CORONA
WATER LAW

Craig V. Corona, Esq.
420 E. Main St., Ste. 210B
Aspen, CO 81611
(970) 948-6523
cc@craigcoronalaw.com

Via E-Mail
SETTLEMENT COMMUNICATION PROTECTED UNDER C.R.E. RULE 408
May 11, 2017
Cynthia Covell, Esq.
Alperstein & Covell
1600 Broadway
Denver, CO 80202
cfc@alpersteincovell.com
Re:

City of Aspen Case No. 16CW3128, Maroon Creek Reservoir

Dear Cindy,
This letter is in reply to your letter of May 9, 2017 responding to our settlement offer of May 8,
2017. We appreciate your quick response.
If all parties agree to it, the City’s two diligence cases can be stayed and put on hold while the City
files an application to change the location of the reservoirs. The goal would be to have the opposers
agree not to oppose the change application (with some limitations). If an outside party opposes
because the diligence cases aren’t finished first, the City could withdraw the change application
and the parties will be in the same position they are in now. But, if there’s no objection and the
change is decreed, dams won’t be built in the wilderness and the City will retain its water rights –
a win-win. Unlike our first proposal, this allows the City to test whether a change case will be
successful before giving up the decreed locations.
The City is concerned with giving up the current locations for the dams. But, the City can’t build
the reservoirs there, anyway. It would take twenty to forty million dollars (at least) to condemn
private property for the Castle Creek dam. The City would need a special use permit to inundate
Forest Service property, and private legislation from Congress to inundate wilderness – highly
improbable, if not impossible. So, if the City transfers the rights to a new location that has
challenges, the City will be no worse off than they are now.
Larsen Family LP is committed to no dams being built in the upper Maroon Creek valley. That is
their sole interest in this case. Their two offers to the City would achieve this goal and save

 Cindy Covell, Esq.
City of Aspen Case No. 16CW3128
___________________________

hundreds of thousands of dollars and, if pursued with some effort, would provide a much better
result for the City than litigation.
The City’s claims are weak. In almost fifty years, the City has done almost nothing to develop
these rights. The City has no need for storage, especially not a sixty-year supply, according to the
City’s engineers. Unless the City settles, it will not come out of these cases with its water rights
intact.
The delay for the City’s studies is unnecessary and is self-inflicted. With no need for storage, it
should be simple to determine a reasonable supply amount and risk. The 1,200 acre feet we
originally offered would give the City a five-year supply. Is the City concerned that Castle Creek
and Maroon Creek will be completely dry for more than five years? If that happens, 1965 reservoir
rights are not going to help.
Instead of engaging in meaningful settlement discussions, the City engaged a myriad of consultants
at great expense to study its “needs” when it already has a demand study. This work should have
been done before filing the application, not after. The City’s reluctance to pursue timely settlement
gives the appearance that the City is simply preparing for trial causing unnecessary expense to the
City and to the opposers. Perhaps this will change as the make-up of City Council changes.
Larsen Family LP will never stipulate to diligence for dams in the wilderness. It seems it should
be easy for the City to say it will never dam the Maroon Bells. But, apparently, that’s not the case.
We are optimistic that the City will choose to discuss the option of a stay and change case further.
Although the referee gave Larsen Family LP the option of re-referring the case to the water judge
at any time, Larsen Family LP will refrain from doing so until, at least, mid-July to give time to
work on this settlement concept and for the City to respond substantively to the Division
Engineer’s concerns.
I hope to hear from you again to discuss the proposal to stay these cases and pursue a change
application.
Sincerely,

Craig V. Corona
cc:

Marcella Larsen, Esq.
Counsel for all opposers