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,. ,. LOWER BLANCO PROPERTY OWNERS ASSOCIATION P.O. BOX 763 P AGOSA SPRlNGS, CO. 81147 . Mr. Rod Kuharich, Director Colorado Water Conservation Board 13 13 Sherman St., Room 723 Denver, CO 80203 Dear Mr. Kuharich, The Lower Blanco Property Owners Association [LBPOA] is once again attempting to continue the Rio Blanco Restoration Project [phase 3]. We have applied for and received an NRCS Grant of$95,000.00 and are presently pursuing fmding the required same amount for matching the NRCS Grant. For the benefit on those on the board who may not be aware of our continuing efforts, a recap of events leading to this point in time follows. As a result of the legislated by-pass flows of the San Juan - Chama Transbasin Diversion that became active in the spring of 1971, the Rio Blanco River underwent severe hydrological changes. During the ensuing years the river became unable to transport sedimentation downstream to the mouth of the San Juan River. As a result, pools disappeared, and the legislated bypass flows were insufficient to support the fish habitat due to the wide and shallow streambed. . Former CWeB Director, Chuck Lyle, was key in beginning the first steps towards river restoration. Through his efforts and support, an EPA Grant for $96K was secured for restoring a Demonstration Segment [Phase I J. Results from the completed Demonstration segment were very promising and the combined efforts of the SJWCD, LBPOA, and CWCB resulted in a second EPA Grant of$250K and the upper reach of the Rio Blanco River [Phase 2] was completed in 2004, tying in to the initial Demonstration Reach. To date, a total of approximately 3.25 miles of river has been completed. We are currently awaiting the results of the DOW fish habitat and water quality studies at which time the Final Report for Phase 2 will be made. .