BOARD01199

• Board Meeting Date: 1/20/1993
• Description: Agenda or Table of Contents, Minutes, Memos. Partial.
• Board Meetings - Doc Type: Meeting

taken during executive session.

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12d, Construction Fnnd Program - Recommended Projects (2:24 - 2:58 p.m.)

Hidden Vallev Reservoir - Senator Sam Cassidy presented his concerns over protection
of the Construction Fund and putting water to beneficial use to preserve Colorado's water.
He and Jack De Lange (Pagosa Springs Water & Sanitation District) made a request to
the Board to fund the 3500 af Hidden Valley Reservoir in Pagosa Springs. It would
provide water storage for the community of Pagosa Springs as well as flood benefits.
This project was presented at the November, 1992 meeting, as two components - the
Stevens Reservoir expansion, which was approved, and Hidden Valley Reservoir, which
was tabled for consideration at this meeting, At that time, the request was for $5,200,000,
The staff recommendation was to fund both components of the project The cost has been
revised to $4,500,000. The conditions of Alpine Cascade Corporation (property owner
of Hidden Valley) in an agreement between them, Pagosa Springs Area Water and
Sanitation District and San Juan Water Conservancy District were to include the Town
of Pagosa Springs and Archuleta Water into Pagosa Area Water and Sanitation District
and to get a loan commitment from the CWCB. Alpine Cascade would provide a senior
5 cfs water right and the property that the reservoir would be located on - 250 acres plus
50 acres and a site for a water treatment facility and easements for pipelines at an
estimated, worth about $4200/acre. The land (approximately 1800 acres) around Hidden
Valley Reservoir will be owned by Alpine Cascade and developed into a low density
community. The reservoir will be for drinking water purposes and only property owners
around the lake will be allowed to access it with non-motorized boats. General discussion
regarding the funding options continued by Ken Salazar, Bob Jackson, David Harrison,
Sam Cassidy and Jack De Lange. Remaining discussion on this matter was continued in
the afternoon of January 20, 1993.

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6. Ruedi Reservoir - Round II Water Marketing" (2:58 - 3:50 p.m.)

David Robbins requested that the CWCB consider purchase of remaining water rights on
Ruedi Reservoir following the Round II Water Sales. There is approximately 38,000 af
of water available and the Bureau of Reclamation has provided a number of costs for
which the water can be acquired, ranging from $20/af for municipal water to a varying
amount for industrial water. Currently, the Department of Energy has offered to purchase
any water remaining from Round II Sales for its oil shale needs in the future. Robbins
believes it is in Colorado's interest to ensure that the water is held by entities within the
State, or within the State itself. The purchase price would be 20,000 af for $7,000,000
at $345/af There was general discussion among Bob Jackson, David Robbins, Ken
Salazar, Janice Sheftel, David Harrison and Jim Lochhead and Eric Kuhn. Jim Lochhead
abstained from the all the issues surrounding those contracts and the use of the release
water for the fish in the issues involving AspenlPitkin County etc, He also stated that he
feels strongly about the State purchasing the remaining capacity of Ruedi Reservoir, and evthat issue is separtate and apart from his representation of contracting entities in the use
of water under those contracts, because the proposal before the Board is that the State

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