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11 .) Exhibit A Grant for Proposed Feasibility Study of Long Hollow Reservoir and Red Mesa Reservoir Enlargement . . r C. Wetlands r:~_ This work plan assumes that the renewed 404 Permit will contain conditions regarding wetlands similar to those in original 404 Permit (If not, the Long Hollow work plan herein regarding wetlands will be followed). D. Cultural Resources r Ui r"r' lli r0.'.' till ~ r....:.. L [ fjj. ~. ~ The presence of cultural resources in the proj ect area will be assessed through a cultural resources survey. The survey will include an inventory of cultural sites in the area of the proposed dam and reservoir, recording of sites for submittal to the State of Colorado, and a report of findings. This survey will be used to determine if cultural resource issues present a fatal flaw for the project. potential mitigation needs will also be considered. E. Indian Trust Assets In the 404 Permit renewal process, the effect of the proj ect on Indian Trust Assets is being studied. Water Quality Although no water quality problems are anticipated, the study will review the potential for introducing additional selenium and salinity to the San Juan River Basin. Instituti onal Constraints r> t.:. r . : ~ [..: i~~;' ~" f' l: Institutional constraints, including economic, social, political and legal issues, need to be evaluated to determine the feasibility ofthe reservoir enlargement project. Specific issues include the following: A. Water Allocation, Reservoir Operations and Payment Issues for the Red Mesa Reservoir Enlargement The study wilI estimate the amount of water in the La Plata River drainage basin that the Red Mesa Reservoir Enlargement will make available for irrigation, either directly or by exchange. The District, in consultation with irrigators on the La Plata River and the Board of the Red Mesa Reservoir and Ditch Company in particular, will determine a basis for the allocation of such additional water, whether by the seniority of current rights, by payment, or otherwise. This could entail revision and expansion of the Western La Plata County Water Management and Conservation Plan. Allocation agreements, ifnot fmalized during the feasibility study, will be developed to a point that completion is imminent. The agreements could be among parties with significant water rights on the La Plata River. If expenditures are required by the District to secure these agreements, those expenditures shall be included as part of the financial plan for the reservoir and other properties. If a facilitator is needed to assist in allocation or other issues, John Porter, Manager, Dolores Water Conservancy District, has agreed to serve as facilitator. V E r;. L ~ W rf. fJ if"