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. . STATE OF COLORADO ~ 'WI COLORADO WATER CONSERVATION BOARD Department of Natural Resources 721 State Centennial Building 1313 Sherman Street Denver, Colorado 80203 Phone: (303) 866-3441 M E M 0 RAN DUM Richard O. lamm Governor J. William McDonakt Director David W. Walker Deputy Director TO: Members, ewCB ,\ Bi 11 McDonalc( i, \ .,0-('\ 1.( '-~ l August 28, 1985 FROM: DATE: SUBJECT: Agenda Item 4, September 6, 1985, Board Meeting-- Director's Report Dolores Project/Monument Creek Reservoir When the Bureau of Reclamation advised the Dolores Water Conservancy District three years ago that its repayment obligation would have to be increased because ,the costs originally allocable to municipal and industrial water supply would be exceeded, the Board assisted the District in achieving a resolution of that issue. As you will recall, the problem was solved by the District assuming responsibility for the financing and construction of two project features: (1) the pipeline from McPhee Reservoir to the City of Cortez, and (2) terminal storage at the Town of Dove Creek for the town's allocation of project water. In turn, the Board was authorized by the General Assembly to loan money to the District for the construction of these two facilities. At the time, local interests in Dove Creek proposed that the small terminal storage facility planned by the Bureau at Dove Creek be replaced by a larger reservoir called Monument Creek Reservoir. We have been working on this proposal for the last two years. The enclosed letter to State Senator Dan Noble from me will bring you up to date on where matters stand. Animas-La Plata project The Congress has passed, and the President has signed into law, a supplemental appropriations bill for FY 85. The bill contains funding for a number of new starts in the Bureau of Reclamation and the corps of Engineers. The Animas-La Plata project, in the amount of $1 million, is among the new starts. L-/-- 318 ai/4