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, " STATE OF COLORADO Bill Owens, Governor DEPARTMENT OF NATURAL RESOURCES . DIVISION OF WILDLIFE AN EQUAL OPPORTUNITY EMPLOYER Bruce McCloskey, Director 6060 Broadway Denver, Colorado 80216 Telephone: (303) 297,1192 October 27,2004 Mr. Dan Merriman and Ms. Anne Janicki Colorado Water Conservation Board Stream and Lake Protection Section 1313 Sherman Street, Room 723 Denver, Colorado 80203 Re: Elkhead Reservoir Enlargement Acquisition. Dear Dan and Anne, The purpose of this letter is to officially transmit the Colorado Division of Wildlife's (CDOW) recommendation regarding whether the Board should accept the water, water rights and interests in water from the enlargement of Elkhead Reservoir for the purposes of the Recovery Implementation Program for Endangered Fish Species in the Upper Colorado River Basin (Recovery Program), The CDOW has reviewed the draft Elkhead Acquisition Agreement and the other related information found on the CWCB' s website regarding this acquisition. . Backl!round The State of Colorado is a party in the Recovery Program, a coalition of agencies and organizations, including the CDOW and CWCB, whose goal is to achieve recovery of four species of endangered fish, humpback chub (Gila cypha), razorback sucker (Xyrauchen texanus), bonytail chub (Gila elegans), and Colorado pikeminnow (Ptychocheilus lucius), while allowing for water development to occur within the State, The United States Fish and Wildlife Service (USF & WS) has designated certain reaches of the Yampa River as "critical habitat" for each of the four endangered fish species. The proposed acquisition will provide water to a significant portion of this designated "critical habitat", The Recovery Program has determined the need to acquire 5,000 acre-feet of water on a permanent basis (permanent water) and up to 2,000 acre-feet of water on a temporary basis (temporary water) to help maintain critical habitat within the 140 mile reach of the Yampa River from its confluence of Elkhead Creek to the confluence with the Green River. Elkhead Reservoir is located northeast of the City of Craig in Moffat and Routt Counties on Elkhead Creek. The proposed enlargement ofElkhead Reservoir could, depending on hydrologic cycles, provide the water and water rights necessary to meet the 5,000 acre-feet of "permanent water" and 2,000 acre-feet of "temporary water" identified by the Recovery Program as necessary to help maintain the Y ampa River critical habitat. The USF& WS has agreed that any acquisition of water by the CWCB for benefit of the endangered fish shall be considered in determining whether there has been sufficient progress for the Recovery Program If sufficient progress is determined, the Recovery Program will continue as a reasonable and prudent alternative to avoid potential jeopardy opinions regarding existing and new water developments. . The Colorado River Conservation District (District) has filed for a conditional storage water right in Case No, 6- 02CWl06 for piscatorial and recreational uses, including in-river fish habitat, river flow maintenance and enhancement uses and uses in furtherance of the Recovery Program In addition, the District and the CDOW have entered into a DEPARTMENT OF NATURAL RESOURCES, Russell George, executive Director WILDLIFE COMMISSION, Philip James, Chair. Jeffrey Crawford, Vice-Chair. Brad Phelps, SecretaryMembers, Bernard Black. Tom Burke. Rick Enstrom. Claire O'Neal. Robert Shoemaker. Ken Torres Ex Officio Members, Russell George and Don Ament