**FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:**

Tammi Schone - (605) 352-1102\
\
**USDA RURAL DEVELOPMENT ASSISTS WITH EMERGENCY WATER INTAKE PROJECT[\
*Mni-Waste'/Tri County Water Users Rural Water Quality Significantly
Increased*]{.underline}**[\
]{.underline}

**(Eagle Butte, South Dakota -- February 10, 2006)** USDA Rural
Development State Director Lynn D. Jensen presented Mni-Waste'/Tri
County Water Users Rural Water System with a water and waste disposal
loan award totaling \$1,000,000 and a grant award totaling \$1,800,000,
in addition to a emergency water assistance grant (ECWAG) in the amount
of \$500,000 to assist with an emergency water intake structure.

"This funding represents a federal commitment to rural water users and
the people they serve. The quality of service will be improved for Eagle
Butte residents and allow the community continued access to a valuable
resource - water," said Jensen.

Record low water levels threatened to expose water intake for the
Mni-Waste'/Tri County Water Users Rural Water System. By August of 2006,
it is expected that the water level will go below the level of the water
intake, which would render the rural water system inoperable. The entire
Cheyenne River Sioux Tribe Indian Reservation, several area communities
and total population of approximately 14,000 people would have no
drinking water available to their homes, businesses and livestock. A
permanent solution has been devised, by which the water intake will be
extended into the main channel of Lake Oahe, insuring a water depth of
75 feet event at the time of this record low water level. With the
record low water levels, the present intake, located in the Cheyenne
River is pulling water that has high levels of undesirable elements. By
moving the water intake into Lake Oahe, water quality will be
significantly increased. With the improved water quality, some health
concerns with the present water system will be eliminated. This project
modernizes the utility and provides a more efficient method for
operation and maintenance of the community's water system. The federal
funding will be leveraged with a grant of \$8,450,000 from the U.S.
Corps of Army Engineers, \$900,000 in grant funds from the state of
South Dakota, \$708,000 from the Cheyenne River Sioux Tribe,\$400,000
HUD community development block grant, \$1,000,000 from the Indian
Health Service, \$1,100,000 from the BIA, \$25,000 from Cheyenne River
Housing and \$94,254 in pending funds. Total project cost is estimated
at \$15,977,254.

"We were successful with improving the water quality and service to the
Reservation and surrounding communities because of the united effort
demonstrated by the CRST, the Ranchers, the communities and the state. A
few months ago, we were experiencing crisis conditions, now the future
is brighter because we all worked hard to seek funding for moving the
intake to the Oahe. Thank you to all who helped!" said Cheyenne River
Sioux Tribal Chairman Harold Frazier.

USDA Rural Development Area Director Tim Potts and Rural Development
Manager Clark Guthmiller attended the event. USDA Rural Development has
ten offices in the state that assist rural communities. Office locations
include a state office in Huron, along with area offices in Aberdeen,
Huron, Mitchell, Pierre, Rapid City, Sioux Falls, Sturgis, Watertown,
and Yankton.

USDA Rural Development's mission is to deliver programs in a way that
will support increasing economic opportunity and improve the quality of
life of rural residents. As a venture capital entity, Rural Development
provides equity and technical assistance to finance and foster growth in
homeownership, business development, and critical community and
technology infrastructure. Further information on rural programs is
available at a local USDA Rural Development office or by visiting USDA's
web site at http://www/rurdev.usda.gov.

**- USDA -**