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Steve Cone commented that he thinks the state would want to sign one agreement with the Corps. Any work required to implement storage would require funds when expenses would be incurred. John Micik noted that government costs are incurred under a Project Cooperation Agreement (PCA). The government would estimate what administrative costs are incurred and funding could be placed in escrow. Tom Browning observed that this sounds like what CWCB is doing under the current Feasibility Cost Share Agreement (FCSA). Eric Laux commented that what makes this unique is that it is 100 percent non- federal. John Micik said that the Omaha District counsel will confer with Headquarters counsel on this. Eric Laux stated that he believes Omaha District and Headquarters are in agreement with regard to economic analysis, according to Gene Sturm and Betty Peake with Omaha District. Steve Cone commented that hopefully the water users can do one alternative analysis. Eric said he believes that Gene has what he needs. The discussion then moved on to seismic safety issues. Eric Laux noted that the 2005 Seismic Safety Study was undertaken due to concern for the design of dams. The original recommendation was that the Corps would fix problems related to these studies. Steve Cone commented that Chatfield is now getting funding to monitor dam safety improvements. If it is found that there is a problem with dam safety in the future, the Corps will charge the user (state) 15 percent of the cost of repairs. Eric referred to the Vertical Team Meeting discussion on water supply and dam safety. 1:30 p.rn. Meeting: Office of Rep. Tom Tancredo Mac Zimmerman, Chief of Staff Tom Browning, Frank Eckhardt, Gary Herman, Greg Hertzke, David Howlett, Dan McAuliffe, Rick McLoud, Vaughn McWilliams, Marge Price, Mark Shively, Jeff Shoemaker, Chatfield Reservoir Reallocation Coalition Jeff Shoemaker opened the discussion with a short background on Chatfield and with self-introductions. Rick McLoud walked through the agenda. He highlighted House and Senate action on their respective FY08 Energy and Water Appropriations bills. The House bill marked $200,000 for the Chatfield FR/EIS and the Senate bill contained a $273,000 earmark for the Chatfield FR/EIS. He requested that the Senate's $273,000 mark be held when the bills go to conference committee. Rick noted that the FR/EIS has been underway since 1994 when the Chatfield Reconnaissance Study began. He noted that the preliminary FR/EIS draft will be ready sometime this fall. He also commented that the meeting with the Corps of Engineers held earlier in the day was productive. The key to the current efforts is to complete work on the EIS, then undertake work on the environmental and recreational mitigation. It is important to keep the momentum going on this. Tom Browning reviewed the status of the project, including the cost of storage, O&M and Seismic Study issues. Jeff noted that WRDA appears to be nearing passage by Congress. Mac Zimmerman commented that it is not known what will happen should the 3