Prehearing Statement of the Town of Dillon

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Case No. 04CW217 Page 2 Dillon, Summit County, Silverthorne and the Colorado River Water Conservation District have entered into an agreement to study the feasibility and alternative designs for constructing and using the Enlargement. The specific changes or exchanges needed by Dillon have not yet been adjudicated, and Dillon is concerned that Silverthorne's proposed R_ICD will interfere with those uses. Dillon has opposed Silverthorne's application and is participating in this hearing to protect Dillon's water rights and facilities. Dillon is hopeful that terms and conditions can be crafted to allow Silverthorne to proceed with its RICD and to construct its Water Course below Dillon's exchanges without causing such harm. II. FACTUAL AND LEGAL ISSUES Issue 1: Whether the proposed RICD is too close to Old Dillon Reservoir and the First Enlargement, and would interfere with the use of those structures by exchange, and prevent beneficial use of Dillon's water rights on Straight Creek, Salt Lick Gulch, and in Old Dillon Reservoir and the Enlargement. Dillon's position: Silverthorne's application is unclear regarding the location of its upstream control structure and the upstream end of the RICD. Since Silverthorne claims that Salt Lick Gulch is one of the sources of water for the RICD, it appears that the RICD is located entirely below the confluence of Salt Lick Gulch and the Blue River. Such a location would generally allow for use of Old Dillon Reservoir and the Enlargement in future exchanges, although it could be more difficult to use those water rights for downstream augmentation. If the RICD begins above the confluence, it could significantly interfere with future changes and exchanges involving Old Dillon Reservoir and the Enlargement. ISSUE 2: Whether the proposed RICD stream reach should be moved downstream a short distance to avoid interference with Dillon's future exchanges on the Blue River above the confluence with Salt Lick Gulch. Dillon's position: Silverthorne's RICD should be clarified as beginning below the confluence with Salt Lick Gulch. If it was Silverthorne's intent to start its RICD above that point, it would not be too inconvenient to require that the RICD begin below that point. That requirement would not substantially affect the intended recreational facility or recreational uses. Such a requirement would maximize the beneficial use of Dillon's water rights by exchange or future changes. ISSUE 3: Whether the adjudication and administration of the proposed RICD would interfere with maximum utilization of the waters of the state, considering the likely interference with future changes, transfers or exchanges from Old Dillon Reservoir and Old Dillon Reservoir First Enlargement at the upstream end of the proposed RICD stream reach. F:\C11ents\D\DILLT2004CW217 SilvertMme RICD\CWCD RICD Hearing\Prehearirg Statement.doc 6I17I2005