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Agenda Item 17 July 11-12, 2007 Board meeting Page 3 of3 As a result of these discussions, while there was extensive uncertainty, the SWSI team thought it would be prudent to, at a minimum, identify that additional water supply may be needed for additional energy development. SWSI indicated that demands could increase beyond current projections by as much as 100,000 acre feet with an estimated 50,000 acre feet being consumptively used under a reasonable high demand scenario. These values were best professional judgment given the uncertainties. Since the completion of SWSI there has been heightened exploration and interest in mineral production especial1y natural gas, and oil shale. The YampalWhite/Green Basin Roundtable identified water needs associated with mineral development as an area of their needs assessment that should be refined and have requested a Water Supply Reserve Account Grant to address this need. Efforts to Refine Energy Needs Utilizing Funds from the Water Supply Reserve Account Dan Birch, Colorado River Water Conservation District, YampalWhite/Green Basin Roundtable and lnterbasin Compact Committee Member will be invited to address this subject. Dan is the Project Manager for the $300,000 Water Supply Reserve Account to examine "Energy Development Water Needs Assessment in the Colorado and YampalWhite/Green Water Basins". Dan has been coordinating the scoping efforts to examine the chal1enging task of further quantifying both direct and indirect [growth and industrial needs (power)] water needs for various sectors of energy development including: oil shale, natural gas, coal, coal liquefaction and coal gasification. Dan will provide the Board an update on his efforts to develop a more detailed scope of work. Attachments We have attached a map of oil shale reserves, water rights in the vicinity and a table outlining the current research and demonstration projects.