21

• Board Meeting Date: 7/11/2007
• Description: ISF Section - Pine River Water Acquisition
• Board Meetings - Doc Type: Memo

Donation Aqreement

The COLORADO WATER CONSERVATION BOARD ("BOARD" or "CWCB"), an agency of
the State of Colorado, the SOUTHERN UTE INDIAN TRIBE ("TRIBE"), and the PINE RIVER
IRRIGATION DISTRICT ("PRID"), in consideration of the mutual promises contained in this
document, agree as follows:

Section 1
Recitals

1.A. Pursuant to C.R.S. ~37-92-102(3), the BOARD is vested with statutory authority to
"acquire, by grant, purchase, donation, bequest, devise, lease, exchange or other contractual
agreement, from or with any person, including any governmental entity, such water, water
rights, or interests in water in such amounts as the BOARD determines is appropriate for
stream flows to preserve or improve the natural environment to a reasonable degree".

1.B. Under C.R.S. 9 37-92-102(3), no person or entity other than the BOARD "shall be
granted a decree adjudicating a right to water or interests in water for instream flows in a
stream channel between specific points... for any purpose whatsoever".

1.C. PRID was established in the 1930's to operate Vallecito Reservoir (Vallecito), the
primary component of the Pine River Project. Vallecito is located on the Pine River in La
Plata County near the Town of Bayfield, Colorado. Vallecito was constructed by the Bureau
of Reclamation and began operation in 1941.

1.0. The TRIBE is a federally recognized Indian tribe.

1.E. The Pine River Indian Irrigation Project ("PRIIP") is a federal Indian irrigation project
which serves tribal, allotted and fee properties with water from Vallecito and adjudicated
surface diversions.

1.F, Current Vallecito Water RiQhts

a. The water right~ fo~vkllecrto Qre Idecr~ed o~ March 7, 1966 in Case No.
1248-B with a priority date of INove'mber \13, ~,935, Appropriation Priority No. 1965-1,
for 129,674 acre-feet ("AF.1r;;), kb~oiute,/for stbragefurFrigation, domestic, stock water,
and other beneficial us~s ~IY \p.arti~~ la~fUIIY Jntitle~ ~o the enjoyment thereof and for
the purpose of supplyinb wuatet for ~O{"Dstic a~ other beneficial uses to the Towns of
Bayfield and Ignacio. I i ~ \ i \ I

b. PRID owns an undividedl,~/6thS-(\198,062.25 ~F) of the Vallecito water rights
and the U.S., in trust fqr tl"!.J TL!SI~EVa~d ~tWs, o~~ an undivided 1/6th (21,612 AF)
interest.

C. In Case No. W-1603-76D, the TRIBE was decreed its proportionate share of the
1/6 interest, held in trust by the United States, in Vallecito. The share of Vallecito

Exhibit 1