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South Platte River Task Force Briefing Document Also in December of 2002, Central GMS filed an application with the Division 1 Water ¼ Court for approval of a large plan for augmentation to cover depletions associated with nearly 1000 wells in the South Platte River Basin. Case No. 02CW335, Water Division 1. The Supreme Court ruled on April 30, 2003, regarding the rules proposed by State ¼ Engineer Simpson in May 2002. Simpson v. Bijou Irrigation Co. , 69 P.3d 50 ( Colo. 2003). The Supreme Court agreed with the water court that there was no statutory authority for this type of rules for well administration. The Court remanded the rules back to the water court for consideration of the portion of the rules that pertained to an interstate compact. The majority of the Simpson v. Bijou decision was devoted to analysis of the scope of ¼ State Engineer authority under the water rule power of C.R.S. § 37-92-501. After detailed analysis of existing statutes and legislative hi story, the Supreme Court concluded that the replacement plans contemplated by the proposed rules were the functional equivalent of temporary augmentation plans, that the State Engineer did not have legal authority to review and approve such plans except for the authority expressly granted to him by the General Assembly in § 37-92-308 (and a couple of other statutes not relevant here), and that review and approval of augmentation plans is within the exclusive jurisdiction of the water court. After reaching these conclusions, the Supreme Court held that the State Engineer does have authority to enact rules and regulations to enforce the South Platte River Compact under the compact rule authority, but that such rules must also fall within the scope of the water rule power. On the same day that Simpson v. Bijou was decided, the Governor signed SB 03-73, ¼ giving well organizations in the South Platte River basin three years to file a plan for augmentation with the water court, and allowing the State Engineer to annually approve an SWSP after conducting a hearing. The basic structure was patterned after the SWSP process already contained in § 37-92-308. 2003 to Present: Demise of GASP; Central GMS and WAS Augmentation Plan Litigation In 2003, GASP filed for approval of a SWSP under SB 03-73. The plan was approved to ¼ allow for replacement of ongoing stream depletions that resulted from past pumping, but did not allow any new pumping in 2003. GASP went out of business shortly thereafter, leaving hundreds of wells without augmentation coverage. Also in 2003, The “South Platte Well Owners” filed two applications for augmentation plans ¼ with the Water Court and sought approval of an SWSP for 380 wells. The SWSP was approved in June 2003. This group was composed of former members of GASP. In 2004, Central Colorado Water Conservancy District established the Well Augmentation ¼ Subdistrict (“Central WAS”) which included the above 380 wells and 61 additional wells, for a total of 441 wells. An SWSP was approved for Central WAS in April 2004, and Central took over prosecution of the combined WAS cases, Consolidated Case Nos. 03CW99 and 03CW177 in the water court. Meanwhile, the Central GMS application (Case No. 02CW335) was being prepared for a ¼ 2005 trial in the Water Court. The case was opposed by numerous water users, including a diverse group of municipalities, ditch companies, and other holders of senior surface rights. In May of 2005, the Central GMS case settled on the eve of trial. The resulting consent ¼ decree was the result of extensive settlement negotiations and contained numerous restrictive terms and conditions for the protection of senior water rights. The Central GMS decree utilized a “projection tool” to forecast future depletions and anticipated replacement - 6 -