BOARD00182 ‎(2)‎

• Board Meeting Date: 5/23/2007
• Description: ISF Section - Hat Creek Proposed Water Acquisition
• Board Meetings - Doc Type: Memo

~

'I

e:

.

.

- 2 -

to preserve or improve the natural environment. ISF Rule 6 requires a minimum of two Board
meetings to allow for public input prior to taking final action on a proposed acquisition. The
Board's initial consideration of this proposal at this Board meeting initiates the 120-day time
period for the Board to consider the terms and conditions of the proposed acquisition. Final
action on the proposal could occur at the July 2007 Board meeting. ISF Rule 6i.(4) provides
that any person may request the Board to hold a hearing on the proposed acquisition, and that
such a request must be filed within twenty days of this Board meeting.

ISF Rule 6e requires the Board to evaluate the appropriateness of the acquisition and determine
how best to utilize the acquired water rights to preserve or improve the natural environment.
The Rule lists several factors the Board may consider in its evaluation of the acquisition, which
factors are addressed later in this memo.

Staff has requested recommendations from the Division of Wildlife, the Division of Parks and
Outdoor Recreation, the U.S. Department of Agriculture and the U.S. Department of Interior,
pursuant to statute. Staff has also provided notice of the proposed acquisition to all persons
included on the appropriate ISF Subscription Mailing Lists pursuant to ISF Rule 6i. The Division
of Wildlife's recommendation regarding this acquisition proposal is attached as Exhibit 2.

3. Summary of Proposed Acquisition

The Colorado Water Trust is proposing to convey the Hat Creek Ditch water right to the Board
for instream flow use via a Bargain and Sale Deed. The proposed Donation and Acquisition
Agreement, which includes the form of the Deed to be used, is attached as Exhibit 3. The
proposed acquisition agreement contains the following terms and conditions (paraphrased from
the proposed agreement):

a. Within one year after receiving title to the Hat Creek Right, the Board shall (1) file an
application with the Water Court to change the Hat Creek Right to allow instream flow
use exclusively by the Board; (2) keep the CWT informed of all significant proceedings in
the change case; (3) consult with and obtain approval from the CWT prior to entering
into any stipulation in the change case; and (4) provide the Trust with a copy of the final
decree once entered.
b. The Board will be responsible for costs of the change case and the CWT will provide
reasonable assistance to the Board in the change case.
c. The Board commits to use the Hat Creek Right for instream flow purposes to preserve
the natural environment to a reasonable degree and to take all reasonable steps to
enforce said instream flow rights and protect them from injury.
d. If the Board receives a request to consider injury with mitigation for the portion of Hat
Creek benefited by the change of the Hat Creek Right, the Board shall promptly inform
the CWT of such request, consult with the CWT regarding such request, and not take
any action that, in the CWT's reasonable judgment, would impair the benefits to Hat
Creek resulting from the CWT's donation to the Board of the Hat Creek Right and its
change to instream flow uses.

Flood Protection. Water Project Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation Planning