Chapter	Introduction

The proposed action evaluated in this environmental assessment is to transfer title of, and responsibility for, the Federal irrigation facilities in the Middle Loup Division (Division), Pick-Sloan Missouri Basin Program, from the United States to the Loup Basin Reclamation District (LBRD) and Sargent and Farwell Irrigation Districts (Irrigation Districts). This action is intended to reduce future Federal expenditures and increase local control. Transferring title and responsibility is being encouraged by the National Performance Review, a commitment to a Federal Government that works better and costs less.

The Division, located in central Nebraska, provides irrigation water to the Sargent and Farwell Units. There also are fish, wildlife, and recreation benefits associated with the Division. The LBRD operates and maintains the water supply works. The Farwell Irrigation District operates and maintains all of their district's works, and the Sargent Irrigation District operates and maintains all of their district's works.

The LBRD's water service contract with the United States was due to expire on December 31, 1998. President Clinton signed Public Law (P.L.) 104-326 on October 19, 1996. This law provides for extending the water service contracts for several irrigation districts involved in contract renewal, including the LBRD, for an additional 4 years. To meet the provisions of P.L. 104-326, the Bureau of Reclamation (Reclamation) amended the existing water service contract to extend the contract term through December 31, 2002, while title transfer was considered.

This final environmental assessment (FEA), prepared to comply with the National Environ-mental Policy Act (NEPA), documents the environmental effects which would result from the proposed change in ownership and administration of the irrigation facilities of the Division.

This FEA is also intended to be part of the compliance related to Section 106 of the National Historic Preservation Act. Individuals and organizations may identify concerns related to the effects of the proposed title transfer on historic properties. As required by regulations of the Advisory Council on Historic Preservation (36 CFR Part 800), concerned parties can participate as "interested persons" in the consultation between Reclamation, the State Historic Preservation Officer, and the LBRD. The goal of the consultation is to identify measures that will protect cultural, historical, and scientific values of the archeological and historical sites in the Middle Loup area.

Purpose

The purpose of the proposed action is to divest the United States of interest in, and responsi-bility and liability for, all facilities in the Division by transferring title to the LBRD and the Irrigation Districts. As part of the Federal Government's National Performance Review, Reclamation has undertaken a program to transfer title of facilities that could be efficiently and effectively managed by non-Federal entities and that are not of national importance.

Title Transfer Process

Reclamation policy requires that title transfers be carried out in an open and public manner and that proposed transfers be evaluated against six broad public interest criteria before a recommendation is made to Congress (see the Framework for Transfer of Title and Memorandum of Understanding between Reclamation and the LBRD and the Irrigation Districts, attachments A and B, respectively). These criteria include:

• The Federal Treasury, and thereby the taxpayer's financial interest, must be protected.
• There must be compliance with all applicable State and Federal laws.
• Interstate compacts and agreements must be protected.
• The Secretary of the Interior's (Secretary) Native American trust responsibilities must be met.
• Treaty obligations and international agreements must be fulfilled.
• The public aspects of the project must be protected.

Transfer of all facilities in the Division was authorized by P.L. 106-366, October 27, 2000.

Results of Scoping

Four scoping meetings were held in May 1996 in Sargent, Loup City, St. Paul, and Grand Island, all in Nebraska, to discuss preparation of a Resource Management Assessment for contract renewal. In 1997, the LBRD requested that Reclamation study the feasibility of title transfer of Division facilities to the LBRD in lieu of proceeding with renewal of the existing water service contract. Reclamation's public involvement plan was adapted to fit the title transfer process.

Any ideas, issues, and concerns identified at the initial meetings which were also applicable to title transfer were retained for consideration in this document. Further discussion of the public involvement process appears in the "Consultation and Coordination" section in chapter V.

Because the title transfer process could affect additional publics and have an outcome potentially different than renewing the water service contract, Reclamation held additional public meetings in October 1997, again in Sargent, Loup City, St. Paul, and Grand Island.

Issues identified through the scoping process are listed below, organized under the criteria that must be met before any Federal project is transferred, as noted above. Some of these issues do not fall under NEPA but were addressed during title transfer negotiations between Reclamation, the LBRD, and the Irrigation Districts. Issues analyzed as part of NEPA compliance are marked with an asterisk.

• Treaty obligations and international agreements must be fulfilled
  • No issues in this category were identified
• The Secretary's Native American trust responsibilities must be met
  • Protection of cultural sites*
• The Federal Treasury, and thereby the taxpayer's financial interest, must be protected
  • Cost of the transfer*
  • Project value and method of valuation
  • Credits for enhancements
  • Payment in lieu of taxes*
  • Duration and cost of the environmental assessment (EA) and title transfer processes
  • Maintenance responsibilities for drains impacting St. Paul, Dannebrog, and Loup City
  • Liability following project transfer
  • Payment for NEPA compliance
• Interstate compacts and agreements must be protected
  • Recipient's ability to operate and maintain the project
  • Protection of water rights
  • Effect on water rates
  • Ability of the Western Area Power Administration to meet obligations
• The public aspects of the project must be protected
  • Compliance responsibilities for irrigation return flows
  • Compliance with all applicable State and Federal laws
  • Protection of historical resources*
  • Post-transfer adherence with State water quality standards*
  • Continued public access*
  • Impacts to fish and wildlife*
  • Cleanup of hazardous materials*
  • Public input and access to project-related activities*
  • Protection of water quality*
  • Future of lease with Nebraska Game and Parks Commission*
  • Potential contaminants in irrigation return flows*
  • Safety of Dams concerns*
  • Administrative responsibility for drainage facilities downslope from Sherman Reservoir*

Project Description and History

Sargent Unit

The Sargent Unit was authorized by the Flood Control Acts of December 22, 1944, and July 24, 1946. The Farwell Unit was authorized by P.L. 2-84-2, August 3, 1956. This law authorized the Secretary of the Interior (Secretary) to construct, operate, and maintain the project and also to transfer operation and maintenance of project works to a qualified contracting entity, provided that such entity is "obligated to operate them in accordance with criteria established by the Secretary of the Interior with respect to fish and wildlife and recreation."

The Sargent Unit is part of the Pick-Sloan Missouri Basin Program, Middle Loup Division. In 1939, the Sargent Public Irrigation District was organized to irrigate approximately 25,000 acres of valley land along the north side of the Middle Loup River. Repeated and unsuccessful attempts were made to obtain development funds from the Public Works Administration.

In January 1950, the LBRD was organized, and Reclamation was requested to make a detailed investigation. The Sargent Unit definite plan report for the initial development was approved May 20, 1953.

Construction of the Milburn Diversion Dam began in March 1955 and was completed in May 1956. The Sargent Canal and laterals were started in January 1955 and finished in December 1957.

Figure I-1
Sargent Irrigation District (11 x 17)

Figure I-2
Farwell Irrigation District (11 x 17)

Farwell Unit

The Farwell Unit is also part of the Pick-Sloan Missouri Basin Program, Middle Loup Division. Since the time of the arrival of early settlers in the Farwell area, irrigation development was recognized as a necessity. Various investigations were made after 1894 by organizations seeking irrigation development along the Middle Loup River, but no attempts were made to irrigate the uplands, where most of the irrigable lands are situated.

The Farwell Irrigation District was organized in 1954. Reclamation completed a comprehensive investigation of the unit in September 1955, which led to authorization for construction. Construction of Sherman Dam began in August 1959 and was completed in January 1962. Construction of the Arcadia Diversion Works and Sherman Feeder Canal began in August 1960, with completion in November 1962. Work on the distribution system, begun in June 1961, was completed in August 1966.

Project Property

Project property includes: (1) all project distribution and drainage facilities, all reservoir and related diversion facilities, and all lands necessary for the operation currently held by the United States which are deemed by the government to be related to the projects subject to this agreement; (2) all lands and interest in lands acquired by the United States for the construction and operation of the Middle Loup Division, including common varieties of sand and gravel, if any, excluding all other minerals; (3) all water and water storage rights held by the United States relating to the respective project facilities; and (4) all operating equipment, tools, material, and other tangible personal property, held in the name of the United States, for the purposes of operating the projects or serving the project facilities and which are used exclusively for project purposes and located at the project facilities.