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(4) In establishing its annual release schedule from Stagecoach Reservoir, the District may elect to first release water from its Morrison Creek Pool before releasing water that is stored in Stagecoach Reservoir from Yampa River Sources. The District shall separately account for releases made from the Morrison Creek Pool stored in Stagecoach Reservoir. Prior to any release of water from the Morrison Creek Pool in Stagecoach Reservoir the District shall notify the Division Engineer's Office of the date and rate of such release. After providing such notice, and to account for fluctuations in releases from the Reservoir, all releases of water stored in Stagecoach Reservoir shall be attributed to the Morrison Creek Pool until such time when the Morrison Creek Pool is vacated or the District notifies the Division Engineer of any cessation in the rate of release of water from Morrison Creek Pool or combination of releases from the Morrison Creek Pool and other Yampa River Sources. Absent such notice that the District is releasing water from the Morison Creek Pool, storage releases from Stagecoach Reservoir will be accounted as a release of water stored in Stagecoach Reservoir from Yampa River Sources. B. Bypass and other requirements: (1) In the event of a call placed by the Colorado Water Conservation Board for its instrearn flow right on the Yampa River decreed in Case No. 0 1 CW 106, which call is recognized and administered by the Division Engineer, the District shall maintain a bypass flow through the Morrison Creek Reservoir as the lesser of 1) the natural inflows to the Reservoir, or 2) the amount necessary to bring the Yampa River flow just downstream of the confluence with Morrison Creek up to the decreed instream flow amount. (2) During such times when the District is filling Morrison Creek Reservoir under the Pleasant Valley Project Rights as changed herein, bypasses will be made at the dam of the Morrison Creek Reservoir as necessary to satisfy a call recognized and administered by the Division Engineer from existing decreed water rights with priorities senior to October 30, 2007, but junior to the June 29, 1959 appropriation for the Pleasant Valley Project Rights, that are then diverting from points located on potentially affected reaches of Morrison Creek, and the Yampa River from its confluence with Morrison Creek down to its confluence with Walton Creek, but only as further described below: (a) In the event of a call placed by any water right(s) located between the confluence of Morrison Creek and the Yampa River and the confluence of Walton Creek and the Yampa River, which call is recognized and administered by the Division Engineer, bypasses will be made in the amount necessary (in conjunction with other rights junior to October 30, 2007) to satisfy such a call by such water right(s). CASE NO. 07CW61 FINDINGS OF FACT, CONCLUSIONS OF LAW, AND JUDGMENT AND DECREE PAGE 9