Gunnison - Overland Reservoir Dam Expansion Restoration_Water Activity Summary

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volume, the runoff exceeded the existing current capacity of the Overland Reservoir at 6,200 acre- feet. The option of transferring the storage right to another existing or potential reservoir location has been considered. In 2002 and 2003 the North Fork Water Conservancy District commissioned studies for potential storage sites in the Leroux Creek drainage basin including both the expansion of existing facilities and constructing new facilities. The studies showed the least cost alternative to store nearly 1,000 acre-feet of water was in 2003 dollars about $5,500 per acre-foot. With the Overland Reservoir restoration project, the costs come in at about $1,292 per acre-foot in 2003 dollars. Therefore, expanding the Overland Reservoir became the obvious and selected option. Although project planning has spanned over several years, actual work on the project was begun at The Overland shareholder expense in 2005 with the initiation of the flood hydrology and geotechnical reports being prepared by Western Engineers, Inc. out of Grand Junction, Colorado and application to the CWCB for loan funds to complete the project. The feasibility report was completed in 2005; also the PMP Feasibility Study and the PMP Final Study have been completed at shareholder expense. With an elevation of nearly 10,000 feet, the construction season for restoring the Overland Reservoir will necessarily occur between May and November. The current project construction completion date is scheduled for November, 2008. Because the reservoir rests on US Forest Service land (Gunnison National Forest) The Overland has been working in-hand with the necessary Forest Service personnel to insure that all the necessary studies and Forest Service requirements are met. The Forest Service, Division of Wildlife, Delta County Commissioners, Representatives and Senators to the Colorado State Congress, and Colorado’s Representative and Senators in the National Congress are all aware of and support this project. Discussion: Overall the application for funding assistance for the Overland Reservoir Enlargement project was well prepared and the project is needed to help address an important water supply need in an over- appropriated basin. The project meets a significant number of the WSRA criteria and guidelines and appears to be a worthy activity which should provide benefits to Overland Reservoir shareholders. However, there are few criteria which should be considered in the decision to approve funding from the WSRA. Criteria A and B relate to promoting collaboration and cooperation including meeting multiple needs and interests within a basin or amongst basins. From the application, it appears that this project will provide benefits to relative few and the water will be applied to a single use, agriculture. Realizing that this basin is projecting continued population growth, the Overland Reservoir is in a unique situation to help meet the growing demand for water. Considering the high elevation (approximately 10,000 feet) and its ability to release water into either the North Fork Gunnison (via Hubbard Creek) or Muddy Creek (via Cow Creek), this reservoir could help provide water in areas of need. Currently, the water is decreed for agricultural purposes, but in the future, additional beneficial uses such as augmentation could be added to the decree. - 3 -