BOARD01164

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

Update on PIne River Water Rights Acquisition: For the past several years, CWCB staff has been
working with local residents and other interests to provide instream flow protection for the Pine River .
downstream from Vallecito Reservoir in La Plata County. In February 2003, the Pine River Irrigation
District (PRID) and Southern Ute Indian Tribe requested CWCB staff to consider a "water donation"
proposal in lieu of a new instream flow appropriation to preserve the natural environment of the Pine
River. PRID and the Tribe hold decrees for water stored in Vallecito Reservoir, which they would donate
to the CWCB for instream flow use, subject to certain tenns and conditions. Since 2003, staff has worked
with representatives from PRID and the Tribe to craft an agreement to provide stream flow protection for
the Pine River with releases of storage water, while allowing PRID and the Tribe flexibility in their day-
to-day operation of the reservoir.

It is stairs understanding that the current draft agreement has support from the parties. However, the
Tribe recently held elections, and has requested additional time to ensure that the new Tribal Council is
comfortable with the agreement. Staff is hopeful that the proposed agreement will receive Council
approval and can be presented to the CWCB Board for consideration at the Mayor July 2006 meeting.

Update on Paradox Unlt Injury with Mitigation Resolution (Case Nos. 7-83CW45 and 4-83CWI4):
The Board approved this injury with mitigation pretrial resolution at its January 2006 meeting,
authorizing the CWCB Director to execute the Memorandum of Agreement ("MOA") conditioned upon
Reclamation and the Dolores Water Conservancy District finalizing a written agreement guaranteeing the
availability of700 acre-feet of water stored in McPhee Reservoir for Paradox Unit augmentation
purposes. During the Board's discussion of the proposal and the MOA, the question arose of whether
section E. of the MOA could constitute a selective subordination. Section E provided that:

The CWCB shall not place a call at or downstream of the Unit for the Dolores River ISF while
this Agreement is in effect. However, if Reclamation is unable to obtain and provide 700 acre-
feet of augmentation water, the CWCB may place a call at or downstream of the Unit for the .
Dolores River ISF after consultation with Reclamation. If for any reason Reclamation elects to
not provide augmentation water when required to do so by the Division Engineer when all or a
portion of the 700 acre-feet of augmentation water is available for release, the CWCB may place
a call at or downstream of the Unit for the Dolores River ISF.

Staff has revised section E. to read as follows (last sentence is not changed):

The CWCB's Dolores River ISF water right will not be injured by the Bureau's out-ofpriority
depletions which result from operation of the Paradox Unit so long as I) such depletions do not
exceed the amounts set forth in paragraph B herein and 2) Reclamation provides 700 acre-feet of
augmentation water per year for release from McPhee Reservoir as described herein. If for any
reason Reclamation elects to not provide augmentation water when required to do so by the
Division Engineer when all or a portion of the 700 acre-feet of augmentation water is available
for release, the CWCB may place a call at or downstream of the Unit for the Dolores River ISF.

Staff believes that the revised section E. more clearly describes this aspect of the agreement and does not
raise the issue of a selective subordination. Staff has provided the revised MOA to Reclamation and is
waiting for a response. On February 9, 2006, the Dolores Water Conservancy District Board adopted a
resolution for its water year 2006 approving the distribution of 3,900 acre-feet of water from McPhee
Reservoir, including 700 acre-feet for Paradox Salinity Unit augmentation requirements.

Animas-La Plata Appropriation Requests Submitted: The State and Kogovsek & Associaties, Inc on
behalf of Colorado's project sponsors sent appropriations requests forms requesting an appropriation of
$69 million for ALP to Senators Allard and Salazar and Congressman Jobo Salazar. This is more than the .
Administration's $57.4 million already authorized. A request will be made to the other House members .

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