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HomeMy WebLinkAboutEmail - Mail Packet - 5/1/2018 - Information From Darin Atteberry And Jeff Mihelich Re: Email From Michael Dino, Squire, Patton, Boggs Re: Thornton�S 1041 Application To Larimer County And It�S Water Rights DecreeFrom: Dino, Michael [mailto:michael.dino@squirepb.com] Sent: Tuesday, April 24, 2018 2:51 PM To: Jeff Mihelich Cc: Dawn Burgess; Carrie Daggett; Judy Schmidt; Darin Atteberry Subject: Re: Thornton's 1041 application to Larimer County and its water rights decree... Hi Jeff, Thank you very much for contacting me about this. I appreciate it. Please share my email with the Ft. Collins City Council. If there is additional information or clarification needed, let me know. Regards, Mike Mike Dino Principal Squire Patton Boggs 303-894-6143 (work) 303-594-8818 (cell) michael.dino@squirepb.com (iPhone) On Apr 23, 2018, at 9:46 PM, Jeff Mihelich <jmihelich@fcgov.com> wrote: Hi Mike: Thank you for the detailed email below regarding Thornton’s 1041 application to Larimer County. The email includes some excellent detail which we really appreciate. Our City Council has been asking for an update regarding this matter. We’d like to forward a copy of your email to them. Are you comfortable with this being forwarded to our City Council? Please advise and thanks in advance. JM . . . . . . . . . . . . . . . JEFF MIHELICH, ICMA-CM Deputy City Manager City of Fort Collins 970-221-6684 office <image001.png> April 26, 2018 TO: Mayor & City Council FROM: Darin Atteberry & Jeff Mihelich FYI /sek From: Ali Recio Sent: Monday, April 23, 2018 2:37 PM To: Jeff Mihelich Cc: Dawn Burgess; Carrie Daggett; Judy Schmidt Subject: FW: Thornton's 1041 application to Larimer County and its water rights decree... Hi Jeff, Per your request. . . . . . . . . . . . . . . . Ali Recio Executive Administrative Assistant City Manager’s Office City of Fort Collins 970-416-4312 office arecio@fcgov.com From: Dino, Michael [mailto:michael.dino@squirepb.com] Sent: Monday, April 16, 2018 12:04 PM To: Darin Atteberry <DATTEBERRY@fcgov.com> Subject: Thornton's 1041 application to Larimer County and its water rights decree... Hi Darin, I thought I’d check in with again about the Thornton Water Project and share some information that was recently sent to the Coloradoan. Mark Koleber with Thornton also discussed similar information with Donnie Dustin in Ft. Collins’ water resources group. In short, Thornton is distinguishing between its 1041 application to Larimer County and the water rights decree it received 20 years ago. As you are well aware, Thornton has proposed, through Larimer County’s 1041 permitting process, to construct a pipeline that will convey the water associated with the ditch company (Water Supply and Storage Company and Jackson Ditch Company) shares that the City purchased in the mid 1980’s. Some attention has arisen recently associated with a 1996 Colorado Supreme Court opinion in the Thornton Northern Project (TNP) water rights case that addressed a long-term plan for Thornton’s water supply that goes beyond what is currently proposed through the 1041 regulatory process. The Supreme Court opinion led to a Decree on Remand for the Thornton Northern Project which gives permission to a water rights holder to divert water as long as the terms and conditions outlined in the decree are met. The decree does not require the water rights holder to divert the water or follow any specific plan, nor does it give permission to use or construct any facilities needed to divert the water. A water rights decree is all about how that particular water right fits into the grander scheme of water rights administration in the state. Likewise, a 1041 Permit doesn’t give the permit holder any right to divert water, it addresses the impacts from construction and operation of a facility. They are separate approval processes, but both a decree and a facilities construction permit are needed to provide a water supply. If at some point in the future, 50 or more years down the road, when the City determines that it is time to pursue some or all of the additional water granted by the decree, the City would file the appropriate permits to construct the facilities necessary to deliver that water. To try to determine what permitting requirements would be appropriate 50 years in advance of any construction or operation would be pure conjecture, and it would be unreasonable to expect that Larimer County could do so effectively at this time. It’s best to permit facilities at the time they are needed so that the applicant can address the concerns that are important to a community at that time, and within the then-existing regulatory structure. The water rights in the decree were never intended to be developed all at once; rather, it was contemplated that the development and use of these water rights would follow the pace of Thornton's growth. To provide context for the development of the water rights, the water court decree described three project phases. Phase 1 was described as the delivery of Thornton's WSSC and JDC water and junior water rights via a pipeline, as well as operation of some exchanges on the Cache la Poudre River; Phases 2 and 3 were described as a ditch exchange where Thornton would utilize the remaining WSSC share water for municipal purposes in exchange for returning other water to the WSSC system by way of return pipelines. Since 1998, the City's plans for how best to utilize the water rights decreed in the TNP has changed as water conservation by Thornton customers has significantly reduced the immediacy of projected demands, and growth rates within the city have fluctuated. Thornton utilizes a 50-year planning horizon for its water supply, and the city has determined that only a portion of the water rights it was granted in the Thornton Northern Project decree - specifically the use of the WSSC and JDC shares that Thornton owns - are necessary to meet the demands of Thornton's growth through the year 2065. Thornton has determined that a single pipeline from the WSSC system to the city is sufficient to deliver its share water and meet the community's water needs through 2065. The Thornton Water Project pipeline as proposed to Larimer County in the 1041 application will only be used to deliver Thornton's WSSC and JDC share water; it will not be used to deliver Thornton's junior direct flow Cache la Poudre River water rights to Thornton. Nor does the Project include the construction of a parallel pipelines or other facilities that would be necessary to operate the ditch exchange. Please let me know if I can be helpful in clarifying or expanding upon this information. Take care, Mike