BOARD01164

• Board Meeting Date: 3/21/2006
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

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Colorado Foundation for Water Education Director Resigns: On Feb IS, Karla Brown tendered her
resignation as director as the Colorado Foundation for Water Education. Ms. Brown has announced that
she and her husband have been offered an opportunity to live in Europc over the Summer and Fall of
2006, and that in order to assist during the upcoming transition process, that her last day will be June 19th.

Arkansas RIver Basin

District Drafts PSOP Legislation for Area Review: Proposed legislation concerning the Preferred
Storage Options Plan (PSOP) for the Fryingpan-Arkansas Project was introduced to the Southeastern
Colorado Water Conservancy District on Jan 19th, specifically addressing a feasibility study and future
negotiations with Aurora on storage.

The legislation was introduced by W.R. Stealey, SECWCD president, during the board of directors
meeting. It was written by Stealey and Lee MilIer, the district's attorney. It specifically addresses a
feasibility study on the enlargement ofFryingpan-Arkansas Project facilities and the long-term
contracting provisions and the long-term water needs for the area served by the Fryingpan-Arkansas
Project.

PSOP legislation to date has not been successful in Washington because the entities within the basin-
and those entities like Aurora that pay to store and move water out of the basin - have not been able to
agree on the language of previously written drafts. Colorado's Congressional delegation has made it clear
that they won't support a bilI that their constituents back in Colorado can't agree on.

Specifically, the legislation states, "the Secretary of the Interior, through the Bureau of Reclamation, is
authorized to conduct a feasibility study to determine the most feasible method of meeting the present and
future water supply and related storage requirements within the area served by the Fryingpan-Arkansas
Project, including the potential enlargement ofFryingpan-Arkansas facilities."

The feasibility study, the legislation said, will include evaluation of existing and potential water supplies,
uses and management; identifying major water-related impacts, including environmental impacts such as
water quality and wildlife habitat, water supply, social, cultural, recreation and economic impacts;
evaluating opportunities to resolve the impacts referred to (in the above section); evaluating options for
implementation of resolutions to the impacts and evaluating the cumulative effect of the conclusions
reached based on the evaluation of (A-D) on the area served by the Fryingpan-Arkansas Project and the
natural basin of the Arkansas River within Colorado, using as a baseline the water supply conditions in
1986.

The legislation also states that before funds are expended for the study authorized, the Southeastern
Colorado Water Activity Enterprise shall first agree to participate in the feasibility study and to fund, at a
minimum, SO percent of the costs of such study.

Funds authorized to be appropriated to conduct the feasibility study will be $4 million. The legislation
also addresses such issues as entering into contracts for the use of excess storage and the use of excess
capacity for diverting, storing, impounding pumping, exchanging or conveying nonproject water for
irrigation, domestic, municipal and industrial, or any other beneficial purpose within the natural basin of
the Arkansas River within Colorado. Specifically addressed is the Secretary of Interior's ability to enter
into new and renewal contracts with Aurora.

Ditch Companies Respond to Fountain Creek Reservoir Proposal: On Feb 3, the CWCB received a
copy of a letter from The Fort Lyon Canal Company, Holbrook Mutual Irrigating Company, Amity

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