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\ , 1- NATURAL ENERGY RESOURCES COMPANY & .;" ~~~~~~~~~~~~~~~~~~ <XJI,.Utvouv fY" rEf; 0011 I .:AlION 8OAAO Board of Directors Colorado Water Resources and Power Development Authority 1580 Logan Street, Suite 620 Denver, Colorado 80203 (",_nJ"'_;\~)G-' J : .'f !t:.,<';d "\~' ,'-'. &-511''''..1 -:;",-,'7( RE: Public Comment, Draft Upper Gunnison-Uncompahgre Basin Study, Gunnison Meeting, December 14, 1988. Gentlemen: I am Dave Miller, president of the Natural Energy Resources Company. Our team of engineers and consultants have had only thirteen days to evaluate your draft study, and these are our initial comments. The study has done a good job of quantifying future in-basin water needs and small water projects to enhance the area's economic and recreational objectives. The study also clearly identifies substantial surplus Gunnison water, and the potential for exporting water and power to help pay for the desired in-basin enhancement projects. However, some of the study's conclusions are seriously flawed because of major errors in the methodology and assumptions used to evaluate the large revenue generating projects. Backqround Before discussing our specific areas of concern, it would be helpful to review our company's role in the development of Gunnison water and power resources. Our company's founder is a retired Bureau of Reclamation executive engineer, who is considered the father of Colorado's Big Thompson project. He is also directly or indirectly responsible for most of the large water and power exporting alternatives considered in your Gunnison Study. In 1972, he formulated the Central Colorado Project, which envisioned an East Slope diversion of 600,000 acre feet of surplus Gunnison flood waters, without interfering with senior Gunnison water rights. In 1982, he founded our company (known as NECO) to specifically study and develop the untapped water and power resources of the Taylor Park/Union Park area. The Water and Power Authority first became interested in the Upper Gunnison's potential in late 1985, when NECO offered to joint venture its Union Park Water and Rocky Point Power projects with the Authority. Our intent and the Authority's interest was based on the unique potential of these projects to generate significant state revenues for desirable water conservation and recreation projects that were not otherwise economical. After several months of discussion, the Authority declined NEeD's offer with the explanation that an Upper Gunnison Study was needed. .., <. m 110003107 p O. J1~\../ Sf17. rli'~lnp", Lake. CIl'lomdo 80~31. rUn) ,~r1.2()fn ~.~.<.,--~