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Settlement Agreement Following the Supreme Court decision, the Subdistrict began nego- tiations with the CRWCD and other Western Slope Interes!s to resolve thIS conflict. They al1empted to reach an agreement that would enable the Windy Gap Project construction to begin. On April 30. 1980. a Settlement Agreement was reached between the Subdlstnct and the CRWCD. the Northwest Colorado CounCil of Governments. Grand County, Middle Park Water Conservancy District (MPWCO). Three Lakes Water and Sanitation District. and numerous area ranchers. The Agreement reqUited the Subdlstnct to supply up to $1 0 million for the study and construction 01 the Azure ReservOir below Kremmhng in exchange for the CRWCD giVing up ItS OppOSition to the Windy Gap ProJect. Additional settlements were reached for withdrawal 01 objections by the other Interests. MPWCD received 3.000 acre.leet 01 water in Granby reservOir: Hot Sulphur Spnngs was given $420.000 to upgrade their water and wastewater facilitieS: and Grand County received 525.000 to conduct sahnity studies on the Colorado River. The Subdistrict spent over 5500.000 on construction 01 water diversion facihlles for area ranchers below the Windy Gap site. These were needed so that ranchers with senior water fights would not be adversely affected by the Windy Gap Project Some of the ranchers opted for a cash settlement instead of construcllon. Agreement to maintain, through adequate bypass of water. a blue (lbbon sport fishery In the Colorado River below the Project was also accomplished through the Settlement Agreement. A final provision stated that the Subdistrict would subordinate its Windy Gap water rights to those of Fraser River in-baSin agncultural and municipal uses. 10 I ~ l.~ __.. "'-*"".7~].,~._ "'" HydrolOgIC and aquatic stud,es ",f>rf>conductedon /ne Colorado R,...or lor use m /nlil EnllJronmental ImpactStalement After the waiting pefied expired, the USSR gave linal approval of the EIS In the spring of 1981. licenses and Permits Twenty.three licenses and permits were reqUired in order for the Project to be completed. These permits included an Army Corps of Engineers 404 Dredge and Fill permit, a SeeMn 401 waler quality permit from the Colorado Water Quality Control Division, rights-of-way and special use permits with the Forest Service and SLM. permits With the Mined land Reclamation Board for borrow areas needed during construction, land use permits With Grand County, and other necessary state and fedetallicenses and permits. In connection With the filing of the EIS, a non-Jeopardy biological opinion was obtained from the Fish and Wildlife Service regarding Project impact on threatened and endangered species. In conjunction with that opinion, the Subdistrict agreed to sponsor a habitat manipulation project and a biological investigation 01 endangered species on the Colorado River. In addition, all rights-of-way over and upon pnvate lands were obtained by the Subdlstnct prior to Project mltlallon. .~--- .... Supplemental Agreement On March 29, 1985. the Subdistrict and the CRWCD reached an agree- ment that the Azure PrOject should not be pursued further. The Subdistrict agreed to pay $10.2 mIllion to the CRWCD, so that they may proceed with construction of a storage project for the Western Slope. In August of 1985 the Water Court for Water DiviSion Five in Glenwood Springs approved the application of the Subdistrict for approval 01 the Supplemental Agreement. Environmental Impact Statement An Environmental Impact Statement was required 10 order to comply With the provisions of the NahOnal EnViron- mental Polley Act (NEPAl of 1969. With the USSR acting as the lead agency. the Subdistrict prepared a Draft EIS which they transmitted to the USSR lor their use 10 preparing the Final EIS. Approval was delayed pendlOg the issuance of numerous permits and licenses necessary for construction of the Project Adoption of the Settlemenl Agree- ment cleared the way for obtaining some 01 these permits. The Agreement also satisfied the NEPA requirements 10 the carnage contract With the USSR. It was then pOSSible for a Final EIS to be filed.