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<br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />for a total of $8,500,000 in CWCB financing. The following paragraphs summarize these items <br />and present the results of the staffs feasibility analyses of the project. <br /> <br />PROJECT DESCRIPTION <br /> <br />The major features of the project are 3,000 acre-feet of storage capacity in a reclaimed mine <br />tailings pond to provide additional storage for water users in the Upper Eagle River Valley. The <br />project is intended to replace out-of-priority depletions caused by municipal and snowmaking <br />diversions and for enhancement of Eagle river flows. Please see the attached project summary. <br /> <br />Water supplies could be obtained from tributaries of the Eagle River, from Ten Mile Creek, and <br />from the Arkansas River. It is the intent of the Company to store water under 1992 water rights <br />filings for the reservoir and by exchange when the reservoir is not in priority. The exchange <br />would utilize senior consumptive use credits, Green Mountain Reservoir contract water, <br />snowmaking return flows, and the Pando Feeder Canal right, all owned by the project <br />participants. The Company estimates that the fimi yield from all of these sources would amount <br />to about 2,100 acre-feet. <br /> <br />Cyprus Climax. has recently completed the removal of on~ million cubic yards of mine tailings <br />from the reservoir basin. The Division of Minerals and Geology will certify the removal of the <br />tailings and the rehabilitation of the site as a fresh water reservoir pursuant to the terms of Cyprus <br />Climax reclamation permit. <br /> <br />The reservoir will be partially filled in the spring of 1997 and the quality of water in the reservoir <br />will be tested for contamination. If contamination is present, the reservoir contents will be <br />pumped to another tailings pond at the Climax Mine and the reservoir will be refilled. The <br />process will be repeated until a level of water quality is attained that is suitable for release to the <br />East Fork of the Eagle River. It is our understanding that at such time as water quality is <br />acceptable, Cyprus Climax will request the Water Quality Control Division to amend the <br />discharge permit for the entire mine to delete Eagle Park Reservoir from the permit. <br /> <br />The Eagle Park Dam is a 135-foot high earth embankment structure which has been in place for <br />more than 30 years. The Division 5 Engineer's Office has indicated that, to the best of their <br />knowledge, the existing dam is sound and has no known structural problems. <br /> <br />EAGLE PARK RESERVOIR COMPANY <br /> <br />The reservoir site will be acquired by means of a purchase agreement between the Eagle Park <br />Reservoir Company and Cyprus Climax. It is our understanding that the purchase agreement will <br />include a number terms and conditions with respect to an adequate supply of water and water . <br />quality for the project. <br /> <br />The original applicants to be incorporated in the Eagle Park Reservoir Company were Eagle <br />County (the County) , the Upper Eagle Regional Water Authority (the Authority), Vail Valley <br /> <br />2 <br />