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~- , d_'".,.-,.... __ ""._",._.~,____V~~_ ..,.....,,',__'-C_.___.. . '1." 4() ) ... .J A. Jack Gamer February 14, 1997 Page 2 purposes, including storage in Trinidad Reservoir for recreation and municipal purposes, as well as use downstream at John Martin Reservoir and below for recreation and augmentation. Also, the Model Company has approached the State of Colorado proposing that waters owned by the Model Company be acquired by the State of Colorado for use in part or in full for payment of water to the State of Kansas in settlement of the Arkansas River Interstate litigation. The Model Company must be assured that any amended Operating Principles reasonably allow such uses. The Model Company owns three relevant water rights which divert from the Purgatory River: the Model Reservoir right, which has been transferred to Trinidad Reservoir; the Model Ditch right, which is m~n~ged by the Purgatoire District in accordance with the contract between the Model Company and the District; and the Black Hills Reservoir right (24,123 acre-feet stored in the old Model Reservoir strncture), which is senior to the District's junior water storage right (presently applied for in Case No. 92CW30) for the Joint Use Pool in Trinidad Reservoir. The Black Hills Reservoir right is, of course, entitled to store to capacity before the District's Joint . Use Pool right is exercised. The Model Company has a right to expect that the amended Operating Principles not injure its water rights and not interfere with its sale of water. In addition, the Model Company believes that the Operating Principles should allow recreation and augmentation use, and uses outside the District boundaries when appropriate conditions are met. We have reviewed the specifics of the draft amended Operating Principles. Changes which the Model Company requests include the following: Article t _ Objectives. Include "augmentation" as a use. Colorado water lawencourages-,--J& wh:+ h ~ D{',r~l.., sue uses. CoM- ~..e.'...: .. ';"'~(....:r-~ Article I, Section 2. Delete the limitation to "within the project area" Colorado water "t::::' o\.o-I.a. law and sound water policy do not limit use to an artificial area so long as injury to other water Cb~1:: rights does not occur, and project payment obligations are honored. In view of the damages . which Colorado owes to Kansas, this provision to "within the project area" results in an arbitrary -Ai v ""./../ Q/,:!Ai~ -\ decision that none of the water from this tributary of the Arkansas River can be used to pay I,c" ...~'t-~"; J (j) i" Kansas the debts which Colorado owes. The Model Company is seeking to sell its water for the iI/.t:s:r ~1- U) .1>1) ': purpose of providing water so that the Kansas dispute can be resolved. The Model Company ~ I,;t:" " 'f ~~"t, " also desires the opportunity to sell water for other beneficial uses downstream. including k .:ui~...(' '(>"i" ~" recreation, municipal, and augmentation. o-.-......-GA,(-&"J- ~~ ,. .. ~ 7 "!'ij tr"i) -<> vo;;:.lJ<{. [;~S;~f' \ e' Article I, Section 2(b). Add the~hrase, "subject to senior decreed water rights." No e.r:: i- ~~ ~ inference should be created that storage in Trinidad Reservoir can occur in front of the Moder Company's senior storage right at Black Hills Reservoir.. M~l cu..t' \ /!1 ~f ,1-;n.. <H <:to Jv-;f. ~;;: ~~"3J. -?\ ~ d SJ-t",V" <fttt ~V'\~j~'