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'. . . . ATTACHMENT 1 MEMORANDUM OF UNDERSTANDING BETWEEN THE UNITED STATES FISH AND WILDLIFE SERVICE AND THE COLORADO RIVER WATER CONSERVATION DISTRICT I, Background: The primary purpose of the MOU is to implement the Reasonable and Prudent Alternative for Wolford Mountain Reservoir enlargement to offset the likelihood of jeopardy and adverse modification of critical habitat. In January 1988, the Secretary of the Department of the Interior: the Governors of Colorado, Wyoming, and Utah: and the Administrator of the Western Area Power Administration entered into a Cooperative Agreement to implement the Recovery Implementation Program for Endangered Fish Species in the Upper Colorado River Basin, The Cooperative Agreement also established an Implementation Committee to oversee the Recovery Program. The overall goal of the Recovery Program, as stated in the Cooperative Agreement. is to recover and delist four endangered species (the Colorado squawfish. humpback chub. bony tail , and the razorback sucker) while allowing new water development to occur in the Upper Colorado River Basin, Those four fish are referred to as the "endangered Colorado River fishes" in this Memorandum of Understanding. Two of the principal elements of the Recovery Program are: (a) a process for conducting section 7 consultations in accordance with the Endangered Species Act on the impacts of water depletions to the endangered Colorado squawfish. razorback sucker. humpback chub. and bonytail and their critical habitat; and (b) acquiring water and/or water rights.to provide instream flows in accordance with State laws for the endangered Colorado River fishes. Under the Recovery Program. the depletion impacts of water development projects are offset by: (a) recovery activities partially funded by water projects proponents' financial contribution to the Recovery Program; (b) legal protection of instream flows under State law; and (c) progress in all other Recovery Program elements. Accordingly. the U. S. Fish and Wildlife Service has decided that it must determine that progress under the Recovery Program is sufficient to offset impacts of a depletion project before it will issue a favorable Biological Opinion, In cases where progress is not sufficient the Service identifies actions in the Recovery Implementation Program Recovery Action Plan to serve as the reasonable and prudent alternative. In a Biological Opinion on the Muddy Creek Project of the Colorado River Water Conservation District issued in February 1990. the Service concluded that progress under the Recovery Program had not been sufficient and that an additional conservation measure was necessary to offset the depletion impacts of the Muddy Creek Project. The