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-4- consultation with Reclamation, or if Reclamation has augmentation water available for release but does not release it when requested to do so by the Division Engineer. . . provides that the parties will reevaluate and amend the agreement if necessary in the event Reclamation develops plans to modify the Paradox Unit in a manner that may change the amount of out-of-priority depletions at the Unit. This proposal would allow some injury to the Dolores River instream flow water right, but Staff believes that the mitigation offered by the Applicant will enable the Board to accept that injury while continuing to preserve the natural environment of the Dolores River to a reasonable degree. This proposal will allow both preservation of the natural environment of the Dolores River by the CWCB and maintenance of the significant environmental benefits realized by the continued operation of the Paradox Salinity Control Unit. The Colorado Division of Wildlife concurs with staffs recommendation to approve this proposal (see letter attached to this memo). Follow-Up Actions FolIowinl! the September 2005 Board Meetinl! The Division Engineers for Water Divisions 7 and 4 have reviewed this proposal and find it acceptable and administrable. Staff has consulted with the Attorney General's Office on whether Reclamation must amend its augmentation plan decree to be able to implement the MOA, and concluded that amending the decree is not necessary. Reclamation has provided the draft MOA to its attorneys for review. At its January 12, 2006 meeting, the District's board approved in concept a written agreement with Reclamation that would address the Paradox Unit's augmentation needs. The intent of this agreement is to document the annual guarantee of 700 acre-feet of water to be added to the fishery pool in McPhee Reservoir and to be released for augmentation of depletions from the Paradox Unit. The 700 acre-feet would not be affected by any shortages of water in McPhee Reservoir. Reclamation and the District are in the process of negotiating langnage to be included in the agreement and anticipate finalizing the agreement in the near future. Because the guarantee of the availability of the 700 acre-feet of water for release from McPhee Reservoir for augmentation purposes is integral to this injury with mitigation proposal, staff recommends that the Board condition entering into the MOA on the agreement being finalized. . Staff Recommendation As stated above, injury with mitigation is a two-meeting process. At the first meeting, the Board made a preliminary determination that the natural environment of the Dolores River could be preserved to a reasonable degree with the proposed injury or interference if Reclamation provided the proposed mitigation. At this second meeting, the Board may take final action to ratify, refuse to ratify or ratify with additional conditions. Staff recommends that the Board: I) Make a final determination that the natural environment of the Dolores River can be preserved to a reasonable degree with the proposed injury or interference to the Board's Dolores River instream flow water right if Reclamation provides the proposed mitigation. 2) Ratify the proposed Memorandum of Agreement and authorize the Director to execute the Memorandum of Agreement on behalf of the Board, conditioned upon Reclamation and the District finalizing a written agreement guaranteeing the availability of the 700 acre-feet of water for Paradox augmentation purposes. . Flood Protection. Water Project Planning and Finance. Sh'cam and Lake Protection Water Supply Protection. Conservation PlalUung