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FEDERAL AND INTERSTATE <br />DITCH BILL UPDATE - As part of staff's continuing effort to keep the Board informed of the U. S. <br />Forest Ser~~ice's ("USFS") progress on the issuance of Ditch Bill Easements and related issues, the <br />information attached to this report as Attachment 9V-05 was provided by Michele O'Connell, USFS. If <br />you have questions regarding this information, please contact Michele O'Connell at: <br />Michele O'Connell <br />USDA Forest Service, Rocky Mountain Region <br />Group Leader Lands Special Uses <br />(303)275-5383, FAX (303)275-5122 <br />mmoconnell@fs.fed.us <br />In response to concerns expressed by the Southwestern Water Conservation District in October 2007, <br />about the potential imposition of bypass flows in connection with some pending Ditch Bill Easements on <br />the San Juan Forest, Harris Sherman, Executive Director of the DNR, sent a letter to Rick Cables, <br />Regional Forester, requesting initiation of consultation between the USFS and the DNR under the April <br />16, 2004, MOU between the DNR, CWCB and USFS to explore ways to find a mutually acceptable <br />resolution of this matter. On December 14, 2007, Rick Cables sent a response indicating that the USF5 is <br />willing to meet to discuss these issues and is ``committed to adhering to the spirit and intent of our 2004 <br />MOU." On February_ 29, 20008, representatives of the USFS, DNR and CWCB met to discuss several <br />issues, including the issuance of Ditch Bill easements. The USFS has informed CWCB staff that <br />approximately sixty (60) new easements have been executed by the Regional Forester, and that the USFS <br />is in the process of posting the decision documents on its website, and returning the easements to the <br />Forests to send to the easement holders. The USFS anticipates that in processing the remaining <br />applications, it may encounter situations where diversions dewater stream reaches. In such cases, the <br />USFS will meet with the State as contemplated by the 2004 MOU. The CWCB and DNR staff; USFS <br />staff, and representatives of Xcel Energy and the Southwestern Water Conservation District met on <br />March 6, 2008 to discuss issues related to the issuance of Ditch Bill easements (subsequent to submittal <br />of this report). <br />SPECIES CONSERVATION TRUST FUND (SCTF) HEARING -Staff provided testimony <br />before the Senate Agriculture Committee on February 28th concerning the Board's recommendations for <br />expenditures from the SCTF this coming fiscal year. (Senate Bill 08-168) This legislation was amended <br />and passed unanimously out of the Agriculture Committee and was referred to the Appropriation <br />Committee. <br />GRAND CANYON TRUST (GCT) v. U.S. BUREAU OF RECLAMATIONAND <br />COAIAHSSIONER ROBERT JOHNSON -The Grand Canyon Trust claims that Reclamation is <br />violating the Endangered Species Act (ESA) in their operation of Glen Canyon Dam. The GCT argues <br />that fluctuating flows harm endangered fish, destroy their critical habitat, and degrade the natural <br />environment in Grand Canyon National Park and Glen Canyon Natural Recreation Area. The GCT <br />believes that in 1994, the U.S Fish and Wildlife Service (FWS) determined in an ESA section 7(a)(2) <br />Biological Opinion on Reclamation's Dam operations that fluctuating flows "jeopardize" the continued <br />existence of the humpback chub and "adversely modify" humpback chub critical habitat, and that to avoid <br />jeopardy and adverse modification Reclamation had to operate Glen Canyon Dam under anine-month <br />steady flow regime called "seasonally-adjusted steady flows." Furthermore, the GCT trust claims <br />Reclamation has violated ESA section 7(a)(2) by never "consulting" on Glen Canyon's "Annual <br />Operating Plans." Finally, they claim Reclamation has violated the National Environmental Policy Act <br />(NEPA) by not subjecting its Annual Operating Plans for Glen Canyon Dam to public environmental <br />review through an environmental assessment or environmental impact statement. Reclamation was <br />~3 <br />