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releases from Lake Granby, improvements to the Orchard Mesa Irrigation Project and a variable contract <br />for a lesser amount of Ruedi water. The Northern Colorado WCD has provided a very innovative <br />approach for providing water from Lake Granby and on first impression received a favorable response. <br />Grand River Consultants is now in the process of identifying other parties that may benefit from the full <br />proposal and such maybe important to the ultimate financing package. As I noted in my report last <br />meeting, the State under certain conditions made commitments to repayment of a portion of the Ruedi <br />Reservoir construction costs and those commitment will be considered in the development of a financing <br />package. I would note that this project and the necessary agreements with the U.S. Fish and Wildlife <br />Service will most likely not be completed by 2009 as provided for in the PBO. Therefore, interim water <br />agreements to bridge the gap between 2009 and project completion will be required. It appears at present <br />the easiest option may be extension of the 2012 agreement for Ruedi water. We will continue to keep you <br />posted on this matter. (Randy Seaholm) <br />UPPER COLORADO RIVER RECOVERY PROGRAM - ASPINALL UNIT RE- <br />OPERATIONS UPDATE: The U.S. Bureau of Reclamation has provided a copy of the Preliminary <br />Draft Environmental Impact Statement (PDEIS) to the cooperating agencies for review and comment. <br />Comments of the cooperating agencies were discussed with Reclamation at a cooperating agencies <br />meeting on September 3'd. I have attached a copy of our comments. (Attachment 14d-09) <br />Reclamation has not yet identified a preferred alternative and there remains great debate over whether or <br />not the preferred alternative should be a risk of spill alternative that is preferred by power interests or <br />alternative B which is considered to provide slightly more benefits to the endangered fish. As with all <br />modeling it is difficult to model the complexities of actual water operations. <br />In the Gunnison Basin given the many opposing views and the complexities of how operations occur or <br />should occur it has been even more difficult. Our staff believes that no matter which alternative is <br />selected as the preferred alternative, the operational meetings that Reclamation has hosted 3 times per <br />year over the last 15 or so years have provided an effective means for developing the annual operations of <br />the Aspinall Unit that provide the best balance of benefits for all resources and interests. <br />These meetings should continue to be the means for developing Aspinall operations rather than letting a <br />particular alternative or interest drive the discretionary operations and our comments are structured to try <br />and achieve that result while also trying to protect the interests of all water users of the State. <br />Reclamation remains on a schedule to try and complete the EIS by the end of the year. However, given <br />the competing positions and the introduction of the Selenium issue into the PBO Section 7 consultation <br />process it is becoming increasingly uncertain whether or not that can be accomplished. (Randy Seaholm) <br />UPPER COLORADO RIVER RECOVERY PROGRAM - GUNNISON BASIN <br />SELENIUM ISSUE: The re-operation of the Aspinall Unit to attempt to meet the flow <br />recommendations for endangered fish is part of the Recovery Program Action Plan (RIPRAP) and is also <br />hoped to be sufficient to provide for a Programmatic Biological Opinion (PBO) for the Gunnison Basin. <br />The PBO would provide the "reasonable and prudent" alternative covering all water uses and a small <br />increment of new uses in the Gunnison Basin under the ESA. While the US Fish and Wildlife Service <br />(USFWS) could issue a Biological Opinion on Aspinall operations without considering water quality and <br />selenium concentrations, it does not believe it can do so for a PBO covering the entire basin. The <br />'~~~ 14 .w <br />~e <br />~~ <br />