ALP 7

applicable law and does not injure other water rights. Additionally, Section 14 of the State's
repayment contract requires that any future sale, lease or other third -party use of its water be
subject to the review and approval by the Bureau of Reclamation, to ensure that use does not
negatively affect other Project participants' operations, benefits, or authorized purposes and has
the proper environmental compliance. The CWCB has always intended and expected that it
would share responsibility with the other Project Participants, under the vision of the IGA, to
protect and maximize the benefit of each of our investments in the Project. That being said, the
State has no intention of independently pursuing a change case to modify the existing Project
decrees, nor do we believe that any Project Participant should either.
In regard to retained jurisdiction, there have been two separate phone conference calls on this
issue to allow all sides to discuss their positions openly with the SEO. The dialogue from these
conversations, in CWCB's opinion, has been educational and productive. As a water owner,
CWCB does not want to allow someone the ability to claim injury, given the potential
operational and legal impact of that to all project beneficiaries. However, CWCB acknowledges
the delicate position the SEO is in and its responsibility to monitor the operation of the Project to
ensure there is no injury. We believe there is a balanced solution to this issue, which will meets
the needs of all parties involved.
As if have stated before, it is CWCB's position that for all Project Participants to maximize their
full Statutory Water Allocation, it will require a collaborative, unified approach, one based on
trust and an open dialogue. The CWCB looks forward to a productive discussion with the
Association at the October, 2012 Association Meeting to discuss its Membership.
Sincerely, / ,�
`f f%Y� mil/
ennifer Gim el, Director
Colorado Water Conservation Board
c: Tim Feehan, Assistant Director, Colorado Water Conservation Board
Ted Kowalski, Chief, Interstate, Federal and Water Information Section
Susan Schneider, I" Assistant, Attorney General's Office