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Mr. Rod Kuharich January 19, 2006 Page 2 . installation of approximately 200 boulder cluster and similar habitat structures~ an ongoing program for the removal of more than 140 acres of invasive, non-native riparian species, and replacement plantings with native species; the construction of a fish ladder/boat chute to allow kayaks and other recreational water craft, and native and sport fish. to pass over an existing 13-foot high diversion structure in the river; and the construction of seven smaller, permanent water-controlling drop structures that create self-scouring pools and control the flow of the river at specific points to create wave features for recreational boating_ The controlled movement of water wrought by the various new in-stream structures enhances stream oxygen levels. Moreover, the pools created by the water control structures provide important restorative aquatic habitat. similar to the natural environment that once existed in this reach. by facilitating migration within the river, by establishing locations protected from variations in water flow levels and by moderating stream temperature fluctuations. As shown on the list prepared by DOW enclosed as Exhibit 2, DOW reports that fish existing in this reach of the river include native species of environmental importance as well as sport fish, such as walleye, saugeye and trout, which have either been stocked or escaped from Pueblo Reservoir. The improved aquatic habitat and fishery in this reach of the Arkansas River was featured in an article of the September-October 2005 edition ofDOW's Colorado Outdoors magazine, a copy of which is enclosed as Exhibit 3. . The second and final phase of the Legacy Project planned for June 2005 through June 2008 will include, among other activities, recreational improvements to Pueblo Reservoir; development of new riverside paries and recreational access points; and modification of an existing lowhead dam. The riparian revegetation activities described above will also continue during this phase of the project. As you know, in December 2001. Pueblo applied to the Water Court for recreational in-channel diversion water rights for nine water control structures which were planned (and eight of which have since been constructed) as part of the initial phase of the Legacy Project. Pueblo's application identified the intended uses of the water rights to include "boating, _ . . fish and wildlife habitat. piscatorial. and general recreationa"" While Pueblo's Water Court application remains pending. Pueblo has agreed with nineteen of the twenty-one original objectors, to the entry of a stipulated decree granting Pueblo RICD water rights for boating purposes only. Pueblo officials believe strongly that the improved fish and wildlife habitat . resulting from the Legacy Project activities should have some level of protection against future flow reductions. An instream flow water right at the level recommended by DOW is necessary to protect this restored natural environment to a reasonable degree. It is not intended that any instream flow water right be "stacked" on Pueblo's RICD water right; instead, it is Pueblo's expectation and request that the RICO water ~.