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February 13,1998 Page 2 1.35:1 . Storage of Direct Flow Water The Purgatoire District's practice of storing winter water Illlder its senior direct flow priorities rather than the more junior Model Reservoir priority has been a source of controversy since Project operations began in 1977. Prior to 1989, the Division Engineer allowed the Purgatoire District to store inflow to Trinidad Reservoir during the non-inigation season Illlder the direct flow rights of the Project ditches and did not acCOllllt for this water Illlder the Model storage right. The 1988 Bureau Report includes the following statement on page 11: "From a review of House Document No. 325 and the 1961 and 1964 studies, there is little doubt the Bureau of Reclamation personnel formulating the inigation components of the project did not intend that. . , , . winter water be stored Illlder any right but the Model right." Accordingly, the 1988 Bureau Report concluded that this practice was a departure from the intent of the Operating Principles. In response to the conclusions reached in the 1988 Bureau Report, the State Engineer wrote a letter dated April 27, 1989 to the Purgatoire District stating that he would no longer allow the storage of winter water Illlder the direct flow rights Illltil such time as the Operating Principles are amended or a court of competent jurisdiction determines that this practice is not a departure from the intent of the Operating Principles. . Proposed changes to Article IT - ~17, Article IV - ~A.2(b), and Article IV -~.2(c)(3) of the Operating Principles would allow storage of the direct flow priorities during the non-inigation season without such storage being charged against or deducted from the 20,000 acre-feet that can be stored Illlder the Model storage right. Neither the 1988 nor 1996 Bureau Report contains adequate analyses of whether or not the proposed changes to the Operating Principles will result in injwy to downstream Colorado water rights. The 1988 Bureau Report acknowledges that storage of winter water Illlder the direct flow rights will at times result in reduced inflows into John Martin Reservoir, However, the Bureau maintains that the impacts of Project operations should be evaluated based on average annual impacts (meaning a long- term average wherein any annual increases in John Martin inflows can serve to balance out any annual decreases in flow). The Bureau Reports contain no analyses of daily or monthly impacts and how these shorter term reductions in flow may affect downstream Colorado water users. Nor is there any recognition that depletions to downstream flows that are "made up" by subsequent increases in downstream flows may accrue to a different water right than the one that was previously injured, thus changing the ownership of the water. The Model Reservoir storage right was transferred to Trinidad Reservoir pursuant to a decree entered by the Las Animas COllllty District Court in Civil Action No. 19793. That decree contains certain terms and conditions meant to protect downstream water users. One of those conditions requires that the State Engineer regulate the storage of water in Trinidad Reservoir so that the amollllt of water occuning at a gauging station below the Project area on the Purgatoire River be the same as it would .