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I will address just one of the more contentious issues in the still ongoing negotiations over the <br />programmatic biological opinion on flow depletions above the 15 Mile Reach of the Colorado <br />River -- the legal protection of the instream flows needed for endangered fish recovery. I will <br />also offer the optimistic view that we can reach an agreement on the Programmatic Opinion very <br />soon, if we are willing to do without one of the original, crucial planks for the whole Recovery <br />Program for endangered fishes in the Upper Colorado River Basin -- that the instream flows <br />needed to comply with the federal Endangered Species Act, as determined and recommended by <br />the U.S. Fish and Wildlife Service, will be legally protected under state water laws. <br />I have given you (attached) the expression of this plank in the so- called Blue Book in which the <br />Recovery Program was first officially formulated in late 1987. The idea was to avoid the <br />potential conflict between water development under state sanctioned water rights and interstate <br />compacts and the legal regulation of such water development under the Endangered Species Act. <br />At that time, The Nature Conservancy wanted to help avoid such a conflict and was persuaded <br />that it would be difficult to protect the instream flows needed for endangered fish recovery by <br />federally regulating water depletions project -by- project or by establishing instream flow rights <br />under federal law. Without instream flow water rights, flows that could not be developed <br />because of federal consultations under the Endangered Species Act could just become a windfall <br />for the next project. The Nature Conservancy then worked hard and consistently for over a <br />decade to support the application of Colorado's instream flow laws to protect the flows <br />recommended by the U.S. Fish Wildlife Service. <br />One assumption ten years ago was that new water depletions could proceed apace with fish <br />recovery. There was a decreasing likelihood that any new, big water projects would be <br />constructed in the post - reclamation, post -oil shale era of the Upper Basin (outside of the San <br />Juan River subbasin). It was also thought the instream flows needed for fish recovery would be <br />specified and protected on the front -end of the Recovery Program. Instream flow water rights <br />established under state law would control whether new depletions were consistent with fish <br />recovery and would supplant the legal regulation of depletions in biological consultations under <br />the Endangered Species Act before new depletions really started to accumulate. <br />At the outset of the Recovery Program, the protection of instream flows was not limited to new <br />appropriations of instream flow water rights, which would start out as the most junior on the <br />stream. An expansive mix of strategies was envisioned in which surplus water from federal <br />water projects would be delivered for instream use, the. operation of federal water projects would <br />be changed to physically regulate instream flows, and senior water rights, both absolute and <br />conditional in Colorado, would be purchased and converted to instream flows. <br />One of the earlier proposals was to spend $6 million out a $10 million water rights budget on the <br />purchase of the conditional water rights for the massive Juniper -Cross Mountain hydropower <br />project on the lower Yampa River. Under the Recovery Program any such water rights <br />purchases, and all other recovery measures, will be largely funded with federal dollars. Over the <br />last ten years, water users have only contributed about 3% of the total program budget, mostly in <br />1 <br />