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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />In 2001 the Colorado Division of Water Resources, Division 5, filed the decennial abandonment list <br />with the water clerk claiming abandonment of a portion of the absolute water rights decreed to Bull <br />Creek Reservoirs Nos. 1, 2 and 4. In the case of Reservoirs Nos. 1 and 2 the Division Engineer is <br />claiming that the reservoir basins are not as large as those stated in the absolute decrees. In the <br />case of Reservoir No. 4 the Division Engineer is not arguing the capacity of the reservoir, but <br />instead had previously placed a filling restriction on the reservoir because the crest width of the <br />dam does not meet current State Engineers guidelines and rules for minimum crest width. This <br />effectively caused a reduction in allowable storage, which predicated the abandonment <br />proceedings. Lastly, a visual inspection by the Division 5 Dam Safety engineer in 2003 raised <br />questions of a possible high phreatic level in the embankment, although this has neither been <br />proven nor disproven, and potential instability that can be associated with a high phreatic level. <br /> <br />The Reservoir Company responded in a timely fashion to the abandonment proceedings. This has <br />resulted in a "Stipulation and Agreement" ("Agreement," Appendix B) between the Colorado <br />Attorney Generals Office and the Bull Creek Reservoir, Canal and Power Company. This was <br />signed October 31, 2003. The Agreement stipulates rehabilitation and enlargement of the <br />reservoirs must be physically completed by October, 31,2004. <br /> <br />PROJECT SPONSOR <br /> <br />) OI' ~ <br />The Bull Creek Reservoir, Canal and Power Company is a non-profit corporation registered in the <br />State of Colorado. There are 19 shareholders and 500 shares of stock. The Reservoir Company <br />has the power to set annual assessments to be paid by the shareholders, the power to cut off <br />water deliveries to shareholders that fail to pay their assessments, and the power to offer stock <br />for sale to pay back assessments. <br /> <br />PROJECT SERVICE AREA AND FACILITIES <br /> <br />The Reservoir Company provides irrigation water to approximately 800 acres in Mesa County. <br />The water stored by the project is the primary source of mid- to late summer irrigation water. <br />Figure 1 shows the location of the reservoirs and the service area. Irrigated acreage within the <br /> <br />Bull Creek Reservoir, Canal and Power Company <br />Bull Creek Reservoirs Nos. 1,2 and 4, Feasibility Study <br />May 31,2004 <br /> <br />Page 3 of 12 <br />