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Linda Bassi, Esq July 7, 2010 Page 2 No. 07CW72, the District requested a new storage right for the Morrison Creek Reservoir in the same location on Morrison Greek and for the same purposes as described in 07CW61. The application for a new junior right was filed by the District as a backup to its request for a change in the location of a portion of its Pleasant Valley Reservoir at the upstream Morrison Creek site. The water court subsequently consolidated the two cases due to their similarities. Opposition was filed to the two applications by several individuals, the State and Division Engineer, and the CWCB. The District subsequently entered into stipulations with the parties and obtained a final decree from the court awarding storage rights on Morrison Creek of up to 10,620 acre feet (AF) associated with its Pleasant Valley Reservoir and Feeder Canal water rights. By stipulation with the parties, the District's application in Case No. 07CW72 was dismissed. As part of fts Stipulation and Agreement entered into with the CWCB, the District agreed that prior to inundating any of the CWCB's instrearn flow righ, on Silver Creek it would request and obtain approval from the CWC;B for such storage and partial inundation of Silver Creek pursuant to the provisions of 2 CCR 408-2. Section 7. This request by the District is made in fulfillment of this agreement. The District delayed its pursuit of this inundation request in order to facilitate a coordinated discussion between the numerous State, local and federal agencies that would be involved in permitting the project. While that process is ongoing, the District has decided to pursue this request at this time as a result of conversations with CWCB staff and the CWCBs current instrearn flow request on Morrison Creek (CWCB ID: 1016/A-003.). 2.0 PURPOSE AND NEED The purpose of the Morrison Creek Reservoir is to help firm the Storage supply in the Distri[ct's nearby Stagecoach Reservoir and/or provide direct reservoir release for domestic, municipal, irrigation, and other uses to its constituents and contractees within its service area. The Distftt's service area covers nearly all of Routt County and a portion of Moffat County. It extends from the headwaters of the Yampa River and fts tributaries downstream to an area just souith and west of the Cfty of Craig. The Morrison Creek Reservoir is an "indentified projecr to meet the objectives of the CWCBs 'Water for the 21 Century" initiative. The District has existing contract commitments in its Stagecoach Reservoir for delivery of approximately 13,000 AF annually. It also has adjudicated an area-wide augmentation plan, approved by the court in Case No. 06CW49, to provide for additional contracts in the am6unt of up to 2,000 AF of annual releases for augmentation to additional District contractees (total storage commitment of 15,000 AF). Hydrologic studies completed by the District conclude that the firm yield of water available for storage in Stagecoach Reservoir is approximately 9,247 AF annually, 5,753 AF short of the District's existing contract pool totals. Construction of the Morrison Creek Reservoir is planned to help firm the yield of Stagecoach Reservoir by importing water from the adjacent Morrison Creek basin into Stagecoach during dry year conditions. This imported supply would not otherwise 'nave been availabie to Stagecoach Reservoir and WHRESOURCE @Boom N E E P I N G I N C