Archive for Friday, February 20, 2009
Moffat County Commission acts on Shell water filing
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The Moffat County Commission wants in the loop on Shell Frontier Oil & Gas' water right request on the Yampa River, a request that could affect the entire Yampa Valley.
The three commissioners voted unanimously at their Tuesday meeting to file a statement of opposition with the Steamboat Springs water court regarding the energy company's December 2008 water filing.
Commissioners and other county officials said multiple times that the county's action does not mean it is opposed to Shell's request.
"The fact is, we don't have a position at this point," said Jeff Comstock, Moffat County Natural Resources Department director.
Filing a statement of opposition is the only way for the county or anyone else to be involved with the water court's process, he said.
The Commission also voted unanimously to retain Denver-based Holsinger Law LLC to draft its statement of opposition and possibly participate in other ways. The county will pay attorney Kent Holsinger $225 an hour - or $185 an hour for one of two assistants - at its discretion.
Comstock said the county plans to have Holsinger Law only draft its statement of opposition, but other issues could arise.
Officials did not put the contract for legal representation out to bid because it does not meet the $5,000 requirement to open a bid process, Comstock added. If Holsinger Law completes only a statement of opposition, the county would owe less than $1,000, he said.
Shell officials have said the company's water right request is based on the company's need to obtain enough water to serve future oil shale operations in Rio Blanco County.
If the water court approves the request, Shell would draw 375 cubic feet of water per second from the Yampa River through two diversion points between Maybell and the base of Cross Mountain.
The company plans to construct a 45,000 acre-feet reservoir south of the river and pump water to facilities in the Piceance Basin.
Moffat County has several vested interests in whether Shell's water is approved, Comstock said. The county has existing water rights on the Yampa River and should be involved when a large request is considered by the court.
Not only that, Comstock said, Shell's existing proposal would "inundate" a county road and make it unusable.
Perhaps biggest of all, though, Shell could affect an existing arrangement between the county, local residents and the U.S. Fish and Wildlife Service, he added.
Under terms of a 2004 agreement, Fish and Wildlife will allow another 54,000 acre-feet of water development on the Yampa River before it requires new users pay for ways to protect four species of endangered fish.
If Shell's water right falls under the agreement, officials worry it could take everything left in the river for development.
The city of Craig, Routt County and Colorado River Water Conservation District also plan to file statements of opposition.
Dan Birch, Colorado River District deputy general manager, said his agency's concerns would be "greatly eased" if Shell voluntarily decided its request would not fall under the existing endangered fish agreement.
In that event, Shell would have arrange its own agreement with Fish and Wildlife to preserve the four species.
"If suddenly Shell is covered under (the current agreement), their water right filing would essentially use up all the remaining development in the river," Birch said. "That's just an enormous issue for any water user, including the power plants, the mines, the (Colorado) River District, Moffat County and any other water users in the basin."
A water court official said all statements of opposition regarding Shell's filing must be postmarked by Feb. 28.

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