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Discussion <br />After the September Board meeting, CWCB staff and the AG's Office consulted with the State <br />Engineer's staff ("SEO") about the selective subordination issue and concluded that if the <br />CWCB placed a call for one of the subject ISF water rights, the Division Engineer would not be <br />able to administer the call as agreed upon by the parties. Rather, the call would be administered <br />as a general subordination to all water rights junior to the ISF and senior to December 31, 2002, <br />the date stipulated to by the CWCB and the District as the "cut-offl' date for the CWCB's <br />acceptance of injury from depletions by wells served by the District. At the CWCB staff's <br />request, the District identified the water rights that would be included in the general <br />subordination. Because the amount of water rights the instream flows would be subordinated to <br />was significant, the CWCB staff, in consultation with the SEO, asked the District to agree to a <br />term and condition under which the District would be required to augment its out-of-priority <br />depletions in time, place and amount by whatever means would be available at that time, <br />including trucking water to the affected reach. As of the date of this memo, staff and the District <br />have not yet agreed upon the exact language to be included in the decree. Staff has proposed the <br />paragraph set forth below: <br />If the CWCB places a call for its instream flow reaches of Middle St. Vrain Creek as <br />decreed in Case No. 87CW281, or of Left Hand Creek as decreed in Case Nos. 86CW301 <br />and 86CW342, or of James Creek as decreed in Case No. W-9379-78, that would <br />otherwise result in the curtailment of diversions to be augmented by the District, the <br />District will augment its out-of-priority depletions in time, place and amount to the extent <br />necessary to prevent injury to the instream flows by whatever means available at the time <br />of the call, including but not limited to trucking replacement water to be delivered to the <br />affected reach, or by releasing replacement water from any source available to the <br />District at the time of the call and by whichever means the District chooses so long as the <br />instream flow is protected. <br />Please note that under the revised proposed settlement, the Board still will accept injury to its <br />ISF water rights on Middle St. Vrain Creek that fall under section 37-92-102(3)(b), C.R.S. Staff <br />will update the Board on its negotiations with the District at the Board meeting. <br />Recommendation <br />Based upon the information presented above, Staff recommends that the Board authorize Staff <br />and the Attorney General's Office to enter into a stipulation with the St. Vrain & Left Hand <br />Water Conservancy District that incorporates the additional term and condition (or other <br />language agreed upon by the parties that is no less restrictive) set forth in this memo into the <br />pretrial resolution approved by the Board in September, which will be included in the stipulation <br />and decree.. <br />2 <br />