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Morrison Creek Appropriation Recommendation Letter Page 3 of 5 One of the existing threats to the Recommended Reach is a proposed reservoir on Morrison Creek. In March, 1993, Hydrosphere Resource Consultants issued the Yampa River Basin, Alternative Feasibility Study, Final Report (the "Report' ). Hydrosphere prepared the Report for the CWCB, the Colorado River Water Conservation District and the Bureau of Reclamation as part of the Statewide Water Supply Initiative ( "SWSP ). Among other things, the Report evaluates potential reservoir sites in the Yampa River Basin, including but not limited to a reservoir on Morrison Creek. Excerpted portions of the Report are attached hereto as Appendix C. The Report describes the existing natural environment that would be affected by a reservoir on Morrison Creek. The Report states that "[t]he existing fishery is classified as excellent by CDOW." Hydrosphere Report, at 414. The Report states that "wetlands occur along the entire reach of Morrison Creek [...]" Id. In addition, the Report describes diverse and abundant wildlife and ecology. Ultimately, the Report recommends "that the Morrison Creek site be eliminated primarily on environmental grounds, although it is arguably the best reservoir site from a technical and economic perspective." Id. at 4 -29. The Upper Yampa Water Conservancy District is now proposing to build a reservoir on Morrison Creek (the "Reservoir") near -the site studied and rejected in the Report. The District has pending two applications for water rights related to the Reservoir. Case No. 07CW61 involves claims for a change of existing water rights to allow them to be stored in the Morrison Creek Reservoir. Case No. 07CW72 includes claims for new conditional water rights to be stored in the Reservoir. The applications in both cases locate the dam for the Reservoir on Morrison Creek, just below its confluence with Silver Creek. The Reservoir would significantly alter the natural stream flow regime of Morrison Creek by storing high flows during the, spring runoff for later release during summer, fall and/or winter months when stream flows would normally be much lower. The Reservoir could alter the temperature, sediment load, and other characteristics of the existing environment, and introduce foreign aquatic species, such as Northern Pike, that prey on native trout populations. In addition, the District's water court applications include claims to pump water stored in the Reservoir into the Little Morrison Creek drainage for storage in Stagecoach Reservoir. It is likely that much of the water stored in the Reservoir would be transported to Stagecoach Reservoir for storage and never released to Morrison Creek. Case Nos. 07CW61 and 07CW72 have been consolidated for trial, beginning on October 7, 2009. There are several issues for trial that could prevent the District fiom obtaining decrees in those cases. Significantly, the Reservoir would inundate a portion of Silver Creek that has a decreed instream flow right, Case No. W- 1328 -77, Water Division No. 6. The Reservoir might also inundate a portion of the Sarvis Creek Wilderness Area, which would require federal approval. There are other issues that could prevent the District from obtaining decrees in these cases. For example, in Case No. 03CW53, the Division 6 Water Court recently dismissed the District's application for new conditional water rights based on the District's failure to satisfy its burden of proof including, but not limited to, demonstrating a need for the claimed water rights.