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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maximize the benefits of the Improvements, which are described below. This proposal would aIlow
some injury to the subject Blue River ISF water right, but the mitigation offered by S.G. Company .
may enable the Board to accept that injury while continuing to preserve the natural environment of
the Blue River to a reasonable degree. Therefore, Staff is asking the Board to consider resolving this
case under ISF Rule 8i. (3) as an injury accepted with mitigation.

The reach of the Blue River that would be injured under this proposal begins at the Highway 9
Bridge at the headgate of the High-Miller Ditch, where water is diverted into the Oxbow portion of
the Improvements, and extends approximately I. I miles to the point where water diverted into the
Oxbow returns to the Blue River ("the Oxbow Reach").

Description of the Improvements
In 2005-2006, S.G. Company commenced restoration of the OxbowlFloodplain Fish Habitat
Improvements on the Mt. PoweIl Ranch. The restoration of the Oxbow has substantially improved
the fishery habitat for the Blue River by providing an additional 2,850 linear feet (approximately 4.6
acres) of habitat, including a functioning floodplain and wetlands, and additional water depth and
winter holding capacity for fish. Within the Oxbow Reach, S.G. Company instaIled 40 stnlctures, all
of which are specifically designed to create fish habitat. The Improvements provide vegetative
structural diversity, waterfowl habitat, fisheries overwinter and nursery habitat, and
macroinvertebrate breeding and nursery areas. For the Improvements to function at water elevations
sufficient to provide vital off-channel fisheries habitat, including a migration connection to the Blue
River for fish produced in these oxbows, a continuous source of water is necessary. Water elevation
must be maintained to reclaim areas of abandoned historic wetlands, and a freshet of 5-10 cfs of
water through the Improvements is necessary to support fisheries and macro invertebrates during .
critical periods, such as winter. Dissolved oxygen samples taken in the first 3 oxbows during winter
of 2005 indicated reduced depths and oxygen depletion in these ponds due to the lack of flow-
through water. No other source of water is available for this project except the Blue River.

Queen of the River Consultants, Inc. and S.G. Company have compiled a report entitled "S.G.
Company-Mt. PoweIl Ranch - Case No. 04CW238 - Request for Approval of an Injury with
Mitigation Plan to the Colorado Water Conservation Board," (attached as Exhibit A). Mike
Mitchell of Queen of the River Consultants, Inc. will make a presentation to the Board on the
OxbowlFloodplain Fish Habitat Improvements.

Flow-sharin!! Proposal
Diversions of water to the Improvements may need to be made at times when the ISF in the Oxbow
Reach is not fuIly satisfied. To minimize the potential injury, out-of-priority diversions into the
Improvements will be based on a flow-sharing agreement that is attached hereto as Exhibit B. In
general, under the proposed flow-sharing agreement, the amount of water that may be diverted into
the Improvements is directly related to the flow in the Blue River at the time of diversion. As the
available flow in the river diminishes during the out-of-priority period, the amount of water diverted
into the Improvements will also diminish. All water diverted into the Improvements will be returned
to the Blue River approximately 1.1 miles downstream of the diversion.

Except for evaporation, the Improvements will be non-consumptive. The use of water consumed .
will be for evaporative losses from the 3.6 acres of ponds and 1.25 acres of wetlands that are part of

Flood Protection. Water Project Planning and Finance. Stream and Lake Protection
Water Supply protection. Conservation Planning