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#; � • ,� SUtriIIlal'y Elkhead Reservoir Enlargement Project Elkhead Reservoir was construc#ed in 1974 by the Colorado Division of Wildlife to provid� fishing and recreation in the vicinity of Craig, Colorado, and emergency cooling water for the Craig coal- fired power station now owned by the Yampa Participants and operated by Tri-Sta.te Generation and Transmission (Tri-State). The reservoir was constructed with a storage capacity of approximately 13,800 acre-feet, 8,310 acre-feet dedicated to emergency cooling water supply and 5,490 acre-feet dedicated to fishing and reereation. The Yarnpa Participants own only water in the reservoir and no portion of the property or reservoir facilities. In 1990 the City of Craig "purchased" the reservoir from the CDOW to provide water supply storage for the City and to assure the quality of the recreation resource at the faci:lity. The purchase agreement contained conditions which were completed in 2002. The Recovery Program for Endangered Fishes of the �Tpper Colorado (Recovery Program) has considered options for augmenting flows in the Yampa River since 1989. A wide range of alternatives for storage and water management were considered from 1990 through 2004. In November 2004 the U.S. Fish and Wildlife Service (Service) issued "A Management Plan For Endangered Fishes in the Yaxnpa River Basin and Environmental AssessmenY' (Yampa Plan) � identifying an enlargement of Elkhead Reservoir as the preferred alternative for enhancing stream flows for the listed fishes. The current enlargement includes the implementation of the . recommendation of the Yampa Plan for flow augmentation storage supply. _,� , - _ : _ , The enlargement of Elkhead Reservoir will add approximately 11,750 acre-feet to the existing reservoir volume by raising the active poo120 feet. The allocation of the enlargement pool is as follows: Recovery Program pool 5,000 acre-feet River District pool leaseii to the Recovery Program for 20 years 2,000 acre-feet River District contract pool 4,750 acre-feet Current estimates of overall project costs are $30,945,500. Our estimate of project costs allowed for grant computa.tion purposes under C.R.S. 37-60-122.2 pazagraph 2(d) is $20,971,082 based on expenditures to date and anticipated expenditures.