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. . . Agenda Item 5b page 2 Th'e City of Steamboat has a conditional storage right for 2,000 AF of the enlargement, which was decreed by the court in Case No. 8OCW255. Steamboat has also filed two applications for diligence which have been decreed by the court. The Board did not use its instream flow rights as a basis for objection to either the original application or the diligence filings. The City has just recently (June 1992) filed an application for conditional storage rights for the remaining 200 AF of the proposed enlargement. Staff is presently evaluating that application and may recommend that the Board file a statement of opposition to that case. As mentioned in the project snmmary, the reservoir is located on Forest Service lands and an EIS has just been initiated. The EIS is expected to be completed in the spring of 1993, and a 404 permit should be issued once the EIS is finllIi7.ed. This project does contemplate new water development and as such will utilize a portion of Colorado's compact entitlement. The depletion resulting from the proposed enlargement is estimated to be approximately 550 AF. Conclusion Based on the information obtained from the Authority and staff analysis, it does appear that this project will inundate portions of the Board's instream flow water rights on Middle Fork Fish Creek and Granite Creek. Furthermore, since the project involves new water development, there will be an additional use of Colorado's compact entitlement. Recommendation The staff recommends that the Board direct the staff to work with the applicant and the Forest Service to address the inundation of instream flow water rights and that staff advise the Board and the Authority of any court actions taken with respect to the new water storage right application. IAMJ Attachments