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V. A. Sperling, Esq. February 2. 2007 Page 3 Storage Availability - The Harris report explains there are no feasible sites to provide storage for the operation of augmentation plans. It is our opinion augmentation storage will be available upstream of the Boating Park. Storage options include the purchase of storage in Electra Lake, diversion and storage of Animas-La Plata water rights upstream of the RICO, and the construction of small ponds. As indicated by the development of small ponds in the Animas River basin, the use of small ponds to provide augmentation deliveries may be a preferred alternative. Use Downstream of the Boating Park - Harris claims the RICO appropriation, although it is non-consumptive. would have the same impact as a consumptive water right on upstream users. This is not correct in that it neglects the use of RICO flows by the ALP and other water users downstream of the Boating Park and the contribution of RICO flows to the Colorado River Compad and Upper Colorado River Compact delivery requirements. As described in our report, we determined that approximately 103,000 acre-feet per year, or 65 percent of the total streamflow claimed at the Boating Park (159,000 acre-feet per year), could be diverted at the Durango Pumping Plant or used to satisfy ALP bypass requirements. We also concluded that. even if the entire volume of water claimed ~y the RICD were delivered to downstream states without further use in Colorado, this volume would be required to satisfy the overall compact delivery requirements. Compact Impairment Analysis - Harris evaluated the potential RICD impairment to Colorado's ability to fully utilize its com;>act allocation. The "Compact Over-Delivery- methodology studied the RICO claims in relation to required deliveries to New Mexico under the Upper Colorado River Compact. This methodology did not consider the overall deliveries (from all Colorado River basins) required under the Colorado River Compact and Upper Colorado River Compact. As described in our report, even if all the water claimed by the RICD is delivered out of state, the RICO deliveries will be required to satisfy Colorado's overall compact delivery obligation.