No. 1, and Swift No. 2. These costs are projected to include study costs, trap and haul passage, and habitat acquisition. Swift No, 2 is one of two hydroelectric projects identified in this study where bull trout- related project modifications could have a significant impact on a small business; the other is Box Canyon in the Northeast Washington River Basin ( Unit 22). Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 66. Unit 20: Middle Columbia River Basin - The Middle Columbia River unit encompasses the entire Yakima River basin located in south central Washington, draining approximately 15,900 square km ( 6,155 square mi). The basin occupies most of Yakima and Kittitas counties, about half of Benton County, and a small portion of Klickitat County. Approximately 846 km ( 529 mi) of stream habitat and 6,066 ha ( 14,986 ac) of lake and reservoir surface area are proposed as critical habitat within this unit. About 13 percent of the proposed critical habitat within the Middle Columbia River Unit is currently unoccupied by the species. Approximately 44 percent of the waters proposed for designation within the Middle Columbia River Basin Unit are located on Federal land. 67. The Middle Columbia River Unit is a relatively low- cost unit in terms of cost per stream mile. Forecast costs associated with the bull trout within this unit are between $ 391,000 and $ 494,000 annually. Of this amount, a very small portion, approximately $ 50,000 annually, will be associated with the administrative costs of the consultation process, while the remainder will be associated with project modifications. While there are projected to be project modification costs associated with timber harvest activities ( through consultation with the USFS; estimated to be between $ 36,000 and $ 91,000 annually), the majority of forecast costs for this unit are associated with dam and reservoir operations. The BOR operates a system of five dams in this basin ( Cle Elum Lake, Kachess Lake, Keechelus Lake, Tieton Dam, and Bumping Lake) which provide power and irrigation for this agriculturally important region. It is estimated that project modification costs ( periodic trap- ES- 26 and- haul passage to allow genetic interchange between isolated bull trout populations) at the BOR operated impoundments in the unit will cost approximately $ 290,000 per year. Other activities are individually estimated to account for a small portion of forecast annual project modification costs. 68. TheMiddle Columbia River Unit is a relatively low- cost unit in terms of cost per stream mile. 69. Unit 21: Upper Columbia River Basin - The Upper Columbia River Basin includes three subunits in central and northern Washington: the Wenatchee River subunit in Chelan County; the Entiat River subunit in Chelan County; and the Methow River subunit in Okanogan County. A total of 909.7 km ( 565.4 mi) of streams and 1,010 ha ( 2,497 ac) of lake surface area are proposed for critical habitat. About nine percent of the proposed critical habitat within the Upper Columbia River Unit is currently unoccupied by the species. Approximately 58 percent of the proposed streams and 41 percent of the proposed lakes and reservoirs within the Upper Columbia River Basin Unit are located on Federal land. 70. The Upper Columbia River Basins Unit is a low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are between $ 196,000 to $ 505,000 annually. Total administrative costs associated with the consultation process are estimated to be $ 122,000, with the remainder of the forecast costs made up of project modification requirements. Major categories of forecast project modification costs within this unit are associated with FCRPS fisheries studies ( zero to $ 155,000 per year), and USFS timber harvest activities ($ 57,000 to $ 144,000 annually resulting from reduced harvest, fishery studies, road and culvert costs and changes in yarding systems). The FCRPS fisheries studies are for bull trout radio telemetry, snorkel and general monitoring study costs in the Entiat, Methow, and Wenatchee Rivers. In addition, modifications to agricultural irrigation diversions could result in costs from zero to $ 59,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 71. Unit 22: Northeast Washington River Basins - The Northeast Washington unit includes bull trout above Chief Joseph Dam on the Columbia River. A total of 373.1 km ( 231.9 mi) of streams and 1,166 ha ( 2,880 ac) of lake surface area are proposed as critical habitat within this unit. A high proportion ( 54 percent) of the proposed critical habitat within the Northeast Washington River Basins Unit is currently unoccupied by the species, and approximately 58 percent of the proposed streams and reservoirs within this unit are located on Federal land. 72. The Northeast Washington River Basins Unit is forecast to be a relatively high- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are between $ 965,000 to $ 1.4 million annually. Total annual administrative costs are estimated to be a large share of these costs ($ 676,000), with the remainder associated with project modifications. A major category of ES- 27 annual project modification costs within this unit involves FERC hydroelectric facility re-licensing activities ( up to $ 540,000 annually). The estimated FERC re- licensing costs are related to two major hydroelectric facilities on the Pend Orielle River: Box Canyon and Boundary. The Box Canyon re- licensing terms are currently in continuing settlement negotiations, and likely costs specific to this facility are not currently available. However, a recent FERC environmental impact statement ( EIS) estimates that the present value of bull trout related project modifications ( including habitat acquisition) could total upwards of $ 60 million for this relatively small ( 60 MW) facility. Box Canyon is one of two hydroelectric projects identified in this study where bull trout- related project modifications could have a significant impact on a small business; the other is Swift No. 2 in the Lower Columbia River Basin ( Unit 19). Modifications to agricultural irrigation diversions could impose costs from zero to $ 46,000 annually. Other activities are individually estimated to each account for less than $ 10,000 dollars per year in project modification costs. 73. Unit 23: Snake River Basin in Washington - The Snake River Washington Unit includes two critical habitat subunits located in southeast Washington: the Tucannon River subunit located in Columbia and Garfield counties, and the Asotin Creek subunit within Garfield and Asotin counties. A total of 326 km ( 203 mi) of stream reaches are proposed as critical habitat within this unit. About 23 percent of the proposed critical habitat within the Snake River Basin in Washington Unit is currently unoccupied by the species. Approximately 52 percent of the proposed streams within the Snake River Basin Unit are located on Federal land. 74. The Snake River Basin Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within the unit will be between $ 230,000 to $ 287,000. Total annual administrative costs associated with the bull trout are estimated to be a large portion of this total ($ 201,000). The major category of project modification costs within this unit is forecast to be associated with USFS timber harvest activities ($ 21,000 to $ 53,000 annually). Agricultural irrigation diversions could see up to $ 22,000 in annual project modification costs within this unit. Other activities are estimated to each account for less than $ 5,000 dollars per year in project modification costs. 75. Unit 24: Columbia River - This unit is located in the states of Oregon and Washington and includes Clatsop, Columbia, Multnomah, Hood River, Wasco, Sherman, Gilliam, Morrow, and Umatilla counties in Oregon and Pacific, Wahkiakum, Cowlitz, Clark, Skamania, Klickitat, Benton, Walla Walla, Franklin, Yakima, Grant, Kittitas, Chelan, Douglas, and Okanogan counties in Washington. All of this stretch of the Columbia River is currently considered occupied by the bull trout. A relatively low share of the land adjacent to the river in this unit is made up of Federally managed lands ( approximately 39 percent). 76. The Columbia River Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast total costs associated with the bull trout within this unit will be between $ 243,000 to $ 504,000 annually. Total annual ES- 28 administrative costs associated with this unit are relatively low ($ 50,000). The major category of annual project modification costs within the unit are forecast to be associated FERC hydroelectric facility re- licensing activities ( up to $ 362,000 annually). Major FERC-licensed hydroelectric projects on the mainstem Columbia River include Priest Rapids, Rocky Reach, and Wells. These very large facilities are operated by PUD's. Other activities are individually forecast to account for less than $ 15,000 dollars per year in project modification costs. 77. Unit 25: Snake River - The lower Snake River is located in Washington ( Franklin, Walla Walla, Columbia, Whitman, and Asotin counties) from its mouth to the confluence with the Clearwater River at the cities of Clarkston, Washington and Lewiston, Idaho. The Snake River forms the border between Washington and Idaho from Clarkston/ Lewiston upstream to the Oregon border. The Snake River forms the boundary between Idaho and Oregon from that point upstream to the limit of this critical habitat unit. This portion of the Snake River is within Nez Perce, Idaho, Adams, and Washington counties in Idaho, and Wallowa, Baker, and Malheur counties in Oregon. About 20 percent of the proposed critical habitat within the Snake River Unit is currently unoccupied by the species. Approximately 50 percent of the habitat proposed for designation within the Snake River Unit is located on Federal land. 78. The Snake River Unit is a relatively low- cost unit, in terms of forecast cost per river mile of habitat proposed for designation. Forecast costs associated with the bull trout within this unit are approximately $ 135,000. Administrative costs associated with the consultation process are estimated to be nearly all of that amount, or $ 125,000 annually. Small Business Effects 79. Under the Regulatory Flexibility Act ( RFA) ( as amended by the Small Business Regulatory Enforcement Fairness Act ( SBREFA) of 1996), whenever a Federal agency is required to publish a notice of rulemaking for any proposed or final rule, it must prepare and make available for public comment a regulatory flexibility analysis that describes the effect of the rule on small entities ( i. e., small businesses, small organizations, and small government jurisdictions). The following summarizes the potential effects of critical habitat designation on small entities: Reductions in contractual USFS water deliveries could significantly impact five ranching/ farming operations annually. However, the location of the reduction in water deliveries within the critical habitat designation is uncertain. Small hydroelectric producers in Washington, Oregon, Idaho and Montana could be affected by project modification costs at the time of facility re- licensing. Specifically, the resulting project modifications could have a significant economic impact on the financial operations of Cowlitz County public utility district ( PUD) ( Unit 19 - Lower Columbia River) and Pend Orielle County PUD ( Unit 22 - Northeast Washington River). ES- 29 • Section 7- related costs associated with instream work is expected to affect approximately 15 placer mines annually in the John Day River Basin ( Unit 8) and Hells Canyon Complex ( Unit 12). While the financial characteristics of these mining operations are unknown, this analysis assumes the economic effect will be significant for those operations that are impacted. Energy Industry Impacts 80. Pursuant to Executive Order No. 13211, Federal agencies are required to submit a summary of the potential effects of regulatory actions on the supply, distribution and use of energy. Two criteria are relevant to this analysis: 1) reductions in electricity production in excess of 1 billion kilowatt- hours per year or in excess of 500 megawatts ( MWs) of installed capacity and 2) increases in the cost of energy production in excess of one percent. The constraints placed on energy production within the region from compliance with bull trout section 7 consultations will not result in significant decreases in production or increases in energy costs within the region. Changes From Draft Economic Analysis 81. Information supplied though public comments to the Draft Economic Analysis along with additional information from Action agency and Service personnel on issues raised through public comment led to several changes to the analysis. This Final Economic Analysis contains the following significant changes from the draft report. 1) Additional information on Habitat Conservation Plans ( HCPs) currently under development within the proposed designation has been incorporated. Additional costs on the order of one million dollars annually have been added to the estimated costs reported. 2) The BOR supplied extensive comments on current and potential costs associated with consultation on its impoundments. Costs associated with potential project modifications to Yakima Drainage dams ( as well as for other BOR impoundments within the proposed designation) have been reduced in response to the new BOR information. 3) Information from Hecla Mining Company identified additional consultation- related costs for the Hecla Grouse Creek and Thompson Creek mines. These costs have been included in the section 4 discussion of USFS mining activity. 4) Information from USFS personnel from the Wallowa/ Whitman National Forest identified impacts associated with limitations on in- stream work windows for placer mining operations as baseline State of Oregon regulations that are independent of bull trout section 7 consultation. Estimated impacts to Oregon placer mining have been adjusted accordingly. ES- 30 5) Additionally, corrections to minor errors within the report, not impacting final cost estimates, have been made in response to public comments. Caveats to Economic Analysis 82. Exhibit ES. 10 presents the key assumptions of this economic analysis, as well as the potential direction and relative scale of bias introduced by the assumptions. 83. These caveats below describe factors that introduce uncertainty into the results of this analysis. ES. 10 CAVEATS TO THE ECONOMIC ANALYSIS Key Assumption Projected USFS timber harvest activity is based on recent regional history and ignores the declining long- term trend of the industry. USFS water diversion reductions occur annually and representative water costs reflect the high- end of water lease rates in Washington. Cost of USFS water diversion reductions and timber harvest project modifications are distributed across the units in proportion to USFS non- wilderness acreage. While this may have no effect on the total cost estimate, it may have an effect on the unit cost estimate. Total costs of providing technical assistance is expected to be small relative to other economic impacts; therefore, this analysis does not quantify the instances and costs of technical assistance efforts. Project modifications incorporating measures suggested by the Service and voluntarily agreed to by the applicant during the informal consultation process in order to minimize impact to the bull trout and/ or its habitat are not quantified in this analysis. Amortization of fishery- related capital investments are based on the life of the project rather than a shorter revenue recovery period. Changes in hydroelectric power revenues attributable to reductions in operational flexibility at Libby and Hungry Horse dams is not quantified Most of the project modification costs will either be borne directly by or passed onto the Federal government. The FPA, the Pacific Northwest Electric Power Planning and Conservation Act, and fisheries management directives ( Northwest Forest Plan, INFISH and PACFISH) provide baseline protection. Project modification costs allocated between bull trout and other listed species. Limited consultation with the NRCS is anticipated and based on a the record of past formal and informal consultation activity on the bull trout Effect on Cost Estimate + + +/- - - - - +/- +/- +/- - -: This assumption may result in an underestimate of real costs. + : This assumption may result in an overestimate of real costs. +/-: This assumption has an unknown effect on estimates. ES- 31 Estimated Cost of the Final Designation 84. The analysis contained in this report is consistent with the designation as described in the proposed rule; 5 however, the Service is expected to exclude some proposed areas of habitat to arrive at a final designation. The purpose of this section is to detail the expected changes to the proposed designation and show the implication of these changes on estimated consultation and project modification costs. 85. Exhibit ES. ll compares the spatial extent of the proposed and expected final designations for bull trout critical habitat for both river and stream miles and lake and reservoir acres. Overall, 1,925 miles of rivers and streams and approximately 55,000 acres of lakes and reservoirs are expected to be excluded from critical habitat in the final designation. The greatest reductions in critical habitat stream miles are expected to occur in the Deschutes River Unit ( 60.5 percent reduction), Hood River Unit ( 33.2 percent), Southwest Idaho River Basins Unit ( 32.8 percent), and the Hells Canyon Complex Unit ( 21.3 percent). Most of the reductions in lake and reservoir critical habitat acres are expected to occur in the Deschutes River, Southwest Idaho River Basins and Malheur River Units, all with more than a 70 percent reduction in designated lake and reservoir critical habitat compared to the original proposed designation. ExhibitES. il SUMMARY OF CHANGES IN BULL TROUT CRITICAL HABITAT FROM PROPOSED TO FINAL DESIGNATION Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Proposed Designation Stream Miles 296 3,372 368 200 103 439 15 639 396 644 191 599 233 403 Lake and Reservoir Acres 33,939 304,226 30,094 8,899 91 23,314 6,439 0 0 0 0 0 5,926 27,296 Final Designation Stream Miles 280 3,368 368 200 69 173 13 563 348 625 191 471 214 403 Lake and Reservoir Acres 33,939 304,225 30,094 8,899 91 3,407 6,439 0 0 0 0 0 1,769 27,296 5 U. S. Fish and Wildlife Service, Proposed Designation of Critical Habitat for the Klamath River and Columbia River Distinct Population Segments of Bull Trout, November 29, 2002 ( 67 FR 71235- 71284). ES- 32 Exhibit ES. ll SUMMARY OF CHANGES IN BULL TROUT CRITICAL HABITAT FROM PROPOSED TO FINAL DESIGNATION Unit Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Unit 25 - Snake River Basin Total Proposed Designation Stream Miles 1,904 4,296 1,657 113 171 523 591 232 204 537 343 18,468 Lake and Reservoir Acres 16,610 3,683 41,307 0 12,078 14,987 2,553 1,279 0 0 0 532.724 Final Designation Stream Miles 1,655 3,835 1,114 110 145 519 578 232 189 537 343 16,543 Lake and Reservoir Acres 16,610 3,487 10,651 0 12,000 15,548 2,553 1,279 0 0 0 478,188 86. As noted, the costs reported in the body of this report are consistent with the proposed designation. Expected changes to the proposed designation and the impact of these exclusions on costs are summarized in Exhibit ES. 12, where estimates of annual section 7- related consultation costs for both the proposed and expected final bull trout critical habitat designations are shown. The expected changes to the final designation impacts estimated costs in two ways. 87. First, where future consultation and project modification costs were estimated for dams and reservoirs located within stream reaches that are expected to be excluded from the final critical habitat designation, the costs associated with these anticipated consultations are removed. Three critical habitat units have dams and reservoirs located on waters expected to be excluded in the final designation. The previously quantified costs associated with consultations on Lucky Peak and Cascade Dams and Reservoirs, and Warm Springs, Crane Prairie, and Wickiup Reservoirs have therefore been removed from the forecast total costs associated with the final critical habitat designation. Costs associated with consultations on Lucky Peak and Cascade Dams and Reservoirs have been removed from estimates for the Southwest Idaho River Basins Units, costs associated with consultation on Warm Springs Reservoir have been removed from estimates for the Malheur River Unit, and costs associated with consultations on Crane Prairie and Wickiup Reservoirs have been removed from estimates for the Deschutes River Unit. 88. Second, because the Service is expected to exclude areas of unknown occupancy from the final designation, the spatial extent of unoccupied habitat in each critical habitat ES- 33 unit is adjusted to reflect the expected final designation ( see Appendix F, Exhibit F. 11), and the forecast costs of the expected final designation reflect these changes. 89. Exhibit ES. 12 presents a summary of the annualized forecast total costs, by unit, likely to be associated with the final critical habitat designation over the next ten years. Overall, the removal of waters from the proposed to the expected final bull trout designation is expected to lower forecast section 7- related consultation and project modification costs by approximately $ 18 to $ 24 million over the next ten years ( nine percent). In six units where no changes in the proposed designation were made, there is no change in forecast costs. As a percentage of unit costs, the greatest reduction in forecast costs resulting from the exclusions is expected to occur in the Deschutes River Basin Unit, where forecast costs of the expected final designation are 43 to 55 percent of the costs originally forecast for the proposed designation. 90. The economic impacts associated with the final designation, discounted to present value using a rate of seven percent, are forecast to range from approximately $ 180 to $ 245 million over the next ten years, or $ 18.0 to $ 24.5 million annually. Total costs associated with the final designation for the Klamath Distinct Population Segment of bull trout are forecast to range from approximately $ 5 million to $ 7 million over the next ten years ($ 0.5 to 0.7 million annually), while costs associated with the final designation for the Columbia Distinct Population Segment of bull trout are forecast to range from approximately $ 175 million $ 235 million ($ 17.5 to $ 23.5 million annually). 91. These costs will be incurred primarily by Federal agencies responsible for section 7 consultations ( approximately 65 percent of forecast costs) and the Service ( approximately five to ten percent of forecast costs); private entities will incur the remaining 25 to 30 percent. Project modification costs account for as much as 50 to 60 percent of forecast costs, and administrative costs the remaining 40 to 50 percent. Dam and reservoir- related consultations, including power facility re- licensing, account for approximately 42 percent of forecast project modification costs ( excluding the cost associated with reduced irrigation diversions). Timber harvest, irrigation diversions, habitat conservation plans, and mining account for 20 percent, 12 percent, nine percent, and three percent of forecast project modification costs, respectively. 92. The main text of the report discusses impacts to small businesses expected under the rulemaking as proposed. Impacts to small businesses are primarily related to potential reductions in USFS water deliveries to farmers/ ranchers, project modifications triggered during hydroelectric facility re- licensing, and costs associated with activity restrictions for placer mining. Under the final designation, the reduction in small business impacts would parallel the extent to which these activities occur in habitat removed from the final designation and losses related to these activities reduced. ES- 34 Exhibit ES. 12 SUMMARY COMPARISON OF PROPOSED AND FINAL CRITICAL HABITAT DESIGNATION SECTION 7 COSTS FOR THE BULL TROUT ( Annualized $ l, 000fs) Unit Unit 1 - Klamath River Basin Unit 2 - Clark Fork River Basin Unit 3 - Kootenai River Basin Unit 4 - Willamette River Basin Unit 5 - Hood River Basin Unit 6 - Deschutes River Basin Unit 7 - Odell Lake Unit 8 - John Day River Basin Unit 9 - Umatilla- Walla Walla River Basins Unit 10 - Grande Ronde River Basin Unit 11 - Imaha/ Snake River Basins Unit 12 - Hells Canyon Complex Unit 13 - Malheur River Basin Unit 14 - Coeur d'Alene Lake Basin Unit 15 - Clearwater River Basin Unit 16 - Salmon River Basin Unit 17 - Southwest Idaho River Basins Unit 18 - Little Lost River Basin Unit 19 - Lower Columbia River Basin Unit 20 - Middle Columbia River Basin Unit 21 - Upper Columbia River Basin Unit 22 - Northwest Washington River Basins Unit 23 - Snake River Basin in Washington Unit 24 - Columbia River Basin Estimated Range of Cost Proposed Critical Habitat Designation Low Estimate $ 529 1,321 328 4,497 328 430 51 446 98 467 559 1,939 2,006 429 995 2,059 1,004 150 385 391 196 965 230 243 High Estimate $ 733 2,192 402 4,891 413 719 56 600 211 580 605 2,338 2,095 693 1,676 3,319 1,867 176 494 494 505 1,397 287 504 Estimated Range of Cost Final Critical Habitat Designation Low Estimate $ 507 1,321 328 3,463 248 195 51 411 81 444 559 1,443 1,792 279 881 1,942 698 144 308 376 178 663 177 243 High Estimate $ 703 2,192 402 3,766 312 401 56 553 175 551 605 1,740 1,874 450 1,483 3,130 1,348 169 396 475 460 959 221 504 ES- 35 Exhibit ES. 12 SUMMARY COMPARISON OF PROPOSED AND FINAL CRITICAL HABITAT DESIGNATION SECTION 7 COSTS FOR THE BULL TROUT ( Annualized $ l, 000fs) Unit Unit 25 - Snake River Basin Multiple unit or unknown a Estimated Range of Cost Proposed Critical Habitat Designation Low Estimate 135 1,303 High Estimate 135 1,303 Estimated Range of Cost Final Critical Habitat Designation Low Estimate 135 1,303 High Estimate 135 1,303 Notes: These estimates include all section 7 costs, including those co- extensive with the listing and designation of critical habitat for the bull trout. Costs are reported in 2003 dollars. a Miscellaneous costs ($ 213,000 annually) and the costs associated with development of HCP's ($ 1,090,000 annually) have not been allocated to the unit level due to uncertainty as to their location. ES- 36 INTRODUCTION AND BACKGROUND SECTION 1 93. In November 2002, the Service proposed to designate critical habitat for the Columbia River and Klamath River DPSs of bull trout ( Salvelinus confluentus), hereafter " bull trout." 6 The purpose of this report is to identify and analyze potential economic impacts associated with the proposed critical habitat designation. This report was prepared by Bioeconomics, Inc. of Missoula, Montana. 94. Section 4( b)( 2) of the Act requires the Service to designate critical habitat on the basis of the best scientific data available, after taking into consideration the economic impact, and any other relevant impact, of specifying any particular area as critical habitat. The Service may exclude areas from critical habitat designation when the benefits of exclusion outweigh the benefits of including the areas within critical habitat, provided the exclusion will not result in extinction of the species. 95. Under the listing of a species, section 7( a)( 2) of the Act requires Federal agencies to consult with the Service in order to ensure that activities they fund, authorize, permit, or carry out are not likely to jeopardize the continued existence of the species. The Service defines jeopardy as any action that would appreciably reduce the likelihood of both the survival and recovery of the species. For designated critical habitat, section 7( a)( 2) also requires Federal agencies to consult with the Service to ensure that activities they fund, authorize, permit, or carry out do not result in destruction or adverse modification of critical habitat. Adverse modification of critical habitat is currently construed as any direct or indirect alteration that appreciably diminishes the value of critical habitat for conservation of a listed species. 6 On January 26,2001, the Alliance for the Wild Rockies, Inc. and Friends of the Wild Swan, Inc. filed a lawsuit in the U. S. District Court of Oregon challenging the Service's failure to designate critical habitat for bull trout. The Service entered into a settlement agreement on January 14, 2002, which stipulated that the Service would make critical habitat determinations for five populations of bull trout ( Civil Case No: CV 01- 127- JO). The Service has proposed critical habitat for the Columbia River and Klamath River populations, which are the subject of this analysis. 1- 1 1.1 Description of Species and Habitat7 96. Bull trout { Salvelinus confluentus, family Salmonidae) is a char native to waters of western North America. The historic range of bull trout includes major river basins in the Pacific Northwest from about 41° north to 60° north latitude, extending south to the McCloud River in northern California and the Jarbidge River in Nevada, and north to the headwaters of the Yukon River in Northwest Territories, Canada. To the west, bull trout range includes Puget Sound, various coastal rivers of British Columbia, Canada, and southeast Alaska. Bull trout occur in portions of the Columbia River and Snake River basins, extending east to headwater streams in Montana and Idaho, and into Canada. Bull trout also occur in the Klamath River basin of south- central Oregon. East of the Continental Divide in Canada, the bull trout's range includes the headwaters of the Saskatchewan River in Alberta, and the MacKenzie River system in Alberta and British Columbia. 97. Bull trout were first described as Salmo spectabilis by Girard in 1856 from a specimen collected on the lower Columbia River near The Dalles, Oregon, and subsequently described under a number of names such as Salmo confluentus and Salvelinus malma. Bull trout and Dolly Varden ( Salvelinus malma) were previously considered a single species. However, in 1980, the American Fisheries Society formally recognized bull trout and Dolly Varden as separate species. Two of the most useful characteristics in separating the two species are the shape and size of the head. The head of bull trout is more broad and flat on top, unlike Dolly Varden. Bull trout have an elongated body and large mouth, with the maxilla ( jaw) extending beyond the eye and with well- developed teeth on both jaws and head of the vomer ( a bone in teleost fishes that form the front part of the roof of the mouth and often bears teeth). Bull trout have 11 dorsal fin rays, nine anal fin rays, and the caudal fin is slightly forked. Although they are often olive green to brown with paler sides, color is variable with locality and habitat. 98. Bull trout exhibit both resident and migratory life history strategies. Resident bull trout complete their entire life cycle in the tributary streams where they spawn and rear. Migratory bull trout spawn in tributary streams where juvenile fish rear from one to four years before migrating to either a larger river or lake, where they spend their adult life, returning to the tributary stream only to spawn. These migratory forms occur in areas where conditions allow for movement from upper watershed spawning streams to larger downstream waters that contain greater foraging opportunities. Bull trout that migrate to a downstream river are referred to as " fluvial" fish, while the term " adfluvial" is used to describe fish that migrate to a lake or reservoir. Resident and migratory forms may spawn in the same areas and either form can produce resident or migratory offspring. 7 Information on the bull trout and its habitat is taken from the U. S. Fish and Wildlife Service, Proposed Designation of Critical Habitat for the Klamath River and Columbia River Distinct Population Segments of Bull Trout, November 29, 2002 ( 67 FR 71235- 71284). 1- 2 99. The Klamath River population segment consists of bull trout in the Upper Klamath Lake, Sprague River, and Sycan River watersheds in Oregon. Historical records suggest that bull trout were once widely distributed and exhibited diverse life- history traits in the Klamath River basin. Currently, bull trout in this basin are non- migratory fish that are confined to headwater streams. The local populations that remain reside in an estimated 21 percent of the historic range of bull trout in the Klamath River basin, and they are isolated from one another. 100. The Columbia River population segment includes bull trout residing in portions of Oregon, Washington, Idaho, and Montana. The Bull Trout Draft Recovery Plan ( Draft Recovery Plan) ( Service 2002) identifies 22 recovery units within the Columbia River basin: the Willamette River ( upper tributaries including the McKenzie River), Lower Columbia River ( principally the Lewis, White Salmon, and Klickitat Rivers), Hood River, Deschutes River, Odell Lake, John Day River, Umatilla and Walla Walla Rivers, Middle Columbia River ( principally the Yakima River), Snake River ( including Asotin Creek and Tucannon River), Grande Ronde River, Clearwater River, Salmon River, Little Lost River, Imnaha River, Hells Canyon ( including Powder River), Malheur River, Southwest Idaho, Upper Columbia River ( principally the Wenatchee, Entiat, and Methow Rivers), Northeast Washington, Clark Fork River, Kootenai River, and Coeur d'Alene Lake. Bull trout are estimated to have once occupied about 60 percent of the Columbia River basin; they presently occur in approximately 45 percent of their historic range. Although still somewhat widely distributed in the Columbia River basin, bull trout occur in low numbers in many areas and populations are considered depressed or declining across much of their range. 101. Many factors have contributed to the decline of bull trout in the Columbia and Klamath River basins. However, several appear to be particularly significant: ( 1) fragmentation and isolation of local populations due to dams and water diversions that have eliminated habitat, altered water flow and temperature regimes, and impeded migratory movements; ( 2) degradation of spawning and rearing habitat in upper watershed areas, particularly alterations in sedimentation rates and water temperature resulting from past forest and rangeland management practices and intensive development of roads; and ( 3) the introduction and spread of non- native species, particularly brook trout ( Salvelinusfontinalis) and lake trout ( Salvelinus namaycush), which compete with bull trout for limited resources and, in the case of brook trout, hybridize with bull trout. 102. Bull trout have more specific habitat requirements than most other salmonids. Habitat components that influence bull trout distribution and abundance include water temperature, cover, channel form and stability, spawning and rearing substrate conditions, and migratory corridors. 103. Bull trout are found primarily in cold streams; water temperatures above 15° Celsius ( C) ( 59° Fahrenheit ( F)) are believed to limit bull trout distribution. Adult bull trout have been observed in large rivers throughout the Columbia River basin in water temperatures up to 20° C ( 68° F); however, there are documented steady and substantial declines in 1- 3 abundance in stream reaches where water temperature ranged from 15° to 20° C ( 59° to 68° F). In large rivers, bull trout are often observed " dipping" into the lower reaches of tributary streams, and it is suspected that cooler waters in these tributary mouths may provide important thermal refugia, allowing them to forage, migrate, and overwinter in waters that would otherwise be, at least seasonally, too warm. 104. Preferred spawning habitat consists of low- gradient stream reaches with loose, clean gravel, and water temperatures that range from 4° to 10° C ( 39° to 51° F). Such areas are often associated with cold- water springs or groundwater up- welling. Because bull trout eggs incubate about seven months in the gravel, they are especially vulnerable to fine sediments and water quality degradation. Increases in fine sediment appear to reduce egg survival and emergence. Juveniles are likely similarly affected, as they also live on or within the stream bed cobble. 105. Throughout their lives, bull trout require complex forms of cover, including large woody debris, undercut banks, boulders, and pools. Bull trout are opportunistic feeders, with food habits that are primarily a function of size and life- history strategy. Resident and juvenile migratory bull trout prey on terrestrial and aquatic insects, macro- zooplankton, and small fish. Adult migratory bull trout feed almost exclusively on other fish. 106. The ability to migrate is important to the persistence of bull trout. Maintaining the full complement of bull trout life history forms appears to be important for long- term population persistence in a dynamic and unpredictable environment. Migratory bull trout become much larger than resident fish in the more productive waters of larger streams and lakes, leading to increased reproductive potential. Migration also results in increased dispersion of the population which facilitates gene flow among local populations when individuals from different local populations interbreed, stray, or return to non- natal streams. Local populations that are extirpated by catastrophic events may also become re- established by bull trout migrants. 107. Introduced brook trout threaten bull trout through hybridization, competition, and possibly predation. Hybridization between brook trout and bull trout has been reported in Montana, Oregon, Washington, and Idaho. In addition, brook trout mature at an earlier age and have a higher reproductive rate than bull trout. This difference appears to favor brook trout over bull trout when they occur together, often leading to the decline or extirpation of bull trout. Brook trout also appear to adapt better to degraded habitat than bull trout and are more tolerant of high water temperatures. Non- native lake trout also negatively affect bull trout. In a study of 34 lakes in Montana, Alberta, and British Columbia, lake trout appeared to limit foraging opportunities and reduce the distribution and abundance of migratory bull trout in mountain lakes. 108. The Service determined the primary constituent elements of bull trout habitat from studies of their habitat requirements, life history characteristics, and population biology, as outlined above. These primary constituent elements are: 1- 4 Permanent water and associated substrate having low levels of contaminants such that normal reproduction, growth and survival are not inhibited; Water temperatures ranging from 2° to 15° C ( 37° to 59° F). Adequate thermal refugia may be necessary for persistence of bull trout if water temperatures commonly exceed this range. Specific temperatures within this range will vary depending on bull trout life history stage and form, geography, elevation, diurnal and seasonal variation, shade, such as that provided by riparian habitat, and local groundwater influence; • Complex stream channels with features such as woody debris, side channels, pools, and undercut banks to provide a variety of depths, velocities, and instream structures; • Substrates of sufficient amount, size, and composition to ensure success of egg and embryo overwinter survival, fry emergence, and young- of- the- year and juvenile survival. A minimal amount of fines less than 0.63 cm ( 0.25 in) in diameter and minimal substrate embeddedness are characteristic of these conditions; • A natural hydrograph, including high, low, peak, and base flows within historic ranges or, if regulated, a hydrograph that demonstrates the ability to support bull trout populations; • Springs, seeps, groundwater sources, and subsurface water connectivity to contribute to water quality and quantity; • Migratory corridors with minimal physical, biological or chemical barriers between spawning, rearing, overwintering, and foraging habitats, including intermittent or seasonal barriers induced by high water temperatures or low flows; • An abundant food base including terrestrial organisms of riparian origin, aquatic macroinvertebrates, and forage fish; and • Few or no predatory, interbreeding, or competitive non- native species present. An area need not include all of these elements to qualify for designation as critical habitat. 1.2 Proposed Critical Habitat 109. The areas proposed for designation as critical habitat for the bull trout provide one or more of the primary constituent elements described above. All of the proposed areas require special management considerations to ensure their contribution to the conservation of the bull trout. The critical habitat area consists of 18,469 river miles and 532,721 acres of lake and reservoir habitat within 25 units. While the lateral extent of proposed riverine 1- 5 critical habitat is the width of the stream channel defined by its bankfull elevation, the designation of critical habitat is expected to impact inland activity. How far inland the designation's effects extend is a more or less a site specific issue. For example, with regards to land- based activities such as timber sales or grazing practices, it is a matter of site specific physical processes such as sediment transport, the local topography, and the size of the drainage basin. Descriptions of each critical habitat unit are provided in Appendix A. 1.3 Framework and Methodology 110. The primary purpose of this analysis is to estimate the economic impact associated with the designation of critical habitat for bull trout. 8 This information is intended to assist the Secretary in making decisions about whether the benefits of excluding particular areas from the designation outweigh the benefits of including those areas in the designation. 9 In addition, this information allows the Service to address the requirements of Executive Orders 12866 and 13211, the RFA, as amended by the SBREFA. 10 111. This chapter provides the framework for this analysis. First, it defines the economic effects considered in the analysis. Second, it establishes the baseline against which these effects are measured. Third, it describes the measurement of direct compliance costs, which include costs associated with, and generated as a result of, section 7 consultations. Fourth, it identifies potential indirect economic effects of the rule resulting from ( 1) compliance with other parts of the Act potentially triggered by critical habitat, ( 2) compliance with other laws, and ( 3) time delays and regulatory uncertainty. Fifth, it discusses the need for an economic assessment of the benefits of critical habitat designation. Finally, the section concludes by discussing the time frame for the analysis and the general steps followed in the analysis. 1.3.1 Types of Economic Effects Considered 112. This economic analysis considers both the economic efficiency and distributional effects. For the purpose of this analysis, economic efficiency effects generally reflect the " opportunity costs" associated with the commitment of resources required to comply with the Act. For example, if the activities that can take place on a parcel of private land are limited as a result of a designation, and thus the market value of the land reduced, this reduction in value represents one measure of opportunity cost or change in economic efficiency. Similarly, the costs incurred by a Federal Action agency to consult with the Service under section 7 represent economic opportunity costs. 8 This analysis considers the effects of the regulatory action as proposed in the Federal Register on November 29, 2002 ( 67 FR 71236). M6U. S. C. § 1533( b)( 2). 10 Executive Order 12866, " Regulatory Planning and Review," September 30, 1993; Executive Order 13211, " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," May 18, 2001; 5 U. S. C. § § 601 etseq; and Pub Law No. 104- 121. 1- 6 113. This analysis also addresses how the impacts are distributed, including an assessment of any local or regional economic impacts and the potential effects on small entities and the energy industry. This information can be used by decision- makers to assess whether the effects might unduly burden a particular group or economic sector. 114. For example, while the designation may have a relatively small impact when measured in terms of changes in economic efficiency, individuals employed in a particular sector of the economy in the geographic area of the designation may experience relatively greater effects. The difference between economic efficiency effects and distributional effects, as well as their application in this analysis, are discussed in greater detail below. Efficiency Effects 115. At the guidance of the OMB and in compliance with Executive Order 12866 " Regulatory Planning and Review," Federal agencies measure changes in economic efficiency in order to understand how society, as a whole, will be affected by a regulatory action. 11 In the context of this regulatory action, these efficiency effects represent the opportunity cost of resources used or benefits foregone by society as a result of critical habitat designation and other co- extensive regulations. 12 Economists generally characterize opportunity costs in terms of changes in producer and consumer surpluses in affected markets. 13 116. In some instances, compliance costs may provide a reasonable approximation for the efficiency effects associated with a regulatory action. For example, a landowner or manager may need to enter into a consultation with the Service to ensure that a particular activity will not adversely modify critical habitat. The effort required for the consultation represents an economic opportunity cost, because the landowner or manager's time and effort would have been spent in an alternative activity had the parcel not been included in the designation. When compliance activity is not expected to significantly affect markets — that is, not result in a shift in the quantity of a good or service provided at a given price, or in the quantity of a good or service demanded given a change in price ~ the measurement of compliance costs can provide a reasonable estimate of the change in economic efficiency. 11 Executive Order 12866, " Regulatory Planning and Review," September 30,1993; U. S. Office of Management and Budget, " Circular A- 4," September 17, 2003. 12 The term " co- extensive" is discussed in greater detail in Section 1.3.3. 13 For additional information on the definition of " surplus" and an explanation of consumer and producer surplus in the context of regulatory analysis, see Gramlich, Edward M, A Guide to Benefit- Cost Analysis ( 2nd Ed.), Prospect Heights, Illinois: Waveland Press, Inc., 1990; and U. S. EPA, Guidelines for Preparing Economic Analyses, EPA 240- R- 00- 003, September 2000, available at http:// yosemite. epa. gov/ ee/ epa/ eed. nsf/ webpages/ Guidelines. html. 1- 7 117. Where a designation is expected to significantly impact a market, it may be necessary to estimate changes in producer and consumer surpluses. For example, a designation that precludes the development of large areas of land may shift the price and quantity of housing supplied in a region. In this case, changes in economic efficiency can be measured by considering changes in producer and consumer surplus in the real estate market. 118. This analysis begins by measuring reasonably foreseeable compliance costs. As noted above, in some cases, compliance costs can provide a reasonable estimate of changes in economic efficiency. However, if the designation is expected to significantly impact markets, the analysis will consider potential changes in consumer and/ or producer surplus in affected markets. Distributional and Regional Economic Effects 119. Measurements of changes in economic efficiency focus on the net impact of the regulation, without consideration for how certain economic sectors or groups of people are affected. Thus, a discussion of efficiency effects alone may miss important distributional considerations concerning groups that may be disproportionately affected. OMB encourages Federal agencies to consider distributional effects separately from efficiency effects. 14 This analysis considers the potential for several types of distributional effects, including impacts on small entities; impacts on energy supply distribution and use; and regional economic impacts. It is important to note that these are fundamentally different measures of economic impact than efficiency effects, and thus cannot be added to or compared with estimates of changes in economic efficiency. Impacts on Small Entities and Energy Supply, Distribution and Use 120. This analysis considers how small entities, including small businesses, organizations, and governments, as defined by the RFA, might be affected by critical habitat designation and other co- extensive regulatory actions. 15 In addition, in response to Executive Order 13211 " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," this analysis considers the impacts of critical habitat on the energy industry and its customers. 16 14 U. S. Office of Management and Budget, " Circular A- 4," September 17, 2003. 155U. S. C. § 60\ etseq. 16 Executive Order 13211, " Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use," May 18, 2001. 1- 8 Regional Economic Effects 121. Regional economic impact analysis provides an assessment of the potential localized effects of critical habitat designation and other co- extensive regulations. Specifically, regional economic impact analysis produces a quantitative estimate of the potential magnitude of the initial change in the regional economy resulting from a regulatory action. Regional economic impacts are commonly measured using regional input/ output models. These models rely on multipliers that mathematically represent the relationship between a change in one sector of the economy ( e. g., hydroelectric power generation) and the effect of that change on economic output, income, or employment in other local industries ( e. g., manufacturers relying on the electricity generated). These economic data provide a quantitative estimate of the magnitude of shifts of jobs and revenues in the local economy. 122. The use of regional input/ output models can overstate the long- term impacts of a regulatory change. Most importantly, these models provide a static view of the economy of a region. That is, they measure the initial impact of a regulatory change on an economy but do not consider long- term adjustments that the economy will make in response to this change. For example, these models provide estimates of the number of jobs lost as a result of a regulatory change, but do not consider re- employment of these individuals over time. In addition, the flow of goods and services across the regional boundaries defined in the model may change as a result of the designation, compensating for a potential decrease in economic activity within the region. 123. Despite these and other limitations, in certain circumstances regional economic impact analysis may provide useful information about the scale and scope of localized impacts. It is important to remember that measures of regional economic effects generally reflect shifts in resource use rather than efficiency losses. These types of distributional effects, therefore, should be reported separately from efficiency effects ( i. e., not summed). In addition, measures of regional economic impact cannot be compared with estimates of efficiency effects. 1.3.2 Defining the Baseline 124. The purpose of this analysis is to measure the economic impact of compliance with the protections derived from the designation of critical habitat, including habitat protections that may be " co- extensive" with the listing of the species ( the term " co- extensive" is described in greater detail in the following section). Economic impacts to land use activities may exist in the absence of co- extensive protections. These impacts may result from, for example: • Local zoning laws; • State and natural resource laws; and 1- 9 • Enforceable management plans and BMPs applied by other State and Federal agencies. 125. Economic impacts that result from these types of protections are not included in this assessment; they are considered to be part of the " baseline." Existing laws, regulations, and policies are described in greater detail in Section 2.3 of this analysis. 1.3.3 Direct Compliance Costs 126. The measurement of direct compliance costs focuses on the implementation of section 7 of the Act. This section requires Federal agencies to consult with the Service to ensure that any action authorized, funded, or carried out will not likely jeopardize the continued existence of any endangered or threatened species or result in the destruction or adverse modification of critical habitat. The administrative costs of these consultations, along with the costs of project modifications resulting from these consultations, represent the direct compliance costs of designating critical habitat. 127. This analysis does not differentiate between consultations that result from the listing of the species ( i. e., the jeopardy standard) and consultations that result from the presence of critical habitat ( i. e., the adverse modification standard). Consultations resulting from the listing of the species, or project modifications meant specifically to protect the species as opposed to its habitat, may occur even in the absence of critical habitat. However, in 2001, the U. S. 10th Circuit Court of Appeals instructed the Service to conduct a full analysis of all of the economic impacts of critical habitat designation, regardless of whether those impacts are attributable co- extensively to other causes. 17 Given the similarity in regulatory definitions between the terms " jeopardy" and " adverse modification," in practice it can be difficult to pre- determine the standard that drives a section 7 consultation. Consequently, in an effort to ensure that this economic analysis complies with the instructions of the 10th Circuit as well as to ensure that no costs of the proposed designation are omitted, the potential effects associated with all section 7 impacts in or near proposed critical habitat are fully considered. In doing so, the analysis ensures that any critical habitat impacts that are co- extensive with the listing of the species are not overlooked. 1.3.4 Indirect Costs 128. A designation may Close