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<br />DRAFT <br /> <br />. <br /> <br />District and the City of Craig, dated August 6, 2003 (setting forth the Agreement of the River District and <br />the City of Craig related to the construction, operation, and maintenance of the Elkhead Reservoir <br />Enlargement), meefj39Flltell her~in ey refJlOH8e; and an Amended and Restated Agreement between the <br />Yamp!> Partioipaats, Public Service Company of Colorado (d/b/a Xcel Energy), Platte River Power <br />Association, Salt River Project Agricultural hnprovement and Power District, Tri-State Generation and <br />Transmission Association, Inc" and Pacificorp (collectively referred to as "the Yampa Participants"), the <br />River District, and the City of Craig dated (setting forth the Agreement of the River District, <br />City of Craig, and Yampa Participants related to the post-construction operation, maintenance, and repair of <br />the Elkhead Reservoir Enlargement), ineofj3Elflltell her-eiR lly Fef~rell<)~. The above-described Agreements <br />between the River District, Craig, Division of Wildlife, and the Yampa Participants confirm that title to the <br />storage space created by the enlargement of Elkhead Reservoir will vest in the River District. The Elkhead <br />Reservoir Enlargement will result in an estimated 11,750 acre-feet of additional storage capacity at the site <br />of the Elkhead Reservoir. The above-described Agreements are incorporated herein by reference and made <br />a part hereof. The River District also has entered into a Grant Agreement with Reclamation, attached <br />hereto as Exhibit B and incorporated herein; and an Agreement with Reclamation and the Service <br />Concerning Elkhead Reservoir Enlargement to Facilitate Recovery of Endangered Fish Species in the <br />Yampa River Basin ("Reservoir Enlargement Agreement"), attached hereto as Exhibit C and incorporated <br />herein, Reclamation and the Service intend to work with the River District to perfect the conditional <br />storage right for the Elkhead Reservoir Enlargement so that the River District can convey the storage space <br />easement and 5,000 acre-feet of the absolute water right for the Permanent Water Supply to CWCB in <br />perpetuity for Recovery Program purposes, including for piscatorial and recreational use (including in-river <br />fish habitat and river flow maintenance and enhancement uses; and uses in furtherance of the Upper <br />Colorado River Basin Fishes Recovery Program); and, <br /> <br />. <br /> <br />R WHEREAS, the River District is willing to grant the CWCB a 20/47th interest in the River District's <br />ownership of the storage capacity of the Elkhead Reservoir Enlargement and in certain water rights owned <br />by the River District decreed to fill the Elkhead Reservoir Enlargement (the Permanent Water Supply), <br />after those water rights have been decreed absolute, in exchange for the Recovery Program paying for <br />20/47ths of the costs of constructing the Reservoir Enlargement. The River District shall be responsible for <br />placing to beneficial use the water subject to the conditional water storage right prior to conveying that <br />water right to the CWCR Once the conditional water right has been placed to beneficial use, the River <br />District will file the necessary pleadings and prosecute the case to make the right absolute. After the water <br />storage right in the Reservoir Enlargement has been made absolute, the River District ietealls to will <br />convey the storage space easement and 5,000 acre-feet of the absolute water right for the Permanent Water <br />Supply to the CWCB in perpetuity for Recovery Program and stream flow enhancement purposes; and, <br /> <br />C. WHEREAS, the Reservoir Enlargement Agreement, inter alia among ether flre~iGioas, addresses the <br />Recovery Program's long-term obligation to pay a pro-rata share of the River District's future Reservoir <br />Enlargement operation, maintenance and repair costs allocated to the CWCB's Pennanent Water Supply <br />storage space easement; and <br /> <br />D. WHEREAS, the Reclamation and the Service have entered into a 20 Year Short-Term Water Supply Lease <br />with the River District ("Lease"), attached hereto as Exhibit D and incorporated herein, for the Short Term <br />Water Supply for up to an additional 2,000 acre-feet of water annually from the Elkhead Reservoir <br />Enlargement to be used for the benefit of the endangered native fish species in the Critical Habitat Reach; <br />and, <br /> <br />E. WHEREAS, Reclamation and the Service, on behalf of the Recovery Program, are willing to make the <br />Short-Term Water Supply water available for use by the CWCB to monitor and protect to and through the <br />Critical Habitat Reach for the benefit of the endangered fishes. <br /> <br />. <br /> <br />3 <br />