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• Board Meeting Date: 7/22/2009
• Description: WSP Section - Upper Colorado River ESA Recovery Program - 10825 - Tuedi Reservoir Update
• Board Meetings - Doc Type: Memo

Agenda Item 21
Julv 21-22, 2009 Board Meeting
Page 4 of 6
As of early 2009, the outstanding debt on Ruedi Reservoir Round II water is $33 million.
Following expiration on the 2012 Agreeinent, Reclaination will have that 10,825 AF' available
for marketing. If this water is not marketed, the debt by 2019 will increase to an estimated $45
million.
Impact of Debt on Water Costs: According to the Fryingpan-Arkansas Project Act, the debt
must be paid by 2019. Please recall that the State indicated that it would somehow cover the cost
of Round II water that was not contracted for (see attached letter). As the debt accrues the cost
per acre-foot increases due to both the increased debt and the shortened repayment period.
Other Issues:
• Ruedi release rates and reservoir elevations, should they be revised in order to allow inore
flexibility to use Ruedi water? All parties understand that release rates could be inore
responsive to biological parameters rather than recreational (wadeability) factors as they are
at present. The parties also understand the potential impact of changes to the local economy
of the Fryingpan Basin. Any changes to the environinental coininitinents already inade, or
substantial changes to the preferred alternative discussed in the Record of Decision could
create the need for suppleinental NEPA coinpliance ineasures.
• A process is required to balance the needs between recreational users, water supply interests
and endangered fish during the development of the annual operating plan for Ruedi Reservoir
so that people have a clear understanding of what to expect in any given year. Ope~ating
plan meetings a~e held annually and Z~SBR continues to st~ive fo~ bette~ coo~dination with
the ope~ations of othe~ pa~ts of the Recove~y P~o~am.
Recommendation
Given the iinpact that storage in Ruedi for ESA purposes has on the cost of water, the water
providers would like Congressional legislation to make water for ESA purposes non-
reimbursable. Congressional action is needed to ensure repayment of the Ruedi debt on terms
that inake Ruedi Round II water affordable to the west slope so that the debt can be retired in a
reasonable period and the water put to beneficial use, as Congress intended. Water users and the
State of Colorado would like Congress pass stand alone legislation or ainend the Fryingpan-
Arkansas Project. The legislative package should consider the following:
1. Extension of the repayinent period for Round II water sales for 40 years or unti12059.
2. An extension of the development period for Round II water sales through 1996, the date of
the first sale of Round II water, and all accumulated debt associated with Round II between 1979
and 1996 cancelled.
3. The capital and OM&R costs of the 5,000 AF' of Ruedi water assigned to endangered fish for
Round II sales be declared non-reimbursable for the entire development and re-payment period.
The capital costs, OM&R costs and associated interest costs for the 5,000 AF' should be
eliminated from the debt that has accumulated on Ruedi Reservoir Round II water.