BOARD02611

• Board Meeting Date: 1/24/2006
• Description: CF Section - Legislation Review - Litigation Fund
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver I Colorado 80203
Phone, [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

TO:

CWCB members

Russel George
Executive Director

FROM:

Rod Kuharich
Ted Kowalski
Steve Miller

Rod Kuharich
eWeB Director

DATE:

January 16, 2006

Rick Brown
Acting Deputy
Director

SUBJECT: Agenda Item No. 23c, Water Supply Planning and Finance Section - Legislation
Review -litigation fund

Backl!round

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Section 37-60-121(2.5) provides that the Colorado Water Conservation Board is authorized "to expend,
pursuant to continuous appropriation and subject to the requirements of paragraph (b) of this subsection
(2.5), a total sum not to exceed the balance of the litigation fund, which is created, for the purpose of
engaging in litigation. ..to defend and protect Colorado's allocations of water in interstate streams and
rivers..." Paragraph (b) of section 121(2.5) provides: "pursuant to the spending authority set forth in
paragraph (a) ofthis subsection (2.5), moneys may be expended from the litigation fund at the discretion
of the board if: (I) with respect to litigation, the Colorado attorney general requests that the board
authorized the expenditure of moneys in a specified amount not to exceed the balance of the fund for the
costs of litigation associated with one or more specifically identified lawsuits meeting the criteria set
forth in paragraph (a) of this subsection (2,5)," In addition, Section 121(2,5) states: "the Board, in
conjunction with the attorney general, shall report annually to the senate agriculture, natural resources,
and energy committee and the house of representatives agriculture, livestock, and natural resources
committee on any litigation that involves the use of any moneys from the litigation fund created in
paragraph (a) of this subsection (2.5)," A draft ofthis year's annual report is attached.

Since the inception of the fund, this past year was the first time funds were expended from this fund,
Originally this fund was for up to $4 million, but Senate Bill 99-173 directed the State Treasurer to
transfer $1 million dollars from the litigation fund to the Capital Account of the Species Conservation
Trust Fund. The fund, as of July 1, 2005 contained $3,060,882. Of this amount, 1,040,000 has been
committed in this past year. First, after receiving a request from the Attorney General's Office, the Board
authorized the expenditure of up to $40,000 to maintain Steve Sims as counsel for one year to continue the
negotiations associated with the Platte River Recovery Program and to avoid Endangered Species Act
litigation with Nebraska, Wyoming, and the federal government. That money has been fully expended,
Second, the Office ofthe Attorney General requested, and the Board authorized the expenditure of up to
Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning