LPPD000289

• Contract/PO #: C150164
• Contractor Name: Colorado River Water Conservation District
• Contract Type: Loan
• Water District: 58
• County: Moffat
• County: Routt
• Loan Projects - Doc Type: Approval Letter

ST A TE OF COLORADO

Colorado Waier Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

Bill Owens
Governor

MEMORANDUM
(Updated November 26,2003)

Greg E. Walcher
Executive Director

TO:

Colorado Water Conservation Board Members

Rod Kuharich
CWCB Director

FROM:

Mike Serlet, P.E., Chief
Water Supply Planning and Finance Section.

Dan McAuliffe
Deputy Director

DATE: November 12, 2003

SUBJECT: Agenda Item #8a, November 19-21, 2003 Board Meeting
Water Supply Planning and Finance - Construction Fund and
Severance Tax Trust Fund Perpetual Base Account New Loans -
Colorado River Water Conservation District - Elkhead Reservoir
Enlargement

Introduction
The Colorado River Water Conservation District (River District) is applying for a loan in the
amount of $11,000,000 to enlarge Elkhead Reservoir located on Elkhead Creek northeast of
Craig in Routt and Moffat Counties. The River District, in conjunction with the Upper Colorado
Endangered Fishes Recovery Program (Recovery Program), propose to enlarge the reservoir for
the purposes of supporting the recovery of endangered fish species and to satisfy needs for
supplies of municipal, industrial and agricultural water in the Lower Yampa River basin. The
estimated total cost of the project is $19.5 million. Please see the attached project summary and
map.

Backaround
Elkhead Reservoir was constructed in the 1970s as a cooperative project between the Colorado
Division of Wildlife (DOW) and the Yampa participants, comprised of a consortium of power
companies that own generating capacity at the Craig coal-fired power plant. In 2002, the City of
Craig obtained DOW's interest in the reservoir. In February 2002, the River District entered into
an Intergovernmental Agreement with Craig to enlarge Elkhead Reservoir.

The Recovery Program began work on a Management Plan for the endangered fish species in
the Yampa River basin (Yampa Plan) in 1993. The plan is currently in final draft form with final
action by the Management Committee of the Recovery Program expected by the end of the year.
Among other recovery actions, the Yampa Plan identifies a need for up to 7,000 acre-feet (af) of
water to augment low flows in the Yampa River, primarily below the town of Maybell, during late