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1 I ; "11'0'0'29 9 "J.. CROSS Scenario: Assess Instream Flow and/or Development Proposals 1. Background This scenario addresses assessment of instream flow and/or development proposals. The scenario can arise from several situations associated with the impact of the Threatened and Endangered Species Act, Indian water rights and consideration of perfection of other conditional water rights. It is of interest to determine the feasibility of proposed instream flows, the impacts on existing water rights of higher priority reserved rights, and the impacts on Colorado's ability to develop it's full compact entitlement. 2. Problem Statement and Agency Context The scenario is represented by at least three problem statements and water management agency contexts. (a) Threatened and Endangered Species Instream Flow Requirements "What magnitude of instream flow can be acconunodated without impacting existing water users and the State's ability to develop its full compact apportionment ?II Regarding Threatened and Endangered Species, Fish and Wildlife biologists have asked the state to consider granting instream flow appropriations for several river reaches to promote recovery of endangered fish species under the Endangered Species Recovery Program. The additional flow would help provide a more natural annual hydrograph for the humpback chub, the Colorado squawfish and the razorback sucker on two reaches of the mainstem Colorado River and one reach of the Yampa River. similar considerations apply for establishment of reserved water rights, although the magnitude and timing of such uses may differ greatly. (b) Indian Reserved Water Rights "What impact would perfection of Indian Reserved Water Rights and sale/lease of water to out-of-state downstream users have on Colorado's ability to develop its full compact entitlement ?" The scenario may also arise from considerations of Indian Reserved Water Rights. The Indians have indicated an interest in selling/leasing a portion of water they gain when their water rights are perfected. This is the case, for example, with the Animas La Plata project on the San Juan River. The most visible marketing opportunities at present are with the state of Nevada and the Metropolitan Water District of Southern California. The question then is how would selling/leasing water out of state/basin affect Colorado's ability to develop its full compact entitlement. (c) In-State Water Development Proposals "What impact(s) would development of conditional water rights within Colorado have on other existing and potential water rights within the state ?II Beyond the above two at-the-boundary situations for endangered species and Indian reserved rights, the scenario may also be engaged internal to a basin in Colorado. Here, a review of the impacts of perfection of a conditional water right are sought; these impacts being related to other intrastate water rights. This situation may arise within the CWCB where staff seek to assess impacts of its own instream flow filings. Alternately, the situation may arise by another public or private agency seeking to assess potential impacts of a proposed development project.