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<br />. <br /> <br />Danielson, the Upper Gunnison Water Conservancy District, and the <br />Colorado River Water Conservation District continue negotiations <br />with the Bureau of Reclamation to consumate an agreement <br />providing for the subordination of Aspinall Unit water rights <br />aggregating 60,000 acre-feet of water for consumption in the <br />Gunnison River Basin, with an unspecified quantity reserved for <br />the Fruitland Mesa Project. The motion was adopted by unanimous <br />voice vote. <br /> <br />b. Sale of Water from Blue Mesa Reservoir <br /> <br />Chairman Vandemoer moved to this item and asked Mr. McDonald <br />to discuss it. <br /> <br />Mr. McDonald reported that this item referred to the <br />question of selling water from Blue Mesa Reservoir, a feature of <br />the Aspinall Unit, developed by the yield of that reservoir under <br />its water rights, whether subordinated or not. Applicants <br />desiring to purchase water out of the reservoir basically fall <br />into two categories: (1) those having an adjudicated junior <br />right and (2) those with no underlying water right. <br /> <br />. <br /> <br />With reference to the first category, it is possible that <br />assuming the mechanics of subordination have been implemented, <br />even a right which receives the benefit of that subordination may <br />still be out of priority against downstream rights that are <br />senior to rights of the Aspinall Unit. Applicants may need or <br />desire plans of augmentation and may desire to purchase water out <br />of Blue Mesa Reservoir to affect that plan of augmentation. In <br />the second category, applicants with no water rights may wish to <br />obtain a source of water supply by purchase from the Bureau of <br />Reclamation. <br /> <br />Following discussion by Board members, Mr. McDonald stated <br />that such water sales, at least during the foreseeable future, <br />would not deplete the state's compacts entitlements, despite the <br />Bureau's long-range projections. He indicated further that no <br />state agency has the prerogative to allocate the state's compact <br />entitlements. Rather, the water right system governs and the <br />State Engineer makes rules and regulations under his authority to <br />administer in the event of a compact call. Mr. McDonald stated <br />that it is not for the Board to determine to whom the Bureau <br />could allocate water, rather if the yield is available as <br />administered by the State Engineer, the question is a policy <br />matter. Mr. McDonald, therefore, recommended that the Board <br />express support for making water available for sale out of Blue <br />Mesa Reservoir for use in the Gunnison River Basin. <br /> <br />Mr. Johnston moved, seconded by Mr. Kroeger, that Mr. <br />McDonald's recommendation be tabled until the January, 1984 <br />meeting. Mr. Johnston expressed concern as to whether or not the <br />Board should approve complete Gunnison River drainage sales or <br />whether or not there may be some limitations on the Board's part <br /> <br />. <br /> <br />-15- <br />