BOARD01632

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

to the use of the parties' water through the hydro-electric power generation facility, in
conjunction with a requested release of water by the parties from the Reservoir
Enlargement, without payment or compensation. In the event that a hydro-electric power
generation component to the Reservoir Enlargement is developed, the Recovery Program
and/or the CWCB to the extent permitted by law shall have the right to participate in said
hydro-electric power generation component by paying a Pro-Rata share of the
development costs. The River District shall give the Recovery Program and/or CWCB
notice of the planned development of a hydro-electric generation component in
accordance with this Acquisition Agreement. The Recovery Program and/or CWCB
shall indicate, in writing, its intent to participate in the hydro-electric generation
component development within 60 days of the date of the notice. The development of a
hydro-electric power generation component to the Reservoir Enlargement shall not
interfere in any way with the Service's right to schedule releases from the 5,000 acre-
foot Permanent Water Supply pursuant to paragraph V herein for beneficial instream use
by the CWCB.

B. Short-Term Water Supplv Sublease

I. The Lease provides up to 2,000 acre-feet of additional water annually for the Short-Term
Water Supply for the benefit of endangered native fish species in the Yampa River. The
Lease will be implemented through a 20-year contract with the River District, and Short-
Tenn Water Supply water will be reserved by the Service for release on an "as-needed"
basis, as outlined in the Lease.

2. Pursuant to the terms of the Lease, Reclamation will pay the River District for any water
reserved for release from the Short-Tenn Water Supply. The CWCB will have no
[mancial obligation with regard to the Short- Tenn Water Supply or the Lease.

3. Reclamation and the Service, on behalf ofthe Recovery Program, hereby sublease, at no
cost to the CWCB, all of their right, title, and interest in the Short-Term Water Supply
water leased annually from the River District for use by the CWCB pursuant to the Lease
to monitor and protect to and through the Critical Habitat Reach of the Yampa River.
The River District hereby consents to said sublease.

4. If the Lease is renewed pursuant paragraph B therein, this sublease also may be renewed
by letter agreement signed by the parties hereto.

III. TERMINATION OF SHORT TERM WATER SUPPLY SUBLEASE

In the event the Recovery Program, the Service and Reclamation detennine that the
Short-Tenn Water Supply provided for in the Lease is no longer needed to support
instream flows within the Critical Habitat Reach, or in the event the Lease terminates as
provided for in paragraph B. therein, and upon written notice to the parties hereto, this

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