BOARD00936

• Board Meeting Date: 1/25/2005
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

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This year's grants are being distributed as follows: the Southwestern Colorado WCD will receive $3,000
each for the Western and Eastern San Juan Mountains Permits, and $1,000 for their participation in the
Upper San Miguel Basin program that is on standby. Colorado Springs Utilities will receive $3,000 for
the Upper Arkansas Program. Gunnison County will receive $3,000 for each the Gunnison County
Program and the Upper Gunnison Tributaries Program. Finally, the Grand Mesa Water Enhancement
Authority will receive $3,000 for the Grand Mesa Permit.

CSU/CWCB Cloud Seeding Modeling Study Update: In late 2003, Colorado State University (CSU)
and we were successful bidders for a $100,000 grant from Reclamation's "Weather Damage Modification
Program" (WDMP).

Reclamation requested that all grant recipients attend the 85th Annual American Meteorological Society
conference in San Diego, CA during the week of Jan. 10-14 because a special session was held to allow
states to provide a general overview ofthe projects they are conducting.

We expect to have our project completed by June 1.

NACo Announces Grants for Wetland Restoration Projects: The National Association of Counties
(NACo) and the Five Star Restoration Challenge Grant Program project partners are currently accepting
applications for the 2005 Five Star Restoration Challenge Grants.

The Five Star Program provides modest financial assistance ($10,000 on average) to support community-
based wetland, riparian and coastal habitat restoration projects that build diverse partnerships and foster
local natural resource stewardship through education, outreach and training activities.

Begun in 1997, the grant program is a partnership between NACo, the National Fish and Wildlife
Foundation, the Wildlife Habitat Council, and made possible with support from the EP A and National
Oceanic and Atmospheric Administration (NOAA).

The deadline for applications is March 1. For more information visit www.naco.org/fivestar.

Arkansas River Basin

Kansas v. Colorado: On December 7, 2004 the U.S. Supreme Court issued an order overruling all
Kansas' exceptions to the Special Master's 4th Report, accepting the Special Master's recommendations
and recommitting the case to the Special Master for preparation of a decree consistent the U.S. Supreme
Courts opinion.

The Special Master's 4th Report that was filed on December 8, 2003 treated Colorado very favorably. As
a result, Colorado filed no exceptions. However, Kansas filed exceptions seeking to have a Federal River
Master appointed, seeking prejudgment interest from 1969 to 1985, objecting to the use of the B-1 model
over a 1 O-year period to determine compact compliance, objecting to the replacement plan credits of
LA WMA, objecting to the finding that Colorado's Use rules and replacement water bring Colorado into
compliance during the 1997-99 period and 15 other disputed issues. Presently, it is estimated that
Colorado would owe Kansas approximately $32 million in total damage claims.

Currently, our efforts are focused on developing data to refine the HI model determinations of Stateline
depletions and the adequacy of Colorado 's compliance efforts to offset any potential depletions pursuant
to the Special Master's recommendation for retained jurisdiction. In this regard the CWCB has assisted
the Division 2 Engineer in updating the irrigated acreage in the HI model area of the Arkansas mainstem
and we are assisting with the effort to obtain more accurate weather and evapotranspiration data to utilize
in future HI model runs.

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