@111? $1319 Wan?Jag.4. .. .. mammal-ml. Gale A. Norton 110 15m Street - 19th Floor Attorney General DEPARTM ENT .01: AW Denver, Colorado 80202 Raymond T. Slaughter Phone 620-4500 Chief Deputy Attorney General ??35 ?mm? FAX {303) 6204130 Timothy M. Tymkovich Solicitor General March 17, 1992 Jed Caswall, Esq. City Attorney City of Aspen 130 S. Galena Aspen, CO 81611 RE: Castle Creek Water Rights Dear Jed: In early March we spoke about questions posed by my client the Division 5 Engineer concerning the City of Aspen's Castle Creek water rights. The water service agreement between the City of Aspen and Castle Creek Valley Ranch Partnership brought this issue to our attention. In that agreement the City of Aspen a? greed to lease a portion of the Midland Flume water right owned by Aspen to Castle Creek Valley Ranch partnership-in order to augment depletions from 29 wells to be built-on their proposed development. My client was troubled by this water service agreement because it appears to expand the use of the?water subject of the decree in that it does not commit the City to reducing its con- sumptive use by the amount of water leased to the developer. In addition, the Division Engineer believes that this water service agreement would cause water to be used for domestic purposes in excess of that used by Aspen for domestic purposes in the past.? The State Engineer discussed this matter with me on March 16, 1992. At that time he indicated that he was willing to recognize the water service agreement as a proper augmentation source even though it may not technically meet the statutory cri~ teria for approval of augmentation plans but he would do so only if the City of Aspen was willing to prevent this type of expan- sion of use from ever happening again. ?To achieve that end and to clear up possible misconceptions regarding interpretations of the Midland Flume water right, the State Engineer proposes that the City of Aspen abandon 73 of the Midland Flume water right. Our gauging information indicates that Castle Creek v? 9? Jed Caswall, Page 2 t$5? i . 2? I I rarely has more than 35 flowing in the stream at your decreed point of diversion. The State Engineer's staffIr Division Engineer's staff and this office would be happy to conduct further discussions about this issue with you, city officials or the city counsel. The timing on this issue is somewhat rushed as Castle Creek Valley Ranch Partnership has set their application for trial 1992. In the event that no agreement is reached with Asyen the State Engineer has authorized this office to seek to abandon 75 of the Midland Flume Ditch in its efforts to defeat Castle Creek Valley Ranch Partnership's Plan for augmenta? tion. I look forward to hearing from you in the near future. istant torney General Natural Resources Section cc: Hal Simpson, Acting State Engineer Judy Sappington, SEO Orlyn Bell, Division 5 Engineer Alan Martellaro, Ass't Div. 5 Engineer AG Alpha No. NR we IAFBN AG File No. EEN9200168