Agenda Item 20b: Colorado River Issues, Endangered Species Issues

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MEMORANDUM - Ruedi Reservoir Page 3 ® The State of Colorado, through the CWCB, pays the $12 million for the 21,650 AF. This is a problem because the Service is not now willing to agree that, at the end of the 15 -year interim contract period, Colorado could utilize the 21,650 AF. The CWCB is not willing to consider paying for water that the Service may not allow to be used after the 15 -year period. Further, with constraints on delivery of Ruedi water caused by the flow limitations on the Fryingpan River, the CWCB might be purchasing water that may not be deliverable to future users unless there is a winter demand for delivery. © Legislation to "freeze" the repayment clock during the 15 -year interim contract period. This is a CWCB suggestion. At the end of the 15 -year period, the Service would conduct a Section 7 consultation on the 21,650 AF, Reclamation would market the water (or a portion of the water), and the repayment cost to contractors would be based on 1997 levels. Jack Garner does not favor this proposal because it just delays the problem for someone else to solve. He also believes that it would be very difficult to get Congressional and Administration support for legislation freezing a repayment obligation. I have spoken to David Bernhardt of Congressman McInnis' office. David agrees that legislation freezing the repayment obligation would be extremely difficult to move through the Resources Committee or pass the House floor. ® Split the 21,650 AF between the CWCB and permanent allocation to fish, wildlife, and recreation. Under this proposal, the CWCB would pay for 50% (or 10,825 AF - $6 million) and the other 50% (10,825 AF - $6 million) would be permanently allocated for fish and wildlife purposes. I am using 50% to show the concept; the exact split would have to be negotiated. Under this proposal, the Recovery Program could utilize the CWCB's share during the 15 -year interim contract period. After the interim contract period, the CWCB would have full unrestricted use of its share of the water. # At the CWCB meeting on Friday, March 21, 1997, Jack Garner informed the CWCB that Reclamation prefers this alternative. My understanding is that the Service has taken this alternative "under advisement," but at the March 18, 1997 meeting, John Hamill stated that the Service believed this alternative has the most promise.