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Discussion Staff and the parties have spent a significant amount of time working together to reach a mutually acceptable approach to the Horsefly Creek instream flow water right. The issues . identified in Pacific/Desert's Motion to Intervene and Notice to Contest are similar to the issues raised by the Eldred Colorado Family Partnership, Assistant Attorney General Ginny Brannon has discussed these issues with counsel for Pacific/Desert and informed her of staffs willingness to work with Pacific/Desert on acknowledging its existing water rights under section 37-92- 102(3)(b) in the Board's water right application and decree prior to filing the application. In its Notice to Contest, Pacific/Desert states that it "anticipates that its concerns can be adequately addressed with the imposition of terms and conditions on enforcement of the ISF, and Pacific/Desert welcomes the opportunity to confer with CWCB staff about Pacific/Desert's concerns. " Staff is confident of its ability to work cooperatively with Pacific/Desert to develop mutually acceptable terms and conditions for the Horsefly Creek instream flow water right decree, Staff is firmly committed to working with Pacific/Desert to that end prior to filing the water rights application in December, If for some reason staff and Pacific/Desert cannot reach mutually acceptable terms by December 31, staffreconnnends filing the water court application to obtain the 2005 adjudication date that staff and the parties have worked so hard to make possible, Staff then will continue to negotiate a resolution with Pacific/Desert in the context of the water court proceeding. Staff Recommendation Staffreconnnends that the Board (1) deny Pacific/Desert's request to intervene; (2) direct staffto work with Pacific/Desert to address its concerns and develop mutually acceptable terms and . conditions to include in the Horsefly Creek instream flow decree; and (3) take final action on the Horsefly Creek instream flow appropriation as will be requested in Agenda Item 18b and file a water court application on or before December 31, 2005. Attachments .