BOARD02611

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

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STATE OFCOL8-RADO-.

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Colorado Water Conservation Board

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

MEMORANDUM

Bill Owens
Governor

TO:

Senate Agriculture, Natural Resources, and Energy Committee and Russel Geo'ge
Executive Director
House of Representatives Agriculture, Livestock, and Natural Resources
Committee
Colorado Water Conservation Board, in conjunction with the Office of
the Attorney General
January 6,2005
SUBJECT: Annual Report on any litigation that involved the use of
moneys from the litigation fund created pursuant to Section 37-60-121(2.5),

Rod Kuharich
eWeB Director

FROM:

DATE:

Rick Brown
Acting Deputy
Director

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 subj ect 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)." This report serves as this year's annual report.

Status of the Litil!:ation Fund

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Since the inception of the fund, this past year was the first time funds were expended from this fund, The
fund originally held $4 million, but Senate Bill 99-173 directed the State Treasurer to transfer $1 million
from the litigation fund to the capital account of the species conservation trust fund. The litigation fund as
of July I, 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 govemment. That money has been fully expended. Second, the Office of the
Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning