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DOLORES PROJECT STATUS Page 3 10/08/96 CONTRIBUTED TOWARDS COLORADO BEING ABLE TO USE ITS COLORADO RIVER ENTITLEMENT ENABLED COLORADO TO REALIZE A GREATER PORTION OF IT'S SHARE OF THE "CRSP" HELPS FULFILL THE GOALS OUR FOREFATHERS AND THE AUTHORS OF THE CRSP INTENDED THE NEGA TlVE SOME WOULD ARGUE THAT THE FOLLOWING ARE NEGATIVE IN 1987 DWCD WAS SUED BY 10 LANDOWNERS TO RELIEVED OF THEIR CONTRACTS SINCE 1987 , ONLY 1993 & 1995 HAVE THOSE INDIVIDUALS RAISED A CROP THAT THE OWNER GOT HIS RETURN ON HIS INVESTMENT THERE WERE 125 LANDOWNERS WHO PETITIONED TO GET THE RETURNED WATER ALLOCATION OF THE RETURNED WATER CAUSED MUCH MORE CONTROVERSY AND ANIMOSITY IN THE COMMUNITY THAN THE LAWSUIT DID THE FEDERAL GOVERNMENT SHOULD NOT SUBSIDIZE AGRICULTURE TO SUCH AN EXTENT ONLY THE INTEREST FOR AGRICULTURE'S PORTION OF THE PROJECT IS SUBSIDIZED CRSP REIMBURSES THE GOVERNMENT FOR THE PRINCIPAL IT INVESTED. THIS IS NOT A SUBSIDY. IT IS COLORADO'S ENTITLEMENT TO OUR SHARE OF THE COLORADO RIVER. IT IS THE ONLY WAY WE WILL EVER GET ANY PORTION OF OUR SHARE. POWER REVENUES FROM CRSP DO NOT BELONG TO THE NATION OR EVEN TO THE STATES AS A WHOLE. THEY BELONG TO THE WATER USERS OF THE RESPECTIVE STATES DWCD IS PRESENTLY BEING SUED BY THE RURAL RESIDENTS OVER WHO IS GOING TO PAY FOR M&I WATER THE ISSUE IS NOT WHETHER THE COMMUNITY WANTS THE WATER OR NOT. THE ISSUE IS OVER WHO PAYS DWCD HELD AN ELECTION IN NOVEMBER 1995 TO DETERMINE WHETHER THE DISTRICT AS A WHOLE OR JUST THE TOWNS OF CORTEZ & DOVE CREEK WOULD PAY FOR 4,130 ACRE FEET OF MUNICIPAL WATER, $500,000 ANNUALLY. THE ELECTION PASSED -- 55% margin -- BECAUSE THE ELECTORS REALIZED THAT THE DWCD WOULD BE THE BEST WAY TO GUARANTEE THAT FUTURE COMMUNITY NEEDS WOULD BE MET. SOME RURAL RESIDENTS ARE TRYING TO NEGATE THE RESULT OF THE ELECTION