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Fountain Creek Watershed Update: The Fountain Creek Watershed Group is continuing with its efforts to address various problems within the Fountain Creek watershed. The Watershed Group is comprised of the Pikes Peak Area Council of Governments and the Pueblo Area Council of Governments, as well as a number of participating local jurisdictions. The primary activity currently going on is the . Army Corps of Engineers Watershed Study. This study, which began in 2003, provides baseline study conditions to determine where to proceed. The Hydrology Study (which has been designated by the CWCB) and the Hydraulics Study (designation request planned for January 2007 Board Meeting following Flood Section staff review) and the recently completed draft of the Geomorphology Study are all available on the Fountain Creek Watershed website at www.fountain-crk.oTlz. The next step of the Corps study will be the project formulation and evaluation phase. Both structural and non-structural measures will be evaluated. A total of $449,000 in federal funding is needed to complete the study. At this time the Senate markup of the Energy and Water Resources Appropriations Bill included this funding. However, neither the President's budget nor the House version of the Appropriations Bill included the necessary funding. It is not known at this time what the final funding allocation will be. If the funding is obtained, the Corps anticipates completing the Study by December 2007. If the funding is not received, completion may be delayed until December 2008. Fountain Creek Forum: On September 29, EI Paso County and the City of Pueblo co-hosted a Fountain Creek Forum. The forum focused on how to move forward to develop a positive vision for Fountain Creek including its clean-up, improving water quality and creating recreational opportunities. Company Offers Funding for Cucbaras Water Study: A coal-bed methane drilling company is offering financial assistance for a study of the effects on agriculture from water from its discharges into . the Cucharas River. Water discharged by Petroglyph Operating Co. has high levels of sodium bicarbonate, which is not harmful to humans but can damage some crops grown in the area, said Jim Conley, director of the Colorado State University Cooperative Extension office in Huerfano County. Aurora Water Contract Talks: The Bureau of Reclamation is confident of its authority and the process it is using to issue a contract to Aurora to store and exchange water in the Fryingpan-Arkansas Project for the next 40 years. Questions about the contract have been raised regarding the process, protection of ongoing agreements and Reclamation's authority to contract with entities outside the Southeastern Colorado Water Conservancy District. Contract negotiations opened on October 25 at a meeting at the Colorado State University in Pueblo. Comments on the draft environmental assessment continue through Nov. 9. On Oct. 23 the Lower Arkansas Valley Water Conservancy District formally adopted a resolution suggesting Reclamation reschedule contract negotiations after public comments are heard on a draft environmental impact statement. Reclamation runs the ElS and contract processes concurrently so the contract can be adjusted to reflect concerns raised during the environmental assessment. The Lower Arkansas board also plans to send a letter protesting timing of the contract negotiations, along with specific concerns about the environmental assessment to members of Congress. U.S. Rep. John Salazar has directly questioned Reclamation's authority to contract with Aurora. While Aurora owns water rights in Otero, Crowley and Lake Counties, Salazar said the Fry-Ark Project was never intended to be used to move water out of the Arkansas Valley. Reclamation is preparing a response to Salazar's letter, a Reclamation spokesperson said. Reclamation has defended its contracts with Aurora . at least three times in the past 20 years. 14