21

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

- 2-

mottled sculpins, speckled dace, white suckers, bluehead suckers and flannelmouth suckers.
The CWCB holds an instream flow right on the Pine River upstream of Vallecito Reservoir for 32
cfs, decreed in Case No. 84CW283. The Board does not currently hold an instream flow right on
the Pine River downstream from the Reservoir.

Over the years, local residents and other interests have requested that the Board consider an
instream flow appropriation on the Pine River downstream from Vallecito Reservoir. Staff
proposed the River for consideration at the 2003 Instream Flow Workshop, and subsequently
received numerous comment letters both for and against proceeding with an instream
appropriation on the Pine River. PRID and the Tribe submitted a comment letter expressing
strong opposition to a new ISF appropriation on the Pine River downstream from Vallecito
Reservoir, and suggesting an alternative approach that would involve "development of a plan to
protect designated releases from Vallecito Reservoir for Pine River instream purposes." PRID
and the Tribe own water stored in Vallecito Reservoir and make releases to meet contract
obligations and other downstream water needs.

The water rights for Vallecito Reservoir were decreed on March 7, 1966 in Case No. B1245 with
a priority date of November 13, 1935, Appropriation Priority No. 1965-1, for 129,674 acre-feet
("AF"), absolute, for storage for irrigation, domestic, stock water, and other beneficial uses by
parties lawfully entitled to the enjoyment thereof and for the purpose of supplying domestic and
other beneficial use to the Towns of Bayfield and Ignacio. PRID owns an undivided 5/6
(1 08,062.25 AF) of the Vallecito water rights and the U.S., in trust for the Tribe and others, owns
an undivided 1/6 (21,612 AF) interest. In Case No. W-1603-76D, the Tribe was decreed its
proportionate share of the 1/6 interest in Vallecito, held in trust by the United States.

In 2003, staff agreed to work with all interested parties to develop a water donation agreement
that would both provide stream flow protection at a level equal to or greater than a new ISF
appropriation and allow PRID and the Tribe flexibility in their day-to-day operations of Vallecito
Reservoir. Staff has worked with PRID, the Tribe, and the Attorney General's Office since 2003
to craft the attached Donation Agreement. Staff presented a preview of the draft Donation
Agreement to the Board in September 2005 as an informational item, and brought the proposal
to the Board for initial formal consideration in July 2006. PRID's Board of Directors approved
the Donation Agreement on July 11, 2006. The Southern Ute Indian Tribe Tribal Council
approved the Agreement on June 13, 2007.

Summary of Proposal

Under the Donation Agreement, PRID and the Tribe will provide releases of stored water and
certain Vallecito Deliveries 1 to the Board for instream flow use to preserve or improve the
natural environment to a reasonable degree. The Board will have a contract right to the use of
water provided by PRID and the Tribe.

1 "Vallecito Deliveries" include releases from Vallecito Reservoir to supply downstream water demands
based on PRID and/or TRIBAL water agreements, both written and unwritten, or Project delivery
obligations for irrigation, domestic and other uses.
Flood Protection' Water Project Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation Planning