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I () In ~1 ~ It " Southeastern District-Report Policy Issues and Activities Endangered Fish PBO- Legal counsel has completed a review of the Final Programmatic Biological Opinion (PBO) for the Upper Colorado River Endangered Fish Recovery Program, The US Fish and Wildlife Service (the Service) has signed the PBO and they now await water user response to the requirement to sign the Recovery Agreement. For the Fry-Ark Project the USBR will send a letter of acceptance to the Service, thereby agreeing that the PBO covers the Fry-Ark Project. In addition, the District will need to consider signing a Recovery Agreement as a demonstration of commitment to the requirements of the PBO/Recovery Program elements. Central to these elements is a commitment by the water users that they will annually provide 10,825 a.f. of water to the 15- mile reach for flow augmentation. On a temporary basis the Fry-Ark Project will use Denver Water as a source for its share of the 10,825 (about 600 a.f. per year). The cost for the water ($0.00 to as much as $5,000 per year) will become a part of the O&M costs of the Fry-Ark Project. We will still need to work with Reclamation on the possible use of Replacement Pool water for a permanent source. Water users, at least those who choose to rely on the PBO as the reasonable and prudent alternative (RPA) for their project, are also committed to securing federal authorization for the Recovery Program and annual appropriations. The Recovery Program PBO requires a lot from project sponsors like the Southeastern District, but it does provide an important level of assurance to our ability to continue to divert Fry-Ark Project Water without further restrictions from the ESA. 1 want to do further review of the Final PBO before offering a recommendation concerning the signing of a Recovery Agreement. However, it does appear that the PBO is of value to the Project and is certainly better than the requirements (PRA) that may result from a stand-alone Section 7 Consultation on the Project. I hope to have a recommendation for the Board at the February Board meeting. Coordinated Facilities Operations Study (CFOS)- We have provided written and verbal comments to Leo Eisel regarding the final draft of his Phase I report on the alternatives needing further consideration under the CFOS. Phase 11 of the study will look at how to operate existing projects so as to enhance the peak flows, and it will consider specific new projects that might serve the same purpose. At the present, the Phase II study will not include a Ruedi pump-back concept for flow augmentation. Tom and I will continue to monitor thls study effort. 3