BOARD01017

• Board Meeting Date: 1/25/2005
• Description: Flood Section - Chatfield Reservoir Reallocation Study Progress Reports
• Board Meetings - Doc Type: Memo

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WHEREAS, the Colorado Water Entities interested in acquiringspace in
Chatfield have conducted an open, widely advertised process of multiple meetings
, between June 30, 2004 and January 4,2005 and have reached the consensus
recommendation of what they believe is an equitable reallocation of the potentially
available 20,600 AF storage space among the Colorado Water Entities, including the
User, as described in Exhibit "A"; and

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. WHEREAS, the User understands that'the FCSA Study requires further activities,
including an Enviromental Impact Statement, recreational studies, and other analyses
estimated to take another two years to complete and that the FCSA Study requires
matching funding from local Colorado Water Entities estimated as being $25 per AF of
allocated storage space, and possibly additional local funding at a later date; and

WHEREAS, the User understands the PCSA Study may result in a conclusion
that no storage space, or a storage space other than 20,600 AF, may be available for
reallocation; and

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WHEREAS, as ofthe date of executing this Letter of Commitment, the User is an
existing and recognized governmental entity, mutual ditch company or private water
. company or provider which presently provides water service to its customers and desires
to acquire storage space in Chatfield Reservoir; and

WHEREAS, the User either has acquired, is in the process of acquiring or is
capable of acquiring water rights allowing for the lawful storage of water in Chatfield
. Reservoir; and

WHEREAS, if storage space in Chatfield Reservoir is eventually reallocated, the
current estimate of the cost to acquire such storage space from the Corps is $4,000 per
AF, but this value is an estimate only and depends upon future costs yet to be determined;
and
WHEREAS, the User has the financial capabilities to pay both its share of the
FCSA Study local funding and the anticipated costs of any reallocated storage made
available to the User; and

WHEREAS, the User will need to reach a separate operations agreement at a later
date with the State that complies with the requirements for using the reallocated storage.

NOW, THEREFORE, the State and the User agree as follows: