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STATE OF COLORADO <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />1313 Sherman Strcct, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3441 <br />Fax: (303) 866 -4474 <br />www.cwcb.state.co.us <br />TO: Colorado Water Conservation Board <br />FROM: Randy Seaholm <br />Ted Kowalski <br />DATE: January 15, 2009 <br />Bill Ritter, Jr. <br />Governor <br />I larris D. Sherman <br />DNR Hxecutive Director <br />Jennifer L. Gimbel <br />CWCB Director <br />Dan McAuliffe <br />SUBJECT: Agenda Item 25.b, January 27 -28, 2009 Board Meeting CWCB Deputy Director <br />Water Supply Protection Section - Litigation Account <br />Republican River Compact Litigation <br />Background <br />As you know, the multi -year drought and increasing interstate and intrastate demands on the <br />Republican River have dramatically affected irrigation within the basin. As described in the <br />attached request from the Attorney General's Office, the State has been involved in extensive <br />and contentious negotiations with Kansas and Nebraska regarding enforcement of the <br />Republican River Compact and the settlement signed in 2003. In November 2007, the Attorney <br />General requested, and this Board authorized, the appropriation of $240,000 in order to prepare <br />for the expected forthcoming litigation. While these efforts are ongoing, and the State has <br />already expended significant resources towards this effort, we need to be prepared for additional <br />non - binding arbitration regarding the proposed Republican River pipeline and for the possibility <br />that the non - binding arbitration efforts (and any related negotiations) may fail. Therefore, the <br />Attorney General is request the Board to approve an expenditure of $110,000 from the Litigation <br />Fund for the Republican River Compact litigation. <br />Section 37- 60- 121(2.5)(a), C.R.S. provides: <br />The board is authorized to expend, pursuant to continuous appropriation and subject to the <br />requirements of paragraph (b) of this subsection (2.5), a total sum not to exceed [the balance <br />of the] litigation fund, which is hereby created, for the purpose of engaging in litigation: <br />...(III) To defend and protect Colorado's allocations of water in interstate streams and rivers;. <br />and (IV) To ensure the maximum beneficial use of water for present and future generations <br />by addressing important questions of federal law." <br />Section (b) of subsection (2.5) states: <br />Pursuant to the spending authority set forth in paragraph (a) of this subsection (2.5), moneys <br />may be expended from the litigation fund at the discretion of the board if (I) With respect to <br />Water Supply Protection • Watershed Protection & Flood Mitigation • Stream & Lake Protection • Water Supply Planning & Finance <br />Water Conservation & Drought Planning - Intrastate Water Management & Development <br />