BOARD01695

• Board Meeting Date: 7/25/2006
• Description: ISF Section - Injury with Mitigation Proposal - Case No. 5-04CW238 - Application of S.G. Company
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.u5

MEMORANDUM

Bill Owens
Governor

To: Colorado Water Conservation Board Members

From: Dan Merriman and Linda Bassi ~
Date: July 11, 2006

Russell George
Executive Director

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director
Re: Agenda Item No. 12, July 25-25, 2006 Board Meeting: S.G. Company (Case No. 5-
04CW238) -- Injury with Mitil(ation Proposal

This agenda item addresses a proposed pretrial resolution under ISF Rule 8i. (3) (Injury Accepted
with Mitigation). Rule 8i.(3) requires the Board to consider an injury with mitigation proposal using
a two meeting process. This is the first meeting ofthe process.

Backl!round
S.G. Company's application seeks conditional surface and storage rights, changes of water rights,
and a plan for augmentation including exchange. The application is in connection with S.G.
Company's Oxbow /Floodplain Fish Habitat Improvements ("Improvements") located on the Mt.
Powell Ranch on a 3.5 mile reach of the Blue River north of Silverthorne in Summit County,
Colorado. The Improvements include the Oxbow fishery channel and a restored historic floodplain
channel, together with associated open channels, fill ditches and return facilities to the Blue River.
The Board filed a statement of opposition to this application because the exercise of the proposed
rights could adversely impact the Board's instream flow ("ISF") water rights listed below.

CWCB Case Stream/Lake Amount Approp. Watershed County
No. (ds) Date
5-77W3648 Slate Creek 7/3 1/19/77 Blue River Summit
5-77W3615 Brush Creek 3 1/19/77 Blue River Summit
5-77W3650 Squaw Creek 1 1/19/77 Blue River Summit
5-87CW298 Blue River 125/90/85/ 10/02/87 Blue River Summit
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5-87CW299 Blue River 125/90/85 10/02/87 Blue River Summit

(See map at page 5 of this memo). This injury with mitigation proposal only addresses impacts to
the Blue River ISF water right decreed in Case No. 87CW298. Impacts to the other ISF water rights
will be addressed separately by protective terms and conditions to be included in the decree in this
case. S.G. Company has proposed a flow-sharing agreement with the CWCB that would result in
Blue River flows less than the ISF amounts decreed in Case No. 87CW298 at times, but that would
Colorado Water Conservation Board
Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
. Water Supply Protection. Conservation anu Drought Planning