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Following the Board's action to approve the District/Aurora IGA, Aurora officials raised a question regarding a provision in the proposed amendment to H.R. 1714 to provide authority for the Aurora contract. The provision (Section 13. (b)) would require that Aurora and the Enterprise execute a new IGA following the expiration of Aurora's first 25-year contract for use of excess storage space. The amendment language makes it clear that Reclamation would have authority to renew the Aurora contracts. This provision was a part of the amendment that Aurora agreed to as a part of their agreement to the terms of the IGA. The IGA specifically refers to the fact that the parties have agreed to the language "..,in the form substantially similar to the proposed amendment attached hereto.. ." Notwithstanding the questions and concerns raised by Aurora's staffers, Aurora City Council did act on the IGA in the same form that the District Board had approved. I've attached a copy of the proposed revisions to H.R. 1714, including the Aurora section (Section 13), for your information. I'm hopeful that I can go to Washington, D.C. within the next two months to give our delegation a proposed amendment to H,R. 1714 and ask for Senate introduction of the legislation. The issues with the City of Pueblo may slow this down a little. I'll keep you updated. PSOP Water Rights Filings- Bob Hamilton is now taking the lead on resolving the remaining issues with Colorado Springs Utilities and the Board of Water Works of Pueblo regarding the potential exchange of return flows into Turquoise and Twin Lakes Reservoirs. The only other issue pertaining to the PSOP water right filings is with the City of Pueblo as I described above, Arkansas Valley Conduit Feasibility Study and Dedication of Funds for Conduit Development- GEl Engineering is working on a survey of domestic water providers in the Arkansas Valley as a starting point for the feasibility study, The goal of the survey is to determine projected water needs in the Valley and likely participants in the development of the conduit. Joe Kelley, La Junta Director of Utilities, is assisting GEl in collecting this initial information. Attached for your consideration is a resolution that intends to dedicate $1 million (from the settlement with Aurora) to the future development of the Arkansas Valley Conduit. As the Board had requested, I've included important sideboards on the future disposition of these funds in the event the development of the conduit does not progress, I believe this dedication of funds to the Arkansas Valley Conduit is an important part of the settlement with the City of Aurora. 4