Million Conservation Resource Group, Inc.

April 21, 2010

Regional Watershed Supply Project

Million Conservation Resource GroupProject Team

• Aaron P. Million - Principal

• James Eddy - Partner; Strategy and Planning.

• Tim Walsh - Partner; Strategic Partnerships and Development.

Consulting Team• William A. Hillhouse II - Partner White and Jankowski, LLP; Water Law Expert, over 30 years of Colorado Water Law experience;

Served as attorney for National Water Commission; Currently listed as a Colorado “Super Lawyer” and in The Best Lawyers inAmerica.

• Steven F. Freudenthal - Partner Freudenthal and Bonds, P.C.; Lead counsel in Wyoming, specializing in contracts and policy;Former Attorney General for the State of Wyoming; Former member of the Wyoming House of Representatives.

• Gordon W. “Jeff” Fassett - Director of Water Resources, HDR; Development consultant, specializing in engineering and waterpolicy throughout the Colorado River Basin states; Former Wyoming State Engineer.

• Jeris A. Danielson, Ph.D. - Danielson and Associates; Development consultant, specializing in Colorado water issues andengineering; Former Colorado State Engineer and former Director of Colorado Division of Water Resources.

• Andrew L. Spielman - Partner Hogan and Hartson, LLP; Attorney specializing in public policy and natural resources law; FormerManagement Fellow at the U.S. Environmental Protection Agency; Former Director of Colorado Governor Bill Ritter’s naturalresources transition team; Nationally recognized lecturer on national resource law, the NEPA Act, and EPA compliance.

• Mitchell Butler - Partner Natural Resource Results; Washington D.C. lobbyist, specializing in environmental concerns and naturalresource projects; Formerly Deputy Assistant Secretary, Fish, Wildlife and Parks, U.S. Department of the Interior. Served in theWhite House as Assistant Director of the Council for Environmental Quality.

Contributing Consultants

James S. Lochhead - Shareholder at Brownstein Hyatt Farber Schreck; Assisted in the developing the

legal framework for the project; Widely regarded as a foremost expert on Western Water Law;

Former Executive Director of the Colorado Department of Natural Resources. Newly appointed CEO Denver Water 

D. Larry Anderson - Project Manager of the Lake Powell Pipeline project; Assisted in preliminary

engineering and issues related to the Colorado River Compact; Former Director of the Utah Division

of Water Resources.

HDR – Engineering and project design  

Boyle Engineering – Feasibility studies and preliminary engineering 

States West Engineering – Routing and preliminary engineering

Million Conservation Resource GroupProject Team

Green River Basin Watershed

• Provides regional water supply opportunity

• Green River is a legal tributary ofthe Colorado River

• Geographic location allows for legal filingand appropriation in Colorado

• Flaming Gorge part of CRSP benefiting Colorado,

Wyoming, New Mexico and Utah

• No Sub-compact call

• 165,000 to 250,000 ac. ft. annual yield

• $2 – $3 billion project cost

• Reuse opportunity provides 600k – 800k a.f. of effective yield

• Benefits to Colorado and Wyoming

Project Scope

Pump stations and pressure reducing/hydro stations

Design is based on a 300 psi maximum pressure

Design Consideration

• Existing reservoir (3.8 m.a.f.)

• Utilization of existing infrastructure and cleared right-of-way

• I-80 Federal Energy Corridor

• Department of Interior Water 2025 Policy Objectives

• Endangered Species Recovery Program

• EIS Record of Decision – Feb. 2007

Project Timeline 3 to 5 years

Editorial Support• Denver Post; Water plan could cool East-West feud; May

13th, 2007• Denver Post; Thirsty cities eye Wyoming water; August 16th,

2009• Pueblo Chieftain; Flaming Gorge; August 17th, 2009• Deseret News; A Flaming Gorge pipeline?; Joe Bauman,

April 13th, 2009Political Support

• Governor Bill Ritter• Gubernatorial Candidate Scott McInnis• 4th Congressional District candidate Cory Gardner

Resistance• Front Range Water Council• Colorado River Water Conservation District• Select South Metro/Parker Water and Sanitation District

Resistance• Front Range Water Council• Colorado River Water District• South Metro Water District/Parker

Project Environment

Bureau of ReclamationModeling on the Green River

• 165,000 ac.ft. water supply contract available to this project and

guarantees needs for: - Endangered Species- Recreation- Hydropower

• Protects projected future State depletions- Colorado (75,000 + a.f. in Yampa Basin)- Wyoming (267,000 a.f.)- Utah (Lake Powell pipeline)

Milestones

MilestonesCompleted• Formal request for water supply contract from U.S. Department of

Interior, Bureau of Reclamation• Water Right Filing, State of Wyoming, December, 2007• Formal Commencement of EIS/NEPA, September 2008• Colorado Department of Natural Resources – Colorado

Water Conservation Board identified future water supply option• Formal agreements with water users

Future• Permit granted by Wyoming State Engineer • Administrative agreement• Draft EIS• Record of Decision “ROD”

Opportunities• Regional Storage

• Regional Infrastructure• South Platte Drainage• Republican River• Arkansas River Drainage• West Slope Pressure • Wind Power• Hydro Power• New Water

ARTICLE IX(a) No state shall deny the right of the United States of America and, subject to theconditions hereinafter contained, no state shall deny the right of another signatory

state,any person or entity of any signatory state to acquire rights to the use of water, or toconstruct or participate in the construction and use of diversion works and storagereservoirs with appurtenant works, canals and conduits in one state for the purpose ofdiverting, conveying, storing, regulating and releasing water to satisfy the provisions ofthe Colorado River Compact relating to the obligation of the states of the upper

divisionto make deliveries of water at Lee Ferry, or for the purpose of diverting, conveying,storing or regulating water in an upper signatory state for consumptive use in a lowersignatory state, when such use is within the apportionment to such lower state made

bythis compact. Such rights shall be subject to the rights of water users, in a state in

whichsuch reservoir or works are located, to receive and use water, the use of which is

withinthe apportionment to such state by this compact.

Upper Basin

Compact