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<br />FROM : <br /> <br />TO <br /> <br />:303 866 4474 <br /> <br />1995.01-2il <br /> <br />18:00 ~725 'P.03/04 <br /> <br />Letter -- Dan Merriman <br />18 January 1998 <br /> <br />e <br /> <br />THE DMSION OF WILDLIFE'S ANALYSIS OF THE PROPOSAL <br /> <br />The town's proposal is to utilize water stored in BI~ Lake, a high elevation reservoir on Bridal Veil Creek, <br />to provide a long term water supply for the town's future needs. Water is stored in Blue Lake through the <br />natural flow of Bridal Veil Creek and a small unnamed tributary (via a pipeline), this water is released through <br />a pipeline to the Bridal Veil Powerplant and is then ~sc:barged back intO the natural stream channel ofBrida! <br />Veil Creek several tniles upstream of the town limits and about 1200 feet (m elevation) above the town. This <br />water, and the power generated by the power plant Was then historically used for mining and milling purposes <br />by the ldarado Mining Co. The town is interested in using this water at the point where it leaves the <br />powcrplant for a new water trea1ment plant. The toWn's current water supply comes from two tributaries of <br />the San Miguel River (Mill Creek and COronet Creek) and they have water rip on :Sear Creek as well. The <br />Bear Creek 'water tights have not yet been put to Ulle by the to...n but they are senior to the state's instream <br />flow water right on Bear Creek. The town has a strong interest in protecting and preserving the Bear Creek <br />watershed and the high quality water generated by this basin. To accomplish this goal, the town is interested <br />in moving the Bear Creek water rights up to the nlew point of diversion at the Bridal Veil Powerplant and <br />foregoing the opportunity to construct a diversio1). and treatment plant on Bear Creek. The Bear Creek <br />watershed and the high quality streamflow will thell. be allowed to flow into the San Miguel River from this <br />point foIWal"d. <br /> <br />The San Miguel River upstream of Bear Creek is heavily impacted by mining and milling activities at the <br />ldarado Mine. As atated above, the Bear Creek watershed is virtually unimpacted by humans and the water <br />quality is exceptional. A comprehensive mine cIe:m-up and remediation plan is cllrrently underway at the tit <br />ldarado site but heavy metals conmm;nstion from IIlinc drainage and tailings disposaJ. continues to impact the <br />aquatic ecosystem C)fthe San Miguel upstream ofB~ Creek. The dilution ofhcavy metals in the San Miguel <br />. that CllI1'ently occurs as a result of the high quality Vfater from Bear Creek is critical to the mainteIlllIlCe of and <br />future impIOvenient of the aquatic ecosystem in the San Miguel River. The Division is of the opinion that <br />Bear Creek flows are a critical component of the future improvement of aquatic conditions in the San Miguel <br />basin. <br /> <br />In general the Division is supportive of the use of stored water the meet the water SUpply needs of mountain <br />comunmities. It is particularly desirable during the winter low flow months in ski area communities where <br />winter water use is very high. Telluride's intent is to rely on water stored in Blue take to meet most of its <br />water supply needs.. The net effect of this change is a positive one for the San Miguel River since the natural <br />flow of the San Miguel and m,any of its tributaries \Wl not see the effects of increased diversions to fuel the <br />growth that will certainly occur in the Telluride area. The only potential for injUl'}' to the CWCB's instream <br />flow water rights lies in a fairly unique set of circumstances. As we understand it, the town will utilize the <br />release of water stored in Blue Lake for municipal \Wter supply. Due to the high elevation of the Blue Lake- <br />Bridal Vell Powerplant system (these facilities are all at an elevation greater than lOOOO feet), there is a <br />potential for avalanche damage to the pipeline that IlUlS from the lake to the powctplant. In the event of a <br />pipeline failure, a wa!er supply emergency would be declared, conservation practices will be implemented, <br />and the town would limit its diversions into the new water treatment plant to I cfs. These diversions could <br />impact the 6.5 cfs instream flow in the San Miguela,nd this is where the "Injury with Mitigation" issue arises. <br />The tovnl has specifically defined what set of circUmstances defines a water supply emergency; they have _ <br />agreed to notify the ewCB immediately when it occurs; they have defined the duration for such an.. <br />emergency; and they have agreed to a procedure for initiation of such repairs as are needed to ensure that the <br />emergency condition does not extend from one low flow season to the next. <br /> <br />, <br />