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<br /> <br />BRATTON & McCLOW LLC <br /> <br />Mr. Ted Kowalski <br />July 7, 2004 <br />Page 2 <br /> <br />category (4-7 points). USGS predicts that, in fiscal year 2005, medium ranking gages will lose <br />NSIP funding and receive reduced USGS federal matching funds to the extent that local cooperators <br />will be required to increase their contributions between 6.0% and 8.6%. The relatively small <br />increase for the first year of prioritization is designed to allow local cooperators time for transition <br />to changes in their share of the gage costs. USGS predicts that, over time, with increased costs of <br />streamgaging and changes in the streamgaging network, local cooperators will be expected to bear <br />a greater percentage of gage costs each year. <br /> <br />. <br /> <br />At its meeting on June 28, the Board of Directors of the District reviewed the CWCB staff <br />analysis and received a report from a representative of USGS on the prioritization plan. A consensus <br />of the District Board was that, absent a commitment for local funding, gages of low and medium <br />ranking face a serious risk of being discontinued in view of the USGS budget constraints and <br />escalating operating costs. The Board concluded that the Slate River gage is of sufficient importance <br />to the basin that an affirmative response to the CWCB staff recommendation is appropriate. The <br />District agrees to include, as a condition to protect against injury in the decree in Case 03CWI07, <br />a commitment to operate and maintain the Slate River Near Crested Butte gage. <br /> <br />The District further has agreed to make revisions to the proposed ruling of the referee <br />suggested by you and Susan Schneider during our telephone conversation on Jun~ 22. <br /> <br />If! can provide further information, please contact me at your convenience. <br /> <br />Sincerely, <br /> <br /> <br />John H. McClow <br /> <br />c: Susan Schneider, Esq. (e-mail) <br /> <br /> <br />