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Exhibit 2 STATE OF COLORADO Bill Ritter, Jr., Governor DEPARTMENT OF NATURAL RESOURCES b t DIVISION OF WILDLIFE y4� AN EQUAL OPPORTUNITY EMPLOYER 0 OF Thomas E. Remington, Director 6060 Broadway For Mldllife- Denver, Colorado 80216 For People Telephone: (303) 297 -1192 wildlife. state. co. us December 10, 2010 Ms. Linda Bassi Colorado Water Conservation Board Stream and Lake Protection Section 1313 Sherman Street, Room 723 Denver, Colorado 80203 Re: Colorado Division of Wildlife Instream Flow Recommendations for the San Miguel River. Dear Linda, The purpose of this letter is to formally transmit the Colorado Division of Wildlife's (CDOW) Instream Flow Recommendations for San Miguel River. The importance of this stream reach has led to cooperation between the Bureau of Land Management (BLM) and the CDOW to document the natural environment in this stream reach and to implement cooperative studies to determine the flow rates needed to support the natural environment. This portion of the river is known to provide habitat for flannelmouth sucker, bluehead sucker, and roundtail chub. The BLM and CDOW are signatories to a multi -state conservation agreement designed to protect and enhance habitat for these species, with the objective of preventing a listing of these species under the Endangered Species Act. Establishment of instream flow protection for streams known to provide habitat for the three species is identified as a priority conservation action under this agreement. The lower San Miguel River is also known to provide habitat for globally imperiled riparian communities and other important riparian communities, because of the free - flowing hydrology of the river. These globally impaired communities include New Mexico Privet riparian shrubland and Skunkbrush riparian shrubland. Other important riparian communities include Narrowleaf Cottonwood Communities and Fremont Cottonwood communities. The Colorado Natural Heritage Program has identified two potential conservation areas along this reach of the river because of these riparian communities and species. The CDOW and BLM believe that instream flow protection for these values can be achieved while allowing water to be developed for current and future needs, including municipal, industrial and agricultural uses. Almost three years have elapsed since the BLM and CDOW provided an initial flow recommendation to the Colorado Water Conservation Board (CWCB), in the form of a draft instream flow report. In those three years, BLM, CWCB and CDOW staff members have attended multiple public meetings within the watershed to explain the instream flow proposal and its potential impact of DEPARTMENT OF NATURAL RESOURCES, Mike King, Executive Director WILDLIFE COMMISSION, Tim Glenn, Chair • Robert Streeter, Vice Chair • Mark Smith, Secretary Members, David R. Brougham • Dennis Buechler • Dorothea Farris • Allan Jones • John Singletary • Dean Wingfield Ex Officio Members, Mike King and John Stulp