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G:\GWC Meetings\Samples\LetterHead.doc Memorandum Upcoming Commission Meeting Page 2 FRED A. HEFLEY, CHAIRMAN, Walsh; JON B. BROWNELL, VICE-CHAIRMAN, Hooper; EUGENE A. BAUERLE, Julesburg; ANNE J. CASTLE, Denver; DENNIS W. CORYELL, Burlington; MICHAEL GROSS, Silt; RICHARD F. HUWA, Keenesburg; F. W. (BILL) KERKSIEK, Strasburg; ERNEST L. MIKITA, Calhan C. MAX SMITH, CHAIRMAN, Walsh; DENNIS W. CORYELL, VICE-CHAIRMAN, Burlington; GRANT H. BLEDSOE, Wray; CAROLYN F. BURR, Denver; LARRY W. CLEVER, Grand Junction; COREY M. HUWA, Roggen; EARNEST L. MIKITA, Calhan; GEORGE H. SCHUBERT, Calhan; DOUGLAS L. SHRIVER, Monte Vista; Memorandum Upcoming Commission Meeting Page 2 HearingOfficersReport.pdf Minutes 2008 - 08.pdf Minutes-2008 - 08.doc MINUTES THIRD QUARTERLY MEETING COLORADO GROUND WATER COMMISSION AUGUST 15, 2008 The Third Quarterly Meeting of the Colorado Ground Water Commission took place on August 15, 2008, at the Inn at Silver Creek, 62927 US Highway 40, Granby, Colorado. Chairman Max Smith called the meeting to order at 8:30 a.m. Mr. Rick Nielsen called the roll and determined that a quorum was present. Commission members present were Grant Bledsoe, Carolyn Burr, Larry Clever, Dennis Coryell, Corey Huwa, Earnest Mikita, George Schubert, Doug Shriver, Max Smith, Alex Davis, Jennifer Gimbel and Dick Wolfe. Staff members present were Kevin Rein, Keith Vander Horst, Rick Nielsen, Justina Mickelson, David Keeler, John Cyran, A.G. and Devin Odell, A.G. Review and Approval of Agenda Items – the agenda was approved as proposed. Approval of Minutes for Meeting of May 16, 2008 Chairman Smith asked if there were any corrections or additions to the Minutes of the regular May 16, 2008 meeting. Commissioner Coryell moved to accept the Minutes as presented; the motion was seconded by Commissioner Clever and carried unanimously. Report of the Executive Director by Dick Wolfe Mr. Wolfe opened his report by thanking staff for organizing the tour on August 14th and the meeting today. He then welcomed the new Commissioners, Carolyn Burr and George Schubert, to the Commission. Mr. Wolfe also congratulated Commissioners Shriver and Smith for their re-appointment and continued service before expressing thanks to out going Commissioners Jaeger and Loose for their dedicated service to the water users. Mr. Wolfe followed his opening remarks by reporting on our statewide water supply. He noted that with the excellent snow pack we experienced the best runoff since 1997. There were three or four distinct periods of warm up and cool down which extended the peak runoff three to four weeks minimizing the occurrences of flooding. The snow pack also allowed for most of the reservoirs, even on the side tributaries, to fill. However, the below average rain fall, especially along the Front Range and Eastern Plains, has caused a heavy draft on the reservoirs and though the recent rains have eased the demand somewhat we still expect that the major irrigation reservoirs along the South Platte will be empty by the end of the irrigation season. Mr. Wolfe went on to say that staff of the Division of Water Resources remains vigilant to take advantage of the opportunities to store excess storm water in these reservoirs. Cool weather in May and June allowed irrigators on the West Slope to start later than normal and except for a few areas no calls were placed on the river. That is a rare occurrence! Of special note on the Colorado River Basin are the high inflows into Lake Powell. We gained about forty-five (45) feet this year which will help support our compact obligations for years to come. Many wells in the South Platte continue to be curtailed. It is unlikely that most of these wells will be allowed to pump in the future as there is inadequate water for all the users. There continues to be a transfer of water from irrigation to municipal uses. However, in Division 2, the Arkansas River Basin, high capacity well pumping is 120% to 134% above average due to increased availability of replacement water supplies and the increased availability of water in the basin. Despite record low rainfall in July and record use of water by municipalities the per capita water usage is lower than existed prior to the drought of 2002. This would indicate a successful and sustained conservation plan. Mr. Wolfe proceeded to report that the Republican River Basin remains very active: The Pioneer litigation has been stayed until February 2009. The stay was made possible because all interested parties entered into an interim agreement in early June whereby the majority of the surface water rights in the North Fork of the Republican, including those rights in the Pioneer Ditch for use in Colorado, were leased for the remainder of the irrigation season. The Yuma County Water Authority, County leaders, the Republican River Water Conservation District and others are working towards a permanent purchase of the surface water rights. The RRWCD will add 5 million dollars to the 15 million dollar bond issue (if passed) to purchase these rights. We are hopeful that resolution will occur in a few weeks and will keep you posted. Compact compliance is being addressed by several discreet actions of this office in collaboration with stakeholders and other entities on the Federal, State and Local levels: First, the irrigated land retirement programs such as CREP and EQUIP have enrolled about 29,000 acres (including those lands covered by the Pioneer and Laird ditches) in either the permanent, three (3) or five (5) year programs. I know that they are looking for an addendum of 30,000 acres, all within four (4) miles of the stream system. Secondly, the Division of Water Resources has initiated the process to promulgate rules and regulations governing the diversion, use and control of water resources in the basin. If necessary, these rules will assist water administrators in meeting Colorado’s obligations under the Republican River Compact. Third, on July 14th, the Hearing Officer adopted measurement rules for all wells in the Republican River basin. The rules require the installation of a totalizing flow meter on all wells pumping in excess of 50 GPM by March 1, 2009. We are in the process of building staff to implement and enforce the rules this next irrigation season. Mr. Wolfe thanked Dave Keeler, Devin Ridnour, Keith Vander Horst, Kevin Rein, Chris Grimes for their efforts on the rules as well as staff from Divisions 2 & 3 offices who have been involved in this process,. He also expressed gratitude to Deb Daniel for assistance in getting information about the rules out to the public. Mr. Wolfe added staff was in the process of adopting a policy to address miscellaneous issues dealing with the measurement rules. Among other items of concern, the policy will address issues such as installation and repair of flow meters, tamper proof devices, power coefficient and dealing with inactive wells. Fourth, regarding the augmentation plan/compact compliance pipeline. The augmentation plan and accounting procedures were presented to the Republican River Administration on March 12, 2008. There have been several informational and technical meetings since then attended not only by staff but by representatives of the Republican River Conservation District, several attorneys representing water users groups in the Basin and other entities in the basin that support the plan. Finally, we are looking into proposed operation plans for Bonny Reservoir to achieve compact compliance. Yesterday, August 14th, I ordered the release of 2000 acre-feet of water from Bonnie Reservoir that has occurred due to heavy rains since August 4th. That order will apply to all future inflows and accretions. Mr. Wolfe continued by updating the Commission on matters in other water divisions of the state: In Water Division 2, the Arkansas River Basin: the adoption of the irrigation consumption rules is progressing. The 32 member body advisory committee has made great strides in proposing amendments to the draft rules and hope to complete the process by November for review by the Arkansas River Compact Administration at their December meeting. In Division 3, The Rio Grande River Basin: resolution of the ground water issues is making progress. A trial is scheduled in October for the first sub-district, essentially a ground water management district, formed for the purpose to reduce ground water demands through water management plans. Rules for well compliance may take a year to finalize because of ongoing studies throughout the Basin. I will combine the West Slope in one broad swoop. Over the past few months staff of the Division of Water Resources has met with the South West and the Colorado River Water Conservation Districts to discuss the potential development of compact compliance rules for the Colorado River Compact. These discussions have included the creation of water bank of the pre-1922 water rights which are senior to the compact. Again, allowing for the completion of ongoing studies regarding water availability within the basin and what future water demands will be, finalization of the process will take a few years. Mr. Wolfe reported that Division staff drive approximately 2.2 million miles each year and that the high cost of gasoline is severely impacting operations. Budgets are set a year in advance and it is difficult to absorb the 44% increase in fuel costs. On the topic of personnel, Mr. Wolfe reported that he expects to advertise for the vacant Deputy State Engineer and two Assistant State Engineer positions within the next two weeks. Last year the State Legislature approved four (4) additional positions for the Designated Basins Branch. Those positions were provided to help us in our efforts in terms of well measurement rules, compact compliance and expanded acreage inspections within the basin. It is anticipated that they will be filled over the next few months. Mr. Wolfe expressed appreciation to staff for their efforts in taking on the additional workload created by all the rules and regulations when they are already short staffed. Mr. Wolfe concluded his report by informing the Commission that he had just received notification that the releases had started from Bonny Reservoir. He then asked if there were any questions on his report or other matter. There were no questions. Chairman Smith called for agenda item no. 5, whereby Mr. Andy Jones, attorney for the Lost Creek Ground Water Management District presented a proposal to amend Rule 7.7.4 of the Rules and Regulations for the Management and Control of Designated Ground Water, involving changes of types of use and export of water outside of a Ground Water Management District. Mr. Jones detailed to the Commission the current procedures for processing a request to export water outside of a Ground Water Management District. Essentially, the Commission holds the application for change in type and place of use until the District provides the volume of water that it will allow to be exported which is based on the historic consumptive use of the well. The District holds the export request until the Commission determines the historic consumptive use of the well, which, in accordance with 37-90-111, it has the sole authority to do. In an attempt to get around this impasse the Lost Creek District adopted its Rule 17 which requires the applicant to finish with the Commission before applying to the District for export approval. Upon review of the rule by staff it was determined that Rule 17 conflicts with Commission Rule 7.7.4. Mr. Jones informed the Commission that he, staff and other interested parties had discussions and arrived the proposed amendment to Rule 7.7.4, which they have in front of them. If adopted, the rule change would provide the Districts a choice. They could maintain the status quo, adopt a rule requiring the Commission to complete its findings before the export application is submitted to the District or allow them to request that the Commission complete it’s findings before the export application is submitted to the District. The findings of the Commission would have a clause prohibiting the applicant from implementing the changes until the District has approved the export request. Mr. Jones asked the Commission to direct staff to consult with all Districts and/or their attorneys until September 15th then go ahead and publish the proposed change for discussion and possible adoption at the November meeting. He explained the reason for the requested time line is that Lost Creek Ground Water Management District has a number of applications that have been pending for a period of time because it is uncertain if the District or the Commission acts on the request first. Mr. Jones concluded his presentation addressing the concerns and questions raised by the Commissioners. Following Mr. Jones, the Commission listened to comments from members of the public. Mr. Keith Vander Horst stated that generally speaking, staff is in favor of resolving this issue by proceeding with the process. However the proposal needs to be re-worded prior to publication and he does not agree that the Districts have sole authority in approving export. His position is that the Commission is approving export when they approve a change in place of use that lies outside of district or basin boundaries. He asked that if the Commission directs staff to proceed with the rule making that it be done in a broad way to allow for changes in the wording as presented. Commissioners Mikita and Schubert expressed reservations about the proposed rule change, citing concerns that it will take authority away from the Districts. Commissioner Huwa moved that the Commission direct staff to consult with all ground water management districts by September 15 regarding the existing proposed language and then to publish the proposed rule change in October for a November hearing and decision by the board. Commissioner Clever seconded the motion. By voice vote the motion passed with Commissioners Mikita and Schubert voting nay. Chairman Smith called for agenda item no. 6, whereby Mr. Keith Vander Horst presented the staff report. Mr. Vander Horst provided a breakdown of the permit activity for the quarter. He pointed out that the reduced activity in the Final Permit area is due to staff changes and being under staffed. Regarding hearings, Schramm feedlot has appealed the decision of the Hearing Officer to the State Engineer and the petitions to expand the Kiowa-Bijou Basin were heard over three days last week. Chris Grimes has been working with Dave Keeler on enforcement actions regarding expanded acres. Mr. Vander Horst advised the Commission that the first choice for the vacant position decided to take a job closer to home and that the second choice has not responded. Chairman Smith called for agenda item no. 7, whereby Mr. Devin Odell presented the report of the Attorney General. Mr. Odell said that it is an interesting time to be working on Designated Basin Law. There are a several proceedings in progress that look at the fundamental questions regarding the creation of Designated Basins. He reported that the Hearing Officer granted the motion for summary judgment filed by the Republican River Water Conservation District and staff in response to the Nebraska objection on the compact wells. With that action the applications for a change in type and place of use of the Cure wells are back in staff’s hands for processing. The Cherokee matter will be returning to you as the District Court Judge ruled that the Commission had to go first. There are a few unresolved cases dealing with the abandonment issue in the Kiowa-Bijou Basin. Staff is going to provide the Hearing Officer with documentary evidence to consider along with District testimony to decide if the water rights have been abandoned. With this action I can see an appeal coming before you with the legal issue of whether abandonment applies in the Designated Basins. Chairman Smith called for agenda item no. 8, the District reports. Mr. Nate Midcap, reporting for Central Yuma, Sandhills, Frenchman and Marks Butte GWMDs reported that recent rains had provided 7 to 8 inches in the Southern part of the Central Yuma GWMD and 3 to 4 inches have fallen in the Northern part of his districts. Regarding the Pioneer Ditch, Yuma County Commissioners and municipalities of Yuma County have formed the Yuma County Water Authority and created a public improvement district for the purchase of the water rights for the citizens of the County who will vote on the issue in November. He acknowledged Dick Wolfe for his assistance and thanked Dave Keeler for all of his efforts. He attended the certified well tester’s class held in Burlington this past June. Mr. Jack Dowell reported for W-Y GWMD advising that there had been a devastating hail storm in June covering the western part of the district, wiping out all the wheat. The other crops look good. Thanks to the rain the wells have been shut off for a few days but it will be another month before they are shut off for the year. He inspected the chemigation systems on over 150 wells this year. Repairs have been made or are in progress on the 10 that failed. Mr. Roger Brenner reported for the Arikaree GWMD thanking the office of the State Engineer for their assistance with Bonnie Reservoir. Last nights rain totaled 1.3 inches. Ms. Deb Daniel reported for Plains and East Cheyenne GWMDs. The good news is that we are green! Rainfall to-date in the Plains District is 12.79 inches and the East Cheyenne has had 9.56 inches, most within the past week which was too late to help the dry land corn. The other crops have recovered. Inspections of the chemigation systems took longer than expected because the wheat harvest went longer than anticipated. Ms. Daniel reported that she attended the well tester’s class in Burlington this year and thanked the Division of Water Resources staff for their efforts in getting this semi-annual event moved to Burlington. She also attended the rules pre-hearing and the rules hearing on July 2nd. In an effort to educate the public about the new rules Ms. Daniels is placing posters around town, participating in radio shows and submitting articles to the newspaper. She concluded her report by expressing sincere gratitude to State Engineer Dick Wolfe for attending the Kit Carson County Fair with staff Dave Keeler, Katie Radke and Devin Ridenour. They met with local residents and answered their questions about the Republican River situation. Mr. Max Smith reported for the Southern High Plains GWMD. As with other districts we have been receiving some rain. He informed the public that, as they hear on the news, the commodity prices are rising but what they do not hear about are the increasing costs of farming. For example, last year liquid nitrogen was $325 per ton, today it is $500; last year phosphate was $370 per ton, today it is $1030; last year anhydrous ammonia was $430 per ton, today it is $980 and the list goes on. Mr. Robert Loose reported for North Kiowa-Bijou GW MD. We have had some rain as well. Mr. Stan Murphy reported for the Republican River Water Conservation District. Mr. Murphy reported that the loan is in place for the water pipeline but that the District will sit on it until the State of Colorado resolves the issues on the South Fork of the Republican. He has been busy verifying the lands dried up through the CREP and EQUIP programs. To-date he has inspected over 200 locations. Mr. Murphy addressed some issues surrounding the Republican River and the Pioneer/Laird Ditches. Chairman Smith called for agenda item no. 9, there was no old business. Chairman Smith called for agenda item no. 10, under new business Chairman Smith read the following resolution thanking Robert Loose for his service with the Commission. Commissioner Clever moved to adopt the resolution which was seconded by Commission Coryell. The motion passed unanimously.