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<br />."'. <br /> <br />..,. .. <br /> <br />OfJlg92 <br /> <br />. <br /> <br />. <br /> <br />D, Violations of Wyoming State Law, <br /> <br />1. The Exchange Proj ect to be operated under regulations issued by the State <br />Engineer. The State Engineer has not issued regulations for operation of the <br />Exchange Project, but simply adopted an explanation of operations written by <br />Cheyenne for the Forest Service, <br /> <br />2, Under the terms of the Wyoming permits for the Exchange Project water rights, <br />water diverted out of Douglas Creek may only be used for municipal, industrial, <br />or irrigation use within the area served by the Cheyenne Board of Public Utilities, <br />and water diverted out of the Little Snake River may only be used as replacement <br />for the municipal, industrial, and irrigation water diverted from Douglas Creek. <br />Thus, the Little Snake River water is used for purposes and in places that are not <br />authorized beneficial uses or places of use under the state permits. <br /> <br />3, "A project involving a transbasin diversion shall address the impact of the <br />diversion and recommend measures to mitigate any adverse impact identified in <br />the basin of origin," Wyo, Stat. Ann. 9 41-2-121 (a)(ii)(E)(VIII), The Water <br />Development Commission has not met this statutory obligation with respect to <br />Stage II of the Cheyenne Exchange Project. <br /> <br />PhO,D3 <br />