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<br />- 3 - <br /> <br />. <br /> <br />a water rights application has been filed and because the State Engineer has already approved the <br />dam, as described above. <br /> <br />The Staff has met with the Applicant a number of times, and the Applicant has provided the attached <br />request to inundate, which includes the information required by Rule 7e. The Applicant has <br />requested to inundate the Board's instream flow water right on Trout Creek, located in Section 26, <br />Township 14 South, Range 78 West, 6th P.M. The Applicant's request is to store'approximately <br />1157 acre-feet of water, and inundate approximately .8 miles of streamlbeaver pond complexes on <br />Trout Creek. The site or the Reservoir dam is located approximately 300 feet upstream from the <br />terminus of the Board's instream flow water right on Trout Creek. The impact of the inundation on <br />the natural environment was to change a stream environment to lake environment. Moreover, the <br />inundation impacted potential brook spawning and boreal toad habitat. There are no unique or rare <br />characteristics of the Board's instream flow water right. There are no relevant federal, state, or local <br />regulations that have been imposed on the Applicant. The Applicant is still in the process of <br />finalizing a proposed decree. <br /> <br />Pursuant to Rule 7f, the Staffs of the CWCB and the Division of Wildlife believe that this inundation <br />interferes with the Board's instream flow water right on Trout Creek, based upon the extent of the <br />inundation (.8 miles of stream) and the impact on the natural environment (change from stream to <br />lake environment, impacting potential brook spawning and boreal toad habitat). Therefore, the Staff <br />recommends that the Board consider this request to inundate pursuant to Rule 7 g. <br /> <br />. <br /> <br />Pursuant to Rule 7g and 7h-7k, the Board may approve, approve with conditions, defer or deny the <br />request to inundate. Rule 7 g requires the Board to consider all relevant factors including the <br />following seven specified factors. <br /> <br />I. The Board must consider the extent of the inundation. This is not a small inundation, and the <br />natural environment that was sacrificed was valuable habitat. <br /> <br />2. The Board is required to consider the impact of the proposed inundation on the natural <br />environment. As described above, the impact on the natural environment was to change a stream <br />environment to lake environment. Moreover, the inundation impacted potential brook spawning and <br />boreal toad habitat. Mark Uppendahl, of the Division of Wildlife, will be available to answer <br />questions from t.'le Board at the Board meeting. <br /> <br />3. The Board must consider is the degree to which the bed and banks adjacent to the ISF right <br />subject to the inundation are publicly or privately owned. In this circumstance, the beds and banks <br />adjacent to the ISF are entirely owned by the person that caused the inundation-thus, the beds and <br />banks adjacent to the ISF are entirely privately owned. <br /> <br />. <br /> <br />4. The Board must consider the economic benefits arising from the inundation. The Applicant <br />has indicated that in order to inundate this portion of Trout Creek, the Applicant had to exchange <br />land with the BLM. Moreover, the land that Mr. Moltz exchanged with the BLM has become an <br />extremely important recreational site, having taken a considerable amount of pressure off Hecla <br />Junction as a take-out and put-in point for rafts and kayakers, and providing public fishing access to <br />.the Arkansas River in an area where public access is desirable. In addition, there may be some <br />economic benefits associated with the storage of water in this location, as it will be available for <br />augmentation purposes. <br />Flood Prote<:'tion . Water Project Planning and Finance. Stream and Lake Protection <br />Water Supply Protection.. Conservation Plaruting <br />