Southeastern Colorado Water Activity Enterprise Minutes June 17 2004

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SECWCD June 17, 2004 6 RECORD OF PROCEEDING South Arkansas River exchange case continues to hinge on action by the Forest Service on these special use permit requests. Legal counsel is working with Mr. Hamilton on a response to a recent settlement offer from Public Service Co., the other remaining objector in the case, on conditions for the exchange. A status conference before the Water Referee was held Wednesday, June 16 in the District's case. Mr. Miller reported Department of Natural Resources Director Russell George has formed a group of water attorneys and State officials, the Colorado River Water Group, to provide advice to the State on Colorado River matters. Mr. Miller participated in the first meeting of this group. Director George indicated that he plans to use the group to explore options to address a possible Compact call, should releases from Lakes Powell and Mead be insufficient. The group will meet again on July 8. Mr. Miller reported in the Basalt Water Conservancy District case adding Green Mountain Reservoir as an augmentation source (No. 02CW078, Division 5), legal counsel has informed the Applicant's counsel that the District Board approved a stipulation based on the proposed decree legal counsel previously received. The Applicant's counsel is drafting a stipulation consistent with the proposed decree that legal counsel reviewed. Mr. Miller said legal counsel will review and execute the stipulation once they receive it. The District remains an objector in two other Basalt District cases (02CW077 and 01CW305). Mr. Miller reported counsel for the Colorado River Water Conservation District has sent a letter, informing legal counsel that the River District opposes any ranking of reservoir water for augmentation purposes, as legal counsel has requested in several Division 5 cases to which the District filed Statements of Opposition (Copper Mountain Metropolitan District, Eagle Park Reservoir Company, and two Shorefox LLC cases). Legal counsel continues to have concerns that Ruedi Reservoir stored water will be used in lieu of Wolford Mountain Reservoir releases, leaving a larger volume to fill in Ruedi Reservoir each spring, which could impact Boustead Tunnel diversions. The Eagle Park case recently was rereferred to Judge Ossola, and may be set for trial in the near future. Mr. Bailey moved, seconded by Mr. Stealey, to authorize legal counsel to take actions necessary to protect the District's interests in Ruedi Reservoir. Motion unanimously carried. Mr. Miller reported in the West Divide Water Conservancy District B Plan for Augmentation, Southeastern entered into a stipulation in May 2001 with West Divide. The Referee entered a ruling earlier this year that was consistent with Southeastern's stipulation, but to which the State and Division Engineer protested. West Divide has now stipulated with the State Engineer and. Division Engineer and amended the proposed ruling to remove some structures. Legal counsel received the new ruling and it is in compliance with the Southeastern's stipulation, thus there is no need for any further action on Southeastern's part. Mr. Miller provided to Mr. Broderick a memo providing advice regarding how the acreage limitations under the Reclamation Reform Act ( "RRA ") could be increased. Earlier this spring, the Fort Lyon Canal Company ( "Company ") Board of Directors requested the "support of the District to increase the 960 acre maximum for allocation of project water" established under Reclamation law. Mr. Miller's memo outlines two possible approaches to increasing the acreage limitation: (1) a legislative change or (2) requesting Reclamation to undertake a class 1 equivalency determination. Both legislation and equivalency determination present difficulties and require fnther discussion before proceeding. . CSU RESEARCH IN THE ARKANSAS RIVER VALLEY REPORT: Mr. Broderick introduced Tim Gates, Colorado State University, who gave a PowerPoint presentation entitled "Monitoring and Modeling Toward Optimal Management of the Lower Arkansas River Valley." President Everett recessed the regular meeting at 12:05 a.m., and reconvened at 1:04 p.m.