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<br /> <br />A. State of Oriqin <br />1. Water Riqhts. Colorado has no permit system for <br />the act of appropriating water. In order to obtain an <br />enforceable priority. however, a judicial decree, after an ( <br />extensive hearing process, must be obtained from the appropriate <br />District Water Court. The State engineer is responsible for <br />administering the decreed rights and must approve the. plans for <br />the construction and completion of all reservoirs.!/ A <br />conditional priority right may be obtained subject to completing <br />the proposed storage or diversion project. <br />We note that the Agreement recites that Galloway has <br />some decreed rights and has applied for others. In order to <br />obtain a priority, Galloway will be required to comply with <br />Colorado's adjudicatory procedures. This is a problem since the <br />Colorado River Water Conservation Pistrict in Glenwood Springs, <br />Colorado. claims the water rights in association with the <br />proposed Yampa River reservoir. <br />2. Anti-Export 1::.:~1tute <br />In 1983, the State of Colorado amended its anti-export <br />water statute. Under that statute no water may be exported from <br />Colorado without first obtaining an adjudication from the <br />appropriate water court for the right tD use water outside the <br />state. The water jUdge, prior to approval of the application, <br />must find: <br /> <br /> <br />4. <br />