Loading...
HomeMy WebLinkAboutresolution.council.036-01 RESOLUTION NO. ~)~ (Series of 2001) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO WHEREAS, the City filed a Statement of Opposition to Water Case No. 95CW321, Application of Twin Lakes Reservoir and Canal Company, presently pending in the Water Court, Water Division No. 5; and WHEREAS, the City and the Twin Lakes Reservoir and Canal Company negotiated a mutually acceptable settlement of this litigation; and WHEREAS, general terms and conditions of said settlement were approved by the Aspen City Council on January 8, 2001; and WHEREAS, a final Stipulation and Agreement between Applicant and Opposers City of Aspen and the Colorado River Water Conservation District in the form attached as Exhibit A ("Stipulation") has been executed by counsel for the parties to Case No. 95CW321; and WHEREAS, the Stipulation incorporates the general terms and conditions approved by the Aspen City Council on January 8, 2001, which terms and conditions included a Plan of Study to be funded by both the City and the Twin Lakes Reservoir and Canal Company; and WHEREAS, Phases 1 and 2 of the Plan of Study described in the Stipulation are estimated at $50,402, of which the City of Aspen will pay one-half; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO as follows: Section One The Stipulation and Agreement between Applicant and Opposers City of Aspen and the Colorado River Water Conservation District, attached hereto as Exhibit A, is hereby ratified and approved, and the City is authorized to pay for one~half of the costs associated with Phases 1 and 2 of the Plan of Study (estimated at $50.402), and for one-half of the costs associated with subsequent phases of the Plan of Study as provided in the Stipulation, subject to approval of the water department. RESOLVED, APPROVED AND ADOPTED this c~ day of/~ ~.,2001. CITY COUNCIL, CITY OF ASPEN, COLORADO ATTEST: BY: May~° ~/~//~' ~ Town Clerk F:\Client Filcs~.spen\Twin Lak~s~resolufion m sctflernent.wpd -2- MAR.21.8001 18:01PM LAW OFFICES N0.078 DISTRICT COURT, WATEP, DIVISION NO. 5 STATE OF COLORADO Garfield County Courthouse 109 8m Street, Suite 104 Glenwood Spring% Colorado $I601-3303 &COURT USE ONLYA CONCERNING THE APPLICATIONFOP, WATER RIOHTS OF THE TWIN LAKES RESERVOIR AND Case N~raber: 95CW321 CANAL COMPANY, IN PITKIN COUNTY Attorac~ys for thc Applicant: Div.: Ctrm: Mm'y Mead H~m~ond, P,eg. No. 9851 Peter C. Fleming, P,eg. No. 20505 Carlson, Hammond ~ Paddock, EEC. 1700 Lincoln S~re~, Suite 3900 Dcnyer, Colorado $0203-4539 Phone: (303) 861-9000; Fax: (303) 861-9026 e-n il: chp( chp-law.¢om Attorn:,~ts for Opposer City of Aspenl Cyntkia F. Co;ell, P,¢g. No. 10169 Scott A. Clazk, Reg. No. 24509 : ;dperstein & CoYeH~ P.C. ]600 B~oadwa¥, Suite 2350 Denver, Colorado 80202-4923 Phone: (303) 894-~ 191; Fax: (303) 861-0420 e-mail: aandccfc~aoL¢om Attorney for Oppos~ The Colorado Pdver Wa~et Cons~at~on District: Dawed C. I-I~11ford, Keg. No. 10510 P.O. Box 1120 Olenwood Sp~gs, Colorado 8~602 Phone: (970) 945-8522; Fax: (970) 94S-8799 e-~iI: dl~lfo~d~crwcd.gov STIP~3LATION ASrD AGREEM~;NT BET~]BN APPLICANT AND OPPOSEI~ CITY OF ASPEN A~N~D T~I~ COLORADO I~R WATER CONSERYATION DISTI~CT MAR.81.~081 1~:81PM LAW OFFICES NO.O?B P.8 For and in consideration of the premises and the mutual covenants contained herein Applicant, the Twin Lakes l~.eservoir and Canal Company, and Opposers the City of Aspen and the Colorado River Water Conservation Dis~ct, stipulate and agree as follows: 1. Opposers consent to the entry, of a decree in this proceeding in the form attached hereto as Exhibit A~ and will not object to the entry ora modified form of decree so lon~ as its terms and condi~/ons are no loss restrictive on the Applicant that those contained in the anachcd Exhibit A. 2. Thc parties agree that they will j ointiy fund and participata in a Study in accordance with the Plan of Study attached hereto as Exhibit B and incorporated he. rein by tluis reference. Terms defined in the attached Plan of Study shall have the meanings assigned to them by that document. 3. From such time as thc Phase 3 Operating/Mitigation Plan that may result from the study doscribod in Para,apb 2 above has been completed, Twin Lakos will operate thc Twin Lakes 1994 fight in accordance with the Operatinf/lvfitigation Plan developed, and, to the extent the Plan calls for Twin Lakes.to fore§o or curtail diversions pursuant to the Twin Lakes 1994 Right, notwithstanding tho avallability of water in priority at the points of diversion for the IPTDS, then Twin Lak~;s will forego such diversions. Twin Lakes' operations or diversions upon any other ~ater fights or priorities it enjoys, including but not limited to the Twin Lakes 1936 Right, shall not be affected in any way by the Study, the Opcratins/Mitigation Plan, or this provision. The parties a~ree that any reduction or curtailment of diversions by Twin Lakes pursuant to the Operation/Mitigation Plan will be required notwithstanding any enhancement to streamflow in the B. oaring Fork River that may result from operation of thc Fry-Ark Exchange. 4. The parties a~rce to petition the Cour~ m exercise its retain jurisdiction in this matter as provided in para!raph 3.4 of Exhibit A in order to effectuate u'~¢ provisions of this Stipulation. Tho part/es specifically agree that implementation and completion of the Plan of Study, and the Applicant's agreement to operate the Twin Lakes 1994 Right in accordance with the Operation/M/tigation Plan that may result from the Study as provided in paragraph 3 above are material components of Asl,an's consent to the clccrce herein; that thc parties have agreed to develop and implement thc Plan of Study as a compromise in order to avoid the expense and uncertainty of trial, and that the Watcr Court's r~tained jurisdictlon will be invoked solely to assure completion and/or implementation of the Plan of Study if thc p~ies are unable to accomplish this on their own. No patxy will assert to the Court in any proceeding pursuant to its retained jurisdiction that the Plan of Study should not have been required or can/ed out in thc first instance. -2- MAR.al.8001 18:01PM LAW OFFICES N0.078 P.9 5, Each party shall pay its own costs of this proceeding; provided, howeve~ that The Colorado River Water Conservation District has been reimbursed for i~s costs as set forth in the Order Approving ~e River DistriCt's Bill of ¢o$t~ da~ed March 1, 2001. 6. The parties acknowledge and agree that this Stipulation and Agreemenl is, and may be engoreed as, a eon~act between the parties, and, upon approval and adoption by the Court, ~ an Order of the Water Cou~t. CARLSON, HAMMOND & PADDOCK, L.L.C. Mary Mead Hammond, ~9851 Peter C. Fleming, #20805 ATTORNEYS FOR TWIN LAKES RESERVOIR AND CANAL CO1HPANY ALPERSTEIN & COVELL, P.C. By: Cynthia F. Covell, #10169 ATTORNEYS FOR CITY O1~ ASPEN -3- MAR.21.E001 12:02PM LAW OFFICES M0.078 P.10 COLORADO RIVER WATER CONSERVATION DISTRICT By:~ ~cneral Counsel Jill C. H. McConaughy, #26052 Associate Counsel By the signature of irs counsel h~r~to, the Board of Water Works of Pueblo, Colorado, a stockholder in the Twin Lakes Reservoir and Canal Company, signifies its concurrence with the provisions of paragraph 14,7 of the Decree attached hereto as Exhibit A. CARLSON, HAMMOND & PADDOCK, L.L.C. By: William A'. l~addock #9475 Peter C. Fleming, #20805 ATTOR.NE, YS FOR BOARD OF WATER. WORKS OF PU'~BLO, COLORADO -4. MRR.81.E881 18:88PM LAW OFFICES N0.078 P.11 EXHIBIT A Judgment ~n,~ Decree C~se No. 95CW321 Page 1 March ! 5,2001 DRAFT DISTRICT COURT, WATER DIVISION NO. STATE OF COLOKADO Court Address: Garfield Courm~ Courthouse, 109 Stree% Suite 104, Olenwood Springs, CO $1601-3303 CONCERNING THE APPLICATION FOR WATER ACOURT USE ONLY& RIGHTS OF THE TWIN LAKES RESERVOIR AND CANAL COMPANY, IN PITKIN cOUNTy. Case Number: 95CW321 Div.: CU'ra: Attorneys for the Applicant: Mary Mead Hammond, Reg. No. 9851 Peter C. Fleming, Reg. No. 20805 Carlson, Hammond & Paddock L.L.C.. 1700 Lincoln Street, Suite 3900 Denver, Colorado 80203-4539 Phone; (303) 861-9000; Fax: (303) 861-9026 e-mail', chp~chp-law, com FINDINGS OF FACT, CONCLUSIONS OF LAW, JIFI)GMENT ~ DECREE THIS MATI'ER came before the Water Court in and for Water Division No. 5 upon the Application for Surface Water Rights filed by the Twin Lakes Reservoi~ and Canal Company (hereinafter the "Applicant" or the "Company"). The Court, having considered the pleadings, the files herein, a~d the stipulations submit~ecl by the parties, and being fully advised in the premises, enters the following Findings of Fact, Conclusions of Law, Judgment ~nd Decree. Mixed Findings of Fact,and Co-elusions of Law 1. Applic~'don. The Application was filed on December 28, 1995, seeking adjudication of absolute and conditional water rights. The conditional portion of the water rights claim was dismissed without prejudice by order entered on Janua.~y 16, 2001. N~.21.~001 I~:O~PN L~N ODDICES NO.O?D P.12 ludgm~nt sac[ Decree Case No. 95CW321 Page 2 March 15,200 l DRAFT 2. Notice. Timely Md proper notice of the Application was ~iven in the manner required by law, The time for tflin$ Statements of Oppositionhas expired. The application does not involve ~ny land or water located within the boundaries of a designated groundwater basin. The Court has jurisdiction over the subject mat~er of the Application and over all persons who have standing to appear whether they have appeared or not. 3. Statements of Oppositio~l: 3.1 Statements of Opposition were fled by: 3.1.1 Middle Park Water Conservancy District, c/o Stanley W. Cazier, P.O. Box $00, C-ranby, Colorado 3.1.2 Salvation Ditch Company, c/o Michael Underwood, P.O. Box 250, Woody Creek, Colorado 80656; 3.1.3 Ute Water Conservancy Dis~ct~ acting by ~nd through its Ute Water Activity Enterprise, Attn: Charles E. Stockton, P.O. Box 460, Grand Junction, Colorado 81502; 3.1.4 City of Aspen, c/o Phil Overeynder, Water Director, 130 S, Galena Street, Aspen, Colorado 81611; 3.1,5 Board of C~unty Commissioners of Pitkin County, 530 E. Main Street, Aspen, Colorado ltl611; 3.1.6 Colorado River Water Conservation District, c/o David C. Hallford, General Counsel, P.O. Box 1120, Olenwood Springs, Colorado g1602; and 3.1.7 Aspen HigMands Mountain Limited Liability Company, P.O. Box 124~, Aspen, Colorado 3.2 The Statement of Opposition of Aspen Skiing Company w~s withdrawn pursuant to Motion by Order dated January 30, 1997. 4. Sti~ulations. The following Stipulations have been filed with the Court: 4.1 Stipulation of Applicant with Southeastern Colorado Water Conservancy District was filed on March ~, 1996; and MAR.21.S001 12:02PM LAW OFFICES N0.078 P.13 Jud~llellt and Decree Case No. 95CW321 Page 3 Mar~h 1~, 2001 DP, AFT 4-.2 Stipulation of Applicant with Objector Salvation Ditch Company was filed on December 29, 1997; and 4.3 Stipulation of Applicant with Objector Thc Board 0f County Cor~ missioners of Pitkin County was filed on l:ebru~ry 17, 1998; and 4.4 Stipulat/on of Applicant and Objector~ Colorado River Water Conservation District and City of Aspen was filed on 4.5 Stipulation of Applicant and the Middle Park Water Conservancy District was filed on 4.6 Stipulation of Appli~ant and the Ute Water Conservancy District, acting by and through its Ute Water Activity Enterprise was filed on The foregoing Stipulations ere hereby sp~zoved by the Court Md incorporated herein as an Order of the Court by this reference. 5, A~Iieant. The Apphcant is a Colorado mutual ditch and reservoir company operating the Independence Pass Transmountain Diversion System ("E~TD$"), which ~fiverts water from the headwaters of the RoiL'ag Fork River and various of its tributaries and conveys such water beneath the Continental Divide and into the Arkansas River Brain for use by the Company's stockholders, The Applicant's ad&ess is: Twin Lakes Reservoir and Ca~al Company P,O, Box 8 Ordway, Colorado 81063 6. ~. Thc components: ~f the IPTDS ~e as follows: 6.1 The Lost Man Di~/ersion Dam and Lost Man Diversion Canal; 6.2 The Roaring Fork Diversion Dam, ~anncl No. 2, and Lincoln C~lch Connection Cmaal; 6,3 The New York Collection Canak and MAR.21.2001 12:02PM LAW OFFICES H0.078 R.14 Judgment and Decree Case No. 95CW~21 Page4 March 15, 2001 DRAFT 6.4 The Lincoln Gulch Diversion Dam (also known as Grizzly Reservoir) and Tunnel No. 1. 6.5 The IPTDS is a single, ~,,{_~ ed, and integrated water supply system comprising the entire IPTDS and all water fights deC~eed thereto. 7. 1936 Decree. By a decree dated August 25, 1936, in Civil Action No. 3082, of the District Court of Garfield County, Colo.rado, Priority No, 431 dating from August 23, 1930, was awarded to the IPTDS for a total of 625 ~if, s, C/he "1936 Decree"). 8. Chart_se Decree. 8.1 By decree dated May 12, 1976, in CaseNo. W-1901,District Couninand for Water Division No, 5, a change of type and place of usc was decreed for the IPTDS (the "Change Decree"). In Twir~Lakes Reservoir and C~,~al Company v. the City of Aspen, 193 Colo. 478, 568 P,2d 45 (1977), the Colorado Supreme Court affirmed the decree entered in Case No. 8.2 The Change Decree incorporates certain terms and conditions and limitations upon Applicant's IPTDS water fights, 8.2.1 Paragraph~5 of the decretal section of the Change Decree imposes volumetric limitations upon the IPTDS aS follows: total diversions out of the tributaries of the Colorado River from which the Twin Lakes Company now derives, or from which it may, pursuant to conditional decrees now entered in civil action 5884, or applied for in Case No. W-1869 or at some future date shall, derive water supply, shall be volumetrically limited to the amount available in priority as follows'. (a) to no more than 570,000 aCre-feet of water in any period often years; (b) to no more than 68,000 acm.feet of water in any one year; .... 8~2.2 In addition} paragraph 10 ofthe decretal section ofthe Change Decree provides *.hat; the modifications herein permitted are subject to the same inherent conditions which are contained in the original decree of 1936, namely, no entitlement to divert exists when the following two conditions are concurrently present: (a) Twin Lakes Keservoir has stored in a "water year" its decreed capacity of $4,452 acre-feet, and MRR.21.2001 12:03PM LR~4 OFFICES M0.078 P.15 Judgment and Decree Case Ne. ~5CW32! Page $ March 15, 2001 DRAFT CO) there is 756.28 c.f.s, available in priority from the Arkansas River at the hcadgate of the Colorado Canal water rlght with a priority date of June 9, 1890, with a decree date of March 23, 1896, for direct flow irrigation uses. To the extent that the Arkansas River water available in priority as described in Co) above is less than 756.28 c,f.s., and water could otherwise beneficially bc used for the irrigation of lands, there arises a corresponding entitlement to divert that amount of water from the IPTDS. Such water may itself be stored or applied directly to beneficial uses. To the extent that there is Lake Creek water available for storage in Twin Lakes Kcservoir, under the priorities of December I5, 1896, and March 29, 1897, decreed July 14, 1913, during the current water year, the right to store IPTDS water shall be corresponain$1y reduced. 9. 1994 MQ~,, In June of i994, the Applicant, the Col~rade STate Engineer, and thc Uni~d States Bureau ofR. eclamation ert~ red into a Memorandum of Agraernant to address cartain water operations for that year. The Memor~.udum of A~reem~nt was fonnaily executed by all parties on June 28, 1994. During the period jun~. ~; until June 18, 1994, the conditions set forth in paragraph 10 of the Change Decree prohibiting diversions on the changed IPTDS water rights were in effect, e.g. Applicant bad stored in a water year its full entitlement in Twin Lakes Keservoir, and ?56,28 c,f.s, was available in priority from the Arkansas River at the baadgat¢ of the Colorado Canal to the direct flow water fight of the Colorado Canal with priority date of June 9, 1890, and decree date of March 23, 1896. At the same time, there was no call for water from any downstream water right on the Colorado River and its tributaries and water was physically available at the diversion point~ of the IPTDS in Water Division No. 5, resulting in a "free river." 10. 1994 Diver~ioos. Bcg~ng on June 8 1994, and continuing at in~arvals until June 18, 1994, on which date a downstrearr, ~1i senior to June 8, 1994, came into effect on the Colorado River and its tributaries, the Applicant diverted water through the IPTDS under "free river" conditions. The maximum diversion rate was 240.75 c.f.s. Of this amount, 76.61 c,f,s, was diverted through the New York Collection Canal component of the System and 164.16 c,f,s, was diverted from the Lost Man and Roaring Fork components of thc System. Water diverted duri.ug this period of time was stored in Twin Lakes Reservoir and subsequently put to beneficial use by Applicant's stockholders, fur inlgation and municipal purposes. 11. C.o_mnletion of Appropriation. Applicant has completed the appropriation of 240.75 c,f.s, of water with an appropriation date of June 8, 1994, by diverting such water and applying it to beneficial u~e pursuant to the procedures prescribed by law, and is entitled to receive a decree evidencing such absolute water right. MAR.21.8001 ~2:03PM LAW OFFICES M0.078 P.16 Judgment and D~cree Case No. 95CW321 Page 6 March 15,2001 DP.AFT judgment and Decree !2. Incorporation by Referenc¢~ The foregoing Mixed,Findings of Fact and Cnnclusions of Law am incorporated and made a pa-~ Of ~hls decree. 13. Adiudicati0n ofrPTDS 1994 Supplement. The following wa~er right is adjudicated and decreed: 13.I Name Independence Pass Tran-~monntainDiversion System: 1994 Supplement 13.2 Legal description of each point of diversion: 13.2.1 Lost Man Diversion Darn and Lost Man Diversion Canal: The inlt/al point of survey of ~he darn is located at a poim whence the southwest comez of Sect/on 6, Township 11 South, Range 82 West of the 6th P.M. bears south $8 °42' east 6,473.2 feet. The headgate of the Lost M~n Diversion Cane is at a point on the east hank of Lost Man Creek from whence the southwest comer of Section 6, Township 11 South, P,~tge 82 West of the 6th P.M. bears south 58 ° 18' east 6,871.2 feet. 13.2.2 Roaring Fork Diversion Dam, T,n~el No. 2, and Lincoln Gulch Connection Canal: The initial point of survey of the dam is located at a point whence the southwest comer of Section 6, Township 1 ! South, R~nge 82 West of*he 6th P.M. bears south 80°9' e~t 6,946~3 feet. The hegdgate or point of intake of Tunnel No. 2 is located at a point on the south bank oftt~e Roaring Fork River from which the ~outhwest comer of Section 6, Township 11 South, Range 82 West of the 6th P.M. bears south 80 °38' east 6,921.6 feet. The tunnel discharges water diverted from the Roering Fork River into the Lincoln Gulch Connection Canal, which commences at a point at the south end of Tnnnel NO. 2 whence the southwest comer of Sectinn 6, Township 11 South, Rang~ 82 West of the 6th P.M, bears north 50°42, east 12,539.2 feet. 13.2.3 New York Collection Canal: (a) Headgate No. 1 is located at a point on the east beak of the West Fork C-'ulch, a tributary of Lincoln Creek, which is a tributary of the Roaring Fork River, Judgm~n: and Decree Case No. Page 7 ~ch 15,2001 D~T whanca ~c sou~west comer of Section 6, To~s~p 11 Sou~, R~g~ ~2 W~s~ of~a 6~ P.M. be~S ~o~ 58~6~ e~t 24,724,6 (b) H~dgate No. 2 is located a~ a point on thc New York Gulch whence ~a sou~st com~ of Se~0~ 6, To,ship 1 ~ Sou~ R~gc 82 Wast of~e 6~ P.M. b~ ~ 57~24' east 23,997.4 (c) Headga~ No. 3 is located a~ poia~ on Tabor ~lch wh~ca the sou~wc~ co~ o~ Sec~on 6, To~p 1 ~ Sou~ ~ge 82 Wes~ of ~e 6~ P.M. b~s no~ 51 ~32' ~ 16~923.1 fe~. 13.2.4 L~co~ ~]ch Divarsion D~ ~d T~el No. 1: The ~ po~ o~ su~ of s~ ~ is located a~ a poin~ whence ~e sou~hwcs~ comar of Scion 6, To~p ~ ~ ~ou~ R~g~ 82 Was~ of~e 6~ P.M. b~s 18~55' ~t 14,565.5 fee~. ~e ~e of T~el No, 1 i~ located at a po~ ~om whence ~ sou~was~ comer of S~C~ion 6, To,ship ~ 1 Sou~, R~g~ 82 West 6~ P.M. bc~s no~ 17~33~ e~ } ~,3~0.9 feel 13.3 So,ce: 13.3.1 Los~ M~ Dive~io~ D~ ~d Lo~ M~ Divarsion C~: Lost Cre~k~ ~bu~ ~o ~ Roerig Fork ~vcr. 13.3.2 Ro~g FOrk Division D~, ~el No. 2 ~d L~co~ G~ch Co~ecaon C~: ~o~ng Fork ~ver~ 13.3.3 New York Coll~c~on C~: (a) HaMga~e No. 1: WeS~ Fork G~ch (~so ~o~ ~ Naw York Crack), ~but~ m L~co~ Cra~k~ ~)Headgat~ No. 2: New York G~ch (also ~o~ ~ Broo~ ~ch), to New York Crce~ ~ibut~ ~o Lincoln Creak. (c) Headgata No. 3: Tabor G~c~ ~bu~ ~o L~o~ ~3.3.4 L~coln ~1~ Division D~: L~co~ Creek ~d ~y ~b~ ~o ~ ~o~g Fork ~ver. MRR.21,E001 1E:04PM LRN OFFICES H0.070 P.1B , CaSe No. 95CW321 Pages i M~ch 15, 2001 ~: 13.4 Appronriation. 13.4.1 Date of Appropriation: June g, 1994. 13.4.2 How Appropriation was completed: Formation of intent to div~s't previously unappropriated waters, diversions by the IPTDS through Tunnel No. 1, and application to beneficial use. 13.5 Amount: 240.75 c~f.s, absolute, comprised of 76.61 c.f.s at the New York Collection Canal component o£the IpTD~S, and 164. I6 c.f.s, at the Lost Man and Roaring Fork compon~s of the IPTDS. 13.6 U~: Direct flow and s~orage for i~gation and municipal use by the parties lawfully entitled thereto, at any site capable of being served by deliveries from either the discharge portal of Tunnal No, 1 into Lake Creek br the storage of Twin Lakes Reservoir in Lake CountT, Colorado. Such places of use include, but ~'te not limited to. the municipal water works of the Cities or'Aurora, Pueblo, and Colorado Springs, .~ud the Pueblo West Metropolitan District. 14. Terms and conditions. The following terms and conditions shall apply to the 1994 Supplement: 14.1 Volumetric L' 'ratio , 14.1.1 Diversions'VPon the IPTD S 1994 Supplement shall be volumetrically limited to the amount in priority as follows: 14.1.1.1 To no more than 46,500 acre-feet of water in any consecutive ten year period; 14.1,1.2 To no more than 30,000 acre-feet of water in any one year. 14.1.2 Sl~..~!jiail~i9~. Total diwrsions through the IPTDS shall be volumetrically limited to the amount in priority as follows: 14.1.2,1 To no more than 570,000 acre-feet of water in any period often years; 14.1.2.2 To no more than 68,000 acre-feet of water in any one year; MRR.21.2001 12:04PM LRW OFFICES M0.078 P.19 Suctgrnen~ and Decree C~ No. 9SCW321 Page 9 March l~, 2001 D~AFT 14.1,30pera~ons~i~ aaron Pl~. F~h~ co~n:s may re~k ~om Operaliom~gafion PI~ for ~c ~TDS 1994 Supplcmenl berg developed by Applic~t ~d Ciw of Aspen pws~t to ~eir s~p~afion here~ ~d may result ~ div~siom ~a do not approach · e vol~ic l~m~ons sa fo~ herein. 14,2 No Modification of Ch~se Decree. Not~g h~ein sh~ mo~ the ~d oO~o~s sot fO~ in ~e Chmie Decree. 14.3 Co~.~tafion of Diveriions. ~or p~oses of applying ~c vol~e~c liaisons upon ~e IPTDS set fo~ her~in ~ ~14.1,2 (~d ~ ~e C~ge Donee), ~ve~ions sh~l be computed ~ sa fo~ in ~e Ch~ge Decree, provided however, that ~v~ions upon ~e IPTDS 1994 Supplem~t ~located to ~e ~ly ~ese~oir Accost (see below) ~d ~ Subs~mled or Booked-Over wat~, ~ defined below; s~l be deduced ~om tot~ ~versio~. 14,4 Waer Alloca~on~ ])iv~ions up~ ~ IPTDS 1994 Supplement sh~l be allocaed for ~e ~ follows: 14.4.1 ~ fir~ 24:0 acre-feet of~ter div~ed p~umt ~o ~e ~TDS 1994 Supplem~l ~ ~y Water Ye= sh~l bo all >:aed ~ it is div~ed by ~e Applic~ m follows; ~o- · ~ds sh~l be ~locaed to ~e Applier i~r its sole use, con~o1, ~d b~efit by dkect ~e, or by stor~e for subsequent use; one,~d sh~l be allocated ~o ~ Colorado ~ver Wat~ Cons~a~ion Dis~cl (~e '~v~ Di~ct") on beh~f ~f West~ Slope water us~. 14.4,2 Of the ~ter ~locaed to ~e ~v~ D~s~c~ ~e ~rst 200 acre-fee~ or such lets~ mo~t u necessW to ~11 ~e OH~y Rese~ok Accost ~o 200 acr~-fe~, s~l be ~o~lod to a ~=ly Kcsc~oir Acoou~l (~e ~:~ly Water"), ~d ~e bal~ce (the "~ose~ed Waer") sh~l be res~ed in ~orage by the Applic~t in facili~es locaed ~ ~e ~s~ ~ver Bas~ 14.4.3 ~1 wacr in ~xcess of 2400 acm-feet ~v~ed by ~c IPTDS 1994 Suppl~t ~ ~y Waer Ye~ sh~l be ~located to ~e Applic~t ~or its sole, ~, consol, behest by ~ect ~e or by storage for ~bsequent use. 14.~ ~v Res~o9 Accost. ~e to~ vol~e of ~e OH~y Rese~ok Accost s~l be l~ted to 200 ~re-fee~? ~ or,he ~ ~.ly R~se~ok Account, ~p ~o 100 acre-feet ~,~,lly ~1 be av~lable fo~ rel~ ~0TM OH~y Rese~ok a ~e reque~ of~c ~v~ Di~ the deliv~ po~t or po~ specified by ~e ~ver DisPel. TM ~v~ DisPel ~11 pro,de at le~ 24 hoes' advice no~ce to ~e Applic~t, s Sup~ntendent of deliv~ mq~sm, ~ sh~I speci~ in ~ch notice: (1) ~e to~ vol~ of ~ter to be ~l~ed; (2) ~e rote of flow for ~ mle~e, c,fs. ~c Applic~t will ~ovide ~ much adv~ no~ce ~o file ~ver Di~ct as is practicable of ~ MAR.~l.2081 18:04RM LAW OFFICES M0.078 P.20 ............ Judgmen~ aud D¢~ Ca~e No. ~5C'W32 ! ?a~e 10 Mar~h 15, 2001 13RAFT any antlcipated or emergency draw-down of the Reservoir needed for repairs to the darn or Tunnel No. 1. Releases will be measured at the outlet of Grizzly Reservoir and the River Dis~ict will bear any transit losses on the water released from the Gr~.~ly Reservoir Account. Ail water in the Grizzly Reservoir Accoun'~ will be carried over from year to year and any such water physically released to draw down the Reservoir for repairs shall be replenished upon refilling of the Reservoir. 14.6 ReServed Water. The Reserved Water shall be made available for use in the Colorado River Basin by rne~s of subsfmtion or "bookovef', as follows: 14.6.1 Substituti°n~ The Applicant shall forego diversions it would otherwise make through the IPTDS pursuan~ to the 1936 Decree so that water that would otherwise be divertee~ by the IPTDS into the Arkansas River Basin will instead be available for use in the Colorado River Basin. The volume of such foregone div~ions st~ll be limited to the volume of Raserved Water actually diverted on the IPTDS 1994 Supplement during the then-current Water Year that remains in storage under the con~rol of Twin Lakes at the time of substitution. The operation of the Substitution shall be as follows: 14.6,1.1 Upon request by the River DiStrict, the Applicant will reduce diversions it would otherwise make ~hrough the IPTDS (up to the full flow rate then available in priority) so as to make water available for use in the Colorado River Basin. Water $o made available is the "Substituted Water." For every acre-foot of Substituted Water, one acre-foot of Reserved Water shall be reallocated to 6he Applie. ant for its sole use, control and benefit in the Arkansas River Basin. 14.6.1.2 The volume of Substituted Water shall be determined by reference to the g~ge on the Roaring FOrk River located directly below the Lost Man Diversion Dam component of the IPTDS and the g~e on Lincoln Creek located directly below the Grizzly Reservoir Dam component of the I?TDS, 14.6.1.3 The substitution operation shall continue until such time as (1) the River District requesss cessation of the substitution; (2) all the Reserved Water available in storage in the Arkansas River Basin has bean made available for use in the Colorado River Basin by means of the sub~tution; or (3) the IPTDS ceases to be in priority to divert. 14.6.1.4 The substitution described herein is separate and distinct from the exchange provided for i.n ¶¶ 9 and 11 of Operating Principles for the Fryingpan- Arhansas Proj ecl, HouSe Doc. No. 130, 87~ Congress, 1 ~ Session ("Foy-Ark Exchange"). Therefore, the diversions foregone on the 1936 Decree in order to effectuate the substitution described herein shall be in addition to diversions foregofie to effectuate the Fry-Ark Exchange. MRR.21.~001 [~:05PM LRN OFFICES NO.O?B P.21 Judgment and Decree Case No, 9SCW321 Page 11 March If, 2001 DRAFT 14.6.2 Bookover. Pursuant to the Homestake Repayment Provisions of the Memorandum of Understanding effective April 21, 1995 between the Cities of Aurora and Colorado Springs, the River District, Climax Molybdenum Company, and the Vail Consortium, consisting of Eagle River Water and Sanitation Dis~ct, Upper Ea~le Regional Water Authori~, and Vail Associates, Inc., (the "Bagie River MOU~') and the related Water Exchent¢ Agreement dated ~Iune 17, 1995 between the Cities of Aurera and Colorado Spnngs and the Eagle Park Reservoir Company, whose shareholders comprise thc River District, the Eagle River Water and Sanitation District, the Upper Eagle Re$ional Authority and Vail Associates, Luc. (the "Water Exchange A~ent'), the Eagle Park Reservoir Company stockholders are obligated at rimes to repay certain volumes of water to thc Cities of Aurora and Colorado Springs. In full or partial satisfaction of this oblisation, upon request by the River District, the Applicant and its s~ockholder City of Colorado Springs will "book over" Reserved Water into the account of Colorado Springs for subsequent delivery To Aurora and Colorado Springs pro rata to their entitle/i~ent pursuant to the Homestake Repayment Prowsions of the Eagle River MOU and the Wamr Exchange Agreement. The wate~ so transferred is the "Booked- OveI Water," 14.6.3 Any portion i~fthe Reserved Water that has not been substituted or booked over as set forth above, or spilled ,:r evaporated out of storage in the Arkansas River Basin by the end of the Water Year in which it was diverted shall be reallocated to the Applicant for its sole use, control, and benefit. 14.7 Use o.f River District W tater. The Applicant and its stockholders City of Colorado Springs, Pueblo Board of Water Works, and City of Aurora will not oppose the use of the water diverted upon the IPTDS 1994 Supplement and allocated to the River District for the following 14.1.1 Satisfaction of the Eagle Park Reservoir Company shareholders' obligation ~o repay the Homes~ke Proie~ ~or deliveries made under the Ea~le River MOU; 14.?,~ W~ter 8uppiy either directly or by e×change for Western Slope water users junior to the irrigation and power wa~er rights adjudicated for diversion at the Grand Valley Projee~ diversion dam and the Grand Valley Irrigation Company divexsion dam, which water r~ghts are listed in Exhibi~ A and B ~o the Stipulation and A~reement approved by the decree entered in Casa No. ~ tCW~41~ Wat~ Division NO. 5~ 14.?,3 Delivery ~f a po~on o£ the Western 81ope's obligation undax the Programmatic Biological Opinion ~or ~:.c t $ mile reach cf the Colorado River; 1~.?.~ SatisPyin~ defieks in ~e instre~a flow water right decreed to the Colorado Water Cor~ervation Board for the Ro~fing Fork River through the City o£Aspen; or ~AR.21.2001 12:05PM LAW OFFICES M0.078 P.2E Judgment and Decree Case No, 95CW321 Page 12 March 15, 2001 DRAFT 14.7,5 Supplying water that would otherwise beexchanged from the Roaring Fork River pursuant to the exchange applied for in Case No. 9gCW270, Water Division No. 5. 14.7,6 Any other beneficial use recognized by the Division Engineer for Water Division No. 5 or by the District Ceurt in and for Water Division No. 5. 14.s 14.8.1 The Applicant will store the Reserved Water in one or more storage facilities in the Ark~n.qas River Basin at its discretion, provided that the cost of storage of the Reserved Water is equal, on a per day, per acre-foot basis, ~o the cost of any storage made by the Applicant of water diverted on the IPTDS 1994 Supplement that is allocated to the Applicant. 14,1t,20norbeforeJanuary 1 ofeachWaterYear, theApplicantwillprovide to the River District an accounting showing: (1) the volume of Reserved Water stored in the preceding Water Year; (2) the volume of l~served Water that was substituted or booked over to the River District in the preceding Water Yea-; C31 the volume of Reserved Water that was reallocated to the Applicant at the end of the precedir.g Water Year; and (4) the average cost to Applicant per day per acre-foot for storage of the Reserved Water in the preceding Water Year. Within 30 days of receipt of such accounting, the River District will remit m the Applicant a sum determined by (1) subtracting the volume of Reserved Water reallocated to the Applicant at the end o£the preceding year from the total volume of Reserved Water; and (2) multiplying the result by (a) the average per day storage cost by (b) the number of days the Reserved Water was stored in the prece~i,,~ year. 14.9 ~ration. 14.9.1 Water diver~ed upon the IPTD$1994 Supplement that is stored in the Arkansas River Basin may be subject to spill not within the Applicant's control prior to the end of the then-current Water Year; for example, such water may be stored in so-called "if and when" storage accounts. The.applicant shall provide the River District with monthly notification of currant reservoir storage levels, and anticipated furore rates of inflow into the storage facility or facilities in which the Reserved Water is then being stored, and will also provide the River District with written notice fourteen (14) days prior to the date that the Applicant anticipates that the Reserved Water may begin to spill from storage. In addition, because the Applicant can only project a spill date for the Reserved Water based upon ars experi~ce in the Arkansas River Basin, and since the Reserved Water will in most cases be stored in a facility not under the control of the Applicant, the Applicant will also provide the River District notice by telephone, facsimile, and, if available, electronic mail within 24 hours of receiving notice from the operator of the storage facility that the Reserved Water will be spilled. Any water dive. ned ut~on the IPTDS 1994 Supplement that is spilled will be allocated pro-rata between the Applicant and the River Disirict. MRR.~l.~001 l~:05PM LRN OFFICES NO.O?B P.~ Judgment and Decree Case No. 95CW321 Pa~e 13 M~rch 15, 2001 DP, AFT 14.9.2 Evaporation on wa~ stored by ~ A~lic~t s~l be ~ocaed pro ra~ ~ong ~ ~TDS p~o~es, inclu~g ~ 199~ S~pplom~t. Evapo~on losses upon IP~S 1994 Supplement ~11 b~ ~oca~d b~e~n ~ A~lic~t ~d ~ ~v~ Di~ct pro 14.10 Condition.Preceder to Exi~ci~e. No ~t~ s~l be ~vened upon ~e ~S 1994 Supplement ~s~ ~e AppBc~ h~ entered ~to ~d is op~fing p~t W ~ appropriate a~eem~t ~h ~e Ho~e Project p~cip~ ~at ~ffecmates ~e Bookover desc~bed p~aph 14.6.2 above on ~ on-goin$ ~is consistent ~ ~e Water Exch~g~ A~e~ent ~d reco~zes ~e pm~sio~ ofp~aph il.7 above. A copy of such ~e~ent or ~y ~en~en~ ~1 be ~ovidcd to ~e ~v~ DiVot pr0mpfly upon cxecu~on, ~d no~ce of ~y t~fion or lapse of such ~e~em sha~ ~so bc promp~y pmvldcd. 14.11 S~pulatio~ ~ Sou~e~ C01o~0 Wat~ Confe~ Di~ct. ~ ord~ comply ~ ~e te~ ~d con~om of~e S~p~ation dated Mach 4, 1996, ~een ~e Applic~t ~d ~c Sou~e~t~ Colorado Water Co~.se~ Dis~, ~e follo~ ~11 apply: 14.11.1 No decree entered here~ ~1I ~ ~d ofitself~ive Applicmt ~y rights of o~p or ~e of ~y ~U~,~rk~sas Project facili~es. ~y use by Applic~t of F~gp~Ar~s~ Project ~cilifies for.s~cr~e or ~c~ge offer ~v~ed p~su~t to ~e water ri~ d~r~cd ~ ~s ~e sh~l mq~e ~d bc ~bject to, l~ted by, ~d depen~n~ upon ~ of(a) A~lic~t or its ~eholdc~' con~cts, inclu~g ~y ~en~en~, mn~s, supplement, or replacemcnm ~ereto, ~ thc United States of ~e~c~ i~ successors or ~si~s; or ~) a~l, o~ or ~en, ~ong App~C~t, ~e Sou~eaa~ Colorado Wat~ Co~ ~s~c~ ~d ~e U~md States B~eau of Recl~a~on or i~ successors ~d ~si~, 14.11.2 It is ~de~ood ~ ~c~d ~at d~ect ~c ofwat~ diverted p~s~t to ~c water ~t decmcdin ~s c~e, ~out ~orage or ~ge us~g F~Ip~,-~ Pmj facilities, ~i1 not c°nsfimtc use of Proj e~;t facili~es no~st~ng lhat wat~ may p~s ~ough ~ L~es Kes~oir, ~d ~ ~erefore no~ r~q~re ~y a~eement ~on~ App~c~ Soulhe~tem Colorado Wat~ Conse~ Di~c~ ~ ~c U~ted States B~eau of Recitation. L~e~sc, con~ua~on of Applic~t's or i~ sh~hold~s' ~s~g exch~6c p~ces pws~t to ~e~ e~st~ con~a~s ~vol~ng ~ L~es ~csc~ok ~d T~quoise ~esc~ok ~11 not req~m ~y a~eem~l ~o~ Applic~l, Sou~stcm Colorado Water Cogency Dis~c~ ~d ~e U~tcd S~tes B~eau of KeelSon, even if~t~r dirked p~su~t to ~c w~t~ dgh~ decm~d in ~s is rele~ed ~ a p~ of such 14.11.3 Appllc~t's ~e of ~t slope ~or~c space in P'roj~ct f~ihfies, ~ ~e ~xcep~on 0f ~c 54,452 acre-feet of T~ L~s Kes~oir rese~cd for AppHc~'s cxcl~ive ~e ~ ~c ~u~ 17, 1977, con~act bc~e~n ~e U~ed S~tcs ~d App~ sh~ll ~ govem~ ~ ~d m~c in ac~rd~ce ~ ~e te~s ~d ~n~om MAR.~l.2001 l~:06PM LAW OFFICES M0.078 P.~4 Judgment ~nd Decree Case No, 9SCW321 Pa~¢ 14 Mar~h 1~, 2001 DRA~'T principles for operation of storage space in the Fryin~pan/Arkansas Project as more particularly set forth in Amendment 4 to Southeastern Colorado Water Conservancy Dislxict's repayment contract, as it may be amended. 14.11,4 Neither the ~lescription of, reference to, or omission of description or reference to,Fryingpan/Arkansas Project aruetures and water fights of Southeastern Colorado Water Conservancy District in any decree, nor an3ahing else in any decree entered herein, will in any way amend, limit, o~ act to the detriment of Southeastern Colorado Water Conservancy District's decrees for Fryin!~pan/Arkansas Projec~ wa~er fights. 14.12 Applicant shall not enter into any A~eement as contemplated by ¶14.10 above that would interfere with its ability to effectuate the operations set forth in ¶¶14.4, 14.$, and 14.6 above. 14.13 .General. 14.13,1 Applicant sh~?l install such measunng and recording devices, and shsll keep such records and perform such accountin! as may reasonably be required by the Division Engineer, Water Division No. 5, or his representatives, to assure that water is taken pursuant to the IPTDS 1994 Supplement only when w~ter is lei/ally and physically available for diversions by Applicant at the points of diversion from nh/ch Applicant wishes to divert and to assure corepliance with the maximum instanlaneous diversion rates and the annual and ten-year volumetric Emitations on diversion by this water right combined with all other water rights decreed for diversion as part of the IPTDS, Copies of all such records and accounting forms submitted to the Division Engine~ shall be made available to the objectors herein upon reasonable request. 14,13.2 In a prompt and timely manner, the Division 2 Engineer shall provide the Division $ I':ngineer with the iv. format/on reasonably necessav~ for the Division 5 Engineer to administer the IPTDS 1994 Supplemem. 14,13.3 The IPTDS 1994 Supplereent shall be administered based upon the filing of the application herein in 1995, and shall be junior in priority to decreed water rights for which applications were filed in previous years and senior to water rights for which applications were filed in subsequent years. As between all water rights for which applications were filed in the s~me calendar year, priorities shall be determined by their respective historical dates of appropriation and shall not be affected by the date of ent~ of the decree. 14,13.4 This is a Consent Decree, entered pursuant to compromise and settlement. Accordingly, the provisions hereof have not been litigated. The doctrines of Kes Judicata and Collateral Estoppel shall therefore not apply to the Findings and Conclusions herein. MAR.21.2001 12:06PM LAW OFFICES NO. 078 P.25 Jud~men~ and. Decree Case ~o. 95CW$21 Page 1 March 15, 200! ~ 5. Eet~ned J~d~ction, J~is~on ~s here~ re~ed by ~e Co. in acoord~c~ Dated ~s day of. ,2001, by ~e Thomas W, Ossola, Wa~r Judge [ Wa~r Division No. 5 ' Slate of Cblorado EX~IBl~ B PLA~ OF STUDY The City of.Aspen ("Aspen"), and the Twin Lakes l~servoir and Canal Company ("Twin Lakes") will jointly fund ami participate in a Study to be carried out in 3 Phases, and purs~,t this Plan of Suldy. 1. Definitions. For purposes of this Plan of Study the following deGnitions will apply: 1.1 Aspen Ganqe: The gauge ~0cated on the Roa~ing Fork River above the Salvation Ditch headgate, near Aspen, Colorado, more particularly defined as USGS Gage No. 09073400. 1.2 Asoen l~ach: That reach of the l~.oaring Fork River from the Aspen Gauge to the confluence of thc l~oari~ Fork River and Maroon Creek. 1.3 Colorado School ofMines Sl~_dX: A study conducted by the Colorado School of Mines cntitlad 'Pre 'luninary Hydrologic and Biological Characterization o£th¢ Norcll Star Nature Preserve, Pitkin County, Colorado" dated l~ay 2000. 1.4 Difficult C~mn~round Gau_~_e: The gauge located on the Roaring Fork River 0.45 miles above its confluence with Difficult Creek, more particularly defined as USGS Gage 09073300. 1.5 F -~.~I]t..~l~l~: The exchange provided for in paragraph 11 of tile Operating Principles of the Fryingpan-Arkansas Project, pursuant to which up to 3000 acre-feet of water per year diverted by the Ft'yingpan-Arkansas Project from Hunter Creek in PirXin County, Colorado, are stored in Twin Lakes storage Pacflitics on the eastern slope for ~xchange to the l~oaring Fork River. Said excb,,~ge is accomplished by requesting Twin Lskas to forego diversions of the Twin Lakes 1936 Right. 1.6 IPTDS: The Independenc.~ Pass Transmountain Diversion System owned and operated by Twin Lakes. 1.7 !~~_~lg: A condition occurring dtming P, unoffScason, which causes the flows in the Roaring Fork River abov~ the Aspen Gauge to ovel'flow the stream channel at one or more locations. -1- MRR.~l.2001 12:O?RM LRN OFFICES M0.078 1.$ Pesk Runoff Season; The R~off S~on is de~d ~ ~e p~od d~ng w~ch · ~ m~ ~ flow occ~ in ~e Ro~ng Fork ~ver, Vpi~y d~g ~e mon~s of~y ~u~ ~y. 1.9 ~ Fork ~v~ ~lu~ AqUa: ~e ~co~ed aq~ hy&a~c~y ~ectcd ~d ~bu~ to ~e ~o~g Fork ~v~ ~t is comp~ of Plcistoc~ ~ Q~te~ ~e v~ey-floom d~siu of fluvi~, glaciS, ~u~ ~ co~u~ ~d l~lide o~. I. 10 ~o~ Fork ~ver ~lu~ Storage: ~e ~o~d~r ~om~e c~i~ ~o~g ~ork ~v~ ~u~ Aq~ ~ of~e Aspen ~u~e ~d e~d~ to abou~ 1300 f~t above ~e D~c~t C~p~d Gau~e, rou~y ~ ~ ~c~ff iden~d on E~bit 1. IA1 ~L~es1936~: ~ewa~tsdecr~to~e~DS~C~eNo. CA 30~ on A~ 25, 1936, ~ ~ ~h~ ~vo ~ere~er be~ con~onc~ c~ed ~d made absolute, ~ T~ L~es 1936 Water ~t pe~ts ~ m~ of 625 cfs of ~t~ ~ ~vened ~ou~ ~e ~S to ~ e~t~ slope ~bjec~ ~ ce~ l~om on ~ch ~o~ dive.ion ~ pro~dcd ~ C~e No. CA 30~2 ~d W-1901. 1.12 T~n L~es 1994 ~ht: ~ absolute de~ to ~ ~tered upon ~e app~ca~on ~ C~c ~o, 95CW321, for 240.75 Cfs to be ~v~ed to ~e e~em slope ~a ~ ~$, to ~e te~ ~d con~fio~ 2. $mdy ~h~es ~nd ~ S~ ~ bc condu~ ~ ~e follo~ ~e p~ses: Ph~e 1. ~e obj~Sve o~h~e 1 is to d~elop a q~fi~five ~dor~n~ of~c ~p~ storage, m~ flows ~om ~e sq~f~ to ~e Ko~$ Fork ~ver, ~u~ ~de~ow ~nea~ ~spen ~e ~d b~eflows ~ ~o Ko.rig Fork ~v~ ~low~e ~p~ O~gc. Aspen ~lievcs ov~b~ flood~ ~om ~ ~o~ ~ork ~ver ~ic~ly occ~ u~ ~om ~e ~pen d~ ~ Pe~ K~off ~e~on. ~ ~ believes ~t s~h overb~ floo~ con. butts to s~c~t r~e to ~e Eo~g Fork ~v~ ~u~ Aq~f~ a~vc ~e ~ ~c ~d r~ flows ~om ~e ~g Fork ~v~ ~uvisl Aq~f~ to ~e ~o~ Fork ~r ~d ~u~ ~de~ow ~n~ ~e Aspen ~ug~ conm~ute to b~eflows ~ ~ ~o~ ~ork ~ver below ~p~ ~u~e. P~e 1.~ ~ ~s h~e~s. A second objcc~ve of~e 1 is to obs~e ~d · ~d objec~ of Ph~ 1 is to ~se~ ~ ~pPo~ for ov~b~ floo~ ~d ~fer ~h~e ~ ~o~ flow con~ons, ~ n~css~ ~d appropriate, an21~c~ m~e~g tools ~I1 employ~ m acute ~ese objc~ves. Ph~ 2. ~e objective ofP~c 2 ~ to ~se~ ~ ~p~ of plied ~sions T~ L~es 1994 ~t upon ~e ~lu~ ~ sto~e, re~ flows, ~d b~eflo~ ~ ~c Ko~ MAR.21.2001 12:07PM LA~ OFFICES M0.078 Fork River below the Ast~n Gauge, and specifically, to determine whether such diversions will diminish the sltesmfl ow in the Aspen Reach during the non- Peak Runoff Season below thc 32 c,f, s. minimum streamflow right decreed for that reach, or whether such diversions, while not themselves causing streamilow in the Aspen Reach to fall below 32 c.f.s, during the non-Peak Runoff Season, would nevertheless reduce stresmflow further below that amount. Ifthe tradings of Phase 2 show that projected diversions on the Twin Lakes 1994 Right would result in a stre2~t%w in the Aspca Reach during the non-Peak Runoff Season oi]ess than 32 c.£.s.~ or that diversions on the Twin Lakes 1994 Right~ while not themselves causing the streamflow in the Aspen Reach to fall below 32 c.f.s during thc non-Peak Runoff season, would nevertheless further reduce stre~mflow below that amount, the Study will proceed to Phase 3. In determining whether diversions on the Twin Lakes 1994 Right will cause thc streamtlow in the .~epen Peach to fall below 32 c.f.s., or further diminish stre~r~low below 32 c.f.s., diversions by the Salvation Ditch, Nellie Bird Ditch, and such other senior Koering t~ork water rights downstream of the Aspen Gauge as determined relevant by the Consultant s~,tt be deducted ~rom stresmflow measurements. In addition, no eahancement to strcamflow in the Roaring Fork that results from operation of the 17fy~Ark Exchengc will be included in the streamflow. Phase 3. The objective of Phase 3; if needed, is ~o develop an equitable ~d workable operating or mitigation plan (thc "Operatin~/lv[i~igation Plan") such that diversions upon the Twin Lakes 1994 Right will not (1) reduce the s~eamflow in the Aspen Reach during the non-Peak P, unoff Sca~on below ~2 c.f.s, or (2) contribu'~e to a further reduction of stresmflow below 32 c.f.s in the Aspen Peach during the non-Peak K~offSeason in circumstances when diversions upon the Twin Lakes 1994 right do not themselves caase the sire~_m?ow to drop below that threshold. The Operating/Mitigation Plan will employ such concepts or mechanisms as are deemed appropriate to achieve the goals of the Plan. Such concepts may include establishing one or mor~ "indices" or "triggers," such as an Index Flow, that is, a rato of s~r~amflow at an agreed point (such as the Difficult Campground Gauge), in cubic feet per second, that should be r~,i~tsined in the stream for a period of time during the Peak Runoff Season in order to prevent adverse consequences during the non-Peak Runoff Season, and that will trigger a cessation or reduction of diversions upon the Twin Lakes 1994 Right; or a Roaring l~ork River Alluvial Water Table Index, that is, a composite level of the water table in the l~.oaring Fork River Alluvial Aquifer above the Aspen gauge tn quantify a minimum Romiug Fork River alh/vial Storage which is needed at the end of the Peak RunoffSeason to be available for discharge to the Roaring ~'ork River below the Difficult Campground Gauge to achieve streamflows in the Aspen Peach of~ at least 32 c.f,s, until the following Peak Runoff Season, (or, if~2 c.f.s, cannot be achieved, the amount ofP, oaring Fork River Alluvial S~ora~.e needed at the end of the Peak Runoff Season to be available for discharge to the Roaring Fork River below the Difficult Campground Gauge to bring stresm~low as close to ~2 c.f.s as possible) and that could be used in conjunction with Index l~lows to determine if Twin Lakes will reduce or curtail diversions pursuant to the Twin Lakes 1994 Right; or whatever other operating concepts or mitigation measures are deemed approtxiate to achieve the goal of the Plan. MAR.81.8001 18:87PM LAW OFFICES M0.878 P.2g ,.. 2.1 Phase 1 Study. 2.1.1 Ia PSase 1 of thc StUdy, physical measureme=ts of the Roaring Fork River and the Roaring Fork River Alluvial System will be obtained using thc methods described: (A) Cross-sectiom of the channel of the Roaring Fork River between the Difficult Campgrotmd Gauge and the Aspen Gauge will be obtained using appropriate surveying methods. This information will be then ineoxporated into a I-l~C 2 or HEC-RAS based surface-water flow toodel to approximate the overbznk flooding potential for various flows as measured at the Diffeul': Camp Oround and Aspen Gauges. (B) Select. od locations of overbenk flooding that are projected to occur using the HEC 2 or HEC-RAS based surface water flow model will be mapped. ShalIow monitor wells will be drilled in the Roaring Fork River Alluvial Aquifer in or near these areas to allow measurement of the tr~_~sient ground.Water levels. These monitor wells shs!! also be located by appropriate survey methods to insure that both their horizontal and vertical relationship to the surface water gauging stations and the Roaring Fork River cross sections be established for subsequent study purposes to allow the relationship of the elevations of the alluvial water surface and the stream flow'sur~ace to be determined. (C) Regularly sch.;;duled measurements of the Roar/ag Fork River alluvial monitoring well network will be ma:lo by knowledgeable personnel competeat to carry out such activity. The schedule for these measurements shall be determined by the pro]ec~ engineers for ob*~i-in$ data that represent the anticipated changes in the Roar/rig Fork River alluvium resulting from both higher flows that re~i, in the eh~-~_el of the Roaring Fork River and from flows that may cause some degree of overbank flooding. (D) Sites where surface flows may enter the Roaring Fork River Alluvium downstream of the Difficult Camp C-round C-auge and above the Aspen Gauge will be evaluated. This will include Difficult Creek and other unnamed ~butaries. If; in the opinion of the Consultant, end the Oversight Commi~ee, these sources of water should be measured so their contribution can be inoludod in the water measuretoenr process, appropriate methods of measurement shall be developed for these sources and included in the data collection activities as deemed appropriate by the Cousult~nt. In addition, groundwater discharges from the Aspen Municipal Parking Crarage may be monitored and evaluated. (E) Estimates of aquifer thickness, transmissivity, hydraulic conductivity, and specific yield will be developed from methods mutually agreed upon by the Consultants, and as available funds allow. The Consultants will also agree upon the use of available data including strea~n~low recordS, water-level data from monitor wells and weter- supply wells, well pen*n/t and construeti°n!reCords, precipitation data, geologic data, published maps, and other pertinent information that may be used to achieve the objectives of Phase I. All such data ~_-~ interpretations derived therefore shall be shared between the parties. MAR. 21. 8001 12: 08PM LRW OFFICES MO. 078 P. BO ~) If d~ n~ss~ ~d approp~tc by ~e mu~ a~?~.o~ ~e Comul~t, A~ ~d T~ L~cs, ~;smdy ~ea may be e~d~ do~ to ~d including ~ co~uence of M~oon Creek ~d ~e ~o~ Fork ~v~. 2.1.2 Us~ ~e ~ove ~om~o~ ~ ~ders~d~ of~ ~y~c~ mla~ons~p ~ ~e Ro~ Fork ~ver sync, ~clud~g ~e Ro~g Fork ~v~, ~e Ko~g Fork ~v~ ~ ~d ~bu~es ~1 ~ d~cloped ~d ev~& F~tom ~t may ~ect ml~omMps ~ ~o be co~id~d ~d ideated ~ ~ey ~y relate to ~e go~ offs s~y for ~ m~ence, 2,2. P~e 2 2,2, l U~g ~ rela~o~Mps id~fied ~ Ph~e 1 of~e Study, ~d es~m~ted c~ges ~ s~e~ow ~g ~m excise of~e T~n L~s 1994 ~, Ph~e 2 of~ ~d s~flow ~ ~c A~ ~ch d~ ~ non-Pe~ K~off Se~on, Ph~e 2 of ~e ~ develop ~d ~ su~ tools ~ conch, ~clu~g, if approp~atc, ~ic~ or computer modet~Z, ~ ne~ to ellipse ~e r~a~o~Mp be~ sm~ed. 2.3 ~ If~e result of Ph~e 2 is to ~ow ~ pmjc~cd ~v~sfo~ on ~e T~ L~es 1994 ~t wo~d reset ~ a ~e~ow ~ ~ A~en ~each d~g ~e n~-P~ R~off Scion of less ~ 32 c.~s. (~er ~vo~iom by ~e S~ Ditch ~d Nel~e Bffd s~or ~o~es ~d such o~r s~or Ro~t~ ~ork wat~ d~U ~e~ of~ ~en ~uge ~ d~e~ rel~t by ~ Co~t) or, ~t diversio~ on ~ T~ L~cs 1994 w~e not ~selv~s ca~ ~e s~ow to ~ below 32 c.f.s ~ ~ ~p~ Reach, d~g · e non-P~ R~ S~on wo~d n~e~eless ~er reduce ~ow below ~t ~o~ · en ~e Study ~ proceed to P~e 3, ~W~ ~ ~era~n~figafion PI~ ~ be develo~d to govern ex.se of~ T~ L~es 1994 ~ or o~e~se pro.de for ~fi~fion of~e advise effc~ of such ~vcr~om ~on s~e~ow ~ ~e ~ Re~h d~ ~ non-Pe~ K~off Se~o~ b~ upon ~ ~d~ of~e phy~ micromaps l~d ~om 1 ~d 2 ~mdics. S~h O~a~ga~on PI~ sh~ ~e ~co~ of~e m~mde ~v~e effe~ demon~a~ed by Ph~e 2 of the Study ~n ~e ~ow ~ ~e ~ d~g ~e non-P~ R~off S~on ca~ ~y ~rslo~ on ~c ~ L~es 1994 ~t, 3. Condu~ of ~e Study conducted jo~fly by M~a~hl~n War= En~ee~ ~d E~h ~c.,(~Be~vely, ~e "Co~l~t") in accor~ce ~ ~e foH6~ng Study P~t~: ~.1.1 Asked F~. ~ c~g out ~ ~dy (~d dev~op~ ~y compeer model neccss~ ~to) ~e follo~g fac~ ~ ~ ~s~ed: -5- MRR.21.2001 12:00PM LRN OFFICES 3.1.1.1 Twin I.akes~i ~rojected diversions p~t to ~c T~n L~ 1994 ~t ~1 be ~o~ pwj~d by E~c, in i~ M~ch 1, 1999 ~o~ ~6flcd, Independ~ce P~ Tr~-Mo~m~. ~v~mon Sy~m ~so~m~t of Wamr adjusted to reflect mdu~on of~e ~t~r ~t applied for ~ C~ No. 95CW351 240.75 c~.~ 3.1.1.2 ~uge mmpi ~om ~e D~c~t C~p~o~d ~n ~a~c ~ ~c~a~, ~ess ~ Co~t m~o~bly concl~es o~se. 3.1.2 ~is of E~aing Data. ~e follo~g e~ ~d, to ~c ~nt t~ cons~ de~s ~pro~a~e, ~cd ~ ~c ~dy: Colo~do S~hool of M~es S~ow ~or~ of ~e ~g~ork ~ver ~ m~ted Di~c~t C~p~o~d Gauge ~ 1994 - 1997, or ~ch o~ ~e period ~ Co~t ie~s appmpfia~; Pub~ed g~lo~c da~ mlevmt to Ro~g Fork ~v~ ~u~ md precipi~on dam de~ed mle~,nt by the Cons~t~t ~ dete~in~g ~o~elt ~p~ts ~m ~i~,ge ~ ~ imme~te ~c~W of~c ~ Fork ~ver ~iuvid Storage; ~y&o~ap~ of&ta ~m se~c~d mo~to~g wells id~ed ~ ~c Color~o Sc~ol of ~nes Study; Wc~ logs, to ~c ~ent ~o~bly ~'~lable, for eE~ng we~s lo.ted ~ or adiac~t to ~e ~ Fork ~ver ~lu~d SiOmge, or els~h~e Con~t; P~i.mlns~ b~e flow re~saon ~sis md o~er pre~ ~o~ of ~u~E storage capaci~, ~o~d~ter m~*ge ~ ~d~t~ ~sch~ge ups~ of~e Aspen Gauge ~ed by Wayl~ ~eso~ ~o~ M, ~ ~d s~ of McLau~l~ Wa ~ E~m~s, I~. ~ Dec~ber 2000 ~d l~u~ 2001~ "~ ~olo~c~ Report No. 1 of~e A$pen Altema~ D~si~s", G~mnison- ~ksns~ ~ojec~ Colo~o, USBR, 0~ober 2, 1950. 1 If Co~t dete~es, ~ ~d exem~e of redouble science ~ d~en~ ~a sad pml~ ~ysis ~d ev~o~ ~ s~cient for p~oses of~e study ~out ~er re~emen~ Com~t my ~ept:~e resets of~h for ~e ~ ~e ~dy ~thout MAR. 21. 2001 12: 09RM LAW OFFICES MO. O?B P. BE 3.1.3 ~o_fNewDam, The following additional dam, at aminimum, must be obtained: Measurements of thc physical geometry of the Roaring Fork River channel a~ selected sites to enable determination of stream charmel capacity at locations on the Roaring Fork River where Overbank Floodi~ is believed to occur; Measurements of selected existing monitoring wells at thc North Star Preserve (as identified in the Colorado School of Mines Study) at times deemed appropriate in the omulumt s reasonable scientific judgment; Measuremcnts of waler surface elevations in the Roaring Fork RiVer at selected sites at times deemed appropriate LA the C0m'ultant's reasonable scientific jud~ent; Measurements of existing Forest SerVice well located at the DiiScult Creek Campground, md other existing wells that are deemed rcleYant; Data reasonably sufficient ~o enable a reliable estimate, LA ConsulIaut'$ reasonable scientific judgment, of the thiclmess, specific yield, hydraulic onductivity and capamPy of thc P.o~-ing Fork River Alluvial S'coragc; Other data reasonably required by C~,~mtltant to provide a reliable test of thc hypotheses posed in Pha~c 1 of thc Stud)., andtO develop any computer model needed for Phases I or 2 of the Study, which r..y include ~ling additional mollitori~r weI]- ..a a,..,.~^..; ~. schedule for obtaining =easuremen~ there fi'om, ~d LAstallatio---'~ o"f ~a~""~i~ d~e~c]~" ~ud ge~ration ofratLAg tables to establish the contributions ~o the Roering Fork River Alluvial Storagc from Roaring Fore, tributaries $.2 !~~I~. The Consul!rent's work sh~II be overseen by, and the Consultant shall commuuicate with, an Oversight Committee composed of one representative of Aspen, and o~e representalive of Twin Lakes. The Oversight Commiuee shall be responsible for directi~ the work of the Consultant, approving payment, and approving edditional expense items, such as thc insudlation of measuring devices and the drilling o£monito~ng wells. In addition, the Oversight Com_m_ittee shall re-~iew and approve the parameters of any computer model developed by thc Consultant. The Oversight COmmittee shall comr~u~icste i~s decisions ~/conccrr~{~g the edminisl~ation of the Consubant's contract to the Ri,~er District's general manager or his desi~ee. ; 3.2.1 If the Oversight Committee is tmable to agree on the direction of thc Co~suliant, scie~tiic disputes, including the Consult~mt's request to install rn~suri~ devices, dffil, monitogn~ wells, or incur other extra0rdina~ expenses, -~hall be submitted to an agreed- upon third party, whose decision on the pa~cular sclenlific &spute shall be binding. Thc panics shall share the cost of the ~ird party's services equally. MRR.21.2001 12:09PM L~ OFFICES HO.O?B P.33 3.2.2 The parties agree that their designated representatives to the Oversight Cor~r~ittee will be reasonably avallable by telephone to each other and to the Comxfltant, aud will be available in Aspen and GlenwoodSprings, at their own expense, when reasonably neeessazy to permit the Consultant to cornple, te its wczk in a t/mely fashion, 3,3 Cost Estimates. 3.3.1 Cost Estimates. On March 14, 2001, ~ parties agreed upon a detailed cost estimate for Phases 1 and 2 of the study, totaling $50,402. 3.3.2 Additional Cons, If at auy time the Consultant concludes that reasonable scienti/ie eertahty eoucernlng the runners'studied cs~not be achieved without hstalling additiov, al measuring devices, monitoring Wells, or obtaining other informatiun not originally anticipated to be needed, the Consultant shall so advise the parties, and the Oversight Committee shall deterr~ine what additional direction shall be given to the Consultant, 3.4 Costs ~na Consultants Con~raet. Twin Lakes and Aspen will each eontrlbute one- half of the cost of the Study, up to a max/mum of $25,201 each.; In the event that as a result of tmanficlpated costs, the detailed cost estimate l:rovided by the Coasuliant pursuant to Paragraph 3,3.1 above is exceeded, then the panics will consult and seek to agree on what additional expenses are required, l~ow to proceed, and Mw to divide any additional costs between them. If the parties eanuot agree on whether to proceed with the Study in such event then they will jointly seek to reopen the Decree in Case No. 95C'~l~321 to resolve any disputes concemin! the Study and/or the water right that is the subject cf that ease, The Colorado River Water Conservation District ("River District") shall contract W/t~h MeLan!hlin Water Engineers for conduct of the Study by the Consultant using a Scope of Work provided by the Oversight Committee. The River District shall administer that Centtact subject to approval of invoices and changes in the Scope of Work by the Oversigl~t Commit/~e. Twin Lakes and Aspen shall provide funds to the River Dis~et for the cost of the Study by each remitting one-h~Leof each invoice amount within 15 days of its approval by the Oversight Committee. 3.5 Study Results. 3.5.1 Phase 1 Results. The Consultant shall be directed to provide a letter report on the progress of Phases 1 md 2 of the Study to the Oversight Committee no later than August 15, 2001; a Draft Report on the results oi'Phases 1 and 2 of the Study to the Oversight Committee no later than October 31,200il and a Final Report on Phases 1 and 2 no later than December 1, 2001. 'rb~ea/ter, the Oversight Committee shall, depending upon the results of Phases 1 and 2 of the Study, direct the Consultant to proceed wifla Ph~ 3 of the Study. The parties shall agree on the division of the ~st o£Pbase 3 of the Study, if needed, with the e/pectation that Twin Lakes and Aspen Wiil each bear one-half of such cost. -8- MAR.81.2001 18:09PM LAW OFFICES NO. 078 3,5,2 Phase 3 Kesults: Operation by Twin Lakes of the Twin Lakes 1994 right in Conformity with Operation/Mitigation Plan, From such time as the Phase ~ Opeamting/ Mitigation Plan, if needed, h~ been completed, Twln Lakes will operate the Twin Lakes 1994 right in accordanc= wlth the Operating/Mitigation Plan developed, and, to the extent the Plan calls for Twln Lakes to forego or curtail diversions pursuant to the Twin Lakes 1994 Right, not~itlmanding the ava/lability of water in priority at the points of diversion for the IPTDS, then Twin Lakes will forego such diversions. Twin Lakes' oporat~ons or diversions upon any other water rights or priorities it ~njoys, inclu~ but not limited to the Twin Lakes 1936 Right, shall not be affected in any way h.y tho Study, th~ Operating/Mitigation Plan, or this provision. The parties agree that any reduction or curmi~nt of diversions by Twin Lakes pursuant to the Operation/Mitigation Plan will be required aotwitbstauding any enhancement to stream/Iow in the Roaring Fork River that may result frO~ operation of the FiT-Ark Exchange 3,5,3 Continued Monitoring. The parties recognize that continued monitoring may be necessary altar completion of the Study in order to validate its results and the operation of any resulting OpecatlngMit/gation Plan. The Oversight Comra~tte¢ shall determine, on consultation with the Consultant, what continued monitoring is appropriate. The parties shall agree on the division of the cost of monitoring, and of any agreed-upOn adcl/tional field studies, with the expectation that Twin Lakes and A.~pen will each bear one-ball of such cost. 3.6 Amendments to Plan of 8tu~ The Oversight Committee may, by unanimous consent, amend or adjust this Plan of 8tuc~y) and the direction provided to the Consultant, at any time during the course of the Study. -9- MEMORANDUM TO: Mayor and City Council City of Aspen FROM: Cynthia F. Covell, Esq. Phil Overeynder, Water Director RE: Settlement Agreement: Opposition to Twin Lakes Water Rights Applicaiton (Case No. 95CW321) DATE: March 21, 2001 Background and Summary The Twin Lakes Reservoir and Canal Company ("Twin Lakes") diverts water from the headwaters of the Roaring Fork through the Independence Pass Transmountain Diversion System to Lake Creek in the Arkansas River basin. Twin Lakes currently has 1936 water rights which it may divert at rates up to 625 cfs, subject to volumetric limits of no more than 68,000 acre-feet of water in any one year, and no more than 570,000 acre-feet in any period often years. In addition, Twin Lakes' decrees prohibit diversions even when water is available to it in the Roaring Fork if Twin Lakes has already stored 54,000 acre-feet in Twin Lakes Reservoir, and 756 els or more is available from the Arkansas River at a designated headgate. Under these conditions, there is presumably cgnsiderable water already in the Arkansas system, and Twin Lakes' transmountain diversions are prohibited. PRIVILEGED AND CONFIDENTIAL Mayor and City Council March 21, 2001 Page 2 In 1995, Twin Lakes filed a junior water right application to allow it to divert water under a 1995 priority at times when it is unable to take water from its 1936 decrees because the two conditions on the eastern slope have been met. In other words, Twin Lakes wanted to be able to take water from the Roaring Fork even if it had already stored 54,000 acre-feet in Twin Lakes Reservoir, and there were 756 cfs at the designated headgate. Since Twin Lakes' shareholders are now mostly municipal water providers, such as Colorado Springs and Aurora, and since additional storage is being developed in the Arkansas basin, Twin Lakes wanted to be able to take additional water from the Roaring Fork. Diversions under this new water right together with the 1936 rights were to be limited to 625 cfs, the existing capacity of the Independence Pass pipeline. In addition, diversions under this junior right would be included in the volumetric limits established for the 1936 water rights. Aspen, along with the County, the Colorado River Water Conservation District and others, opposed this application. Although the requested 1995 water right is very junior, and would be in priority primarily during runoff, Phil Overeynder believed that making additional large transmountain diversions during runoff would mean that less water was available to recharge the alluvial aquifer that feeds the Roaring Fork upstream of the North Star Preserve. This, in mm, would mean less water would be available to recharge the Roaring Fork later in the season when streamflows are low. Settlement Agreement As we reported to Council in January, Twin Lakes agreed to settle the case on the following terms: It will participate in a study designed to test Phil's theory of aquifer recharge. If the theory is supported by the study results, Twin Lakes has agreed to reduce the amount of water it takes, under the 1995 water right to the extent necessary to allow the river to be recharged in the same way it would be recharged in the absence of the Twin Lakes 1995 water right. Twin Lakes will reduce its maximum diversion rate under the new 1995 decree from 625 cfs to 240 els. The amounts diverted under the 1995 decree will be included in the overall volumetric limits discussed above. Twin Lakes will store up to 800 acre-feet of the water it diverts under the 1995 decree for the River District. Up to 100 acre-feet will be stored in Grizzly Reservoir on the western slope, PRIVILEGED AND CONFIDENTIAL Mayor and City ,Council March 21, 2001 Page 3 to be released as set forth in paragraph 4 below. The remainder will be stored in the Twin Lakes Reservoir on the eastern slope. This is a small benefit to the City as well, because the water in the Twin Lakes Reservoir will be used to reduce the 800 acre-feet of water that the River District, Aurora and a number of Summit and Eagle County water providers are seeking to divert through the Independence Pass Transmountain Diversion System in another case. The water stored in Grizzly Reservoir will be released at Aspen's request to enhance instream flows in the Aspen reach of the Roaring Fork. Although Grizzly only holds 100 acre-feet, this water will provide an occasional small benefit to the instream flows. ( Pitkin County has asked that some of the water available to the City in Grizzly Reservoir be made available for release to it in order to allow the County's Stapleton Brothers Ditch change case to be approved, and the Water Department believes it is appropriate to allocate 20% (or a maximum of 20 acre-feet) of the water available to the City in Grizzly Reservoir to the County. The water made available to Pitkin County is also expected to enhance the instream flow in the Aspen reach of the Roaring Fork.) We recommended this settlement to the Board because it gives the City more than it could get from the water court. Although we saw some problems with Twin Lakes' application, and believed there was a chance that it would be denied entirely by the water court, there is nothing to prevent Twin Lakes coming back again with a new application that lacked the problems with the current one. IN addition to having access to small amounts of water in Grizzly Reservoir, the settlement also gives Aspen a cost-sharing parmer in an important study. With the settlement, Twin Lakes will share in the cost of developing some very valuable information about the operation of the Roaring Fork fiver system above Aspen. Even if Phil's theory is not proven, the information obtained will help the City determine how to better protect its water fights and the instream flows in the future. The City Council approved the settlement in principal on . The settlement documents have now been finalized, and we request Council's ratification of the final settlement stipulation, which incorporates the terms previously approved by Council, but with an increase in the cost of the plan of study. The plan of study was initially estimated at $30,000, to be paid one-half by Twin Lakes and one-half by Aspen. The River District agreed to reimburse Aspen for up to $7,500 of its expenses. As the plan of study was refined by the City's consultants, McLaughlin Water Engineers, and Twin Lakes' consultant, Enartech, it became clear that it would cost more to conduct the study properly. The final estimate is now $50,402. Twin Lakes will pay one-half of this, and Aspen is to pay the other half. The water department has proposed that the River District'S $7,500 reimbursement to the City be used to pay for some additional surveying and fiver measurement not included in the PRIVILEGED AND CONFIDENTIAL Mayor and City Council March 21, 2001 Page 4 $50,402 estimate. Phil Overeynder has been closely involved with the development of the plan of study. He believes it is properly designed to assess the impact of diversions under the 1995 Twin Lakes water right on later season flows in the Roaring Fork, and that the $50,000 estimate is more realistic than the earlier $30,000 estimate. Recommendation The water department and water counsel recommend approval of a resolution ratifying the stipulation of settlement between the City and Twin Lakes. F:\Client Files~Aspen\'l~vln Lakes~vlemo efephil-raayor 03-21-01 .wlxl