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<br />identified a need for up to 7,000 acre-feet (AF) of water to augment base flows in the Yampa River, primarily
<br />below the town of Maybell, during late July through early October. To meet this need, the Yampa Plan
<br />recommended 5,000 AF come from a dedicated augmentation pool established by enlarging Elkhead
<br />Reservoir with the remaining 2,000 AF provided through a 20-year renewable lease from other water in the
<br />Elkhead Reservoir Enlargement
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<br />In 1999, the Colorado River Water Conservation District ("River District") agreed to undertake the
<br />enlargemenLoLElkhead_ Reser:voiL .on,jts_own_ behaILand_on_behalf _oUhe _Recoveiy _F'rogram.. ,Elkhead
<br />Reservoir is located on Elkhead Creek northeast of the town of Craig, The River District will be constructing
<br />the reservoir enlargement with funding from the CWCB, Recovery Program and River District sources, The
<br />River District has filed a new conditional storage ri9ht for the enlargement (Case No. 6-02CW106) for "all
<br />beneficial uses including municipal, commercial, industrial, domestic, irrigation, livestock, power generation
<br />and cooling, wastewater treatment, piscatorial and recreational (including in-reservoir and in-river fish
<br />habitat and river flow maintenance and enhancement uses, ,and uses in furtherance of the Upper Colorado
<br />River Basin Fishes Recovery Program)",
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<br />To meet the water needs identified by the Yampa Pian, the U.S. Bureau of Reclamation
<br />("Reclamation"), acting on behalf of the Service and the Recovery Program, will fund (cost share) a portion
<br />of the Recovery Program's pro-rata share of the reservoir enlargement cost of construction. Reclamation
<br />will also enter into a 20-year lease for up to 2,000 AF of water from the River District's pool in the reservoir
<br />enlargement The intent is to convey 5,000 AF of the storage water right along with a storage space
<br />easement to the CWCB, and subiease up to 2,000 AF of water to the CWCB, to hold on behalf of the
<br />Recovery Program for the purpose of protecting instream fiows through the Critical Habitat Reach of the
<br />Yampa River.
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<br />Over the past several months, CWCB staff has been working with the Department of Natural
<br />Resources, the River District and federal agencies acting on behalf of the Recovery Program, to develop
<br />the numerous legal documents and the terms and conditions required to implement the proposed
<br />conveyance and lease of water for endangered fish, At the September 2004 Board meeting in Alamosa,
<br />CWCB staff presented the Board with a report entitled, "Proposed Water Right Acquisition, Elkhead
<br />Reservoir Enlargement, Elkhead Creek and the Yampa River, Moffat and Routt Counties", The report
<br />is also posted on the CWCB web page at http://cwcb,state.co.us/isf/Proqrams/Donations.htm. The report
<br />includes the proposed Acquisition Agreement and related appendices, as well as staff's technical report
<br />summarizing the proposed water acquisition. Staff will rely on the information contained in that report for
<br />the purposes of this memo.
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<br />Summary of Proposal
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<br />There are two components to this proposed water acquisition, The first component involves the
<br />permanent DONATION of a 5,000 acre-foot storage water right in the Elkhead Reservoir Enlargement (the
<br />"Permanent Water Supply"), The River District has filed a conditional water right for the Elkhead Reservoir
<br />Enlargement in Case No, 6-02CW106 for piscatorial and recreational use (including in-river fish habitat and
<br />river flow maintenance and enhancement uses, and uses in furtherance of the Upper Colorado River Basin
<br />Endangered Fishes Recovery Program), The River District, Reclamation and the Service will be
<br />responsible for perfecting the conditional water right for the claimed "in-river" uses. Once the Recovery
<br />Program financial obligation has been paid in full and the 5,000 AF portion of the water right has been
<br />decreed absolute, the River District will convey the right to the CWCB by means of a Special Warranty
<br />Deed, Along with the water right, a pro-rata interest in storage space (the Storage Space Easement) will be
<br />conveyed to the CWCB, The CWCB will hold the water right and storage space in perpetuity for the benefit
<br />of and at the direction of the Recovery Program, The CWCB will have no financial obligation with regard to
<br />the Permanent Water supply, and no obligation to fund annual operation, maintenance, and repair costs for
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