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Mr. Hal D. Simpson, <br />October 6, 2000 <br />Page 2 <br />• <br />Colorado State Engineer <br />Our understanding of this program is that NCWCD views it as a means of <br />spreading the "benefits" of the C -BT Project to water users that may not have <br />allotment contracts but support the Project through property taxes. In describing the <br />non - charge program to the Colorado River District Board, Eric Wilkinson stated that <br />the program is carefully managed so that non - charge water is only delivered to <br />places where there is a "hole" or "dry spot" in the river, and that the local water <br />commissioners are responsible for identifying the dry spot and delivering the water <br />to those locations for beneficial use. However, discussions between my staff and <br />Division I personnel lead us to believe that there are no good state records on where <br />or how the non - charge water is being delivered or used and that deliveries or use of <br />this water may not be monitored at all by Division 1 officials. <br />In a separate letter to the Bureau of Reclamation, the River District has <br />outlined, in detail, its concerns with specific operations of the C -BT Project. The <br />River District's consultants, Helton & Williamsen, investigated the C -BT non - charge <br />program and analyzed available data to determine whether this water was being <br />consumptively used. A detailed report was prepared which concludes that up to <br />40% of all non - charge deliveries between 1981-1998 were not diverted for <br />consumptive uses within Colorado. Preliminary calculations indicate that these <br />unused and unnecessary West Slope diversions may average as much as 15,000 acre <br />feet annually. You will receive a copy of our letter to Reclamation and the Helton & <br />Williamsen report. <br />Another example of our concerns is the accounting used to track diversions <br />through the Independence Pass (Twin Lakes) Tunnel into the Arkansas River Basin. <br />In this case, we have found that several different organizations (the Twin Lakes <br />Company, the Bureau of Reclamation and a conservancy district) all have different <br />and complex accounting systems with no official "coloring" or tracking of <br />transmountain water by Division of Water Resources officials. Consequently, <br />Colorado River and native Arkansas River water in storage in Twin Lakes is being <br />exchanged to Turquoise Lake and is being booked over as Homestake Project water, <br />opening the opportunities for violations of water right decrees and project <br />authorizations. <br />Yet another example is the operation of the Vidler Tunnel, a tiny and simple <br />transmountain diversion out of the headwaters of the Blue River. The available <br />records suggest that Vidler water is being diverted from Water Division 5 (District <br />• <br />• <br />