BOARD00059 ‎(3)‎

• Board Meeting Date: 1/23/2007
• Description: WSP Section - Litigation Account Status Report - Kansas v Colorado, Arkansas Basin Studies and Activities - Colorado River Activities
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
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Denver, Clll1J',llhlI\1l2()~
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MEMORANDUM

Bill Ritter,)r.
Governor

TO:

CWCB members

Harris D, Sherman
Executive Director

FROM:

Rod Kuharich
Ted Kowalski
Steve Miller

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE:

J 3nuary 16, 2007

SUBJECT:

Agenda Item No, 8.a and 8.b. Water Supply Protection Section - Litigation Account
Status Report.

Background

Seclion 37-60-121(2.5) provides that the Colorado Water Conservation Board is authorized "to expend,
pursuant to continuous appropriation and subject to the requirements of paragraph (b) of this subsection
{2.5), a total sum not to exceed the balance of the litigation fund, which is created, for the purpose of
engaging in litigation,. .to defend and protect Colorado's allocations of water in interstate streams and
rivers..." Paragraph (b) of section 121(2.5) provides: "pursuant to the spending authority set forth in
paragraph (a) of this subsection (2.5), moneys may be expended from the litigation fund at the discretion
of the board if: (I) with respect to litigation, the Colorado attorney general requests that the board
authorized the expenditure of moneys in a specified amount not to exceed the balance of the fund for the
costs of litigation associated with one or more specifically identified lawsuits meeting the criteria set
fOlih in paragraph (a) of this subsection (2.5)." In addition, Section 121 (2.5) states: "the Board, in
conj unction with the attomey general, shall report annually to the senate agriculture, natural resources,
and energy committee and the house of representatives agriculture, livestock, and natural resources
committee on any litigation that involves the use of any moneys from the litigation fund created in
paragraph (a) of this subsection (2.5):' A draft of this year's annual repOli is attached.

Since the inception of the fund, FY05-06 was the first time funds were expended from this fund.
Originally this fund held $4 million, but Senate Bill 99-173 directed the State Treasurer to transfer $1
million dollars from the litigation fund to the Capital Account of the Species Conservation Trust Fund.
The fund, as of July 1, 2005 contained $3,081,619. Of this amount, 1,040,000 had been committed at the
time of this report last year. Since then, this Board fonnally recommended that construction fund bill
restore the litigation fund, from the mineral severance tax operation account, up to the original $4 million.
The General Assembly authorized the replenishment of this fund up to $4,000,000. In March 2006 the
Attorney General's Office requested, and this Board authorized, the expenditure of an additional $760,000

Flood Protection. Water Supply Planning and Finance. Streal11 and L,ke Protection
Water Supply Pmtection. Conservation and Drought Planning