BOARD00151 ‎(2)‎

• Board Meeting Date: 3/12/2007
• Description: WSP Section - Animas-La Plata Project Updates - Intergovernmental Agreement Establishing the ALP Operations and Maintenance Association and Proposed Concept Paper
• Board Meetings - Doc Type: Memo

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Draft February 9,2007

PROPOSED CONCEPTS FOR THE
OPERATION AND MAINTENANCE
OF THE ANIMAS -LA PLATA PROJECT

1. This concept paper is for discussion purposes only. It has not been approved by the
governing bodies of any of the Animas-La Plata participants.

2. The Animas-La Plata Project ("Project") shall be operated to optimize the project water
supply which shall be allocated to the project participants on the basis of their Statutory
Water Allocation. The Operation, Maintenance and Replacement ("O&M") costs shall
be allocated and paid as described in this document.

Water Supply

3.

The water supply for the Project shall be determined on an annual basis utilizing a water
year of October I to September 30. Each project participant shall be entitled to receive
its Statutory Water Allocation, provided that in the event of shortages in the annual water
supply for the Project, the water shall be allocated as described in paragraph 7. A project
participant may elect to take less than its full Statutory Water Allocation in any water
year. A project participant may only take more than its Statutory Water Allocation ifit
agrees with another project participant to use all or a portion of that participant's
Statutory Water Allocation.

4.

The annual and monthly allocations for each project participant shall be measured (I)
from the Animas River at the point of diversion for the Durango Pumping Plant or (2)
from Ridges Basin Reservoir.

5.

Nothing in this agreement is intended to prohibit a project participant from using
additional water available below the measuring points described above, provided that the
participant has sufficient [non-project? ] water rights to make use of such water.

6.

On the first of each month, the Project Operating Committee ("POC") shall (1) account
for the amount of water used by each project participant, and (2) identify the amount of
water remaining available to each project participant on the basis of the projected water
supply and the amount of water used to date. On April I, the POC shall also project the
water supply for the Project for the upcoming 12 months.

7.

Each project participant shall advise the POC of (I ) the amount of water it wishes to
receive each month and (2) the monthly amount of water which it anticipates requesting
for the remainder of the water year. Such notice shall be provided by the 10th day of the
preceding month. The POC shall determine the notice requirements for the establishment
of the daily flow rates to meet the requested monthly amounts.

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