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Funding the construction of this project is Colorado's responsibility. It is anticipatedthatthe <br />following tasks will be accomplished leading up to full operation of Tamarack Phase 1 for <br />Program purposes: <br />2.1 Colorado will secure any necessary state or federal authorizations and appropriate <br />compliance under the National Environmental Policy Act (NEPA) prior to the end of year 2 <br />of the Program. <br />2.2 Colorado will construct and begin operation of 50% of the Phase 1 Project by the end of <br />year 2 of the Program. <br />2.3 Colorado will account for Tamarack Phase 1 water passing to the Colorado- Nebraska <br />state line. Any permits necessary to protect water to the associated habitat and/or for <br />exchange to an Environmental Account for storage reservoirs on the Platte River system in <br />Nebraska will be attained. Note, whether any Nebraska permits will be needed, who will <br />obtain them if they are, and who will pay for the cost of obtaining those permits is still being <br />discussed. <br />2.4 Colorado will commence full Phase 1 operations by the end of year 4, after consultation <br />with the FWS's Environmental Account Manager to help Colorado maximize the benefit of <br />its operations for Program purposes. <br />2.5 Colorado will develop an annual operations plan and coordinate that plan with the <br />FWS's Environmental Account Manager. <br />3. Central and NPPD will implement an EnvironmentalAccount for Storage Reservoirs on the <br />Platte System in Nebraska as provided in FERC licenses 1417 and 1835. <br />Explanatory Information <br />An Environmental Account for Storage Reservoirs on the Platte River System in Nebraska is <br />found in <br />3.1 Central will make contributions to the Lake McConaughy EA as set forth in its license, <br />and will make releases from the Lake McConaughy EA as requested by the EA Manager in <br />accordance with Central's FERC- approved Administrative Plan. <br />3.2 Other water contributions may be provided to the EA as set forth in An Environmental <br />Account for Storage Reservoirs on the Platte River System in Nebraska and as permitted and <br />tracked by NDNR. <br />4. The Water Action Plan, as may be amended by the Governance Committee, will be <br />implemented and capable of providing at least an average of 50,000 acre -feet per year of <br />Draft Milestones Document, September 19, 2002 - 4 - <br />