08

• Board Meeting Date: 7/11/2007
• Description: WSP Section - Role of Elkhead Enlargement in Upper Colorado River Endangered Fish Recovery Program
• Board Meetings - Doc Type: Memo

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The above-described Agreements between the CRWCD, City of Craig, CDOW, and the Yampa
Participants confirm that title to the storage space created by the enlargement of Elkhead Reservoir will
vest in the CRWCD. Furthermore, the CRWCD will also enter into the following additional agreements:

5. Grant Agreement between the CRWCD, Reclamation and the U.S. Fish and Wildlife Service
(USFWS) to provide the balance of the cost share funding from the UCRIP to the CRWCD for
purchase of the permanent 5,000 AF storage right and easement in the Elkhead Reservoir
Enlargement.
6. Agreement between CRWCD, Reclamation and the USFWS concerning Elkhead Reservoir
Enlargement to Facilitate Recovery of Endangered Fish Species in the Yampa River Sasin
("Reservoir Enlargement Agreement") to describe and transfer the costs of operation, maintenance
and repair obligations from the CRWCD to Reclamation on behalf of the USFWS for that portion of
the Elkhead Reservoir Enlargement storage right conveyed to CWCS for UCRIP purposes.
7. Water Acquisition Agreement between the CRWCD, CWCS, Reclamation and the USFWS to
convey the water right and the storage space easement from the CRWCD to the CWCS, to
sublease the 2,000 AF Temporary Water Supply to the CWCS and to outline the terms and
conditions of the conveyance and lease, including obligations to monitor and protect releases to and
through the Critical Habitat Reach of the Yampa River.
8. Special Warranty Deed between the CRWCD and CWCS to transfer ownership in perpetuity of the
5,000 AF absolute storage right and storage space easement in the Elkhead Reservoir Enlargement
from the CRWCD to the CWCS for UCRIP purposes. Deed will be executed when the project is
completed and the water right has been decreed absolute. (This document will be in draft form
pending perfection of the water right.)
9. A sublease between CRWCD, Reclamation and the USFWS to provide a short-term water supply of
up to 2,000 AF annually for UCRIP purposes. Water will be leased from the CRWCD at the
direction of the USFWS and will be paid for by Reclamation. The Sublease will also provide for a
sublease to the CWCS for instream flows for UCRIP purposes. Need for this water will be
determined annually and be paid for as utilized.
10. CWCS construction fund loan contract to CRWCD to outline the loan terms and conditions, and
repayment obligations for the M&I portion of the Elkhead Reservoir Enlargement. The loan will be
for $11,110,000 at 3.75% for 20 years. Funds were made available after July 1, 2004.
11. CDNR contract with CRWCD to provide the State's cost share funds required by Public Law 106-
392 directly to the CRWCD for use in implementing the Elkhead Reservoir Enlargement capital
construction project identified by the UCRIP in the RIPRAP and to receive appropriate cost share
credit from the UCRIP for this expenditure. Colorado's total obligation to the UCRIP is $8,065,000.
12. A mitigation grant from the State Fish and Wildlife Mitigation Fund to the Colorado River Water
Conservation District for $1,048,554 of which 20\47 was applied to the costs associated with
obtaining the 5000 AF of water and storage for endangered fish.

Reclamation and the USFWS intend to work with the CRWCD to perfect the conditional storage right for
the Elkhead Reservoir Enlargement so that upon completion of the project the CRWCD can perfect the
water rights for the enlargement and convey the storage space easement and 5,000 AF of the absolute
water right for the Permanent Water Supply to the CWCS in perpetuity for UCRIP purposes. Uses of the
absolute water right include piscatorial and recreational use (which uses will include in-river fish habitat
and river flow maintenance and enhancement uses and other uses in furtherance of the UCRIP).

Recom mendation

Information item only.

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