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<br />e <br /> <br />e <br /> <br />e <br /> <br />TOWN OF TELLURIDE'S RESPONSES TO <br />Ptl'BLIC COMMENT <br />REGARDING PROPOSED MITIGATION PLAN <br />JanuarY 20. 1998 <br /> <br />SMVC Comment (CWCB meetincrl: <br /> <br />The "true" availability of storage in Blue Lake reservoir <br />is unknown due to a pending lawsuit between the Town and Eric <br />Jacobson, the right of Idarado Mining Company (Idarado) to <br />reconveyance of a portion of the Bridal Veil water rights, and the <br />Town's agreement giving Mountain Village Metropolitan District and <br />the Telluride Company (Telco) a right of first refusal for excess <br />Blue Lake reservoir water. <br /> <br />Town's Res~onse: <br /> <br />The Town acknowledges that uncertainties remain as to <br />,whether the Bridal Veil system will ultimately be developed as a <br />primary source of supply for the Town's municipal system. The Town <br />is working diligently on several fronts to resolve those <br />uncertainties which must be resolved before the Town Council makes <br />a commitment to build the Bridal Veil system. The issues of <br />interpretation of Eric Jacobson's lease rights have been the <br />subject of negotiations with Mr. Jacobson and are now before the <br />District Court in a declaratory judgment action. The Town intends <br />to resolve those issues before making any irreversible commitment <br />to the Bridal Veil system. However, there is no reason to hold up <br />consideration of the Town's water court application or proposed <br />mitigation plan pending resolution of the Jacobson litigation. If <br />the Town does not obtain sufficient storage to meet its municipal <br />needs and its obligations under the mitigation plan, the Bridal <br />Veil water system'will not be developed and no injury will need to <br />be mitigated. <br /> <br />The fact that Idarado retains an interest in part of the <br />water rights is certainly a factor that the Town'has considered. <br />But Idarado is a co-applicant in the water court case and the.T~~ <br />has determined at this stage that its Bridal Veil system can go <br />forward even if Idarado exercises its right .to recall part of the <br />water rights. As co-applicant, Idarado will be bound by any decree <br />in the water court case and any mitigation plan that llIay be <br />incorporated in such decree. Again, if insufficient storage is <br />obtained, the Bridal Veil system will not be developed .and there <br />will be no injury to mitigate. <br /> <br />The right of first refusal granted to Telco has no effect <br />on the Town's decision to proceed with Bridal Veil. That agreement <br />simply provides that. if there is water available in Blue Lake over <br />and above the needs of the Town, Telco will be first in line among <br />potential users outside the Town's service area to negotiate a <br />contract with the Town for water from Blue Lake. The purpose for <br /> <br />(""T'....t""~.~ <br /> <br />...J......Ooo nl O~JO ("'...... C"0C"lS..l I~ ~1'.r:::Ill 1m e:3enl.l 'JIJ.J C"..,....T '=II:: I:'~ ............ <br />