If the refuge is approved and land is placed in the refuge, then the reservoir cannot be built unless Congress passes a bill removing the land from the refuge system. This is because the state or local agencies involved can't condemn federal land. Once before, a Texas congressman (Ralph Hall) tried to remove a refuge from the refuge system so that a reservoir could be built on the site, and he met with widespread opposition, both in Texas and around the country. But it would be possible.
-Janice Bezanson
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