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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S.G. Company
Case No. 04CW238
Page 7

to the Oxbow Project. The Oxbow Project is generally located adjacent and
parallel to the west or left bank oithe Blue River in Section 7, Township 3 South,
Range 78 West of the 6th P.M., Summit County, Colorado. The location of the
Oxbow Project is generally depicted in Exhibit A attached hereto.

B. Mt. Powell Ranch Pond: Described in section 3.A., above.

8. Water riehts to be used for augmentation: Water available for augmentation, substitution
and exchange under the Subject Water Rights described in sections 4.A. and B., above,
pursuant to the decree granted as a result of this application.

9.

Statement of Plan for AUlZmentation: Applicants propose to use the water available for
augmentation, substitution and exchange under the Subject Water Rights to replace the
out-cf-prioritydepletions resulting from operation of the High Miller Ditch Oxbow
Enlargement and Oxbow Project as follows: (a) water available under the subject
Hamilton-Davidson Ditch water rights will be left in Slate Creek and delivered to the
Blue River at the confluence of Slate Creek and the Blue River which is located above
the headgate of the High Miller Ditch and above the points at which depletions associated
with the Oxbow Project may affect the Blue River; (b) water available under the subject
Sarah Ditch water rights will be left in Brush Creek to satisfy a calling water right on the
Blue River or the Colorado River downstream of the mouth of Brush Creek. Such use of
the Sarah Ditch water right for augmentation will involve an exchange from the
confluence of Brush Creek and the Blue River up the Blue River to the headgate of the
High Miller Ditch Oxbow Enlargement, described above, pursuant to the appropriative
exchange right described below.

The Oxbow Project will be operated by diverting up to 10.0 cfs from the Blue River into
the High Miller Ditch Oxbow Enlargement for delivery to the Oxbow Project. The
Oxbow Project will consist of several ponds and channels that will be used to improve
the biological structure and riparian fish habitat of the Blue River. The ponds and
channels that make up the Oxbow Project will be reconnected back into the main channel
of the Blue River such that the riparian system is a "flow-through" network. Applicant's
engineer estimates that the initial filling of the Oxbow Project will require 12.75 acre-feet
of water. Out-of-priority depletions may be caused by the Oxbow Project due to (a) the
exposure of 3.40 acres of surface water area to evaporation; and (b) the enhancement of
1.25 acres of existing wetlands due to seepage losses from the Oxbow Project. Using
criteria recommended by the Colorado Division of Water Resources in the General
Guidelines for Substitute Water Supply Plans for Sand and Gravel Pits Submitted to the
State Engineer Pursuant to S.B. 89-120 and S.B.93-260, applicant's engineer has
estimated net evaporation from the 3.40 acres of surface water area of the Oxbow Project
as occurring at a rate of 2.46 feet per year. Applicant's engineer has also estimated net,