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The Water Court previously ruled on four questions of law raised by the State and Division Engineers and the CWCB. The Court ruled in favor of the State on all four questions by finding: (1) augmentation is a beneficial use of water in Colorado; (2) the recharge of tributary lake wells is also a beneficial use; (3) the Engineers have standing to raise the issue of injury to the CWCB's instream flow rights by changes to a plan for augmentation arising after the CWCB has stipulated out of a case; and (4) the CWCB may actively rejoin this case in order to defend its existing stipulation. However, difficult administrative issues relating to the subordination of water rights have prevented reaching a settlement to date. The State has proposed a viable settlement in this case and is awaiting a response from Copper Mountain and the Clinton Ditch & Reservoir Company. The primary remaining issues involve (1) whether Copper Mountain will replace its out-of-priority depletions in time, location and amount when the CWCB's instream flow right on Tenmile Creek is not satisfied during the irrigation season; (2) whether Copper Mountain's conditional Tenmile Creek Pipeline water right to be changed in this case was decreed just for the recharge of Copper Mountain's lake wells or also for irrigation, snowmaking, recreation, aesthetics and fish and wildlife propagation; and (3) whether the senior water right decreed to the Clinton Gulch Reservoir may be used for augmentation purposes without a change of water right. A dispute also exists as to the effect on the present augmentation plan of the MOA described above. Recommendation Pursuant to ISF Rule 8j., Staff recommends that the Board authorize Staff to proceed to trial to protect the Board's instream flow water rights on Tenmile Creek in the event that Staff and the Attorney General's Office are unable to reach a settlement with the Applicant. 2