Feb 4, 2013 Meeting w/ Notes

r
Animas -La Plata Operation, Maintenance and Replacement Association
March 1, 2013
Board of Directors
John Porter, President
Southwestern Water Conservation District
613 N. Colorado Street
Cortez, CO 81321
Re: Divestiture of the SWCD Water Riahts
Dear John,
Thank you for your letter dated February 15, 2013. The Animas -La Plata Operation, Maintenance and
Replacement Association ( "Association ") generally concurs with the proposed course of action to
address the water rights associated with the current Animas -La Plata Project ( "ALP" or "Project ")
described in your letter. We appreciate the support for the Project reflected in the letter.
We understand that the proposal to transfer 450 cfs to the Association is premised on the assumption
that the full scope of the ALP rights held by the Southwestern Water Conservation District ( "SWCD ")
will be maintained in the upcoming diligence proceedings and that the Association and SWCD will
cooperate in developing the application for diligence. We also understand that SWCD's third point
would include subordination to the project storage right and would provide protection for the by -pass
flow required as part of the environmental compliance for the Project when water is needed for the
Project. In addition, we assume that following the successful completion of the diligence proceedings, a
deed of water rights will be needed to accomplish the intent of your letter. Finally, we understand that
the Division Engineer is in the process of modifying the provisions in the draft ALP Protocol related to
the water supply that may be "filled and refilled" in Ridges Basin Reservoir and has raised the potential
for imposing a "paper fill" in the reservoir when the river is under administration. Until those issues are
resolved with the Division Engineer, we cannot determine whether the suggested provision for the
transfer of a portion of the SWCD storage right is adequate or will be consistent with the provisions in
the ALP Protocol related to the fill and refill of Ridges Basin Reservoir. We hope you will work with us
to resolve these last remaining issues concerning the storage right and paper fill.
125 Smelter Place Durango CO 81303 PH: 970.385.7140 FX: 970.385.7158