Report produced in 1972-75 on the environmental effects of the Clutha dams essentially disregard the possible adverse influence on the lignite preserved in the Cromwell basin. Four cored drill holes, totaling 696m, were located along the western margin of the arm of the proposed lake north of Cromwell. This complemented a hole previously drilled in the same area for a tentative dam site. No lignite seams were penetrated in the drill holes. However several seams were exposed in the dozer cut. It is concluded that lignite is probably absent in the eastern part of the Clutha Valley upstream of a point 2km north of Cromwell.