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<br />'. <br /> <br />- <br /> <br />e <br /> <br />DONATION AGREEMENT <br /> <br />The COLORADO WATER CONSERVATION BOARD ("Board"), an agency of the State of Colorado, <br />and the SAN JUAN RESOURCE CONSERVATION AND DEVELOPMENT COUNCIL ("Council"), a <br />Colorado nonprofit corporation, 31 Suttle Street, Durango, La Plata County, Colorado, 81303, in <br />consideration of the mutual promises contained in this document, agree as follows: <br /> <br />RECITALS <br /> <br />A. Pursuant to Section 37-92-102(3), C.R.S., the Board is vested with statutory authority to acquire, <br />by contractual agreement, such water, water rights, or interests in water as the Board determines <br />may be required for minimum stream flows to preserve the natural environment to a reasonable <br />degree. <br /> <br />B. Under Section 37-92-102(3), C.R.S., no person or entity other than the Board "shall be granted a <br />decree adjudicating a right to water or interests in water for instream flows in a stream channel <br />between specific points ... for any purpose whatsoever". <br /> <br />C. The Council was organized to lead local efforts toward improving the economic and social <br />conditions of the San Juan resource area in La Plata, Montezuma, Dolores, Archuleta and San <br />Juan Counties through development, conservation and proper use of the resources of the area. <br /> <br />D. The Council works cooperatively with the Animas River Stakeholders' Group ("ARSG"), whose <br />mission is to improve water quality and aquatic habitat in the Animas River watershed. <br /> <br />E. The Southwestern Water Conservation District ("District") supports the work of the Council and <br />ARSG (see attached letter). <br /> <br />F. The Council, the ARSG, and the District recognize that elimination or reduction of acid mine <br />drainage will benefit aquatic life in area streams. <br /> <br />G. Recent hydrogeological studies have indicated that there is a high probability that water from the <br />Carbon Lake Ditch, a transbasin diversion which diverts from the Big Horn Gulch drainage, has <br />been seeping into the San Antonio Mine workings, including the Kohler Tunnel, and contributing <br />acid drainage to the Mineral Creek watershed. The Council wishes to eliminate the source of acid <br />mine drainage and to restore the natural hydrological regime in an unnamed tributary to Big Horn <br />Gulch, in Big Horn Gulch, and in Mineral Creek (North Fork). ARSG has sampled water quality <br />and mine waste sites in the Carbon Lake area and determined that the Kohler Tunnel drainage <br />contributes the largest amounts of aluminum, cadmium, copper, and zinc to the Animas River <br />watershed of any single source. Accordingly, ARSG has given the Kohler Tunnel drainage the <br />highest priority for remediation. <br /> <br />H. The Council received a grant from the Colorado Department of Public Health and the Environment <br />to purchase the Carbon Lake Ditch water right. The Council intends to donate this right to the <br />Board for instream flow use to preserve the natural environment. <br /> <br />I. The Board does not currently hold instream flow water rights on Big Horn Gulch, the unnamed <br />tributary to Big Horn Gulch or the North Fork of Mineral Creek. <br />