BOARD01398

• Board Meeting Date: 7/24/2000
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

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very broad. .carol Angel and Jennifer Gimbel in my office are coordinating with the other
Colorado River basin states regarding litigation strategy. They have participated in several
conference c/llls with Lower Basin interests and the feds, More conference calls are 1icheduled,
to discuss strategy, arguments, and the possibility of intervention. Those states that
intervene wiD probably try to do so by August 28, when the federal agencies'auswer to the
complaint IS due. The Board may wish to discuss legal strategy regarding this lawsuit in more
detail in executive session.

14. Gunnis~n 60,000 Acre-Foot Subordination Contract

Discussion: This rontrnct represents an impl)rtant agreement between the U.S. Bureau of
Reclamation, the Colorada State Engineer, the Colorado River Water Conservation
District, an!! tbe Upper Gunnisoo Water<:ouservancy District regarding administration of
waterrigbts for the Bureau's Aspinall Unit. Under the agreement, junior water users may
develop up to 60,000 acre-feet of water for use within the Upper Gunnison Basin without
being called-out by the Aspinall Unit's water rights (1.1 million acre-feet of storage and
3000 cubic feet per second of direct flow). The agreement is a formal recognition of the
long-standing commitment by the United States that the construction of the AspinaH Unit
of the Colorado River Storage Project should allow for anticipated future upstream in-
basin water development.

Svecific Provisions of the Subordination Contract:

. The Aspinall Unit water rights are subordinated to up 60,000 acre feet of new
depletions, ;tPpl)rtioned between three basins as foHows: 40,000 to the Upper Gunnison
above Blue Mesa, 10,900 above Crystal dam (primarily the Cimarron drainage) and
10,000 above Morrow Point (primarily Blue Creek and Curecanti Creek drainages).
The Upper Gunnison River Water Conservancy District will represent the water users
above Blue Mesa and the Colorado River Conservation District will represent the otber
two groups pf water users.

. The State E:ngineer will acronnt for tbe water used under the terms of the
subordinatipn agreement as part of the Aspinall Unit water rights.

. The subordination applies only to junior water rights "exercised for beneficial use
within the Upper Gunnison River Basin."

. The contract includes accounting provisions to keep track of the amount of depletions
benefiting from the subordination.

. The Upper Gunnison and Colorado River Districts are required to proceed under state
law to obtain appropriate water eourt decrees in order for the State Engineer to
properly administer the subordination.