BOARD01632

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

Seplembu2,2004Page 10 of 16

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B. The water rights conveyed pursuant to paragraph II.A.2. herein to the CWCB for the
purpose of filling the water storage space easement shall have the same priority as those
water rights used by the River District to fill the River District's water storage space in
the Reservoir Enlargement. Fill of the water storage space easement granted to the
CWCB shall be done on a Pro-Rata basis with the fill of the River District's water storage
space in the Reservoir Enlargement. The parties acknowledge that the Yampa
Participants and the City of Craig own water storage rights decreed for use at the existing
Elkhead Reservoir that are senior to the water rights that will be adjudicated by the River
District and conveyed to the CWCB in paragraph II.A.2. herein, The parties
acknowledge that the River District's and CWCB's right to store water in the Reservoir
Enlargement is subject to the water rights and priorities owned by the Yampa
Participants, the City of Craig, and their successors and/or assigns.

C. The River District agrees that the CWCB shall carry over for use in the next succeeding
year any Permanent Water Supply water that was stored but not actually scheduled for
release by the Service for beneficial use by the CWCB in the previous year. Any water
remaining in the CWCB' s storage pool for the Permanent Water Supply at the start of fill
date established by the Restated and Amended Agreement between the Yampa
Participants, the City of Craig and the River District, after subtracting for the past-year's
releases, evaporation, and sedimentation, shall be credited to the CWCB's Permanent
Water Supply storage pool. The CWCB may not carry over more than 5,000 acre-feet of
Permanent Water Supply water in the Reservoir Enlargement at any time.

D. The parties hereto shall meet annually and/or teleconference as needed to consult on
schedules for releasing the Permanent Water Supply from the Reservoir to provide water
during critical low-flow periods in the Yampa River Basin. The Service shall provide the
parties hereto a preliminary written schedule of anticipated monthly demands on or
before May 1 of each year. Following such consultations, the schedule provided by the
Service (which shall make the final decisions regarding this schedule) shall serve as the
release schedule to be used by the River District until the Service provides written notice
of the schedule's modification. The Service may modify its schedule for releasing the
Permanent Water Supply from the Reservoir Enlargement by providing the CWCB, the
River District and the Division 6 Engineer with a written change order at least 24 hours in
advance of such modification. For the purposes of this paragraph, written notice may
consist of either electronic (email) or facsimile transmissions in lieu of correspondence
through the U.S. Postal Service.

E. Deliveries of water from the Permanent Water Supply shall occur at the outlet of the
Elkhead Reservoir Enlargement. The River District shall have no responsibility once
water stored in the Reservoir Enlargement by the CWCB is released at the outlet. The
Division 6 Engineer may assess appropriate transit losses against the release of water
stored in the Reservoir Enlargement pursuant to the interests granted in paragraph II.A.2.
herein.

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