In an attempt to apply better management principles to the control of state lands, the Division of State Lands asked for the study of two questions concerning state administered lands near Moab, Utah. The first question deals with the Moab and Spanish Valleys while the second question applies to Castle Valley some 10 miles northeast of Moab. The Mill Creek Development Project is proposed to provide additional water for agriculture and M & I use in the Moab and Spanish Valleys. The question for consideration is, How much water from the Mill Creek Development Project Reservoir should the Division of State Lands request or subscribe to from the Grand County Conservancy District? The second question, dealing with Castle Valley, is, What should be done with the well that the Division has drilled in Castle Valley? The objective of this phase of the study is to suggest some alternatives and give recommendations related to these two questions