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Colorado Springs Utilities Pilot Project Proposal November 16, 2018 Page 5 water rights decreed for irrigation listed in the attached Table 2, all located in Water District 17:1 The canal companies also have rights to Winter Storage Water pursuant to the Decree entered in Case No. 84CW179 (Water Division 2) that are included in the CS-U Pilot Project. E. Source of Water for Return Flow Obligations and Delivery of Replacement Water Tailwater (irrigation season) and deep percolation (lagged) return flows associated with the historically irrigated lands will be replaced in time, location, and amount through utilizing a number of operational mechanisms and a variety of sources. Tailwater return flows will be released back to the river through augment ation stations as the water is being delivered. Delayed return flows could be met via the exchange conducted with CS-U, as described in section II.B above. Delayed return flows may also be replaced with depletion credits (either transferable consumptive use derived from the fallowed acreage and/or stream depletion credits resulting from lagging groundwater return flows) through diversion at the Catlin, Fort Lyon, or High Line headgates and subsequent release to the stream through augmentation stations. Alternatively, return flows may be maintained by exchanging depletion credits into, and later releasing those credits from, upstream storage locations. Return flows may also be maintained from upstream water supplies made available through effectuating trades with entities who have downstream replacement obligations. This could include, for example, managing operations in conjunction with Rule 10 and/or Rule 14 Plans with return flow obligations owed at downstream locations that could be met with depletion credits, thereby avoiding potential transit losses resulting from delivery from upstream locations. Additionally, return flows may be maintained through the delivery of depletion credits, either directly or by exchange, to existing or future recharge facilities and retiming of the resulting stream accretions via these same mechanisms. Two recharge ponds have been constructed on the Catlin Canal and are located on the Schweizer and Hanagan farms. These recharge ponds have been tested in the Catlin Pilot Project and are operational. Other existing or subsequently constructed recharge facilities may also be used (such as the Excelsior Ditch recharge facilities), if determined feasible. Applicants may also construct additional recharge ponds on or near other participating farms, and/or in other locations as determined appropriate to deliver water to the appropriate stream locations. F. Stream Reaches Used to Operate the Proposed Transfer & Administrative or Hydrological Obstacles Generally, stream reaches that will be used to operate the proposed transfers of water under the CS-U Pilot Project will include the Arkansas River upstream to Pueblo Reservoir from its confluence with: (1) Crooked Arroyo; (2) Timpas Creek; (3) Smith Hollow: (4) Horse Creek; (5) the Fort Lyon Canal Wasteway No. 2; (6) the Holbrook Reservoir outlet ditch; (7) the Holbrook Dye Reservoir; (8) the Lake Meredith reservoir outlet; (9) the Rocky Ford High Line Canal Augmentation Station 1; and (10) from the confluences of Patterson Hollow, Timpas Creek, and Crooked Arroyo with the Arkansas River to the point of historical return flow delivery to and/or the delivery of recharge on Patterson Hollow, Timpas Creek, and Crooked Arroyo. 1 The canal companies also receive allocations of Fry-Ark Project water , but these sources are not a part of the CS-U Pilot Project.