BOARD01094

• Board Meeting Date: 5/24/2004
• Description: WSP Section - Elkhead Reservoir Enlargement Status Report
• Board Meetings - Doc Type: Memo

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Agenda Item 10
May 24-27, 2004 Board Meeting
Page 3 of4

The above-described Agreements between the CRWCD, City of Craig, CD OW, and the Yampa
Participants eonfirm that title to the storage space created by the enlargement ofElkhead Reservoir will
vest in the CRWCD, Furthermore, the CRWCD will also enter into the following additional agreements:

5. Grant Agreement between the CRWCD, Reclamation and the U.S. Fish and Wildlife Service
(USFWS) to provide the balance of the cost share funding from the UCRIP to the CRWCD for
purchase of the permanent 5,000 AF storage right and easement in the Elkhead Reservoir
Enlargement.
6. Agreement between CRWCD, Reclamation and the USFWS concerning Elkhead Reservoir
Enlargement to Facilitate Recovery of Endangered Fish Species in the Yampa River Basin
("Reservoir Enlargement Agreement") to describe and transfer the costs of operation, maintenanee
and repair obligations from the CRWCD to Reclamation on behalf of the USFWS for that portion of
the Elkhead Reservoir Enlargement storage right conveyed to CWCB for UCRIP purposes.
7. Water Acquisition Agreement between the CRWCD, CWCB, Reclamation and the USFWS to
convey the water right and the storage space easement from the CRWCD to the CWCB, to sublease
the 2,000 AF Temporary Water Supply to the CWCB and to outline the terms and conditions of the
conveyance and lease, including obligations to monitor and protect releases to and through the
Critical Habitat Reach of the Yampa River.
8. Special Warranty Deed between the CRWCD and CWCB to transfer ownership in perpetuity of the
5,000 AF absolute storage right and storage space easement in the Elkhead Reservoir Enlargement
from the CRWCD to the CWCB for UCRIP purposes. Deed will be executed when the project is
completed and the water right has been decreed absolute. (This doeument will be in draft form
pending perfection of the water right.)
9. A sublease between CRWCD, Reclamation and the USFWS to provide a short-term water supply of
up to 2,000 AF annually for UCRIP purposes. Water will be leased from the CRWCD at the
direction of the USFWS and will be paid for by Reclamation. The Sublease will also provide for a
sublease to the CWCB for instream flows for UCRIP purposes. Need for this water will be
detennined annually and be paid for as utilized.
10. CWCB construction fund loan contract to CRWCD to outline the loan terms and conditions, and
repayment obligations for the M&I portion of the Elkhead Reservoir Enlargement. The loan will be
for $11,110,000 at 4% for 30 years or 3.75% for 20 years. Funds will become available after July 1,
2004.
11. CDNR contract with CRWCD to provide the State's cost share funds required by Public Law 106-392
directly to the CRWCD for use in implementing the Elkhead Reservoir Enlargement capital
construction project identified by the UCRIP in the RIPRAP and to receive appropriate cost share
credit from the UCRIP for this expenditure. Colorado's total obligation to the UCRIP is $8,065,000.
Funds will become available when contract is signed and approved.

Reclamation and the USFWS intend to work with the CRWCD to perfect the conditional storage right for
the Elkhead Reservoir Enlargement upon completion of project construction so that the CRWCD can
convey the storage space easement and 5,000 AF of the absolute water right for the Permanent Water
Supply to the CWCB in perpetuity for UCRIP purposes, including for piscatorial and recreational use
(which includes in-river fish habitat and river flow maintenance and enhancement uses and other uses in
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furtherance of the UCRIP). ~

Colorado Water Conservation Board
Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning