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<br />d. WHEREAS, as described in the letter dated December 20, 2002, to the Chairman, <br />Management Committee, Upper Colorado Fish Recovery Program, from the Area Manager, - <br />Eastern Colorado Area Office, Great Plains Region, Bureau of Reclamation, and confirmed by - <br />return letter to the Regional Director, Great Plains Region, dated April 24, 2003, Reclamation <br />will absorb the capital costs (plus interest) of the wa~er provided pursuant to this Agreement; and <br />the Recovery Program will report the capital costs sri .absorbed as a Reclamation contribution to <br />the Recovery Program, made in addition to its other eost share commitments; and the Recovery <br />Program will pay the annual Operation and Maintenl/oIlce (O&M) costs associated with the water; <br />and <br /> <br />e. WHEREAS, Section 4 of the Fry-Ark Act directs the Secretary to investigate, plan, construct, <br />operate, and maintain facilities for the conservation and development of fish and wildlife <br />resources, and that the costs of such undertakings slutll be nonreimbursable and nonreturnable <br />under Reclamation laws; and <br /> <br />f. WHEREAS, Section S(e) of the Fry-Ark Act dirdcts the Secretary in the operation and <br />maintenance of all facilities of the Project to comply with the laws of the State of Colorado <br />relating to the control, appropriation, use, and distribution of water therein; including those laws <br />of the State of Colorado relating to the establishment ofinstream flows for the reasonable <br />protection of the natural environment to the extent that such laws are not inconsistent with the <br />Operating Principles; and <br /> <br />g. WHEREAS, Ruedi Reservoir, located on the FrYingpan River upstream of the town of <br />Basalt, was authorized and constructed as a feature cifthe Project; and e <br /> <br />h. WHEREAS, the Operating Principles provide that water stored in the Regulatory Capacity of <br />Ruedi Reservoir may be sold or leased by the United States to water users in Colorado for any <br />purpose recognized by the laws of the United States; and <br /> <br />i. WHEREAS, the Supplemental Decree for the PrQject entered by the Garfield County District <br />Court, Colorado, in Civil Action 4613 on August 3, ~9S9, allows water stored in the Regulatory <br />Capacity ofRuedi Reservoir to be sold or leased by the United States to water users in western <br />Colorado for any purpose recognized by the laws ofithe United States; and <br /> <br />j. WHEREAS, the Marketable Yield within the Re$ulatory Capacity ofRuedi Reservoir <br />includes water that has not been committed to long-term contracts and that has been released, on <br />a temporary basis, to benefit endangered fish in the ts Mile Reach of the Colorado River; and <br /> <br />J <br />k. WHEREAS, the CWCB is authorized by Section! 37-92-102(3), Colorado Revised Statutes, as <br />amended, to acquire by lease from any person, inclulllng any governmental entity, such water or <br />interests in water as the CWCB determines may be required for instream flows to preserve or <br />improve the natural environment to a reasonable degree and to take whatever action may be <br />needed to ensure such instream flows remain in the river; and <br /> <br />2 <br /> <br />It <br />