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� <br />West Divide Board of Directors <br />September 30, 2008 <br />Page 2 <br />� <br />Division of Water Resources determined that the Crystal River watershed could be included within the <br />District's decreed regional augmentation progam. The augmentation program allowed individual water <br />users to obtain well permits for residential properties; such permits would otherwise be difficult to secure. <br />In 2004, the Colorado Division of Water Resources administratively determined that the Crystal River <br />portion of the District's regional augmentation program service area could no longer be operated without <br />injury to senior water rights. As a result of this determination, approximately 20 existing water users no <br />longer have a legal water supply. In addition, it is currently very difficult for other rural residents in the <br />area to obtain well permits or a legal water supply. <br />Supporters of the project include Jason and Jayme Sewell, who are the owners of agricultural land within <br />the Crystal River watershed. The proposed water storage sites that are the subject of this application are <br />located on the Sewell's Property. <br />STUDY OBJECTIVES <br />This project will facilitate the construction of one or more small off-channel reservoirs on the Sewell <br />Property. The project's primary and cooperative water supply objectives are: <br />1. Develop in-basin augmentation water supplies for approximately 20 existing West <br />Divide contractees who no longer have a legal water supply. <br />2. Provide supplemental late season irrigation water for use on the Sewell Property. <br />3. Develop in-basin augmentation supplies for potential future West Divide customers, <br />to the extent that water storage may exceed the demands for the above objectives. <br />4. Provide water for instream flow maintenance of the Crystal River. <br />This project is intended to develop multi-purpose water supplies that can be used in a coordinated and <br />cooperative manner to optimize benefits within the Crystal River watershed. The proposed storage sites <br />have been reviewed in the field to identify site conditions that may impact construction. No fatal flaws <br />were identified during these site reviews. <br />Crystal River water rights that are adjudicated to the West Divide Water Conservancy and to the Colorado <br />River Water Conservancy District have been reviewed. It has been determined that these conditional <br />water rights will likely provide a viable and reliable source of supply to the proposed storage facilities. <br />Water right administration of the Crystal River has been reviewed with the Division of Water Resources. <br />From this review it has been determined that the reservoir sites are in a location that can satisfy the water <br />supply objectives outlined in item 3 above. A preliminary discussion of permit requirements has been <br />