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<br />EXHIBIT 1 <br /> <br />MEMORANDUM OF UNDERSTANDING BETWEEN <br />THE UNITED STATES FISH AND WILDLIFE SERVICE AND <br />THE COLORADO RIVER WATER CONSERVATION DISTRICT <br /> <br />I. Background: <br /> <br />The primary purpose of the MOU is to implement the Reasonable and <br />Prudent Alternative for Wolford Mountain Reservoir enlargement to <br />offset the likelihood of jeopardy and adverse modification of <br />critical habitat. In January 1988, the secretary of the Department <br />of the Interior; the Governors of colorado, wyoming, and utah; and <br />the AdlIIi.nistrator of the western Area power Administration entered <br />into a cooperative Agreement to implement the Recovery <br />Implementation Program for Endangered Fish Species in the upper <br />colorado River Basin. The cooperative Agreement also established <br />an Implementation committee to oversee the Recovery Program. The <br />overall goal of the Recovery Program, as stated in the cooperative <br />Agreement, is to recover and delist four endangered species (the <br />Colorado squawfish, humpback chub, bonytail, and the razorback <br />sucker) while allowing new water development to occur in the Upper <br />Colorado River Basin. Those four fish are referred to as the <br />"endangered Colorado River fishes" in this Memorandum of <br />Understanding. <br /> <br />Two of the principal elements of the Recovery Program are: (a) a <br />process for conducting section 7 consultations in accordance with <br />the Endangered species Act on the impacts of water depletions to <br />the endangered COlorado squa~ish, razorback sucker, lPnqpbAck chub, <br />and banytail and their critical habitat; and (b) acquiring water <br />and/or water rights to provide instream flows in accordance with <br />state la_ fO!; the endangered colorado River fishes. under the <br />Recovery PrOgram, the depletion impacts of _ter development <br />projects are offset by: (a) recovery activities partially fUnded by <br />water projects proponents I financial contribution to the Recovery <br />Program; (b) leqal ~ion of instrealll flowS under state laW; <br />and (c) progress in all other RecOV&rY Program elements. <br /> <br />Accordingly, the U. S. Fish and wildlife service has decided that <br />it must determine that progress under the Recovery Program is <br />sufficient to offset iJIIpacts of a depletion project before it will <br />issue a favorable Biolaqical Opinion. In cases where pJ:~e.s is <br />not sufficient the service identifies actions in the Recovery <br />Dap~ementation ~ograJll Recovery Action Plan to -... va u the <br />reasonable and prudent alternative. In a Biological Opinion on the <br />Muddy creek Project of the colorado River Water conservation <br />District issued in FebrUarY 1.990, the service concluded that <br />progress under the RecOV8%'Y Program had not been suf~1cient and <br />that an additional conservation measure -- necessary to offset the <br />depletion ilIIpacts of the Muddy creek PrOject. The additional <br />conservation measure was included in the Biological Opinion as the <br />reasonab~e and prudent al ternati ve and was implemented in a <br />Memorandum of tnlderStandinC) betWeen the parties executed by the <br />service on FebrUarY 7, 1.990 (herein referred to as the "Oriqinal <br />