DATE FILED: May 21, 2010 5:42 PM CASE NUMBER: 2009CW145 DISTRICT COURT, WATER DIVISION NO. 5, COLORADO Garfield County Courthouse 109 8th Street, Suite 104 Glenwood Springs, CO 81601 970/945-5075 COURT USE ONLY CONCERNING THE APPLICATION FOR FINDING OF REASONABLE DILIGENCE OF THE CITY OF ASPEN Case Number: Case Number: 09CW145(CA5884, W-791, W791-77, 81CW063, 85CW045, 89CW030, 95CW187, 02CW19) in PITKIN COUNTY, COLORADO Water Division No. 5 FINDINGS AND RULING OF THE REFEREE AND DECREE OF THE COURT The above-captioned application was filed with the Water Court on September 30, 2009, and referred to the Water Referee for Water Division No. 5, State of Colorado by the Water Judge of said Court in accordance with Article 92, Chapter 37, of the Colorado Revised Statutes known as the Water Right Determination and Administration Act of 1969. The Referee having reviewed the pleadings of the parties, the Report of the Division Engineer Summary of Consultation dated December 18, 2009, and additional evidence has been obtained where such evidence was necessary to determine whether or not the statements in the application are true, and having become fully advised with respect to the subject matter of the application hereby finds: FINDINGS OF FACT 1. Applicant: The applicant is the City of Aspen, c/o Phil Overeynder, Utilities Director, 130 South Galena Street, Aspen, CO 81611, telephone, (970) 920-5110. 2. Notice and Jurisdiction. All notices of the application were given in the manner required by law, and the Application was published in the September, 2009 Resume for Water Division 5. The Court has jurisdiction over the subject matter of this proceeding and over all persons and property affected hereby, irrespective of whether those persons or property owners have appeared. None of the 1 lands or water rights involved in this case is within the boundaries of any designated groundwater basin. 3. Opposition and Stipulation. A timely Statement of Opposition was filed on behalf of Mark and Karen Hedstrom. The time for filing Statements of Opposition has now expired. Applicant entered into a stipulation with Mark and Karen Hedstrom on May 3, 2010. The Court approved this stipulation by Order dated __________. 4. Names of structures: Maroon Creek Reservoir and Castle Creek Reservoir. 5. Original Decrees for Conditional Water Rights: The water rights were originally decreed on November 5, 1971 in Case No. CA 5884, Water Division No. 5. 6. Subsequent Decrees Awarding Diligence. Diligence was awarded in Case No. W-791 (March 15, 1973); W-791-77 (November 7, 1977); 81CW063 (October 29, 1982); 85CW045 (July 17, 1985); 89CW030 (August 29, 1989), 95CW187 (January 4, 1996), 02CW19 (September 3, 2003). 7. Location of Conditional Water Rights: the water rights are located as follows: Castle Creek Reservoir: The Castle Creek Reservoir is located in Sections 18 and 19, Township 11 South, Range 84 West of the 6th P.M., Pitkin County, Colorado. The initial point of survey of the high water line of the reservoir on the east side of the dam is located such that the angle from the axis of the dam measured clockwise is 66° 25' to Highland Peak and 340° 51' to Hayden Peak. (Ties to mountain peaks were used since the reservoir lies within an area not surveyed by local, state or federal agencies.) Maroon Creek Reservoir: The Maroon Creek Reservoir is located in Sections 7 and 8, Township 11 South, Range 85 West of the 6th P.M., Pitkin County, Colorado. The initial point of survey of the high water line of the reservoir on the west side of the dam is located such that the angle from the axis of the dam measured clockwise is 86° 57' to Pyramid Peak and 105° 56' to North Maroon Peak. (Ties to mountain peaks were used since the reservoir lies within an area not surveyed by local, state or federal agencies.) A USGS map showing the locations of the reservoirs is attached as Exhibit A. 8. Source. Castle Creek Reservoir is tributary to Castle Creek, tributary to the Roaring Fork River, and Maroon Creek Reservoir is tributary to Maroon Creek, tributary to the Roaring Fork River. 2 9. Appropriation Date and Amounts. The appropriation date for both reservoirs is July 19, 1965. The amount appropriated for the Castle Creek Reservoir is 9,062 acre-feet, and the amount appropriated for the Maroon Creek Reservoir is 4,567 acre-feet. 10. Decreed Uses. The water rights are decreed for industrial, irrigation, domestic, municipal, and other beneficial uses, both consumptive and nonconsumptive. A topographic map showing the current service boundaries for the City of Aspen for all the intended uses and which identifies the Sections, Township and Range, is attached as Exhibit B. 11. Work Performed During Diligence Period. The Castle Creek Reservoir and the Maroon Creek Reservoir are part of the City’s integrated water supply system which provides water within the City, and extraterritorially by agreement. Pursuant to C.R.S. § 37-92-301(4)(b), when an integrated system is composed of several features, as is the case here, work on one feature of the system is considered in finding that reasonable diligence has been shown in the development of water rights for all features of the entire system. The Frying Pan-Arkansas Project, authorized by legislation dated August 16, 1962, authorized construction, operation and maintenance of a replacement reservoir on Castle Creek to furnish water required for protection of western Colorado water users. This reservoir was contemplated to have a capacity of 5,000 acre-feet, but this reservoir was never built. In 1965, taking precautions to ensure that its water rights were protected in the event the Frying Pan-Arkansas Project reservoir was in fact never built on Castle Creek, the City of Aspen filed applications seeking its own conditional water rights for storage on Castle Creek and Maroon Creek, i.e., the Castle Creek Reservoir and Maroon Creek Reservoir water rights for which diligence is sought herein. To date, the City of Aspen has not needed to construct the storage structures as it has devoted considerable resources to reducing per capita water consumption. However, during the last diligence period, the City has analyzed studies on global warming and climate change and implications for the City of Aspen’s future water demand and supply and water management strategies. Such studies have indicated a widespread and large increase in proportion of rainfall versus snowfall and the need for the City of Aspen to develop these reservoir storage rights to preserve and retain its water supply for future needs. Further, during this diligence period, the City has continued to improve, operate and maintain its water distribution system, of which these conditional water rights are a part. In particular, the City has spent approximately $302,336.00 in the overall maintenance, repair and improvement of its water system infrastructure. For example, Aspen has undertaken work on the Maroon Creek Municipal Intake infrastructure, including, but not limited to, stream gage improvements, catwalk and intake grate structure improvements, electric control and electric back-up power work for improved operations. These improvements have helped to City to enable it to more efficiently and effectively provide water service to its existing and future customers. 3 The City has defended its water rights, including these conditional water rights, against applications filed by others in cases where the City has determined that injury to its water rights could occur in the absence of appropriate terms and conditions. During this diligence period, the City has expended approximately $430,236.00 in attorney fees, of which a portion was expended specifically in opposition to water court applications in order to protect and defend the City’s water rights. 12. Amendment of Legal Description of Castle Creek Reservoir. The legal description of the Castle Creek Reservoir shall be amended as follows: The Castle Creek Reservoir is located in Sections 18 and 19, Township 11 South, Range 84 West of the 6th P.M., Pitkin County, Colorado, but excluding that certain parcel of land described as Lot 1, Part of Subdivision H.E.S. 305, according to the Plat thereof recorded January 22, 1980 in Plat Book 8 at Page 77, County of Pitkin, State of Colorado. The initial point of survey of the high water line of the reservoir on the east side of the dam is located such that the angle from the axis of the dam measured clockwise is 66E25' to Highland Peak and 340E51' to Hayden Peak. (Ties to mountain peaks were used since the reservoir lies within an area not surveyed by local, state or federal agencies.) 13. Finding of Diligence. The Applicant has shown reasonable diligence in developing the conditional water rights and the conditional water rights herein described can and will be diverted, stored, or otherwise captured, possessed and controlled, and beneficially used. Therefore, the application for finding of reasonable diligence for these water rights as herein described should be granted, and the conditional decree continued in full force and effect. 14. Orders Regarding Conditional Decrees. It is hereby ordered that the conditional decree for the water rights herein described are continued in full force and effect until_______________, 2016 and the month for filing an Application for a Finding of Reasonable Diligence shall be _____________, 2016, unless a showing is made on or before such date that one or more of the conditional water rights has become absolute by reason of completion of the appropriation. 15. It is further ordered that a copy of this Ruling shall be filed with the Water Clerk subject to judicial review, and that a copy of the Ruling shall also be filed with the Division Engineer, Water Division No. 5, and with the State Engineer. 4 Dated___________________ ______________________________ Water Referee, Water Division 5 State of Colorado THE COURT FINDS THAT NO PROTEST WAS FILED IN THIS MATTER. THE FOREGOING RULING IS CONFIRMED AND APPROVED, AND IS HEREBY MADE THE JUDGMENT AND DECREE OF THIS COURT. Dated__________________ ______________________________ James B. Boyd, Water Judge Water Division No. 5 State of Colorado 5