ALP 2

THE SOUTHWESTERN WATER CONSERVATION DISTRICT
Formed by the State Legislature in 1941 to Protect, Conserve, and Develop Water in the
SAN JUAN AND DOLORES RIVERS AND THEIR TRIBUTARIES
IN SOUTHWESTERN COLORADO
West Building — 841 East Second Avenue
DURANGO, COLORADO 81301
(970) 247 -1302 — Fax[phone]
February 15, 2013
Members of the ALPOM &R Association
Jason John, President
125 Smelter Place
Durango, CO 81303
Re: Divesture of the Animas -La Plata Water Rights
Dear Jason and Association Members:
Thank you for your letter dated February 8, 2013.
The Southwestern Water Conservation District (SWCD) Board of Directors (BOD) at their February
13th meeting discussed the status, and the future of the ALP water rights. The following is their
response to your request.
Unanimously, the SWCD BOD agrees that the purpose of the water right is to provide the ALP
Project beneficiaries with the amount of water needed to satisfy the intent of the Project as
constructed.
The fact that the water rights procured are greater than the downscaled Project now needs,
motivates the SWCD to preserve the balance of the water rights for future uses, or development of
the unfulfilled needs of the full scale Project..
To that end, the SWCD proposes the following package, which would define a simple and
definable separation of the water rights. This would negate the need for a joint meeting of the
Boards as requested, as well as the need for a joint operating agreement.
1) SWCD shall, as in the past, be responsible for filing the 2013 due diligence /conditional to
absolute court application and obtaining the decree from the court.
2) Upon obtaining Court approval of the water rights in their entirety, SWCD will convey to the
Association 450 cfs of the ALP water right, and an annual storage volume for a fill and refill of
the active pool in Ridges Basin Reservoir
3) SWCD will retain the balance of the ALP water rights, and will take a subordinate position to the
450 cfs conveyed to the Association.
4) SWCD requests that the Association support SWCD's application and position during the legal
process necessary for a findings of reasonable diligence or conditional to absolute status for the
ALP water rights.
5) The SWCD requests that the Association continue development of their portion of the ALP water
rights, and shall not oppose efforts by SWCD to do the same in order to facilitate the use of the
balance of the water rights by obtaining a carriage contract from the Bureau of Reclamation for
the same.