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2- will be addressed separately by protective terms and conditions ~o be included in the decree in this case. S.G. Company has proposed a flow.:.sharing agreement with the CWCB that would result in Blue River flows less than the ISF amount~ decreed in Case No. 87CW298 at times, but that would maximize the benefits of the Improvement~, which are described below. While this proposal would allow some injury to the subject Blue River ISF water right, the mitigation offered by S.G. Company may enable the Board to accept that injury while continuing to preserve the natural environment of the Blue River to a reasonable degree. Therefore, Staff is asking the Board to consider resolving this case under ISF Rule 8i. (3) as an injury accepted with mitigation. . The reach of the Blue River that would be injured under this proposal begins at the Highway 9 Bridge at the headgate of the High-Miller Ditch, where water is diverted into the Oxbow portion of the Improvements, and extends approximately 1.1 miles to the point where water diverted into the Oxbow returns to the Blue River ("the Oxbow Reach"). Description of the Improvements In 2005-2006, S.G. Company commenced restoration of the Oxbow/Floodplain Fish Habitat Improvements on the Mt. Powell Ranch. The restoration of the Oxbow has substantially improved the fishery habitat of the Blue River by providing an additional 2,850 linear feet (approximately 4.6 acres) of habitat, including a functioning floodplain and wetlands, and additional water depth and winter holding capacity for fish. Within the Oxbow Reach, S.G. Company installed 40 structures, all of which are specifically designed to create fish habitat. The Improvements provide vegetative structural diversity, waterfowl habitat, fisheries overwinter and nursery habitat, and macro invertebrate breeding and nursery areas. For the Improvements to function at water elevations sufficient to provide vital off-channel fisheries habitat, including a migration connection to the Blue River for fish produced in these oxbows, a continuous source of water is necessary. Water elevation must be maintained to reclaim areas of abandoned historic wetlands, and a flow of 5-10 cfs of water through the Improvements is necessary to support fisheries and macro invertebrates during critical periods, such as winter. No other source of water is available for this project except the Blue River. . Queen of the River Consultants, Inc. and S.G. Company have compiled a report entitled "S.G. Company-Mt. Powell Ranch - Case No. 04CW238 - Request for Approval of an Injury with Mitigation Plan to the Colorado Water Conservation Board," (attached as Exhibit A). Mike Mitchell of Queen of the River Consultants, Inc. made a presentation to the Board on the Oxbow/Floodplain Fish Habitat Improvements at the July 2006 Board meeting and will be available for questions at the November Board meeting. Flow-sharine Proposal Diversions of water to the Improvements may need to be made at times when the ISF in the Oxbow Reach is not fully satisfied. To minimize the potential injury, out-of-priority diversions into the Improvements will be based on a flow-sharing agreement. In general, under the proposed flow- sharing agreement, the amount of water that may be diverted into the Improvements is directly proportional to the flow in the Blue River at the time of diversion. All water diverted into the Improvements will be returned to the Blue River approximately 1.1 miles downstream of the diversion. . Flood Protection. Water Project Planning and Finance. Stream and Lake Protection Water Supply Protection. Conservation Planning