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• Board Meeting Date: 7/22/2008
• Description: ISF Section - Lower San Miguel Water Resources Planning Study
• Board Meetings - Doc Type: Memo

Lower San Miguel yVa~er Resource Planning Study
Page 3
III. Background
The State of Colorado in 1983 filed suit in U.S. District Court against Union Carbide and
its subsidiaries under the Comprehensive Environmental Response, Compensation, and Liability
Act (CERCLA) for the release of hazardous substances from its Uravan mill in western
Montrose County. Union Carbide in 1984 formed the Union Metals Corporation (Umetco) to
address the litigation and reclamation activities at the mill site. The litigation was resolved by the
entry of a consent decree in February of 1987.
III.A Consent Decree
The Consent Decree (Civil Action 83 -C-23 84) did a number of things including: 1)
establishing a Remedial Action Plan for reclamation of the Uravan site, 2) establishing the
Uravan Water Trust (Trust), 3) specifying the use of the "Johnson Ditch" water rights during the
reclamation process, 4) decreeing ownership of "Johnson Ditch" water rights to CWCB upon
completion of reclamation activities, and 5) conveying the title of the Miguel Power Company
Canal water right to the CWCB. It should be noted that the Miguel Power Company Canal water
right is separate and distinct from the Trust and the "Johnson Ditch" water rights.
III.B Uravan Water Trust
The Trust was responsible for the protection and use of the "Johnson Ditch" water rights
during the reclamation process. The trust was made up of two trustees, one from the State of
Colorado and one from Umetco. All actions of the trustees were to be unanimous, with any
disagreement going back to the court for resolution. The State trustee is currently Leo Large and
the Umetco trustee is Tom Gieck.
The Trust was to ensure the "Johnson Ditch" water rights were: 1) available for Umetco's
remediation efforts, 2) available for beneficial use of valid water right holders on the San Miguel
River who, in the joint determination of the Trustees, demonstrated that the milling operations,
disposal practices, or remedial activities at the Uravan facility had created water quality
conditions which materially impaired the ability of that user to put those rights to their decreed
use, and 3) conveyed to the CWCB when reclamation is completed.
III.C Memorandum of Understanding
Since the entry of the Consent Decree, the immediate upstream towns of Nucla and
Naturita and Montrose County (local governments) had expressed concern about the CWCB's
use and disposition of the Uravan Water Rights. To address this concern a Memorandum of
Understanding (MOU) was drafted and entered into by the towns of Nucla and Naturita,
Montrose County and the CWCB. The purpose of the MOU, which was signed in April of 1991,
was to alleviate the concerns which had been expressed by the local governments. The MOU
provided that: 1) CWCB utilize the Uravan Water Rights in accordance with its statutory powers
and duties, 2) CWCB fully and completely consult with the local governments regarding the use,
disposition, or abandonment of the Miguel Power Company Canal prior to taking any action
regarding that water right, 3) CWCB notify the local governments of the termination of the Trust
within 18o days of such termination, 4) CWCB agree not to sell, lease, grant, or otherwise
~Iuly 2008