May 15, 2015 Ms. Diane Hoppe, Chair Colorado Water Conservation Board RE: Ute Water Lease Dear Ms. Hoppe, This is to provide the Colorado Water Conservation Board (CWCB) with testimony regarding the proposed lease of Ruedi Reservoir water from the Ute Water Conservancy District. These comments are submitted by the Ruedi Water and Power Authority (RWAPA), a local intergovernmental body made up of representatives from Roaring Fork Valley counties and municipalities, which has been working to assure responsible and appropriate management of Ruedi Reservoir since 1981. RWAPA concurs with the concerns expressed in the May 6 letter from Pitkin County and the City of Aspen which is included in the packet materials regarding this matter. RWAPA members are very concerned with the potential short-term impacts of additional releases from Ruedi on fisherman access, the Fryingpan River environment, local hydropower production, and flatwater recreation in Ruedi Reservoir. While we recognize the potential benefits of additional releases to both endangered fish in the ’15-Mile Reach’ and to fisheries in the lower Roaring Fork, we believe that these benefits must be balanced with protection of existing economic, recreational and environmental values that have been fostered by Ruedi Reservoir management practices over the last 40+ years. We support the restrictions and limitations that are proposed by CWCB staff to limit impacts both in scope and time and we appreciate the work that has been done to communicate with us and to acknowledge local concerns over the last several weeks. However, we continue to be concerned about the way in which this lease may influence Ruedi management decisions in future years. RWAPA has been working with local, state and federal decision-makers for years to bring predictability and consistency to Ruedi management. Recreational value was specifically acknowledged by the Bureau of Reclamation as one of the primary justifications for Ruedi’s development and the fishing and boating activities that have become established in the Fryingpan Valley have borne out that original assessment. The Roaring Fork Valley community, and especially the Town of Basalt, recognizes and treasures the world-class fishing and boating that Ruedi supports and the hydropower production that reduces our dependency on carbon-based energy. RWAPA’s efforts are aimed at assuring that these values are protected as Ruedi is utilized for its other purposes, including the provision of contract water to qualified buyers and the provision of supplemental streamflows for endangered fish species. Those efforts have been successful because the State of Colorado, the Bureau of Reclamation and others have worked with us to identify alternative sources of endangered fish water and to let contracts for Ruedi water which limit releases to specific purposes under specific circumstances. Although we recognize that the proposed lease of Ruedi water is completely within the boundaries of existing laws and regulations, we also must point out that it represents a potentially fundamental shift in when, how and under whose authority contract water is released. We believe the basis of Ruedi contract water sales has been that the water thus acquired by western slope water entities would be held in Ruedi unless and until it was needed to augment domestic, municipal and industrial supplies in downstream communities. We must also note that a corollary assumption regarding contract water was that acquiring water in Ruedi was an investment in future reliable water supplies and that it did not carry any promise of reimbursement or monetary compensation of any kind from a third party. Another assumption has been that endangered species water was held in a separate pool in Ruedi to be released at the request of the Fish and Wildlife Service in coordination with releases from other sources in the upper Colorado River. These assumptions led us to conclude that endangered species releases would be limited to the amounts assigned to that purpose through various public processes (i.e. NEPA, the Programmatic Biological Opinion, the ‘2012’ Agreement). The proposed lease of Ute Water Conservancy District water by the CWCB calls all of those assumptions into question and undermines the painstaking efforts that have been made over the last several decades to assure that Ruedi management maintains a balance between the various interests and values that it supports. Although we recognize that the terms of the lease being contemplated for this year will effectively limit impacts, we are very concerned that it may set a precedent for future similar arrangements between the CWCB and Ruedi contractors that will not be subject to the same terms and limitations. With these concerns in mind, we would ask that the following be incorporated into any CWCB action on this lease: 1. The Ute Water lease should be negotiated in public, with an opportunity for the public to observe those negotiations and should be subject to public review prior to execution by the parties. Furthermore, those negotiations and execution of the lease should take place on the western slope where interested local stakeholders can conveniently observe and participate when the opportunity arises. 2. The impacts of the Ute Water lease should be analyzed and reviewed with western slope stakeholders prior to any renewal of the lease or any similar lease arrangements in the future. 3. The CWCB should carry out a long-term management study of Ruedi, in cooperation with the Bureau of Reclamation, the Southeast Water Conservancy District, the Ruedi Water and Power Authority and other stakeholders, with the objective of examining appropriate limitations on Ruedi releases, alternatives to conveyance of water in the Fryingpan River, maintenance of the Fryingpan River fishery and fisherman access, and other relevant topics. That study should be completed and appropriate recommendations adopted by the relevant parties prior to any future long-term leases between Ruedi contractors and the State of Colorado. 4. If short-term leases of water between Ruedi contractors and the CWCB are contemplated while the above-noted study is underway, they should carry the same limitations and conditions as the one currently being contemplated between the CWCB and Ute. We appreciate the opportunity to comment on this matter and we appreciate the efforts made by CWCB staff to respond to our concerns. Please continue to keep us informed and involved as this issue moves forward. Yours truly, Mark Fuller, for Michael Owsley, President Ruedi Water and Power Authority