BOARD01632

• Board Meeting Date: 9/13/2004
• Description: ISF Section - Proposed Water Right Acquisition - Elkhead Reservoir Enlargement
• Board Meetings - Doc Type: Memo

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Program to continue to function as a reasonable and prudent alternative to avoid the
likelihood of jeopardy to those species from existing and new water developments; and

9. WHEREAS, the Recovery Program has determined a need to acquire 5,000 acre feet of
water on a permanent basis (the "Permanent Water Supply") and up to 2,000 acre feet of
water on a temporary basis (the "Short-Term Water Supply") to maintain occupied
critical habitat for endangered fish in the Critical Habitat Reach of the Yampa River; and

10. WHEREAS, the River District has appropriated a conditional storage right for the
Elkhead Reservoir Enlargement as more fully described in Water Court Case No. 6-
02CWI06 for piscatorial and recreational use (including in-river fish habitat and river
flow maintenance and enhancement uses, and uses in furtherance of the Upper Colorado
River Basin Endangered Fishes Recovery Program); and

11. WHEREAS, the River District and the Recovery Program have agreed to cooperate in the
construction of an expansion ofEIkhead Dam and Reservoir, located on EIkhead Creek, a
tributaryofthe YampaRiverin Sections 1,2,3,4,9,10,16, and 21, Township 7 North,
Range 89 West, 6th Principal Meridian, Moffat and Routt Counties, Colorado, to develop
a water supply that will be capable, subject to water availability based on hydrologic
cycles, of providing the Recovery Program's Permanent and Short-Term Water Supply
needs for endangered native fish species during the critical low-flow periods in the
Yampa River Basin, and be available for other beneficial uses to contractees of the River
District; and

12. WHEREAS, the River District has entered into the following agreements: an
Intergovernmental Agreement between the River District and the City of Craig, dated
February 1,2002 (creating a joint venture between the River District and the City of
Craig for the construction of the EIkhead Reservoir Enlargement); a Memorandum of
Agreement between the River District, the City of Craig, and the Colorado Division of
Wildlife, dated August 6, 2003 (granting the River District the right to interfere with
certain interests owned by the Division in order to construct an enlargement ofthe
existing EIkhead Reservoir); an Intergovernmental Agreement between the River District
and the City of Craig, dated August 6, 2003 (setting forth the Agreement of the River
District and the City of Craig related to the construction, operation, and maintenance of
the EIkhead Reservoir Enlargement); and an Amended and Restated Agreement between
the Yampa Participants, the River District, and the City of Craig dated
(setting forth the Agreement of the River District, City of Craig, and Yampa Participants
related to the post-construction operation, maintenance, and repair of the EIkhead
Reservoir Enlargement). The above-described Agreements between the River District,
Craig, Division of Wildlife, and the Yampa Participants confirm that title to the storage
space created by the enlargement ofElkhead Reservoir will vest in the River District.
The Elkhead Reservoir Enlargement will result in an estimated 11,750 acre-feet of
additional storage capacity at the site of the EIkhead Reservoir. The above-described
Agreements are incorporated herein by reference and made a part hereof. The River.

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