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<br />i'-,- <br /> <br />;<3L <br /> <br />Shayno M. Macbcn <br />Robet\ F. T. Kruaa, P.C.- <br />Stcphco C. Miller. P.C., Of Counsel <br /> <br />KRASSA, MADSEN & MILLER, LLC <br />Attorneys and Counselors at Law <br />1680 38~ Street, Suite 800 <br />Boulder, Colorado 80301-2611 <br /> <br />Prublo Ojfia <br />1123 N.lltizabcth St. <br />Pueblo, Colorado 81003 <br />(719) 542-3945 <br />(719) 542.3947 facaimi1c <br /> <br />.A.18o AdmiRed 10 Pracllce In Washington <br /> <br />Tc1cphoDC (303) 442.2156 <br />Fa.oimi1c (303) 443-3617 <br /> <br />Please direct cornsponderJce <br />10 the Boulder office. <br /> <br />November 16, 1998 <br /> <br />Peter Evans, Acting Director <br />Colorado Water Conservation Board <br />1313 Sherman Street, Suite 721 <br />Denver, CO 80203 <br /> <br />Re: Request for Horse Creek Basin Financial Assistance <br /> <br />Dear Peter: <br /> <br />Proposal: Box Springs Canal and Reservoir Company proposes <br />that the Colorado Water Conservation Board include a provision for <br />a specific grant combined with a reduction of an existing project <br />loan in its 1999 legislative agenda to complete the intended <br />outcome of the January 29, 1997 Settlement Agreement among Box <br />Springs, Horse Creek and the State Engineer. <br /> <br />Backoround: <br /> <br />The Horse Creek Basin settlement process is an outstanding <br />, example of conflict resolution. With the assistance of Chuck Lile, <br />the Director of the CWCB, and Hal Simpson, State Engineer, two very <br />angry parties were brought into a successful mediation process <br />which resulted in the Settlement Agreement. Box Springs <br />acknowledged that it would accept compensation for its depleted <br />water rights substantially below its estimate of the actual cost to <br />fully replace that supply. In turn, the well owner members of <br />HCWUA accepted their responsibility to make the maximum <br />contribution to that compensation that they were economically able <br />to do. The contemplated third part of the settlement (please see <br />Section 7 of the Settlement Agreement, copy attached) was the grant <br />from the State, withou~ specification as to source, reflecting the <br />recognition that the State's historical actions directly and <br />indi-rectly created the underlying dispute. <br /> <br />'rhe settlement Agreement provided for a CWCB loan to the Horse <br />Creek ~roup of $825,000, to be used to make a payment of $525,000 <br />to Box Springs as partial compensation for the loss of its water <br />rights, payment of $75,000 to Reid and $25,000 to Smith Cattle to <br />settle the augm~ntation plan which the Horse Creek group was <br /> <br />""'GfI~Pt1fK" <br /> <br />------ <br />