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<br />, <br />PREHEARING STATEMENT OF COLORADO RIVER WATER CONSERVATION DISTRICT <br />Concerning the Application for a Recreational In-Channel Diversion for the Town of Silverthorne, Colorado <br />Page 2 <br />obtain a change decree or exchange decree that allows maximum use of the water rights listed <br />above to meet future water demands. Because it is anticipated that Silverthorne will be an active <br />participant in the Old Dillon Enlargement, the River District is hopeful that this issue can be <br />resolved before the CWCB hearing. <br />B. Blue River Pumpback from below Silverthorne <br />As part of the UPCO project, the participants initiated Phase III to develop solutions to the <br />problems and impacts defined in the May 2003 UPCO Report. Several of the participants, <br />including the River District, hired Boyle Engineering to prepare a Summit County Water Supply <br />Study. Boyle completed an analysis of seven alternatives to meet future water demands in Summit <br />County in a Report, dated December 15, 2004. See Exhibit C. The most promising combinations <br />included the re-operation of the existing Clinton Reservoir and the "Everist Pumpback Project," <br />which consisted of a pumpback from below Silverthorne, near the current Everist gravel mine <br />operations, back to either the Dillon dam outlet works or into Dillon Reservoir. Water rights for <br />the Everist Project would be junior to the Silverthorne RICD. <br />The River District would like to continue warking cooperatively with Silverthorne and the <br />other water users in Summit County to pursue the pumpback project because it could help meet a <br />significant portion of future water demands. It is also anticipated that the pumpback could help <br />resolve long-standing disputes with Denver Water. The River District believes the Everist Project <br />could work in harmony with the Silverthorne RICD by allowing a second use of water flowing <br />through the RICD reach. The Everist Project could even be used to augment flows through <br />Silverthorne. The River District wants to ensure that Silverthorne will not object to the Everist <br />Pumpback based on the adjudication and operation of the RICD. <br />C. Use of the Upper Blue Water pursuant to the Colorado Springs Substitution <br />Agreement <br />On May 15, 2003, the River District, through its Enterprise, entered a Memorandum of <br />Agreement ("MOA") with Colorado Springs Utilities ("CSU"), Denver Water, Northern Colorado <br />Water Conservancy District, Summit County, Breckenridge, and Vail Resorts. Attached as Exhibit <br />D. The MOA dictates that CSU will hold 250 acre feet of water physically stored in CSU's Upper <br />Blue Reservoir ("Upper Blue Water") in a West Slope account for use by the River District and its <br />contractees. MOA at 7. Pursuant to the terms of the MOA, the River District and its contractees <br />may reuse and successively use all return flows of the Upper Blue Water. MOA at 9. The River <br />District wants to ensure that Silverthorne will not object to the use and reuse of the Upper Blue <br />Water and any related exchanges.