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001098 . . As a summary conclusion, there is no foreseeable method of operation by the City and Coun~ of Denver which is prejudicial to the District's fulfillment of ite obliga- tion to make replacements from Green Mountain Reservoir or, further, which would require direct releases from Granby and Willow Creek Reservoirs in order to supplement replacements from Green Mountain. SETTLEMENT OFFER by Denver and Colorado Springs Early in this report the interests of various parties were outlined and it should be clear that the principal point of conflict is between the United States and its interest in the direct flow of the Blue River for operation of Green Mountain Power Plant and the Cities of Denver and Colorado Springs with their interest in diversion of Blue River water above Dillon. Secondly, the various Western Slope interests wish to be assured that developments by Denver and Colorado Springs will not deplete flows of the Blue and Colorado Rivers to a degree which might prevent future domestic, irriga- tion and industrial developments on the Eestern Slope. On September IJ, 1955 the attorneys of Denver and Colorado Springs presented to all interested parties a settlement offer which provided the following major points:-- I. That the cities will compensate the United States, at rates per acre- foot of water taken or by delivery of electric energy, for the reduction of power generation and revenue now available to the United States through Green Mountain Power Plant. 2. That the diversion of water by the cities will not decrease storage opportunity at Green Mountain Reservoir below its ability to make one filling to spillway level annually. 3. That the cities may decrease that storage opportunity if they delivery to the Colorado River, at or above Shoshone, water out of other storage as a substitute for releases required from Green Mountain. ; -10-