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<br />0693 <br /> <br />should include the opportunity for water users west of Pueblo to develop storage <br />space in Pueblo Reservoir and then take delivery of their water at their upstream <br />points of diversion. A similar option should also exist for entities east of Pueblo if <br />it is deemed to better serve their needs. <br /> <br />As a part of the operation of enlarged storage space in Pueblo Reservoir, entities <br />west of Pueblo that choose to participate in the enlargement of Pueblo Reservoir <br />(entities with an allotment contract as described below) may be given the option, <br />under the discretion of Reclamation, to trade their new storage space in Pueblo <br />Reservoir for Project Storage space in Turquoise or Twin Lakes Reservoirs. Or, <br />they may be entitled to execute an exchange contract with Reclamation that would <br />allow them to take delivery of their water at their point of diversion. Similar <br />agreements may be possible with other entities that hold storage contracts in <br />upper-basin reservoirs. These options are subject to appropriate terms and <br />conditions as established by Reclamation; however, such exchanges should be <br />made at no cost (up to annual maximum of 1000 acre-feet) for the benefit of water <br />users entities west of Pueblo. <br /> <br />Entities east of Pueblo that develop storage space in Turquoise Reservoir, when <br />additional storage space is developed under the PSOP, should be given the option <br />to trade their storage space in Turquoise for space in Pueblo Reservoir. <br /> <br />These options are being modeled so as to determine the extent of availability of <br />exchange in the upper Arkansas. The results 'of this modeling effort should be <br />available by May 1,2001. <br /> <br />3.4 Ownership--The Federal Government will retain ownership of Project <br />facilities, including the enlarged space at Pueblo Reservoir and Turquoise <br />Reservoir. <br /> <br />3.5 Contracting-The District's Water Activity Enterprise will execute a <br />master contract with Reclamation for the construction and the use of enlarged <br />~race in Project facilities. Participating entities will then execute a firm-storage <br />contract (an allotment contract) with the Enterprise and/or Reclamation that will <br />include any and all requirements from Reclamation and limitations and <br />obligations as stated below. <br /> <br />3.6 Allotment Contracts-An allotment contract will entitle the contracting <br />entity to firm storage in the enlarged space. The exact amount will be based upon <br />the entity's request for storage, the limitations as documented in the federal-level <br />feasibility study, and fmal federal authorization and NEP A-based decisions. <br /> <br />Entities that need firm storage space should sign an MOA and declare their intent <br />to participate in the enlargement project to meet their storage needs. If entities <br />choose not to participate in the Implementation Phase of the enlargement project, <br />they will still be eligible to secure an allotment contract if they sign an agreement <br /> <br />12 <br />