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12. Administrative Conditions. A. Storage limitations. (1) Applicant will, in consultation with the Division Engineer, establish a reservoir accounting system for Morrison Creek Reservoir. The accounting year shall have a start date of April 1. Water stored in the Morrison Creek Reservoir under the Pleasant Valley Project Rights will be first accounted for under the first fill up to an amount being the lesser of 4,965 acre feet or the actual constructed capacity of the Reservoir. Subject to the provisions of this decree, this first fill will be accounted for and administered under the 1959 Rights. Some or all of this water may be subsequently delivered to Stagecoach Reservoir as above provided and/or may be released for delivery down Morrison Creek and the Yampa River for beneficial use. (2) As reservoir storage space becomes available in the Morrison Creek Reservoir as a result of deliveries to Stagecoach Reservoir, the District will continue to fill the Morrison Creek Reservoir, when in priority under the Pleasant Valley Project Rights, under a second fill with the total yearly storage and diversions not to exceed the lesser of 10,620 AF or the sum of the first and second fills of the actual constructed capacity of the Reservoir, plus evaporation replacement calculated by multiplying the surface area of the Reservoir by 1.84 feet/year. Subject to the provisions of this decree, the second fill under the Pleasant Valley Project Rights will be accounted for and administered under the 2001 Rights. Some or all of this water may be subsequently delivered to Stagecoach Reservoir as above provided for such beneficial use, and/or may be released for delivery down Morrison Creek and the Yampa River for such beneficial use. The District shall develop and implement an accounting system that tracks the amount and priority of water stored in Morrison Creek Reservoir and water that has been stored and subsequently delivered to Stagecoach Reservoir. The accounting system will be developed in concert with the Division Engineer's Office. (3) The District shall separately account for water diverted and stored in Stagecoach Reservoir under the Pleasant Valley Project Rights changed herein (the "Morrison Creek Pool"). At the start of each accounting year (April V), all water remaining in storage in Stagecoach Reservoir in the Morrison Creek Pool and in Morrison Creek Reservoir, pursuant to the Pleasant Valley Project Rights changed herein, shall be credited against the first fill of Morrison Creek Reservoir for that year and shall be accounted for and administered under the 1959 Rights, in an amount not to exceed 4,965 AF. Any amount in excess of the first fill will be credited against the second fill of Morrison Creek Reservoir and accounted for and administered under the 2001 Rights, and will be considered to be stored in Morrison Creek Reservoir unless prior to April I the District notifies the Division Engineer that some portion of the 2001 Rights are being stored in Stagecoach Reservoir. CASE NO. 07CW61 FINDINGS OF FACT, CONCLUSIONS OF LAW, AND JUDGMENT AND DECREE PACE 8