Case No. 02CW038 Prehearing Statement nad Agreement June 2000

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Colorado Water Conservation Board Case No. 02CW038, Water Division 4; Concerning the Application for Water Rights of the Upper Gunnison River Water Conservancy District, in the Gunnison River, in Gunnison County, Colorado Prehearing Statement of Colorado River Water Conservation District Page 2 of 5 the Upper Gunnison River Water Conservancy District ( "UGRWCD ") forthe Administration of Water Pursuant to the Subordination of Wayne N. Aspinall Unit Water Rights Within the Upper Gunnison River Basin, dated June 1, 2000 ( "Subordination Agreement "), attached hereto as Exhibit A. III. CRWCD POSITION A. The Exercise of UGRWCD's Claimed RICD Could Impair Maximum Utilization of the State's Waters'and Efforts to Fully Develop and Place to Consumptive Beneficial Use Colorado's Compact Entitlements by Interfering with the Full Implementation of the Subordination Agreement. The Subordination Agreement provides that the United States will operate the Aspinall Unit to allow 60,000 acre feet of junior depletions annually by projects constructed to use water within the Gunnison River Basin, even though those projects would divert under priorities equal or junior to the priorities of the Aspinall Unit water rights. The intent of the Subordination Agreement is to allow up to 60,000 acre feet of consumptive use by water rights junior to the Aspinall Unit within the Upper Gunnison River Basin. The Subordination Agreement therefore promotes maximum utilization of the state's waters and full development of the state's compact entitlements. The claimed RICD could prevent the full utilization of the depletions allowed by the Subordination Agreement by calling out junior water rights that would not otherwise be subject to call by the Aspinall Unit. The 60,000 acre feet of depletions contemplated by the Subordination Agreement are divided by geographic location: 10,000 acre feet of annual water depletions are allowed in the Gunnison River Basin drainage between Crystal Dam and Morrow Point Dam; 10,000 acre feet of annual depletions are allowed in the drainage between Morrow Point Dam and Blue Mesa Dam; and 40,000 acre feet of annual depletions are allowed in the drainage above Blue Mesa Dam. By subordinating the Aspinall Unit water rights to the 60,000 acre feet of depletions, the United States has agreed that in -basin water users may continue to divert when a call is placed on the Gunnison River by the United States under the Aspinall Unit water rights. Under the terms of the Subordination Agreement, the CRWCD and UGRWCD are responsible for representing the various in -basin water users who benefit from the subordination. Specifically, the CRWCD is responsible for representing the interests of individuals and entities who divert water upstream of either Crystal Dam or Morrow Point Dam and use the diverted water downstream of Blue Mesa Dam. Although the claimed RICD is nonconsumptive, individuals and entities in that geographic area could be adversely affected by the claimed RICD if their water use plan involves an exchange of water Itpstream 17 the lurnison Whitewater Course or otherwise involves reservoir operation,, ups: am of tlt, prol.iosed Gunnison Whitewater Course, e.g.,