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The U.S. Department of Reclamation has released the final environmental-impact study for the Chimney Hollow Reservoir near Loveland, putting the $270 million storage project one step closer to reality.

But watchdog groups aren’t satisfied that the impact of the water-storage project on fish and wildlife habitat on the Western Slope has been adequately addressed.

The report details how Chimney Hollow will increase diversions and reduce flows in the Colorado River below the Windy Gap reservoir, decrease some fish habitat and affect vegetation, wetlands and wildlife.

“We have very serious concerns about this project and its intersection with projects and participants in the Poudre River watershed as well as its potential negative impacts on the Colorado River and Grand Lake,” said Save the Poudre executive director Gary Wockner.

Northern Water — the agency coordinating the project on behalf of 13 Front Range cities and water utilities — says it is working with other groups and agencies to mitigate the impact of the project.

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