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. e~ el - 3 - Auementation or Out-or-Priority Depletions Except for evaporation and wetland consumption, the Improvements will be non-consumptive. The total maximum stream depletion due to those losses from the 3.5 acres of exposed water surface areas and 1.25 acres of wetlands that are part of the Improvements is estimated to be 9.63 acre-feet per year. S.G. Company intends to replace the evaporative and wetland consumptive losses under its proposed augmentation plan by dedicating 18.30 acre-feet per year of historic consumptive use credits from the Hamilton-Davidson Ditch and Sarah Ditch water rights that will be changed under this application. S.G. Company's engineer projects that the credits will fully augment out-of-priority depletions to the Blue River in May-September, with deficits of 0.92 acre feet in April (approximately 7 gpm) and 0.75 acre-feet in October (approximately 5.5 gpm). Those deficits are part of the injury S.G. Company is requesting the Board to accept under this proposal. Resolution of Issues Discussed at Julv 2006 Board Meetine At the July Board meeting, staff informed the Board that the Colorado Water Trust had raised concerns about this injury with mitigation proposal as it may impact water added to the Oxbow Reach by the Trust's donation of the Peabody Ditch water rights to the CWCB for ISF use. Specifically, the Trust was concerned that the flow-sharing agreement would allow diversions by S.G. Company into the Improvements of water that the Trust had purchased and donated to supplement the CWCB's Blue River ISF. Because return flows from the donated water rights historically returned to the Blue River upstream of the point of diversion for the Improvements, the Trust's concern applies only to the consumptive portion of the donated water rights, which is available for ISF use in June-September. Since the July Board meeting, CWCB staff and representatives of S.G. Company and the Colorado Water Trust met more than once to discuss the Trust's concerns. As a result of these meetings, S.G. Company revised the proposed flow-sharing agreement to ensure that the consumptive use portion of the donated water rights will not be diverted into the Improvements. The revised flow-sharing agreement is attached to this memo as Exhibit B. In the revised flow-sharing agreement, the trigger amounts for determining when and how the flow- sharing agreement operates have been modified by adding the average monthly consumptive use flow rate from the donated water rights to the decreed ISF amount for June-September. For example, for the month of June, the donated water right's average consumptive use flow amount of 0.5 cfs has been added to the ISF amount of 125 cfs to get a threshold flow rate 125.5 cfs as the trigger for determining when the flow-sharing agreement would begin operating. The average monthly consumptive use amounts added to the flow-sharing agreement are based upon the August 25, 2005 Peabody Ditch No. Depletion analysis conducted by Mike Sayler for the Colorado Water Trust and the CWCB to support their applications for changes of the donated Peabody Ditch water rights. The Colorado Water Trust does not object to the revised injury with mitigation proposal, based upon the changes to the flow-sharing agreement and the benefits accruing to the Blue River from the stream habitat improvements made by S.G. Company. A representative of the Trust will address the Board as part of the presentation of this agenda item. Flood Protection. Water Project Planning and Finance. Stream and Lake Protection Water Supply Protection. Conservation Planning