Exit Strategy Straw Dog

• File Number: 8461.750
• Description: Governance Committee
• State: CO
• Basin: South Platte
• Water Division: 1
• Date: 8/26/2005
• Author: Mike Besson, Mike Purcell
• Title: Exit Strategy Straw Dog
• Water Supply Pro - Doc Type: Correspondence

To: Governance Committee
Negotiating Team
From: Mike Besson
Mike Purcell
Date: August 26, 2005
Subject: Exit Strategy-Straw Dog
We would like to offer the following as a"straw dog" to generate discussion relating to the exit
strategy. We would suggest that the following, or similar paragraphs, be included in the
Attachment 1 to the Program Document. Further, we would suggest that III.D.4 of the Program
Document be deleted or revised to simply refer to Attachment I.
"If the Secretary of the Department of the Interior and the Governors of Colorado, Nebraska and
Wyoming decide to terminate the Program before the end of the first increment, the Program will
remain in place and the Governance Committee will remain functional until such time as the
Program's legal obligations under existing contracts and agreements are met and the disposition
of Program assets is resolved.
After all outstanding obligations of the Program are met; the Financial Management Entity
(FME) shall retain an independent auditor. The independent auditor will determine the present
value of the contributions made by each signatory from the date of the initiation of the Program
until the actual date of termination of the Program, as determined by the Governance Committee.
The present value of the following contributions will be determined:
1. Monetary-The present value of each signatory's monetary contributions will be
developed using FME records to determine the amount and date of each signatories' monetary
contributions.
2. Water-The independent auditor will calculate the present value of each signatory state's
annual contributions of water from their respective Initial Program Projects. The present value of
water contributions will be based on the records of the EA Manager as to the annual amount and
timing of water contributed by each state. The records will be reviewed by the Water Advisory
Committee. (Note: This does not include water provided through Water Conservation and
Supply Projects developed by the Program as they will be funded by the monetary
contributions.)
3. Land-The present value of any signatories' contributions of land in which a fee title or
lease is obtained by a signatory and contributed to the Program, through the Land Holding
Entity, for the benefit of the Program. The records of the Land Holding Entity regarding the
parcels of land contributed will be the basis of the present value analyses. Any special
conditions related to the specific land contributions in the agreements with the Governance
Committee will be considered. The auditor may retain appraisers to assist in the analyses.
(Note: This does not include the Cottonwood Ranch, Deer Creek lands, or land holdings secured
by the Program.)
4. In-kind Services-Signatories may elect to be "Water Project Sponsors" or "Sponsors of
Program Lands," as defined in subsections VIII.C and VIII.D of Attachment 6, respectively. In
addition, a signatory may propose and the Governance Committee may approve agreements
whereby signatories elect to provide in-kind technical or other services in lieu of monetary