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<br />The discussion then turned to staff recommendations on <br />construction fund projects. It was decided to consider the <br />Fruitland-Mesa, Overland, and Rio Grande reservoir projects at <br />the end because they raise new funding issues, <br /> <br />The Erie project is to provide municipal water supply <br />storage to increase reliability and available supply in the <br />system. Additional rights are owned by the town, but the <br />proposal also includes diversion under free river conditions. In <br />the ensuing discussion, a number of questions about the status of <br />the rights, their transferability and yield, and about the free <br />river condition were raised. A question was also raised about <br />whether or not the project meets the Board policy and statutory <br />requirements that projects develop new beneficial consumptive <br />use, The sponsor and consultant agreed to prov ide lOClre detail s. <br /> <br />I <br /> <br />At the request of the sponsor, the Waneka project was <br />deferred until the February meeting. <br /> <br />The Groundhog reservoir rehabilitation project was presented <br />next. The dam is under order from the State Engineer to repair <br />the deteriorating concrete outlet. Assessments to shareholders <br />are considered high and no revenues for maintenance are avail- <br />able. Although not on the State Engineer's priority list of ten <br />dams, repair is considered critical. <br /> <br />The Fossil Creek reservoir in the North Poudre system needs <br />repair to regain storage capacity now reduced by State Engineer's <br />orders, and is among his top ten. Sponsors suggested they would <br />like that assistance beyond the Board's normal approach since the <br />system has 22 reservoirs to maintain and repair. <br /> <br />The Beeman Irrigation Company structure is near <br />is threatened by future South Platte River flooding, <br />structure would be replaced by a reinforced concrete <br />Standard Board funding arrangements are proposed. <br /> <br />The City of Craig has experienced growth which requires a <br />reliable drought year supply to be obtained by a proposed storage <br />reservoir. Other elements of system expansion and improvement <br />have already been achieved, The priority and yield of the <br />community's water rights were discussed and considered to be <br />adequate and would achieve new beneficial storage of about 5800 <br />acre feet, <br /> <br />collapse and <br />A wooden <br />dam. <br /> <br />The discussion turned then to the federal cost-sharing <br />proposals, Mr. John Brown of the Durango Project office, Bureau <br />of Reclamat.ion, described the status of the Animas-La Plata <br />project, All 'prerequisites to construction have been fulfilled. <br />A repayment contract is under negotiation with five non-Indian <br />entities, with Indian negotiations scheduled for January, 1982, <br />He said that cost-sharing is a prerequisite but no guarantee of <br />federal approval, Several representatives of participating local <br /> <br />I <br /> <br />-4- <br />