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<br />. <br /> <br />COLORADO WATER CONSERVATION BOARD <br />Department of Natural Resources <br />721 State Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866.3441 <br /> <br />STATE OF COLOMDO <br /> <br />o <br /> <br />August 29, 1985 <br /> <br />Richard D. lamm <br />Governor <br />J. William McDonald <br />Director <br />David w. Walker <br />Deputy Director <br /> <br />Senator Dan Noble <br />P.O. Box 71 <br />Norwood, CO 81423 <br /> <br />Dear Dan: <br /> <br />As you know, I met with town officials, county <br />commissioners, and interested citizens in Dove Creek on August <br />13 to discuss the status of my efforts to gain the involvmen't of <br />the Bureau of Reclamation in the proposed Monument Creek <br />Reservoir. I am writing to advise you on what I reported at that <br />meeting. <br /> <br />. <br /> <br />As you know, the Bureau of Reclamation (Bureau) advised the <br />Dolores Water Conservancy District (District) three years ago <br />that the District would have to increase its repayment obligation <br />on the Dolores Project because the costs allocable to municipal <br />and industrial water supply were projected to exceed the amounts <br />originally called for in the District's repayment contract with <br />the Bureau. In order to resolve this matter, the District <br />ultimately agreed to assume the responsibility for financing and <br />constructing the pipeline from McPhee Reservoir to the City of <br />Cortez and the terminal storage facility to be located near the <br />Town of Dove Creek for the purpose of storing the town's <br />allocation of project water. In turn, the General Assembly <br />authorized the Colorado Water Conservation Board (CWCB) to loan <br />$7 million to the District for these two facilities (H.B. ll02, <br />1983 Session). <br /> <br />At the time this issue arose, interests in the Town of Dove <br />Creek and west Dolores County proposed that the District and the <br />CWCB consider relocating and enlarging the terminal storage <br />facility planned as a feature of the Dolores Project to a new <br />location on Monument Creek. \~e have subsequently been referring <br />to that as the enlarged and relocated Monument Creek Reservoir. <br />The proposal was premised upon a portion of the costs of the <br />enlarged and relocated Monument Creek Reservoir being funded by <br /> <br />. <br /> <br />318 <br />l/dn <br />