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<br />1 <br />I <br />I <br />I) <br />I) <br />I' <br />I <br />I' <br />I <br />I <br />I <br />I, <br />II <br />I <br />I; <br />II <br />Ii <br />I <br />I' <br /> <br />Colorado Water Trust Water Right Donation <br />Peabody #1 Ditch and Lund Enlargement <br />Boulder Creek and the Blue River <br />Summit County <br /> <br />May 2004 <br /> <br />Background <br /> <br />In 1973, the Colorado Legislature recognized "the need to correlate the activities of mankind with <br />some reasonable preservation of the natural environment" and created Colorado's Stream and Lake <br />Protection Program (Section 37-92-102 (3) C.R,S,). The statutes vest the Board with the exclusive <br />authority to appropriate and acquire instream flow and natural lake level water rights, and provide that <br />water, water rights or interests in water acquired by the Board may be used to preserve or improve the <br />natural environment. At the request of any person or entity, the Board must consider the proposed <br />acquisition and determine, in a timely manner, what terms and conditions it will accept in an acquisition <br />contract. The statutes require that the Board make its determination within 120 days, unless further time <br />is granted by the requesting person or entity, <br /> <br />The Colorado Water Trust is a private, non-profit organization that works within the framework of <br />Colorado water law to acquire, or assist others in acquiring water for conservation benefits. Staff first <br />began working with the Water Trust on this proposed acquisition in early 2003, The owners of the <br />subject water rights had contacted a few individuals and groups in an effort to sell their rights. The Water <br />Trust and CWCB staff both expressed an interest in the rights due to the potential benefit to the Blue <br />River, which is a Gold Medal fishery. <br /> <br />During the summer of 2003, staff conducted preliminary investigations to determine the viability of <br />the proposed acquisition to preserve or improve the natural environment. Although the Water Trust had <br />not yet submitted a formal request for consideration to the Board, CWCB staff and the Water Trust <br />believed that preliminary investigations could minimize costs, and potentially avoid the need for <br />extensions of time once the Board procedure was initiated. As part of the preliminary investigation, Staff <br />reviewed available diversion records, an engineering report prepared for the owners, and data for <br />existing instream flow water rights on Boulder Creek and the Blue River, Staff also met with the Water <br />Commissioner to discuss historic use of the rights, and discussed water administration issues with both <br />the Water Commissioner and the Division 5 Engineer. <br /> <br />In November 2003, staff concluded its preliminary investigations, and discussed purchase of the <br />water rights with the Board, The discussion was held in Executive Session to protect the owner's <br />bargaining position should the transaction not go forward. The Board's direction to staff was to continue <br />working with the Water Trust to deveiop the purchase proposal. In March 2004, the Water Trust finalized <br />an option agreement to purchase the water rights, and began working with CWCB staff to develop a <br />proposed acquisition agreement for the Board's consideration, In early May, the Colorado Water Trust <br />Board finalized the terms of the proposed acquisition agreement and submitted the agreement and a <br />formal request to the CWCB for consideration. Consideration of this request is scheduled for the <br />CWCB's May 2004 Board meeting, The date the Board considers the Water Trust's request will initiate <br />the 120-day time period for Board review. <br /> <br />Pursuant to the Instream Flow (ISF) Rules, staff has mailed a notice of this proposed acquisition <br />to all persons on the appropriate ISF Subscription Mailing Lists. Pursuant to statute, Staff has also <br />requested recommendations from the Division of Wildlife, Division of Parks and Outdoor Recreation, the <br />U,S, Department of Agriculture and the U,S. Department of Interior. Staff will present to the Board any <br />comments or recommendations received in response to the notice, <br />