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Lower San Miguel yVa~er Resource Planning Study Page 1 I. Executive Summary The Colorado Water Conservation Board (CWCB/Board) and the Southwestern Water Conservation District (SWCD) jointly sponsored the Lower San Miguel River Water Resources Planning Study which was performed by Harris Water Engineering, Inc. The major objective of the study was to work closely with the interested parties in the basin to develop and evaluate alternatives for the use of the Uravan Water Rights which were, or will be, conveyed to the CWCB from the Union Metals Corporation (Umetco). In evaluating the alternatives, the study looked at the instream flow needs, the water needs of the local communities, and the specific water needs for arecreation/education area located near the original town site of Uravan. As the alternatives were developed, it became very clear that the local interests were concerned that the preferred alternative(s) result in the least effect on the existing water administration in the basin as possible. This concern was due to the senior priorities of the Uravan Water Rights. Various alternatives were developed and evaluated which included: using the water rights as decreed; changing all water rights to instream flow uses; conveying all water rights to the local governments; sale of the water rights; relinquishing the water rights to the stream; or some combination of these alternatives. The combination of alternatives was determined to yield the best mix of practical and desirable benefits for the varied interests in the basin. This preferred alternative formed the basis for the SWCD's preliminary recommendation. The SWCD recommendation is preliminary in order to allow for additional time to review the study, secure additional comments from the public and for discussion with the CWCB. The preliminary recommendation included the following components: • The Tabeguache Wells No. 1 and No. 2 and the Uravan Well No. 2 should be conveyed to Montrose County for its use. • The Johnson Ditch water rights should be conveyed to the local governments (Nucla, Naturita and Montrose County) who were signatories to the MOU with the CWCB, for their use to meet existing and future lower basin needs. The local governments should also explore the opportunity of loaning or leasing to the CWCB the changed consumptive use portion of the Johnson Ditch direct flow rights through the CWCB Water Acquisition Program (H.B 1280 provisions). • The Mineral Camp Well, Uravan Well No. 1 and the Eula Belle Mine Well should be relinquished to the stream. • The Miguel Power Company Canal water rights should be relinquished to the stream. • The spirit of cooperation among the local, state and federal governments, local water users, special interest groups, and the public should be maintained and encouraged as the recommendations are followed. • The balance in these recommendations is very important and should be maintained. • Consultation with the Division Engineer is recommended prior to any water court action to change the Uravan water rights. The SWCD acknowledges the desire of the Colorado Division of Wildlife (CDOW), the U.S. Bureau of Land Management (USBLM), and other entities in the San Miguel River basin to further evaluate the possibility of a new instream flow appropriation on the lower San Miguel ~Iuly 2008