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. . . management plan. The agreement will also allow the group to form a governmental entity that can channel funds from the southeastern district. In May, Southeast Colorado Enterprise Development, Inc., based in Lamar and acting on behalf of the preservation group, wrote to the CWCB director informing him of the group's goals and plans. The letter asked that the Board consider the merits of the its proposal and would appreciate our assistance. To date we have not formally replied to this request. We will seek the advice of the Arkansas River Board member. The group was seeking to hire a contractor by July I to research water facts on behalf of the valley to establish the quantity available, quantity sold, values, actual use, acreage, population and other relevant facts. Prowers County is also seeking a consultant to prepare a water-preservation management plan. According to members, aside from maintaining eligibility for state and federal funding, a plan is needed to assure that existing water remain in the valley. Most recently the group has filed petitions in Pueblo District Court to place a question on the November 2002 ballot authorizing the creation of the Lower Arkansas Valley Water Conservancy District. The District would carry out the purposes of the preservation group. It may, in the future, also become involved with efforts to bring improved municipal water to downstream communities via the Arkansas Valley Pipeline, currently being studied with funds partially provided through the Board. Arkansas River Forum: I made a presentation about RICDs at the annual Arkansas River Forum in Leadville on June 7. U.S. Forest Service Federal Reserved Water Right Claims in Division 2: In response to the states letter of December 21,2001, the U.S. Forest Service (USFS) has offered a proposed stipulation to dismiss with prejudice their reserved right water claims in Division 2. The Board will be discussing the proposed stipulation in executive session. . Coal Creek Floodplain Study: We recently executed a contract with the Corps to perform an engineering study of the flood hazards on Coal Creek in the vicinity of Florence. The study is a direct result of a $50,000 FEMA grant to the CWCB under the "Cooperating Technical Partner" (CTP) program. The CTP program provides funding and technical assistance to CTP communities for new floodplain mapping in high priority areas. Coal Creek is a tributary to the Arkansas River and is a major source of potential flooding in areas in and around Florence. The Corps plans to have the draft study completed by fall 2002. Review of Ground Water Use Under the Upper Arkansas Water Conservancy District Umbrella Augmentation Plan: Staff reviewed 16 applications for augmentation coverage for domestic and commercial wells within the UA WCD boundaries. Staff reviews these applications per an agreement/stipulation between the CWCB and the UA WCD entered in Case No. 94CW005 to evaluate the impacts of such ground water uses on the CWCB's instream flow water rights. Based on this review, staff determined no adverse impact on the instream flow water rights from II wells, and de minimis impact from 5 wells, as tabulated in the de minirnis report attachment. Colorado River Basin Issues Colorado River Hearing: On June 14 the House Resources Committee's Subcommittee on Water and Power held a hearing on "Implementation of the California Plan for the Colorado River: Opportunities and Challenges," in La Quinta, California. Bennett Raley, Assistant Secretary of the Interior, testified that "phenomenal" progress has been made over the last decade towards reducing California's water use from the Colorado River to the 4.4M acre- feet allocated by compact in 1922. But he also stated he is "increasingly concerned that California water management entities will not meet one of the critical milestones for implementation of the California 4.4 13