SUBJECT TO REVISION

Wyoming Water Development Commission/Select Water Committee Workshop & Joint Meeting Converse County Library - Douglas 300 E. Walnut St., Douglas, WY 82633 August 11-13, 2021

To live stream either event, follow the link provided at our website: http://wwdc.state.wy.us/. Please also check for any updates to the Agenda and E-Notebook.

Wednesday, August 11, 2021 1:30 p.m. Workshop Agenda:

1. Call to Order

2. Roll Call

3. Financial Overview (A)

4. Planning Projects Consultant Selection Process Update (B)

5. Tentative Contingency Account Requests (if any)

6. Operating Criteria (C) • WWDC Project Application Fees

7. 2021 Irrigation System Survey Results (D)

8. Small Water Project Program Guidance Document (E)

9. Project Updates • West Fork Reservoir 3rd Party NEPA Contractor Selection

Thursday, August 12, 2021 8:00 a.m. Tour: (See Itinerary)

Friday, August 13, 2021 8:30 a.m. Joint Meeting Agenda:

1. Call to Order

2. Pledge of Allegiance

3. Recognition of Members present to establish quorum

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SUBJECT TO REVISION

4. Approval of Minutes (Action Item) (F) • May 12, 2021 – WWDC Special Meeting • May 13, 2021 – WWDC/SWC Joint Meeting

5. Planning Closeout Memo (Action Item) (G) • Cheyenne Municipal Storage, Level II, Phase I Study

6. Ground Water Exploration Grant Contract Amendment (Action Item) (H) • Town of Jackson

7. Small Water Project Program Agreement Amendments (Action Item) • Blackrock Creek Stabilization & Irrigation Improvement, Amendment No. 1 (Time Extension) (I) • Lower Snake River Ranch Bank Stabilization & Fish Habitat, Amendment No. 2 (Time Extension) (J) • Spread Creek Irrigation Rehabilitation & Fish Passage, Amendment No. 1 (Time Extension) (K)

8. Planning Contract (Action Item) (L) • Silver Lake Dam Rehabilitation, Level II Study

9. Tentative Contingency Account Requests (if any) (Action Item)

10. Operating Criteria (Action Item) (See C) • WWDC Project Application Fees

11. SEO Update

12. Workshop Action Items • Seminoe Account

13. Public Comment

14. Use of ARPA Funds for Water Projects – SWC Agenda Item

15. Orphan Water Rights – SWC Agenda Item (M)

16. Produced Water – SWC Agenda Item (Mc)

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SUBJECT TO REVISION

17. Codification of Wyoming Supreme Court Cases Related to the Conveyance of Water Across Property – Update – SWC Agenda Item (N)

18. Discussion

19. Future Meetings Schedule (O) • WWDC – October 7-8 Cheyenne – Consultant Selection Interviews & Meeting • WWDC/SWC – November 8-10 Casper – Joint Workshop & Meeting (Funding Recommendations)

20. Adjourn

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WYOMING WATER DEVELOPMENT COMMISSION COMMISSIONERS July 2021

Clinton W. Glick, Chairman Wind River Indian Reservation P.O. Box 1308 Fort Washakie, WY 82514 (C) 307-349-0103

Bill Yankee, Vice-Chairman Water Division III 123 Dallas Dome Rd. Lander, WY 82520 (H) 307-332-6305 (C) 307-330-7922

Ron Kailey Jr., Secretary Water Division I 2532 Plainview Rd. Cheyenne, WY 82009 (C) 307-631-7337

Liisa Anselmi-Dalton Member-at-Large 1735 Collins St. Rock Springs, WY 82901 (C) 307-389-4496

Robert Choma Water Division IV P.O. Box 1031 Thayne, WY 83127 (H) 307-883-4198 (C) 307-413-2842

Leonard A. “Lee” Craig Water Division III 698 Road 5 Powell, WY 82435 (H) 307-754-9722 (C) 307-254-5115

Mark Kot Water Division IV 800 Rose Crown Cir. Rock Springs, WY 82901 (H) 307-362-1488 (C) 307-350-9347 (W) 307-872-3917

John Lawson Water Division I 4237 Mink Casper, WY 82604 (H) 307-234-5870

Sheridan Little Water Division II P.O. Box 165 Leiter, WY 82837 (C) 307-620-0923

Larry Suchor Water Division II 21 Spruce St. Pine Haven, WY 82721 (H) 307-756-9491 (C) 307-660-5394

WYOMING WATER DEVELOPMENT COMMISSION COMMISSIONERS

Clinton W. Glick, Chairman Wind River Indian Reservation Bill Yankee, Vice-Chairman Water Division III Ron Kailey, Secretary Water Division I Liisa Anselmi-Dalton Member-at-Large Robert Choma Water Division IV Leonard A. “Lee” Craig Water Division III Mark Kot Water Division IV John Lawson Water Division I Sheridan Little Water Division II Larry Suchor Water Division II

STAFF Brandon Gebhart Director David Ray Administrative/Fiscal Manager Janet Belmonte Accountant Nancy Casner Office Support Specialist Riley Taylor Business Office Coordinator

Barry Lawrence Deputy Director – Planning Keith Clarey Project Manager Julie Gondzar Project Manager Mabel Jones Project Manager Jodie Pavlica Project Manager Mike Robertson Project Manager Chace Tavelli Project Manager

Jason Mead Deputy Director – Dams & Reservoirs Andrew Linch Project Manager Brian Smith High Savery Dam Technician

Bill Brewer Deputy Director – Construction Vacant Project Manager Sol Brich Project Manager Jason Fernandez Project Manager Wade Verplancke Project Manager

ADVISORS Darren Cook Attorney General’s Office Greg Lanning State Engineer Greg Kerr University of Wyoming Josh Dorrell Wyoming Business Council

Updated July 8, 2021 SELECT WATER COMMITTEE REVISED 05/07/21

Senator Larry Hicks (R) Representative Evan Simpson (R) Vice Chairman Chairman Albany/Carbon/Sweetwater Counties Lincoln County PO Box 413 PO Box 678 Baggs, WY 82321 Afton, WY 83110 (H) 383-7192 (H) 885-5588 [email protected] [email protected]

Senator Brian Boner (R) Representative Chad Banks (D) Converse, Platte Counties Sweetwater County PO Box 1308 714 A Street Douglas, WY 82633 Rock Springs, WY 82901 [email protected] (C) 389-3310 [email protected] Senator Ogden Driskill (R) Crook/Campbell/Weston Counties Representative John Eklund (R) PO Box 155 Laramie, Goshen Counties Devils Tower, WY 82714 2918 U.S. Highway 85 (H) 467-5555 (C) 680-5555 Cheyenne, WY 82009 [email protected] (C) 630-6232 [email protected] Senator Tim French (R) Park County Representative Dan Laursen (R) 109 Rattler Road Park County Powell, WY 82435 478 Road 8 (C) 202-1785 Powell, WY 82435 [email protected] (C) 271-0241 [email protected] Senator Mike Gierau (D) Teton County Representative Chip Neiman (R) PO Box 2975 Crook, Weston Counties Jackson, WY 83001 PO Box 116 (C) 413-0109 Hulett, WY 82720 [email protected] (C) 290-0366 [email protected] Senator Cheri Steinmetz (R) Goshen, Niobrara, Weston Counties Representative Jerry Paxton (R) PO Box 101 Albany, Carbon, Sweetwater Counties Lingle, WY 82223 PO Box 692 (C) 534-5342 Encampment, WY 82325 [email protected] (H) 327-5373 [email protected]

SNJJ/Select Water Committee Water Development Account I Preliminary Fiscal Projections as of 8/01/2021

Cash Balance 6/30/20 105,001,120 FY21 Revenues Taxes 19,297,500 Interest 2,152,638 Loans/Interest 1,824,306 Other 352,917 Total Revenues 23,627,361 FY21 Expenditures Total Expenditures (39,964,014) Cash Balance 6/30/21 88,664,467 Outstanding Commitments 7/1/21 Active Appropriations (179,659,095) * Expenditures Paid 80,745,282 Total Commitments 7/1/21 (98,913,813) Total Uncommitted Balance 7/1/21 (10,249,346) FY22 Anticipated Revenues Taxes 19,300,000 Interest 2,000,000 Other 1,600,000 Total FY22 Anticipated Revenues 22,900,000 FY23 Anticipated Revenues Taxes 19,300,000 Interest 2,000,000 Other 1,600,000 Total FY23 Anticipated Revenues 22,900,000 FY24 Anticipated Revenues Taxes 19,300,000 Interest 2,000,000 Other 1,600,000 Total FY24 Anticipated Revenues 22,900,000 Subtotal Anticipated Revenues 68,700,000 Balance Available for Appropriation 58,450,654 Estimated Non-Project 2022 Budget Session Appropriations for FY2023-24 OSLI (060) - DWSRF Request for Match 1,152,779 Department of Agriculture (010) - Water Quality Funding 656,008 State Engineer's Office (037) - Interstate Streams 116,191 State Engineer's Office (037) - Board of Control 14,349,701 WWDO (029) - Agency Administration 8,098,333 Total (24,373,012)

Updated Balance Available for Appropriation 34,077,642

*Active Appropriations includes the funding for the Board of Control within the State Engineer's Office. Water Development Account II Preliminary Fiscal Projections as of 8/01/2021

Cash Balance 6/30/20 33,719,359

FY21 Revenues Taxes 3,255,000 Interest 781,956 Loans/Interest 1,232,356 Transfer from WDA I 11,800,000 Total Revenues 17,069,312

FY21 Expenditures Total Expenditures (12,891,604)

Cash Balance 6/30/21 37,897,067

Outstanding Commitments 7/1/21 Active Appropriations (63,132,896) Expenditures Paid 25,131,559 Total Commitments 7/1/21 (38,001,337)

Total Uncommitted Balance 7/1/21 (104,270)

FY22 Anticipated Revenues Taxes 3,255,000 Interest 400,000 Loans/Interest 800,000 Total FY22 Anticipated Revenues 4,455,000

FY23 Anticipated Revenues Taxes 3,255,000 Interest 400,000 Loans/Interest 800,000 Total FY23 Anticipated Revenues 4,455,000

FY24 Anticipated Revenues Taxes 3,255,000 Interest 400,000 Loans/Interest 800,000 Total FY24 Anticipated Revenues 4,455,000

Subtotal Anticipated Revenues 13,365,000

Balance Available for Appropriation 13,260,730 Water Development Account III Preliminary Fiscal Projections as of 8/01/2021

Cash Balance 6/30/20 174,890,056

FY21 Revenues Taxes 775,000 Interest 3,889,077 Total Revenues 4,664,077

FY21 Expenditures Total Expenditures (5,616,521)

Cash Balance 6/30/21 173,937,613

Outstanding Commitments 7/1/21 Active Appropriations (169,407,026) Expenditures Paid 19,310,699 Total Commitments 7/1/21 (150,096,327)

Total Uncommitted Balance 7/1/21 23,841,286

FY22 Anticipated Revenues Taxes 775,000 Interest 2,200,000 Total FY22 Anticipated Revenues 2,975,000

FY23 Anticipated Revenues Taxes 775,000 Interest 2,200,000 Total FY23 Anticipated Revenues 2,975,000

FY24 Anticipated Revenues Taxes 775,000 Interest 2,200,000 Total FY24 Anticipated Revenues 2,975,000

Subtotal Anticipated Revenues 8,925,000

Balance Available for Appropriation 32,766,286 Sum of Projection $200,000,000.00

$180,000,000.00

$160,000,000.00

$140,000,000.00

$120,000,000.00 Account $100,000,000.00 I II $80,000,000.00 III

$60,000,000.00

$40,000,000.00

$20,000,000.00

$‐ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year Wyoming Water Development Office Projections August 2021

WDA I 2021 Projection 27,520,413 Deduct: 2021 Omnibus Water Bills (6,575,824) Deduct: Transfer to WDA II (11,800,000) Subtotal 9,144,589 Income Projected Actual Difference Tax Income 19,300,000 19,297,500 (2,500) Interest Income 2,000,000 2,152,638 152,638 Other 1,600,000 2,177,223 577,223 Subtotal-Income 22,900,000 23,627,361 727,361 Add: Reversions 2,553,704 Add: Sundance Tank SL 2020 225,000 Add: FY23 and FY24 Projected Income 45,800,000 2022 Projection 58,450,654

WDA II 2021 Projection 6,910,954 Add: Transfer from WDA I 11,800,000 Deduct: 2021 Omnibus Water Bills (17,451,800) Subtotal 1,259,154 Income Projected Actual Tax Income 3,255,000 3,255,000 0 Interest Income 400,000 781,956 381,956 Other 800,000 1,232,356 432,356 Subtotal-Income 4,455,000 5,269,312 814,312 Add: Reversions 2,277,264 Add: FY23 and FY24 Projected Income 8,910,000 2022 Projection 13,260,730

WDA III 2021 Projection 24,993,729 Deduct: 2021 Omnibus Water Bills 0 Subtotal 24,993,729 Income Projected Actual Tax Income 775,000 775,000 (0) Interest Income 2,200,000 3,889,077 1,689,077 Subtotal-Income 2,975,000 4,664,077 1,689,077 Add: Reversions 133,480 Add: FY23 and FY24 Projected Income 5,950,000 2022 Projection 32,766,286 Mark Gordon Governor WYOMING WATER DEVELOPMENT OFFICE Commissioners Liisa Anselmi-Dalton Mark Kot 6920 Yellowtail Road Robert R. Choma John H. Lawson Cheyenne, WY 82002 Lee Craig Sheridan Little Clinton W. Glick Larry Suchor Phone: (307) 777-7626 Ronald E. Kailey, Jr. Bill Yankee wwdc.state.wy.us Brandon L. Gebhart, P.E. Director

Memorandum

Date: August 2, 2021

To: Wyoming Water Development Commission

From: Brandon Gebhart

Subject: Reservoir Operations and Maintenance (O&M) Accounts

Pursuant to W.S. 99-99-1001(c), the Commission shall annually review the reservoir O&M accounts and determine if any contain funds in excess of that required to carry out the obligations of each account. This information will then be reported to the Joint Ag and Joint Appropriations Committees in the yearly Water Development Commission Legislative Report. The accounts are as follows:

 Fontenelle Reservoir Account  Buffalo Bill Dam Account  Palisades Reservoir Account  Miscellaneous Water Investment Account  Keyhole Reservoir Account (no projection provided – see comment below)  High Savery Reservoir Account  Pathfinder Modification Account  Glendo Reservoir Account  Lake DeSmet Reservoir Account  Middle Piney Reservoir Account

The only authorized reservoir account that is not included in this analysis is the Keyhole Reservoir account which has never been set up because Wyoming does not lease or own any space in the reservoir. As background information I have attached a summary/history of each account.

The attached financial projections were developed by David Ray and have three distinct sections. The first section provides a 10-year transaction history for all account expenditures and revenues. There are two accounts that have been created in the last 10 years and as such their history reflects the entire life of the account. This history should provide background as to the type and magnitude of transactions incurred in the accounts. Secondly, a 10-year projection of anticipated expenses and revenue is provided which was developed using the transaction history, an inflation factor and any identified future events that will require capital expenditures such as the riprap project in Fontenelle Reservoir. As with any future projection, assumptions have been made as to the timing and amount of anticipated transactions. The last section entitled “Conclusions and Page 1 of 2 Recommendations” represent staff conclusions on the financial stability of the funds and recommendations as appropriate.

The following is a summary of staff the conclusions and recommendations for each of the reservoir O&M accounts:  Fontenelle Reservoir Account 1. Fund is stable with no excess funds available at this time.  Buffalo Bill Dam Account 1. No excess funds available at this time due to a number of future anticipated transfers to assist other accounts.  Palisades Reservoir Account 1. No excess funds available at this time. 2. A new water lease agreement was executed. Revenue from the new agreement may provide for funds to be available for transfer in the future.  Miscellaneous Water Investment Account 1. No excess funds available at this time. 2. In 2031, the State of Wyoming will be responsible for OM&R costs at Park Reservoir Dam per W.S. 99-99-504(b) for 1,208 AF of stored water to maintain a minimum pool for fisheries (588 AF) and to augment stream flows (620 AF). At this time, the cost of this new OM&R charge is unknown.  High Savery Reservoir Account 1. Fund is stable with no excess funds available at this time.  Pathfinder Modification Account 1. Currently there is no statutory provision to move excess funds from the Pathfinder Modification Account; thus, no action is recommended.  Glendo Reservoir Account 1. Currently there is no statutory provision to move excess funds from the Glendo Reservoir Account; thus, no action is recommended.  Lake DeSmet Reservoir Account (New) 1. Currently there is no statutory provision to move excess funds from the Lake DeSmet Reservoir Account; thus, no action is recommended. 2. Since this account is new in 2018, several years of expenditure/revenue history will need to be established before a credible evaluation can be made.  Middle Piney Reservoir Account (New) 1. Currently there is no statutory provision to move excess funds from the Middle Piney Reservoir Account; thus, no action is recommended. 2. Since this account is new in 2019, several years of expenditure/revenue history will need to be established before a credible evaluation can be made.

Page 2 of 2

THE STATE OF WYOMING Water Development Office 6920 YELLOWTAIL ROAD TELEPHONE: (307) 777-7626 CHEYENNE, WY 82002

Background and History of Reservoir Operation and Maintenance Accounts The first two water investment accounts were created in 1989 for the Buffalo Bill Reservoir enlargement and Fontenelle Reservoir. The current number of accounts has grown to nine. The following is a brief description of each account:

 Fontenelle Reservoir Legislative Authorization: Session Law (SL) 1989, Chapter(CH) 268 Original Appropriation: $355,000 Source of Funds: Water Development Account (WDA) II Typical Expenses: One loan repayment to the Bureau of Reclamation (BOR) and annual BOR O&M charges. Typical Revenue: WY has entered into four water service agreements with industrial users in the basin. The contracts have a readiness to serve charge, a proportionate share of O&M charges, and a water use charge. Since the industrial users have never ordered any water, they have only been paying the readiness to serve and proportionate share of O&M charges. Water Asset: 120,000 AF of reservoir space

 Buffalo Bill Dam Legislative Authorization: SL 1989, CH 268 Original Appropriation: $0 Typical Expenses: Provide supplemental funding to other water investment accounts. To date, the BOR has not assessed any O&M charges because WY has not entered into any water service agreements. Typical Revenue: WY funded the upgrade to the hydropower plant and the Western Area Power Administration (WAPA) is making annual payments of $2,496,924 to WY as part of the funding agreement. The repayment of the WAPA obligation will be complete in 2030. Water Asset: 190,000 AF of reservoir space

 Palisades Reservoir Legislative Authorization: SL 1991, CH 18 Original Appropriation: $65,000 Source of Funds: Wyoming Game and Fish Department Typical Expenses: Annual BOR O&M charges Typical Revenue: Water sales to Idaho groundwater users Water Asset: 33,000 AF of reservoir space

 Miscellaneous Water Investment Legislative Authorization: SL 1993, CH 89 Original Appropriation: $0 Typical Expenses: In 2031, the State of Wyoming will be responsible for OM&R costs at Park Reservoir Dam per W.S. 99-99-504 (b) for 1,208 AF of stored water to maintain Page 1 of 2

a minimum pool for fisheries (588 AF) and to augment stream flows (620 AF). At this time, the cost of this new OM&R charge is unknown. Typical Revenue: Investment Income and water sales derived from WWDC funded projects in which the sales are not directly designated to a WDA. Water Asset: 1,208 AF of reservoir space

 High Savery Reservoir Legislative Authorization: SL 2005, CH 48 Original Appropriation: $0 – Once the High Savery Dam construction was completed, the remaining project funds ($723,640.77) from WDA I were transferred to the account. Typical Expenses: O&M charges and necessary replacement costs Typical Revenue: Water sales to downstream water users and land sublease payments Water Asset: 22,433 AF reservoir owned by WY

 Pathfinder Modification Legislative Authorization: SL 2010, CH 68 Original Appropriation: $2,250,000 Source of Funds: WDA II Typical Expenses: Annual BOR O&M charges Typical Revenue: Water sales to municipalities and the PRRIP Water Asset: 20,000 AF of reservoir space for WY and 33,493 AF of reservoir space for environmental purposes.

 Glendo Reservoir Legislative Authorization: SL 2011, CH 35 Original Appropriation: $800,000 Source of Funds: WDA I Typical Expenses: Annual BOR O&M charges and water purchases Typical Revenue: Investment income Water Asset: 10,600 AF of reservoir space

 Lake DeSmet Reservoir Legislative Authorization: SL 2018, CH 115 Original Appropriation: $2,000,000 Source of Funds: WDA I Typical Expenses: O&M charges for Healy Reservoir and O&M charges for Lake DeSmet to Johnson County Typical Revenue: Water sales and investment income Water Asset: 62,199 AF of reservoir space in Lake DeSmet and 5,140 AF in Healy Reservoir

 Middle Piney Reservoir Legislative Authorization: SL 2019, CH 55 Original Appropriation: $500,000 Source of Funds: WDA III Typical Expenses: O&M charges once construction is complete Typical Revenue: Investment income and water sales once construction is complete Water Asset: Special Use Permit from USFS for 4,201 AF Page 2 of 2

Fontenelle Reservoir Account Water Asset: 120,000 AF No expiration

Transaction History (7/1/2011 to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2012 Bureau of Reclamation Contract #2474 24,158.88 2,292,275.59 Water Contracts (PacifiCorp, Church & 2012 Dwight, Simplot/FS Industries, and Exxon) 388,458.99 2,680,734.58 2012 Investment Income 91,641.49 2,772,376.07 2013 Bureau of Reclamation Contract #6193 548,760.00 2,223,616.07 2013 Bureau of Reclamation Contract #2474 23,685.12 2,199,930.95 2013 Bureau of Reclamation Contract #6193 548,760.00 1,651,170.95 2013 Bureau of Reclamation OM&R 215,124.06 1,436,046.89 Water Contracts (PacifiCorp, Church & 2013 Dwight, Simplot/FS Industries, and Exxon) 489,158.81 1,925,205.70 2013 Investment Income 107,623.22 2,032,828.92 2014 Bureau of Reclamation Contract #6193 548,760.00 1,484,068.92 2014 Bureau of Reclamation Contract #2474 23,211.36 1,460,857.56 2014 Bureau of Reclamation OM&R 121,137.76 1,339,719.80 Water Contracts (PacifiCorp, Church & 2014 Dwight, Simplot/FS Industries, and Exxon) 452,938.51 1,792,658.31 2014 Investment Income 36,974.68 1,829,632.99 Water Contracts (PacifiCorp, Church & 2015 Dwight, Simplot/FS Industries, and Exxon) 497,413.94 2,327,046.93 2015 Bureau of Reclamation Contract #6193 548,760.00 1,778,286.93 2015 Bureau of Reclamation Contract #2474 22,737.60 1,755,549.33 2015 Bureau of Reclamation OM&R 221,241.55 1,534,307.78 2015 Investment Income 39,381.40 1,573,689.18 2016 Transfer from Buffalo Bill Dam Account 2,000,000.00 3,573,689.18 2016 Bureau of Reclamation Contract #2474 22,263.84 3,551,425.34 2016 Bureau of Reclamation Contract #6193 548,760.00 3,002,665.34 2016 Bureau of Reclamation OM&R 175,048.77 2,827,616.57 Water Contracts (PacifiCorp, Church & 2016 Dwight, Simplot/FS Industries, and Exxon) 475,654.33 3,303,270.90 2016 Investment Income 54,825.65 3,358,096.55 2017 Bureau of Reclamation Contract #2474 21,790.08 3,336,306.47 2017 Bureau of Reclamation Contract #6193 548,750.00 2,787,556.47 2017 Bureau of Reclamation OM&R 177,594.25 2,609,962.22 Water Contracts (PacifiCorp, Church & 2017 Dwight, Simplot/FS Industries, and Exxon) 476,641.77 3,086,603.99 2017 Investment Income 59,477.45 3,146,081.44

Transaction History Continued (7/1/2011 to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2018 Bureau of Reclamation Contract #2474 21,316.32 3,124,765.12 2018 Bureau of Reclamation OM&R 544,707.41 2,580,057.71 Water Contracts (PacifiCorp, Church & 2018 Dwight, Simplot/FS Industries, and Exxon) 619,051.08 3,199,108.79 2018 Investment Income 64,354.63 3,263,463.42 2019 Bureau of Reclamation Contract #2474 20,842.56 3,242,620.86 2019 Bureau of Reclamation OM&R 366,406.21 2,876,214.65

Water Contracts (PacifiCorp, Church & 2019 Dwight, Simplot/FS Industries, and Exxon) 549,885.08 3,426,099.73 2019 Investment Income 107,878.11 3,533,977.84 2020 Bureau of Reclamation Contract #2474 20,368.80 3,513,609.04 2020 Bureau of Reclamation OM&R 387,867.80 3,125,741.24

Water Contracts (PacifiCorp, Church & 2020 Dwight, Simplot/FS Industries, and Exxon) 558,210.39 3,683,951.63 2020 Investment Income 61,880.36 3,745,831.99 2021 Bureau of Reclamation Contract #2474 19,895.04 3,725,936.95 2021 Bureau of Reclamation OM&R 402,826.12 3,323,110.83

Water Contracts (PacifiCorp, Church & 2021 Dwight, Simplot/FS Industries, and Exxon) 564,012.97 3,887,123.80 2021 Investment Income 84,287.03 3,971,410.83

Page 1 of 2 Fontenelle Reservoir Account Water Asset: 120,000 AF No expiration

10 Year Projection FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Investment Income (Beginning FY Balances 2022 to 2031 Compounded at 2.50%) 597,100 4,568,511 Bureau of Reclamation Contract #2474 2022 to 2024 (3 payments remaining) 56,843 4,511,668 Exxon, PacifiCorp, Church & Dwight, and Simplot/FS Industries Readiness-to-Serve Payment and Portion of OM&R (Average 2022 to 2031 Payment $507,200 per year for 10 years) 5,072,000 9,583,668 Bureau of Reclamation OM&R (Average OM&R $425,500 adding 3% inflation per year 2022 to 2031 for 10 years) 4,877,900 4,705,768 Transfer from Buffalo Bill Dam Account (See 2023 to 2025 Note 1) 13,000,000 17,705,768

2023 to 2025 Fontenelle Riprap Project (See Note 1) 16,000,000 1,705,768

Notes

1. Specific legislative approval is required to fund the Fontenelle Riprap Project for an additional 80,796 AF of water. The costs for this project include NEPA compliance, permitting, designing, and construction.

Future Uses of Fontenelle Reservoir Account

1. Potential lease of an additional 139,000 AF of water in the active pool will increase OM&R charges from those shown above and will require a purchase/loan repayment.

Conclusions and Recommendations: 1. Fund is stable with no excess funds available at this time

Page 2 of 2 Buffalo Bill Dam Account Water Asset: 190,000 AF No expiration

Transaction History (7/1/2011 to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2012 WAPA Loan Repayment 2,496,924.00 21,725,866.69 2012 Investment Income 709,380.48 22,435,247.17 2013 WAPA Loan Repayment 2,496,924.00 24,932,171.17 2013 Investment Income 1,213,816.45 26,145,987.62 2014 WAPA Loan Repayment 2,496,924.00 28,642,911.62 2014 Investment Income 569,566.23 29,212,477.85 2015 WAPA Loan Repayment 2,496,924.00 31,709,401.85 2015 Transfer to WDA II (SL 2015 CH 142) 9,000,000.00 22,709,401.85 2015 Investment Income 736,816.51 23,446,218.36 Transfer to Fontenelle Reservoir and Miscellaneous Accounts (W.S. 99-99- 2016 1001(e)) 2,065,000.00 21,381,218.36 2016 WAPA Loan Repayment 2,496,924.00 23,878,142.36 2016 Investment Income 467,822.21 24,345,964.57 Transfer excess funds to WDA I from 2017 Buffalo Bill per W.S.99-99-1001(c) 7,000,000.00 17,345,964.57 2017 WAPA Loan Repayment 2,496,924.00 19,842,888.57 2017 Investment Income 326,101.95 20,168,990.52 2018 WAPA Loan Repayment 2,496,924.00 22,665,914.52 2018 Investment Income 420,656.19 23,086,570.71 Transfer to Miscellaneous Account (W.S. 2019 99-99-1001(e)) 75,000.00 23,011,570.71 Transfer excess funds to WDA II from 2019 Buffalo Bill per SL 2019 CH 55 Section 3 5,500,000.00 17,511,570.71 2019 WAPA Loan Repayment 2,496,924.00 20,008,494.71 2019 Investment Income 698,416.21 20,706,910.92

Transfer excess funds to WDA II from 2020 Buffalo Bill per SL 2020 CH 113 Section 3 7,000,000.00 13,706,910.92 2020 WAPA Loan Repayment 2,496,924.00 16,203,834.92 2020 Investment Income 309,775.35 16,513,610.27 2021 WAPA Loan Repayment 2,496,924.00 19,010,534.27 2021 Investment Income 377,255.97 19,387,790.24

10 Year Projection FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Investment Income (Beginning FY 2022 Balances Compounded at 2.50%) 490,300 19,878,090 2022 WAPA Loan Repayment (See Note 1) 2,496,924 22,375,014 Investment Income (Beginning FY 2023 Balances Compounded at 2.50%) 565,800 22,940,814 2023 WAPA Loan Repayment (See Note 1) 2,496,924 25,437,738 Transfer to Fontenelle Reservoir Account 2023 for Riprap Project (See Note 2) 4,000,000 21,437,738 Investment Income (Beginning FY 2024 Balances Compounded at 2.50%) 542,100 21,979,838

2024 WAPA Loan Repayment (See Note 1) 2,496,924 24,476,762 Transfer to Fontenelle Reservoir Account 2024 for Riprap Project (See Note 2) 4,000,000 20,476,762

Page 1 of 2 Buffalo Bill Dam Account Water Asset: 190,000 AF No expiration

10 Year Projection (continued) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Investment Income (Beginning FY 2025 Balances Compounded at 2.50%) 517,800 20,994,562 2025 WAPA Loan Repayment (See Note 1) 2,496,924 23,491,486 Transfer to Fontenelle Reservoir Account 2025 for Riprap Project (See Note 2) 5,000,000 18,491,486 Investment Income (Beginning FY 2026 Balances Compounded at 2.50%) 467,600 18,959,086

2026 WAPA Loan Repayment (See Note 1) 2,496,924 21,456,010 Transfer to High Savery Reservoir Account 2026 (W.S. 99-99-1001(e)) 900,000 20,556,010 Investment Income (Beginning FY 2027 Balances Compounded at 2.50%) 519,800 21,075,810 2027 WAPA Loan Repayment (See Note 1) 2,496,924 23,572,734 Investment Income (Beginning FY 2028 Balances Compounded at 2.50%) 596,100 24,168,834 2028 WAPA Loan Repayment (See Note 1) 2,496,924 26,665,758 Investment Income (Beginning FY 2029 Balances Compounded at 2.50%) 674,300 27,340,058 2029 WAPA Loan Repayment (See Note 1) 2,496,924 29,836,982 Investment Income (Beginning FY 2030 Balances Compounded at 2.50%) 754,500 30,591,482 2030 WAPA Loan Repayment (See Note 1) 2,496,924 33,088,406 Investment Income (Beginning FY 2031 Balances Compounded at 2.50%) 836,800 33,925,206

Notes 1. The last payment from WAPA will occur in April of 2030.

2. Specific legislative approval is required for this transfer to occur.

Future Uses of Buffalo Bill Dam Account

1. Fund the OM&R costs for Buffalo Bill Dam if the state sells water for municipal, industrial, or irrigation use.

2. Fund the water investment accounts for dams and reservoirs (Fontenelle, High Savery, Miscellaneous, Glendo, or Lake DeSmet).

3. If an additional lease for 139,000 AF of water occurs in Fontenelle the OM&R charges will increase and the lease will require a purchase/loan repayment.

4. Establish water investment accounts for any reservoirs that Wyoming acquires an interest in.

Conclusions and Recommendations: 1. No excess funds available at this time due to a number of future anticipated transfers to assist other accounts.

Page 2 of 2 Palisades Reservoir Account Water Asset: 33,000 AF No expiration

Transaction History (7/1/2011 to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2012 Bureau of Reclamation OM&R 13,294.94 16,943.29 2012 Idaho Ground Water Appropriators Option Payment 10,000.00 26,943.29 2012 Investment Income 1,055.57 27,998.86 2013 G&F/Reimbursement SL 1991 CH 18 200.00 27,798.86 2013 Idaho Water District 1 2012 Space 6,662.82 34,461.68 2013 Idaho Ground Water Appropriators Option Payment 10,000.00 44,461.68 2013 Bureau of Reclamation OM&R 10,857.20 33,604.48 2013 Investment Income 1,732.15 35,336.63 2013 Idaho Water District 1 2012 Impact Payment 38,235.06 73,571.69 2013 Idaho Water District 1 2012 Yield 6,445.29 80,016.98 2014 Idaho Water District 1 2013 Space 11,752.30 91,769.28 Idaho Ground Water Appropriators Lease Payment 2014 (6,500 AF) 84,250.00 176,019.28 2014 Idaho Ground Water Appropriators Option Payment 10,000.00 186,019.28 2014 Bureau of Reclamation OM&R 7,760.68 178,258.60 2014 Investment Income 3,447.22 181,705.82 2015 Idaho Water District 1 2013 Impact Payment 9,904.03 191,609.85 2015 Idaho Water District 1 2013 Yield 12,348.97 203,958.82 2015 Idaho Water District 1 2014 Space 7,885.86 211,844.68 2015 Idaho Ground Water Appropriators Option Payment 10,000.00 221,844.68 2015 Bureau of Reclamation OM&R 18,564.84 203,279.84 2015 Investment Income 5,428.36 208,708.20 2016 Idaho Water District 1 2014 Yield 8,023.34 216,731.54 2016 Idaho Water District 1 2015 Space 6,340.20 223,071.74 Idaho Ground Water Appropriators Lease Payment 2016 (10,000 AF) 135,000.00 358,071.74 2016 Idaho Ground Water Appropriators Option Payment 10,000.00 368,071.74 2016 Bureau of Reclamation OM&R 4,314.15 363,757.59 2016 Investment Income 6,299.47 370,057.06 2017 Idaho Water District 1 2015 Yield 4,985.39 375,042.45 2017 Idaho Ground Water Appropriators Option Payment 10,000.00 385,042.45 Idaho Ground Water Appropriators Lease Payment 2017 (5,000 AF) 62,500.00 447,542.45 2017 Idaho Water District 1 2016 Space 3,936.33 451,478.78 2017 Bureau of Reclamation OM&R 11,031.58 440,447.20 2017 Investment Income 7,400.42 447,847.62 2018 Idaho Water District 1 2016 Yield 4,042.06 451,889.68 2018 Idaho Water District 1 2017 Space 7,876.76 459,766.44 2018 Idaho Ground Water Appropriators Option Payment 10,000.00 469,766.44 2018 Bureau of Reclamation OM&R 10,391.80 459,374.64 2018 Investment Income 9,321.27 468,695.91 2019 Idaho Water District 1 2017 Yield 7,884.36 476,580.27 2019 Idaho Water District 1 2018 Space 10,225.09 486,805.36 2019 Idaho Ground Water Appropriators Option Payment 10,000.00 496,805.36 2019 Bureau of Reclamation OM&R 7,848.61 488,956.75 2019 Investment Income 15,662.34 504,619.09 2020 Idaho Water District 1 2018 Yield 10,244.15 514,863.24 2020 Bureau of Reclamation OM&R 2,677.74 512,185.50 2020 Idaho Water District 1 2019 Space 7,721.76 519,907.26 2020 Bureau of Reclamation OM&R 8,069.21 511,838.05

2020 Idaho Ground Water Appropriators Option Payment 10,000.00 521,838.05 2020 Investment Income 9,053.31 530,891.36 2021 Idaho Water District 1 2019 Yield 7,777.21 538,668.57 2021 Bureau of Reclamation OM&R 13,225.69 525,442.88 2021 Idaho Water District 1 2020 Space 10,827.79 536,270.67 2021 Investment Income 12,056.47 548,327.14

Page 1 of 2 Palisades Reservoir Account Water Asset: 33,000 AF No expiration

10 Year Projection FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Investment Income (Beginning FY Balances 2022 to 2031 Compounded at 2.50%) 246,200 794,527 Idaho Water District 1 Space (Average $8,100 for 10 2022 to 2031 years) 81,000 875,527 Idaho Water District 1 Yield (Average $7,700 for 10 2022 to 2031 years) 77,000 952,527 Bureau of Reclamation OM&R (Average OM&R 2022 to 2031 $10,500 adding 3% inflation per year for 10 years) 120,400 832,127 Idaho Ground Water Appropriators Lease Payment 2022 to 2031 (Average $70,000 per year for 10 years) 700,000 1,532,127

Conclusions and Recommendations: 1. No excess funds available at this time. A new water lease agreement was executed. Revenue from the new agreement may provide for funds to be available for transfer in the future.

Page 2 of 2 Miscellaneous Water Investment Account Water Asset: 1,208 AF $100,000 Balance Limit per W.S. 99-99-1001(g)

Transaction History (7/1/2011 to 6/30/2021)

FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2012 Water Sales (Wright, Aladdin, and Cheyenne 30,287.41 57,583.44 2012 PRRIP/Nebraska Land Lease 6,549.49 64,132.93 2012 Nebraska Taxes - Buffalo and Kearney County 5,536.30 58,596.63 2012 BOPU Credit Seminoe OM&R 1,837.66 60,434.29 2012 BOPU/Seminoe OM&R 24,557.50 35,876.79 2012 Investment Income 1,343.87 37,220.66 2013 True Ranches Grazing Lease 5,112.33 42,332.99 2013 PRRIP/Nebraska Land Lease 3,099.49 45,432.48 2013 BOPU/Seminoe OM&R 24,778.67 20,653.81 2013 Water Sales (Wright and Aladdin) 48,019.29 68,673.10 2013 Nebraska Taxes - Buffalo and Kearney County 5,781.42 62,891.68 2013 Investment Income 2,847.35 65,739.03 2014 BOPU/Seminoe OM&R 24,903.88 40,835.15 2014 Water Sales (Aladdin) 201.24 41,036.39 2014 Investment Income 992.05 42,028.44 2015 BOPU/Seminoe OM&R 25,088.12 16,940.32 2015 Water Sales (Aladdin) 189.24 17,129.56 2015 Investment Income 817.80 17,947.36 2016 Transfer from Buffalo Bill Account 65,000.00 82,947.36 2016 BOPU/Seminoe OM&R 24,554.44 58,392.92 2016 Investment Income 1,004.29 59,397.21 2017 BOPU/Seminoe OM&R 24,997.71 34,399.50 2017 Investment Income 983.45 35,382.95 2018 BOPU/Seminoe OM&R 24,537.90 10,845.05 2018 Investment Income 639.70 11,484.75 2019 Transfer from Buffalo Bill Account 75,000.00 86,484.75 2019 BOPU/Seminoe OM&R 25,644.12 60,840.63 2019 Investment Income 1,662.69 62,503.32 2020 Investment Income 1,080.94 63,584.26 2021 BOPU/Seminoe OM&R 24,622.63 38,961.63 2021 Investment Income 1,247.04 40,208.67

10 Year Projection

FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Investment Income (Beginning FY Balances 2022 to 2031 Compounded at 2.50%) 11,400 51,609

Notes

1. In order to keep a positive balance in this fund, periodic supplemental fund transfers from the Buffalo Bill Dam Account will be required. During FY 2022 to 2031, the balance will not exceed the $100,000 limit. The highest approximate balance is $50,344. The 10 Year Projection above summarizes the recurring yearly transactions.

2. In 2031, the State of Wyoming will be responsible for OM&R costs at Park Reservoir Dam per W.S. 99-99-504 (b) for 1,208 AF of stored water to maintain a minimum pool for fisheries (588 AF) and to augment stream flows (620 AF). At this time, the cost of this new OM&R charge is unknown.

Conclusions and Recommendations: 1. No excess funds available at this time.

Page 1 of 1 High Savery Reservoir Account Water Asset: 22,433 AF No expiration

Transaction History (7/1/2011 to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2012 Jons Lease 2,779.80 1,157,102.04 Savery-Little Snake Water Sale 2012 (14,000 AF) 36,000.00 1,193,102.04 2012 Investment Income 40,733.35 1,233,835.39 2012 OM&R Expenditures 152,648.17 1,081,187.22 2013 Jons Lease 2,952.00 1,084,139.22 Savery-Little Snake Water Sale 2013 (14,000 AF) 36,000.00 1,120,139.22 2013 Investment Income 55,848.69 1,175,987.91 2013 OM&R Expenditures 94,107.08 1,081,880.83 2014 Jons Lease 3,154.95 1,085,035.78 Savery-Little Snake Water Sale 2014 (14,000 AF) 38,033.17 1,123,068.95 2014 Investment Income 21,887.78 1,144,956.73 2014 OM&R Expenditures 55,000.35 1,089,956.38 2015 Jons Lease 3,407.10 1,093,363.48 Savery-Little Snake Water Sale 2015 (14,000 AF) 38,033.17 1,131,396.65 2015 Investment Income 27,751.45 1,159,148.10 2015 OM&R Expenditures 37,287.06 1,121,861.04 2016 Myers Lease 5,006.10 1,126,867.14 Savery-Little Snake Water Sale 2016 (14,000 AF) 38,033.17 1,164,900.31 2016 OM&R Expenditures 55,020.21 1,109,880.10 2016 Investment Income 22,896.18 1,132,776.28 2017 Myers Lease 5,221.35 1,137,997.63 Savery-Little Snake Water Sale 2017 (14,000 AF) 38,033.17 1,176,030.80 2017 OM&R Expenditures 56,201.68 1,119,829.12 2017 Investment Income 19,807.17 1,139,636.29 2018 Myers Lease 5,153.70 1,144,789.99 Savery-Little Snake Water Sale 2018 (14,000 AF) 38,033.17 1,182,823.16 2018 OM&R Expenditures 30,927.94 1,151,895.22 2018 Investment Income 23,335.51 1,175,230.73 2019 Myers Lease 5,030.70 1,180,261.43 Savery-Little Snake Water Sale 2019 (14,000 AF) 40,356.75 1,220,618.18 2019 OM&R Expenditures 33,379.41 1,187,238.77 2019 Investment Income 37,838.63 1,225,077.40 2020 Myers Lease 4,846.20 1,229,923.60 2020 Savery-Little Snake Water Sale(14,000 AF) 40,356.75 1,270,280.35 2020 OM&R Expenditures 44,264.24 1,226,016.11 2020 Investment Income 20,834.77 1,246,850.88 2021 Myers Lease 4,630.95 1,251,481.83 2021 Savery-Little Snake Water Sale(14,000 AF) 40,356.75 1,291,838.58 2021 OM&R Expenditures 64,531.85 1,227,306.73 2021 Investment Income 27,911.00 1,255,217.73

Page 1 of 2 High Savery Reservoir Account Water Asset: 22,433 AF No expiration

10 Year Projection FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2022 to 2031 Savery-Little Snake Water Sale 403,570 1,658,788 Investment Income (Beginning FY 2022 to 2031 Balances Compounded at 2.50%) 372,700 2,031,488 2022 to 2031 Myers Lease 51,150 2,082,638 OM&R Expenditures (Average OM&R $62,400 adding 3% inflation per year for 10 2022 to 2031 years) 715,300 1,367,338

Mechanical Equipment Replacement and 2024 to 2026 Major Repairs due to Aging Infrastructureg 220,000 1,147,338 2022 Savery in winter months 160,000 987,338 2026 Transfer from Buffalo Bill Dam Account 900,000 1,887,338

Conclusions and Recommendations: 1. Fund is stable with no excess funds available at this time.

Page 2 of 2 Pathfinder Modification Account Water Asset: 20,000 AF for WY and 33,493 AF for Environmental No expiration

Transaction History (7/1/2011 to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Platte River Recovery Implementation Program 2012 Water Purchase (38,400 AF) 1,958,400.00 7,494,385.75 2012 Bureau of Reclamation OM&R 6,860.00 7,487,525.75 2012 Investment Income 210,874.03 7,698,399.78 2013 Town of Glenrock Readiness to Serve 250.00 7,698,649.78 2013 Town of Mills Readiness to Serve 1,000.00 7,699,649.78 Central WY Reg. Water System JPB Readiness to 2013 Serve 750.00 7,700,399.78 2013 City of Casper Readiness to Serve 9,750.00 7,710,149.78 Central WY Reg. Water System JPB Water 2013 Purchase (150 AF) 3,750.00 7,713,899.78 City of Rawlins Readiness to Serve and Water 2013 Purchase (700 AF) 21,000.00 7,734,899.78 2013 City of Casper Water Purchase (1950 AF) 48,750.00 7,783,649.78 2013 Town of Glenrock Water Purchase (25 AF) 625.00 7,784,274.78 2013 Town of Mills Water Purchase (75 AF) 1,875.00 7,786,149.78 Town of Evansville Readiness to Serve and Water 2013 Purchase (40 AF) 1,500.00 7,787,649.78 2013 Bureau of Reclamation OM&R 12,734.57 7,774,915.21 2013 Investment Income 415,132.31 8,190,047.52 Central WY Reg. Water System JPB Readiness to 2014 Serve 750.00 8,190,797.52 2014 Town of Evansville Readiness to Serve 147.50 8,190,945.02 2014 City of Casper Water Purchase (1950 AF) 12,512.50 8,203,457.52 Central WY Reg. Water System JPB Water 2014 Purchase (150 AF) 207.50 8,203,665.02 2014 Town of Evansville Water Purchase (100 AF) 2,500.00 8,206,165.02 2014 Town of Glenrock Water Purchase (50 AF) 1,030.00 8,207,195.02 2014 Town of Mills Water Purchase (66 AF) 1,000.00 8,208,195.02 2014 Bureau of Reclamation OM&R 10,285.65 8,197,909.37 2014 Investment Income 169,080.29 8,366,989.66 Central WY Reg. Water System JPB Water 2015 Purchase (150 AF) 750.00 8,367,739.66 2015 Town of Mills Water Purchase (66.5 AF) 1,000.00 8,368,739.66 2015 City of Casper Water Purchase (1950 AF) 9,750.00 8,378,489.66 2015 Town of Evansville Water Purchase (100 AF) 500.00 8,378,989.66 2015 Town of Glenrock Water Purchase (50 AF) 250.00 8,379,239.66 2015 Bureau of Reclamation OM&R 353.84 8,378,885.82 2015 Investment Income 215,265.52 8,594,151.34 Central WY Reg. Water System JPB Water 2016 Purchase (150 AF) 750.00 8,594,901.34 2016 Town of Glenrock Water Purchase (50 AF) 250.00 8,595,151.34 2016 Town of Mills Water Purchase (66.5 AF) 1,000.00 8,596,151.34 2016 City of Casper Water Purchase (1950 AF) 9,750.00 8,605,901.34 2016 Town of Evansville Water Purchase (100 AF) 500.00 8,606,401.34 2016 Bureau of Reclamation OM&R 4,538.29 8,601,863.05

Page 1 of 3 Pathfinder Modification Account Water Asset: 20,000 AF for WY and 33,493 AF for Environmental No expiration

Transaction History Continued (7/01/2011 to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2016 Investment Income 178,633.56 8,780,496.61 Central WY Reg. Water System JPB Water 2017 Purchase (150 AF) 750.00 8,781,246.61 2017 Town of Glenrock Water Purchase (50 AF) 250.00 8,781,496.61 2017 City of Casper Water Purchase (1950 AF) 9,750.00 8,791,246.61 2017 Town of Evansville Water Purchase (100 AF) 500.00 8,791,746.61 2017 Investment Income 156,427.26 8,948,173.87 2018 Bureau of Reclamation OM&R 7,055.66 8,941,118.21 2018 Town of Mills Readiness to Serve 337.50 8,941,455.71 Platte River Recovery Implementation Program 2018 Water Sale (4,800 AF) 312,000.00 9,253,455.71 Central WY Reg. Water System JPB Water 2018 Purchase (150 AF) 750.00 9,254,205.71 2018 Town of Glenrock Water Purchase (50 AF) 250.00 9,254,455.71 2018 Town of Mills Water Purchase (20 AF) 500.00 9,254,955.71 2018 City of Casper Water Purchase (1950 AF) 9,750.00 9,264,705.71 2018 Town of Evansville Water Purchase (100 AF) 500.00 9,265,205.71 2018 Bureau of Reclamation OM&R 6,884.60 9,258,321.11 2018 Investment Income 189,283.90 9,447,605.01 Platte River Recovery Implementation Program 2019 Water Sale (8,100 AF) 526,500.00 9,974,105.01 2019 Town of Mills Readiness to Serve 500.00 9,974,605.01 Mitigation Obligations for Safety of Dam 2019 Modifications to Glendo and Guernsey 1,214,466.38 8,760,138.63 2019 Town of Evansville Water Purchase (100 AF) 500.00 8,760,638.63 Central WY Reg. Water System JPB Water 2019 Purchase (150 AF) 750.00 8,761,388.63 2019 Town of Glenrock Water Purchase (50 AF) 250.00 8,761,638.63 2019 City of Casper Water Purchase (1950 AF) 9,750.00 8,771,388.63 2019 Town of Mills Water Purchase (20 AF) 500.00 8,771,888.63 2019 Bureau of Reclamation OM&R 6,301.50 8,765,587.13 2019 Investment Income 294,869.91 9,060,457.04 Platte River Recovery Implementation Program 2020 Water Sale (9,600 AF) 624,000.00 9,684,457.04 2020 Town of Mills Readiness to Serve 500.00 9,684,957.04 2020 City of Casper Water Purchase (1950 AF) 9,750.00 9,694,707.04 Central WY Reg. Water System JPB Water 2020 Purchase (150 AF) 750.00 9,695,457.04 2020 Town of Evansville Water Purchase (100 AF) 500.00 9,695,957.04 2020 Town of Glenrock Water Purchase (50 AF) 250.00 9,696,207.04 2020 Town of Mills Water Purchase (20 AF) 500.00 9,696,707.04 2020 Bureau of Rec OM&R 6,175.44 9,690,531.60 Platte River Recovery Implementation Program Water Sale (9,600 AF) less credit of 4800 AF 2020 unused in 2019 312,000.00 10,002,531.60 2020 Investment Income 171,981.88 10,174,513.48 2021 Town of Mills Readiness to Serve 500.00 10,175,013.48 2021 Town of Glenrock Water Purchase (50 AF) 250.00 10,175,263.48 2021 Town of Evansville Water Purchase (100 AF) 500.00 10,175,763.48 2021 City of Casper Water Purchase (1950 AF) 9,750.00 10,185,513.48

Page 2 of 3 Pathfinder Modification Account Water Asset: 20,000 AF for WY and 33,493 AF for Environmental No expiration Central WY Reg. Water System JPB Water 2021 Purchase (150 AF) 750.00 10,186,263.48 2021 Town of Mills Water Purchase (40 AF) 1,000.00 10,187,263.48 2021 Bureau of Reclamation OM&R 14,106.46 10,173,157.02 2021 FY 2021 Investment Income 228,098.26 10,401,255.28

10 Year Projection FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Platte River Recovery Implementation Program 2022 to 2031 Water Purchase 3,120,000 13,521,255 Investment Income (Beginning FY Balances 2022 to 2031 Compounded at 2.50%) 2,528,700 16,049,955 Mitigation Obligations for Safety of Dam 2025 Modifications to Seminoe 5,000,000 11,049,955 Bureau of Reclamation OM&R (Average OM&R 2022 to 2031 $8,100 adding 3% inflation per year for 10 years) 92,900 10,957,055 2022 to 2031 Municipality Readiness to Serve Payments 122,500 11,079,555 2022 to 2031 Municipality Water Purchase Revenue 10,000 11,089,555

Conclusions and Recommendations: 1. Currently there is no statutory provision to move excess funds from the Pathfinder Modification Account; thus, no action is recommended.

Page 3 of 3 Glendo Reservoir Account Water Asset: 10,600 AF expires 2052

Transaction History (7/01/2011 to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2012 Bureau of Reclamation Agreement #11AG6A0100 15,000.00 791,449.03 2012 Investment Income 29,195.94 820,644.97 2013 Bureau of Reclamation OM&R 4,200.00 816,444.97 2013 Investment Income 44,135.80 860,580.77 2014 Bureau of Reclamation Agreement #129E6A0080 Water Purchase (3,725 AF) 7,450.00 853,130.77 2014 Bureau of Reclamation OM&R 2,684.46 850,446.31 2014 Investment Income 17,556.17 868,002.48 2015 Bureau of Reclamation Agreement #129E6A0080 Water Purchase (5,170 AF) 10,340.00 857,662.48 2015 Bureau of Reclamation Agreement #11AG6A0100 - Refund 6,549.49 864,211.97 2015 Bureau of Reclamation OM&R 3,699.04 860,512.93 2015 Investment Income 22,060.53 882,573.46 2016 Bureau of Reclamation Agreement #129E6A0080 Water Purchase (3,300 AF) 6,600.00 875,973.46 2016 Bureau of Reclamation OM&R 3,855.53 872,117.93 2016 Investment Income 18,182.90 890,300.83 2017 Bureau of Reclamation OM&R 2,903.18 887,397.65 2017 Investment Income 15,841.49 903,239.14 2018 Bureau of Reclamation Agreement #129E6A0080 Water Purchase (3,250 AF) 6,500.00 896,739.14 2018 Bureau of Reclamation OM&R 5,020.20 891,718.94 2018 Bureau of Reclamation Agreement #129E6A0080 Water Purchase (3,238 AF) 6,476.00 885,242.94 2018 Investment Income 18,380.02 903,622.96 2019 Bureau of Reclamation OM&R 3,258.08 900,364.88 2019 Investment Income 29,107.65 929,472.53 2020 Bureau of Reclamation OM&R 4,272.04 925,200.49 2020 Investment Income 16,034.98 941,235.47 2021 Bureau of Reclamation OM&R 4,371.74 936,863.73 2021 Investment Income 21,171.47 958,035.20

10 Year Projection FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Bureau of Reclamation OM&R (Average OM&R of $4,300 adding 3% inflation per year 2022 to 2031 for 10 years) 49,300.00 908,735

2022 to 2031 Water Purchase (5,000 AF at $2.00 per AF) 100,000.00 808,735 Investment Income (Beginning FY Balances 2022 to 2031 Compounded Monthly at 2.50%) 253,900 1,062,635

Conclusions and Recommendations 1. Currently there is no statutory provision to move excess funds from the Glendo Reservoir Account; thus, no action is recommended.

Page 1 of 1 Lake DeSmet Reservoir Account Water Asset: 62,199 AF No expiration Healy Reservoir Water Asset: 5,140 AF

Transaction History (Inception to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Transfer from WDA I per SL 2018 CH 2018 115 2,000,000.00 2,000,000.00 Morey Ranch Water Purchase (150 2019 AF) and Readiness to Serve 2,750.00 2,002,750.00 Wohlbrandt Ranch Water Purchase 2019 (230 AF) and Readiness to Serve 3,950.00 2,006,700.00 Merlon Ranch Water Purchase (200 2019 AF) Readiness to Serve 3,300.00 2,010,000.00 Wohlbrandt Ranch Readiness to 2019 Serve 251.70 2,010,251.70 Morey Ranch Water Purchase (150 2019 AF) and Readiness to Serve 2,750.00 2,013,001.70 2019 Merlon Ranch Readiness to Serve 1,000.00 2,014,001.70 2019 OM&R Expenditures 84,717.80 1,929,283.90 2019 Investment Income 63,513.96 1,992,797.86 2020 Refund First American Title Fees 10.70 1,992,808.56 Wohlbrandt Ranch (Readiness-to- Serve 500 AF at $1.50 and 54.57 AF 2020 used at $15 AF) 1,568.55 1,994,377.11 Merlon Ranch 200AF (Readiness-to- 2020 Serve $5/AF) 1,000.00 1,995,377.11 2020 Morey Ranch 150AF Water Purchase 225.00 1,995,602.11 2020 OM&R Expenditures 49,751.89 1,945,850.22 2020 Investment Income 33,818.75 1,979,668.97 Wohlbrandt Ranch (Readiness-to- Serve 500 AF at $1.50 and 66.48 AF 2021 used at $15) 1,747.20 1,981,416.17 Merlon Ranch (Readdiness-to-Serve 200 AF at $5 and 415 AF in 2020 at 2021 $15) 7,225.00 1,988,641.17 Morey Ranch 247.10 AF Water Purchase and 2021 Readiness to 2021 Serve 3,931.50 1,992,572.67 2021 OM&R Expenditures 64,171.09 1,928,401.58

2021 Investment Income 44,195.76 1,972,597.34

10 Year Projection FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2022 to 2031 Water Purchases ($7,000 per year) 70,000 2,042,597 WWDO OM&R Healy Reservoir 2022 to 2031 ($30,000 per year) 300,000 1,742,597 Investment Income (Beginning FY 2022 to 2031 Balances Compounded at 2.50%) 476,700 2,219,297 Johnson County OM&R Lake 2022 to 2031 DeSmet ($45,000 per year) 450,000 1,769,297

Conclusions and Recommendations: 1. Currently there is no statutory provision to move excess funds from the Lake DeSmet Reservoir Account; thus, no action needed.

Page 1 of 1 Middle Piney Reservoir Account Special Use Permit for 4,201 AF expires 2047

Transaction History (Inception to 6/30/2021) FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE Transfer from WDA III per SL 2019 2019 CH 55 500,000.00 500,000.00 2019 Investment Income 5,867.95 505,867.95 2020 Investment Income 8,737.52 514,605.47 2021 Investment Income 11,582.75 526,188.22

10 Year Projection FISCAL YEAR DESCRIPTION REVENUE EXPENDITURE BALANCE 2022 to 2031 Water Purchases ($6,000 per year) 60,000 586,188 OM&R $10,000 adding 3% inflation 2022 to 2031 per year for 8 years) 111,600 474,588 Investment Income (Beginning FY 2022 to 2031 Balances Compounded at 2.50%) 143,700 618,288

Conclusions and Recommendations: 1. Currently there is no statutory provision to move excess funds from the Middle Piney Reservoir Account; thus, no action needed.

Page 1 of 1 2022 WYOMING WATER DEVELOPMENT PROGRAM

LEVEL I/II PLANNING PROJECTS

Level I Projects - New Development Applicant Div County Acct Project Mgr Commissioners Description 1 Clarks Fk/Upper Shoshone Watershed Study Cody CD/Powell Clarks Fork CD III Park I Robertson Craig Yankee Watershed Study 2 Dayton Water Master Plan Town of Dayton II Sheridan I Gondzar Little Suchor Water Master Plan Update 3 Riverton Regional Water Master Plan City of Riverton III Fremont I Tavelli Craig Yankee Water Master Plan Update

Level II Projects - New Development Applicant Div County Acct Project Mgr Commissioners Description 4 LaGrange GW Supply & Improvements Town of LaGrange I Goshen I Clarey Anselmi-Dalton Kailey Exploratory Well/System Upgrades 5 Pavillion Groundwater Supply Town of Pavillion III Fremont I Clarey Glick Suchor Exploratory Well Study

Level I Projects - Rehabilitation Applicant Div County Acct Project Mgr Commissioners Description 6 West Afton/Nield String Water MP West Afton & Nield String Sprinkler Co.'s IV Lincoln II Jones Choma Kot Water Master Plan

Level II Projects - Rehabilitation Applicant Div County Acct Project Mgr Commissioners Description 7 Dowlin Diversion Rehabilitation City of Laramie I Albany II Jones Choma Kailey Diversion Structure Rehab

CONSULTANT SELECTION TIMELINE

Solicitation for professional services begins…………...………..…. Friday, May 28th

Statements of Interest/Statements of Qualification due……………Friday, June 25th, 2 pm

SOI/SOQ short lists finalized.…………………………………………Friday, July 9th

RFP’s sent out to short-listed consultants………………………….. Friday, July 23rd

Proposals due to the WWDO………………………………………... Wednesday, August 25th, 1 pm

Proposals distributed to selection teams………………………….... Thursday, August 26th

Proposal rankings due to the WWDO………………………………. Monday, September 20th, 5 pm

Interview short lists released……………………………………….... Tuesday, September 21st

Consultant interviews……………………………...…………………. Thursday, October 7th

WWDC Meeting (consultant selection approval) ……….……….... Friday, October 8th

RFP # SL M or E RFP Prime Project Manager City State 22-1 x E Grouse Mountain Enviromental Consultants Clarks Fork/Uppper Shoshone Watershed Study LI Robertson Buffalo WY 22-1 x E Trihydro Corporation Clarks Fork/Uppper Shoshone Watershed Study LI Robertson Laramie WY

22-2 x E Engineering Associates Dayton Water Master Plan LI Gondzar Sheridan WY 22-2 x E Forsgren Associates, Inc. Dayton Water Master Plan LI Gondzar Evanston WY 22-2 x E Short Elliot Hendrickson, Inc. Dayton Water Master Plan LI Gondzar Cheyenne WY 22-2 x E William H. Smith & Associates Dayton Water Master Plan LI Gondzar Rock Springs WY

22-3 x E Forsgren Associates Inc. Riverton Regional Water Master Plan LI Tavelli Evanston WY 22-3 x E HDR Engineering, Inc. Riverton Regional Water Master Plan LI Tavelli Gillette WY 22-3 x E James Gores and Associates, Inc Riverton Regional Water Master Plan LI Tavelli Riverton WY 22-3 x E Morrision Maierle Riverton Regional Water Master Plan LI Tavelli Cody WY 22-3 x E William H. Smith & Associates Riverton Regional Water Master Plan LI Tavelli Rock Springs WY

22-4 x E AVI Professional Corporation LaGrange Groundwater Supply & Improvements LII Clarey Cheyenne WY 22-4 x E Stantec Consulting Services, Inc. LaGrange Groundwater Supply & Improvements LII Clarey Cheyenne WY

22-5 x E James Gores and Associates, Inc Pavillion Groundwater Supply LII Clarey Riverton WY 22-5 x E Weston Engineering, Inc. Pavillion Groundwater Supply LII Clarey Laramie WY

22-6 x E Forsgren Associates Inc. West Afton/Nield String Master Plan LI Jones Evanston WY 22-6 x E J-U-B Engineers, Inc. West Afton/Nield String Master Plan LI Jones Evanston WY 22-6 x E Sunrise Engineering West Afton/Nield String Master Plan LI Jones Afton WY

22-7 x E Short Elliot Hendrickson, Inc. Dowlin Diversion Rehabilitation LII Jones Cheyenne WY 22-7 x E WWC Engineering Dowlin Diversion Rehabilitation LII Jones Laramie WY

2022 WWDC LEVEL I & II PLANNING PROJECTS CONSULTANT SELECTION PROCESS

WYOMING WATER DEVELOPMENT OFFICE

PLANNING DIVISION

7 - YEAR SUMMARY

# of # of # of Projects Submissions Different Firms Current – new process (2022) 7 22 16 Last Year – new process (2021) 12 52 29 Prev Year – new process (2020) 13 54 26 Prev Year – new process (2019) 7 35 23

Prev. Year – old process (2018) 19 91 46 Prev. Year – old process (2017) 23 99 44 Prev. Year – old process (2016) 24 127 59

CURRENT SELECTION

By Project:

# of submissions by firm per project varied: • Low: 2 firms (Clarks Fk/Upper Shoshone Watershed Study; LaGrange Groundwater Supply & Improvements Study; Pavillion Groundwater Supply Study; Dowlin Diversion Rehabilitation Study) • High: 7 firms (Riverton Regional Water Master Plan) Average submissions per project = 3.14 ≈ 3 (4.33 last year)

By Firm:

# of submissions by firm varied: • 11 firms - 1 project • 4 firms - 2 projects • 1 firm - 3 projects Average submissions per firm = 1.38 ≈ 1.4 (1.8 last year/2.1 previous year)

After Completion of the Short-Listing Exercise:

• 20 of 22 submissions still standing; 2 were eliminated. • 15 of 16 firms are still standing; 1 was eliminated. • 100% of firms still standing are in-state firms (same last yr; up from 96% previous yr). 2021 WWDC CONSULTANT INTERVIEW SCHEDULE

THURSDAY, OCTOBER 7TH 8:30 AM Sponsor Briefing Capitol Extension Rm #6

Clarks Fk/Upper Shoshone Pavillion GW Supply Dowlin Diversion Rehab Room: Capitol Extension Rm #4 Capitol Extension Rm #5 Capitol Extension Rm #6

9:00 AM 10:00 AM Commissioners Team: Open Project Manager Robertson Clarey Jones Commissioner 1 Craig Glick Choma Anselmi-Dalton Commissioner 2 Yankee Suchor Kailey Kot Advisor Jeff Cowley Brich Nick Scribner Lawson Sponsor Russ Dwyer/Carmen McIntyre Matt Pattison Darren Parkin Little

12:30 PM Sponsor Briefing Capitol Extension Rm #6

Riverton Reg Water MP Dayton Water MP LaGrange GW Supply W Afton/Nield String MP Room: Capitol Extension Rm #3 Capitol Extension Rm #4 Capitol Extension Rm #5 Capitol Extension Rm #6

1:00 PM 2:00 PM 3:00 PM Commissioners Team: Open Project Manager Tavelli Gondzar Clarey Jones Commissioner 1 Craig Little Anselmi-Dalton Choma Glick Commissioner 2 Yankee Suchor Kailey Kot Lawson Advisor Linch Brewer Fernandez Pavlica Sponsor Kyle Butterfield Norm Anderson Tracy Pragnell Jody Kennington Operating Criteria of the Wyoming Water Development Program TABLE OF CONTENTS

CHAPTER 1 – Introduction A. Purpose of the Operating Criteria 1 B. Program Philosophy 2 C. Changes in Program Criteria 2

CHAPTER 2 – Programs A. New Development Program 3 B. Rehabilitation Program 4 C. Dam and Reservoir Program 4 D. Small Water Project Program 5 E. Drinking Water State Revolving Fund 5 F. Water Resource Planning 5 G. Upper Colorado River Basin Fund Memorandum of Agreement 7 H. Colorado River Basin Fund Memorandum of Agreement 7

CHAPTER 3 – Applications – New Development and Rehabilitation Programs A. Project Sponsor/Public Entity 8 B. Applications for Projects New to the Program 8 C. Applications for Level II Projects 1011 D. Applications for Level III Projects 1112

CHAPTER 4 – Level III Funding – New Development and Rehabilitation Programs A. Project Budget 1415 B. Scheduling 1415 C. Level I and II Study Cost Sharing 1415 D. Financial Plan – Grant Loan Mix 1516 E. Financial Plan – Terms of the Loans 1516 F. Special Considerations for Subdivisions or Rural Domestic Projects Or Business Parks 1516 G. Sponsor’s Contingency Funds 1617 H. Reimbursement of Temporary or Emergency Funding 1617 I. State/Local Partnerships 1617 J. Abandonment of Construction Projects 1718

CHAPTER 5 – Priorities of Projects – New Development and Rehabilitation Projects A. Project Priorities 1819 B. Ineligible Projects and Associated Costs 1819

CHAPTER 6 – Dam and Reservoir Program A. Applications 2021 B. Level II – Phase III 2021 C. Financial Plan – Special Considerations for Dams and Reservoirs 2021

Approved November 5, 2020??????, 202? CHAPTER 7 – Recommendation Process 2223

ATTACHMENT I – Levels of Project Development 2425

ATTACHMENT II – Program Statutes 3031

ATTACHMENT III – Program Priorities for Water Development Account I 5354

ATTACHMENT III – Program Priorities for Water Development Account II 5455

ATTACHMENT III – Program Priorities for Water Development Account III 5556

Approved November 5, 2020??????, 202? Operating Criteria of the Wyoming Water Development Program

Chapter 1 Introduction

A. Purpose of the Operating Criteria

The Wyoming Water Development Commission (WWDC), comprised of ten (10) public members appointed by the Governor, has authority over the Wyoming Water Development Program. The Wyoming Water Development Office (WWDO) administers the program.

The 1975 Legislature passed W.S. 41-2-112(a), which established the purpose of the program:

“The Wyoming water development program is established to foster, promote and encourage the optimal development of the state's human, industrial, mineral, agricultural, water and recreational resources. The program shall provide, through the commission, procedures and policies for the planning, selection, financing, construction, acquisition and operation of projects and facilities for the conservation, storage, distribution and use of water, necessary in the public interest to develop and preserve Wyoming's water and related land resources. The program shall encourage development of water facilities for irrigation, for reduction of flood damage, for abatement of pollution, for preservation and development of fish and wildlife resources [and] for protection and improvement of public lands and shall help make available the waters of this state for all beneficial uses, including but not limited to municipal, domestic, agricultural, industrial, instream flows, hydroelectric power and recreational purposes, conservation of land resources and protection of the health, safety and general welfare of the people of the state of Wyoming.”

These criteria provide the WWDC, the WWDO and the public with general standards for evaluating and prioritizing applications for program funding, a general framework for the development of program/project recommendations and the generation of water related information.

In addition, these criteria have been developed to assist the WWDC and WWDO to establish priorities and procedures and to serve as a tool to coordinate with other state and federal programs, which provide funding assistance for water projects. The criteria are not intended to be inflexible or uncompromising rules but rather to provide general guidelines for use in the decision making process.

These criteria respond to the requirements of W.S. 41-2-112(a) that the WWDC adopt procedures and policies and W.S. 41-2-121(b) which requires the WWDC to establish criteria for evaluation and administration of water development programs. The statutes also provide specific program guidance and were considered in the development of these criteria. The state statutes guiding the Wyoming Water Development Program are provided in Attachment II.

1 Approved November 5, 2020??????, 202? B. Program Philosophy

The Wyoming Water Development Program was founded on the philosophy of utilizing a portion of the financial resources the state receives from the development and use of its non-renewable resources, such as coal, oil, and gas, to develop a renewable resource, water. The program provides long-term economic benefits to the State of Wyoming by providing information and water supply projects for the existing and future needs of the State of Wyoming and its citizens. Water availability is a key ingredient for the development of a stable Wyoming economy. The projects also provide short-term economic benefits to the State of Wyoming in the form of jobs and increased material and equipment sales.

Interstate compacts and water related court decrees serve as the primary defense of Wyoming's water entitlements. However, demands downstream of Wyoming are increasing at alarming rates. Lawsuits are being filed by downstream states questioning the intent of those compacts and decrees. Federal laws, rules and regulations are narrowing the window of opportunity to develop water resources. However, water development plans can serve to protect Wyoming's entitlements by documenting the need to develop additional sources of water to meet demands associated with anticipated growth and development. The program’s criteria are based on the general philosophy that responsible development and the efficient consumptive beneficial use of water will protect Wyoming’s compact and court decreed entitlements.

C. Changes in the Program Criteria

The criteria may be revised on a periodic basis to ensure the Water Development Program is serving Wyoming citizens in a responsible and efficient manner. The WWDC and Director of the WWDO may offer changes in the criteria. Proposed changes in the criteria shall be reviewed during the combined Select Water Committee/WWDC meeting in August. During the August meeting, the proposed changes in criteria may be given a preliminary approval or final disapproval. Those proposed changes that are preliminarily approved shall be reviewed by the public and may include a public hearing process.

The proposed changes which receive preliminary approval and which have been reviewed by the public shall be considered for final approval by the WWDC and Legislature’s Select Water Committee (SWC). The WWDC shall also weigh the comments provided by the public to determine whether a proposed change shall be accepted as written, amended or disapproved.

2 Approved November 5, 2020??????, 202? Chapter 2 Programs

A. New Development Program

The New Development Program develops presently unused and/or un-appropriated waters of Wyoming. The program is funded by Water Development Account No. I [W.S.41-2-124(a)(i)], which has received general fund appropriations and budget reserve account appropriations on occasion, as approved by the legislature; the interest earnings that have accrued to Water Development Account No. I; and a percentage (12.45%) of the revenues which accrue to the state’s severance tax distribution account. Legislative approval must be granted prior to allocating funds to a particular purpose or project.

The New Development Program provides an opportunity for sponsors to develop water supplies for existing and anticipated future needs to ensure that lack of water supply will not inhibit economic growth. The program encourages water development through state/local partnerships. The sponsor can complete a water supply project with state funding assistance. If a project is developed to meet the needs of the sponsor alone, the sponsor owns the project and its revenues. However, if there is an opportunity to sell water for other purposes, the sponsor and state share in the revenues from the sale in proportion to the grant/loan mix. This partnership is discussed in further detail in subsection I of Chapter IV of these criteria.

New development projects can proceed as sponsored projects or state projects.

1. Sponsored Projects

The project sponsor shall be a public entity that can legally receive state funds, incur debt, generate revenues to repay a state loan, hold title and grant a minimum of a parity position mortgage on the existing water system and improvements appurtenant to the project or provide other adequate security for the anticipated state construction loan. A project sponsor can be a municipality, irrigation district, joint powers board, or other approved assessment district, which will realize the major direct benefits of the project. The project sponsor must be willing and capable of financially supporting a portion of the project development costs and all operation and maintenance costs. Sponsors request project technical and financial assistance from the WWDC through the application process.

The sponsor may request that a Level I or Level II study be conducted to identify solutions and alternatives for addressing water supply issues or they may request funds for a Level III construction project if it is determined the project is technically and economically feasible and serves to meet a water supply need or alleviate a water supply problem.

2. State Projects

The typical state project serves to benefit more than one entity and is multipurpose in nature. Another common characteristic of state projects is that each has a difficult permitting or political issue, which must be addressed. These issues may include developing a partnership with the federal government, another state, and/or private

3 Approved November 5, 2020??????, 202? industry to encourage project development; resolving endangered species, water quality, or wetland issues; or addressing resistance to the project from downstream states.

The WWDC shall consider investments in state projects on a case-by-case basis. However, it should be recognized that present federal laws and regulations make it difficult to achieve federal clearances for projects in which there is not a clearly defined purpose and need.

B. Rehabilitation Program

The purpose of the Rehabilitation Program is to provide funding assistance for the improvement of water projects completed and in use for at least fifteen (15) years. The source of revenue for the program is Water Development Account No. II [W.S. 41-2-124(a)(ii)], which receives a percentage (2.10%) of the revenues that accrue to the state’s severance tax distribution account and the interest earnings that have accrued to Water Development Account No. II. Legislative approval must be granted prior to allocating funds to a particular purpose or project.

Rehabilitation projects are initiated by an application from a project sponsor. If the application is approved, the project is usually assigned a Level II status and can proceed through construction if it is determined the project is technically and economically feasible. The project sponsor must be willing and capable of financially supporting a portion of the project development costs plus all operation and maintenance costs.

The Rehabilitation Program serves to assist project sponsors in keeping existing water supplies effective and viable, thereby preserving their use for the future. Rehabilitation projects can improve an existing municipal or rural domestic water supply system or an agricultural storage facility or conveyance system. The projects serve to ensure dam safety; decrease operation, maintenance, and replacement costs; and/or provide a more efficient means of using existing water supplies.

C. Dam and Reservoir Program

Proposed new dams with storage capacity of 2,000 acre feet or more and proposed expansions of existing dams of 1,000 acre feet or more qualify for the Dam and Reservoir Program. The source of revenue for the program is Water Development Account No. III [W.S. 41-2-124(a)(iii)], which has received Water Development Account No. I appropriations and budget reserve account appropriations on occasion, as approved by the legislature; the interest earnings that have accrued to the Water Development Account No. III; and a percentage (0.5%) of the revenues which accrue to the state’s severance tax distribution account. Legislative approval must be granted prior to allocating funds to a particular purpose or project.

Dams and reservoirs typically provide opportunities for many potential uses. While water supply and use shall be emphasized in the development of reservoir operating plans, recreation, environmental enhancement, flood control, erosion control and hydropower uses should be explored as secondary purposes.

4 Approved November 5, 2020??????, 202? D. Small Water Project Program

Pursuant to W.S. 99-3-1903(k)(vii) and 99-3-1904(m)(vii), a small water project is a project where the maximum financial contribution from the WWDC is thirty-five thousand dollars ($35,000.00) or less.

Projects may include new development or rehabilitation of small reservoirs, pipelines, wells, windmills, springs, wetland developments, solar platforms, environmental, rural community fire suppression, recreation, and irrigation facilities. Projects must provide a public benefit such as mitigation of water quality impairments, enhancement of threatened or endangered species habitat, the development or enhancement of habitat and water for fish and wildlife, increased recreational opportunities, provide water for maintenance of the integrity and vitality of plant and animal communities, serve as instruments to improve rangeland condition, and make beneficial use of water.

E. Drinking Water State Revolving Fund

By enacting W.S. 16-1-302, the Legislature authorized the use of water development account funds to provide 50% of the state’s matching fund requirements for the federal Drinking Water State Revolving Loan Fund (DWSRF) program. The DWSRF program may be used to fund improvements to water treatment systems and to finance measures that address other Safe Drinking Water Act compliance issues. This program is not included in the annual Omnibus Water Bill considered by the Legislature. Water Development Program funds are appropriated automatically by statute to match 10% of the federal capitalization grant.

F. Water Resource Planning

The Wyoming Water Development Commission serves as the water-planning agency for the State of Wyoming. The duties and authority of the commission with respect to water resource planning are found in Wyoming Statute 41-1-106 and 41-1-107, and further described in Statutes 41-2-107 through 41-2-110. The water development planning function is an important aspect of the Water Development Program. Because the issues facing water development in the West are complex, the scope of the WWDC's planning efforts is not as closely defined as the New Development, Rehabilitation, and Dam and Reservoir Programs. The planning aspects of the Wyoming Water Development Program describe existing and future uses of Wyoming’s water, establish the framework for development strategies and serve to identify and resolve water issues. The source of revenue for the planning function of the program is typically Water Development Account No. I.

1. River Basin Plans

The program develops basin wide plans for each of the state's major drainage basins. These plans develop information concerning the current status and future availability of Wyoming’s water resources, in order to identify water supply problems and development opportunities. The plans serve to promote interest from water users who may become interested in a particular project and become project sponsors. Basin plans shall include the development of a water related database to provide data and information to feasibility studies, project developers and resource managers.

5 Approved November 5, 2020??????, 202?

2. Watershed Studies

These studies incorporate technical information that describe and evaluate the watershed’s existing conditions including hydrology, geology, geomorphology, geography, soils, vegetation, water conveyance infrastructure, and stream system data. Watershed Studies, developed through local public outreach, identify projects that are eligible for funding from WWDC and other sources. These projects help to improve or maintain watershed functions and systems.

3. Master Plans

Master plans provide a service to municipalities, districts and other entities to assist in the preparation of planning documents, which serve as a blueprint for future water supply system improvements. Master plans also serve as a framework for the entities to establish project priorities and to perform the financial planning necessary to meet those priorities. In addition, master plans assist entities in preparing the reports necessary to achieve federal funding assistance for water development, flood control, erosion control, hydropower, rehabilitation, watershed improvements and other water related projects. Sound water planning serves to promote the effective and efficient use of available water resources. Master plans provide information to users as to whether the resource can adequately service the existing and anticipated demands for water within a certain area and provide reconnaissance level information regarding costs and scheduling.

4. Research

Water development issues and problems may encompass watersheds, river basins or include the entire state. In order to address these issues, non-project specific research and data collection is necessary. The legislature has assigned the Water Development Program the following research tasks:

a. Instream Flow

The Wyoming Game and Fish Department (WGFD) selects candidate stream segments for instream flows. The WWDC files water right applications with the State Engineer for permits to appropriate water for instream flows in those segments of stream recommended by the WGFD. Further, W.S. 41-3-1004 assigns the WWDC the responsibility to generate feasibility reports for all instream flow permit applications. The reports are hydrological analyses of water availability in the reach of the stream to which the applications apply. The analyses also quantify existing water rights above and within the stream segment.

As the water-planning agency, the WWDC also reviews instream flow requests to determine whether they may conflict with future water development opportunities.

6 Approved November 5, 2020??????, 202? b. Groundwater Grant Program

W.S. 41-2-119 authorizes the Water Development Commission to grant funds to cities, towns, and special districts for exploration programs to evaluate the potential use of underground water for municipal and rural domestic purposes. Authorized entities are eligible to receive up to $400,000 in grant funds and are required to provide 25% of the total project costs in local matching funds. The primary purpose of the program is to inventory the available groundwater resources in the state. The program also serves to assist communities in the development of efficient water supplies. Unlike other projects within the Water Development Program, funding for projects that meet the criteria of the Groundwater Grant Program can be allocated directly by the WWDC without project specific legislation.

c. University of Wyoming’s Office of Water Programs

The Wyoming Water Development Program provides funding each year to the UW Office of Water Programs to fund non-project water related research. Annually, topics for potential research projects are solicited from Wyoming stakeholders. A Selection Committee, made up of federal and state agency representatives, prioritizes these topics and issues requests for proposals to address these areas of concern. From these requests, proposals are selected by the WWDC and SWC.

G. Upper Colorado River Basin Fund Memorandum Of Agreement

Pursuant to a Memorandum of Agreement (MOA) entered into on January 24, 2011 by the Colorado River Basin States, Colorado River Energy Distributors Association, Bureau of Reclamation and Western Power Administration, the State of Wyoming has certain specified rights to apply for and recommend the expenditure of a percentage of collected revenues defined under the Colorado River Storage Project Act. The WWDC is the body that accepts applications and provides recommendations for projects to be funded by the Bureau of Reclamation in Wyoming.

H. Colorado River Basin States Salinity Control Program (BSP)

The WWDC is the agency responsible for seeking Colorado River Basin Salinity Control Act funding from the Bureau of Reclamation to be used for salinity control projects in Wyoming. Once grant funds have been secured from the Bureau of Reclamation, the WWDC accepts applications from project sponsors to fund a portion of the projects. These funds are to be used for in-state salinity control projects that may not qualify for the basin wide salinity control project funding which is administered directly by the Bureau of Reclamation.

7 Approved November 5, 2020??????, 202? Chapter 3 Applications-New Development and Rehabilitation Programs

A. Project Sponsor/Public Entity

The project sponsor shall be a public entity that can legally receive state funds, incur debt, generate revenues to repay a state loan, hold title and grant a minimum of a parity position mortgage on the existing water system and improvements appurtenant to the project or provide other adequate security for the anticipated state construction loan.

The WWDC may waive the requirement that the project sponsor be a public entity for Level I studies. This will allow the applicant to know if there is a viable project prior to becoming a public entity. However, the applicant must be a public entity before applying for a Level II study. Under these circumstances, the Level I process will have a two-year duration with the study being completed the first year and the sponsor forming a public entity the second year. If the WWDC is to consider waiving this requirement, a representative of the applicant shall be required to appear before the WWDC to make a formal presentation on the project and to answer questions regarding the application.

B. Applications for Projects New to the Program

Typically, new applications are assigned to Level I status. Level I studies are reconnaissance level analyses and comparison of development alternatives. However, the designation of a Level I study is also used for master plans, watershed improvement studies and other water planning studies. Attachment I provides a detailed work plan of Level I studies.

1. Requirements for New Applications

The due date for new Level I and II project applications and application fees is March 1 of each year. The application must include a detailed description of the project, to include the sponsor’s perceived need for the project, a listing of available information pertinent to the project, and information describing the financial capabilities of the sponsor. The following must accompany the application:

a. An application fee of one thousand dollars ($1,000.00) must be submitted with each new project application. The application fee shall be deposited into Water Development Account No. I. Acceptance of the fee does not obligate the Water Development Commission or State of Wyoming to fund a study or provide construction funding for any proposed project or purpose. If the application is denied, then seventy-five percent (75%) of the application fee shall be refunded to the applicant. The authority to require an application fee is provided by W.S. 41-2-118(a)(xii).

b. A reimbursement of state funds expended on each new project will be assessed at the time of application with the exception of Watershed Studies. The reimbursement fee will be based upon total number of taps or irrigated acres under the control of the applicant according to the table below. The reimbursement fee shall be deposited into Water

8 Approved November 5, 2020??????, 202? Development Account No. 1. Acceptance of the fee does not obligate the Water Development Commission or State of Wyoming to fund a study or provide construction funding for any proposed project or purpose. If the application is denied, the reimbursement fee shall be refunded to the applicant. The authority to require a reimbursement fee is provided by W.S. 41-2-112(b)(iii).

Reimbursement fee Number of Taps Irrigated Acres $1,000 ≤ 2,000 ≤ 9,000 $2,000 2,001 to 9,000 9,001 to 20,000 $3,000 ≥ 9,001 ≥ 20,001

a.c. A certified original of a resolution passed by the council or governing body of the sponsoring entity shall be provided with an application. Applicants that are not public entities shall provide evidence of support for the application by providing letters or petitions from interested water users as a substitute for a resolution. If the applicant is not a public entity at the time of the application, a written description of all steps completed by the sponsor to become a public entity and proposed time line for completion of requirements to become a public entity. This shall include a listing of all landowners notified by the sponsors of the intent to submit a funding application and form a special district.

cd. The following financial information:

i. The annual budget for operation, maintenance, and replacement of the water supply system and a description of past maintenance and replacement costs paid by the sponsor in the last 10 years without using funding from the Wyoming Water Development accounts;

ii. The existing balance in any emergency funds and sinking funds for the water supply system;

iii. Water rates, tap fees, and other revenue sources; and

iv. Amount of funding obtained from other revenues for operation, maintenance, and replacement of the water supply system.

de. A map of the area proposed to be included in the Level I study. If the study is of a domestic or municipal nature, such map shall also include the surrounding areas which could be developed.

ef. If a study is of a municipal or domestic nature a description of whether

9 Approved November 5, 2020??????, 202? completion of a regional study has been considered by the sponsor, and a description of what could be involved in any proposed regionalization and the pros and cons of regionalization.

fg. Completed, current year, “Wyoming Water Development Office Irrigation District/Canal Company Survey” or “Wyoming Water Development Office Public Water System Survey” for Agricultural Water Projects, Municipal and Joint Powers Board Water Systems and Rural Domestic Water Systems applications as provided by the office.

h. The Sponsor must be in compliance with all applicable reporting requirements with Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered.

2. Review Requirements for New Applications

Review of new applications shall comply with or address the following:

a. The WWDO project manager assigned to review the application shall advise the applicant of the timetable for project review and evaluation.

b. A representative of the WWDO shall inspect the proposed project.

c. The WWDO project manager shall compile a list of all newly proposed studies that could be considered for completion of a regional study with the proposed project.

d. A list of all past Level I, Level II and Level III projects, including completion dates or proposed completion date for the project area by the WWDC pertinent to the proposed project.

3. The acceptance of the project application for review by the Wyoming Water Development Commission to determine its incorporation into the program shall be based on the following criteria:

a. The proposed project must be consistent with the goals and objectives of the Wyoming Water Development Program as outlined in W.S. 41-2-112 and these criteria.

b. The Water Development Program must be the most appropriate source of funds for project study and construction.

c. There must not be any apparent economic, legal, environmental or technical problems that would impair or prohibit project development.

d. The proposed projects must serve fifteen (15) or more

10 Approved November 5, 2020??????, 202? municipal/domestic water taps or 1,000 or more water righted acres. The WWDC may waive the requirement for water meters if there is no existing water supply system or the sponsor demonstrates that water meters will be installed in the near future.

e. Sponsors who pass a local capital facilities tax and commit other local tax revenues to a project may receive a priority ranking when compared with projects of a similar nature without such funding sources. While the Water Development Program provides for loans and grants, the willingness and ability of project sponsors to assume responsibility for repayment of project costs shall be a factor in the selection of projects to receive state assistance.

C. Applications for Level II Projects

The typical Level II process consists of two phases, which serve first to address project feasibility and then, if the project is determined feasible, to refine the project to the status necessary for a Level III funding request. Attachment I provides a detailed work plan for a complex Level II study.

1. Requirements for Applications for Level II Projects

a. Applications seeking Level II status for a project new to the program must comply with the requirements specified in section B.1.

b. The due date for applications for Level II status for projects already in the program, which are seeking funding for an advanced study level is March 1 of each year. An application fee of one thousand dollars ($1,000.00) must be submitted with each Level II application with the exception of projects advancing in the Water Development Program from Level I studies which were completed within the last 5 years. The application fee shall be deposited into Water Development Account No. I. Acceptance of the fee does not obligate the Water Development Commission or State of Wyoming to fund a study or provide construction funding for any proposed project or purpose. If the application is denied, then seventy-five percent (75%) of the application fee shall be refunded to the applicant. The authority to require an application fee is provided by W.S. 41-2-118(a)(xii). Sponsors of continuing projects must submit an application with a copy of a resolution of the governing body.

c. A reimbursement of state funds expended on each Level II project will be assessed at the time of application with the exception of projects advancing in the Water Development Program from Level I studies which were completed within the last 5 years. The reimbursement fee will be based upon total number of taps or irrigated acres under the control of the applicant according to the table below. The reimbursement fee shall be deposited into Water Development Account No. 1. Acceptance of the fee does not obligate the Water Development Commission or State of Wyoming to fund a

11 Approved November 5, 2020??????, 202? study or provide construction funding for any proposed project or purpose. If the application is denied, the reimbursement fee shall be refunded to the applicant. The authority to require a reimbursement fee is provided by W.S. 41-2-112(b)(iii).

Reimbursement fee Number of Taps Irrigated Acres $1,000 ≤ 2,000 ≤ 9,000 $2,000 2,001 to 9,000 9,001 to 20,000 $3,000 ≥ 9,001 ≥ 20,001

d. The Sponsor must be in compliance with all applicable reporting requirements with Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered.

2. Review Requirements for Level II Status

a. The WWDC may introduce projects into the program at Level II status if the application provides a definition of the project configuration and there is evidence that the project will provide a viable water supply or rehabilitate an existing water supply. Often, rehabilitation projects can be introduced into the program at Level II status as the projects are clearly defined.

b. After the Level I studies under the Program are completed, the WWDC shall initiate its review process to determine if the project should proceed to Level II. During its November meeting, the Commission shall review the findings of the Level I report, consider the sponsor's input, and make its preliminary recommendations.

D. Applications for Level III Projects

Level III work activities include project design, permitting, land acquisition, construction and construction engineering. Attachment I provides a detailed work plan for a complex Level III construction project.

1. Requirements for Applications for Level III Projects

a. Applications seeking Level III status for a project new to the program must comply with the requirements specified in section B.1., but have a due date of September 1 of each year.

b. The due date for applications for Level III status for projects already in the program, which are seeking funding for an advanced study level or for construction, is September 1 of each year. A copy of a resolution of support from the governing body must be attached to the application. An application fee of one thousand dollars ($1000.00) must be submitted with each application with the exception of projects advancing in the Water Development Program from studies which

12 Approved November 5, 2020??????, 202? were completed within the last 5 years. The application fee shall be deposited into Water Development Account No. I. Acceptance of the fee does not obligate the Water Development Commission or State of Wyoming to fund a study or provide construction funding for any proposed project or purpose. If the application is denied, then seventy-five percent (75%) of the application fee shall be refunded to the applicant. The authority to require an application fee is provided by W.S. 41-2-118(a)(xii).

c. Applicants for municipal or rural domestic water supply projects must have individual water meters and use, or plan to use, the meters for purposes of billing for water use.

d. Written verification from any city, county, or special district that is impacted by the project that they have been notified of the project and its potential impacts.

e. All applications for Level III funding for subdivision or rural domestic projects must be accompanied by a letter or a resolution of support from the effected city council and/or county commission.

f. All applications shall contain a comprehensive financing plan for the project which includes a listing of all funding sources anticipated to be used by the applicant and a schedule showing when these funding sources are expected to become available.

g. The Sponsor must be in compliance with all applicable reporting requirements with Wyoming Department of Audit and Wyoming Department of Revenue prior to its application being considered.

2. Review Requirements for Level III Status

a. The WWDC may introduce projects into the program at Level III status if the project sponsor has completed a feasibility study that meets WWDC requirements. Feasibility study requirements include a thorough analysis of the problem, future demand projections, evaluations of practical alternatives including detailed cost estimates, constructability, institutional constraints, operational considerations and financial analyses. Feasibility studies completed outside the Program must be submitted before June 1 to complete a review process and determination that the study meets the above requirements prior to the Level III application deadline.

b. After the Level II studies under the Program are completed, the WWDC shall initiate its review process to determine if the project should proceed to Level III. During its November meeting, the Commission shall review the findings of the Level II report, consider the sponsor's input, and make its preliminary recommendations.

13 Approved November 5, 2020??????, 202?

Projects shall not progress to Level III construction status unless the sponsor and state are committed to complete the project. Issues that should be considered and addressed in the development of Level III recommendations include:

i. Does the project meet the requirements of these criteria?

ii. Is the project affordable given the existing status of the water development account and prior commitments to the account?

iii. Does the project appear to be a good investment for the State of Wyoming considering primary, secondary or indirect project benefits?

iv. Does the project meet the existing and future needs of the sponsor?

v. Is the project economically feasible for the sponsor after all project costs are considered, including debt retirement and costs of project operation, maintenance and replacement? c. The project sponsor must be willing to:

i. Assume financial responsibility for the project.

ii. Assure that the project will be designed and inspected by registered professionals, i.e., licensed engineers and geologists.

iii. Repay state grants and loans, including lost interest earning opportunities, if the project is voluntarily abandoned by the sponsor. d. After other funding sources have been considered, the Water Development Program’s per tap or per acre investment shall be compared to the sponsor’s ability to pay. Project sponsors shall be given the option of making a formal presentation to the WWDC relative to that sponsor’s ability and willingness to pay for the project if the Commission determines that the project should not advance due to high repayment costs. The sponsors’ presentation should address the need for the project, the direct and indirect benefits of the project, and any other pertinent information relative to the sponsors’ case for project funding.

14 Approved November 5, 2020??????, 202? CHAPTER 4 Level III Funding-New Development and Rehabilitation Programs

The Commission shall consider project specific information and sponsor input, when developing its preliminary recommendations for funding of Level III projects. If it is determined that the project should proceed to Level III, the following shall also be addressed in the Commission’s recommendations:

A. Project Budget

The project budget shall include costs associated with project permitting, design, land acquisition, construction engineering, and construction.

B. Scheduling

Cash flow considerations are imperative in scheduling the commitment of water development funds for the New Development and Rehabilitation Programs. The annual requests for WWDC funding typically exceed the funding available.

1. Phasing

The WWDC may need to phase construction funding requests to the legislature for projects. Under these circumstances, the total project budget must be included in the phased funding requests to the legislature to document that it is the WWDC’s intention to seek additional funding in subsequent sessions.

2. Sponsor’s Financing Plan

Sponsors may seek alternative funding to replace all or a portion of the WWDC loan to make the project more affordable. In addition, the sponsors may need to secure alternative funding for project components not eligible for WWDC funding. There are often uncertainties and delays in acquiring loans and, particularly, grants from other funding agencies. The sponsor’s ability to complete their financing plans in a timely manner is a consideration in the WWDC’s funding decisions. The WWDC may give priority in its Level III funding deliberations to the projects in which the sponsor has a finalized financing plan or there is documented evidence that the financing will be in place within the calendar year in which the Level III project funding is approved by the Legislature.

C. Level I and Level II Study Cost Sharing

The WWDC shall determine if the sponsor should be required to pay a portion of the Level I or Level II study costs incurred to develop the recommended alternative needed to secure funding for Level III construction. Typically, the WWDC is the lead agency in developing Level I and Level II reports. The Commission solely funds the studies to ensure the reports are unbiased and performed in such a manner as to determine whether the state should invest in the project. This procedure was also established because the project is better served if the sponsor uses its financial resources to fund its share of the project or to service the debt associated with the construction loan. However, in those exceptional cases where the sponsor assumes the role of lead agency in Level I and Level II studies,

15 Approved November 5, 2020??????, 202? it shall share in the costs of those studies. Further, if through the Level II process, a groundwater well is developed that will be used as the water source for a Level III project, the sponsor shall share in the cost of the well.

D. Financial Plan - Grant Loan Mix

1. The maximum grant shall be seventy-five percent (75%) for proposed Level III projects. In order to obtain the maximum grant, the sponsors must demonstrate to the WWDC that the maximum grant is warranted due to severe financial hardship.

2. The typical grant shall be sixty-seven percent (67%) for proposed Level III projects. In order to obtain the typical grant, the sponsors must demonstrate to the WWDC that they have taken steps or are willing to take steps to make their water supply systems financially self-supporting.

3. The WWDC may provide lesser grant amounts for proposed Level III projects that do not qualify for 1 or 2, above.

E. Financial Plan - Terms of the Loans

1. Statutory guidelines establish a minimum rate of four percent (4%) for program loans. The current rate is 4% but may be increased by the Legislature.

2. W.S. 41-2-121 specifies the term of the loans cannot exceed fifty (50) years after substantial completion of the project. Further, the term of the loan shall never exceed the economic life of the project. The sponsor's method of loan repayment (water rates, taxes, bonds, etc.) shall also be considered in establishing the term of the loan.

3. The statutes allow the WWDC to recommend that the payment of interest and principal be deferred up to five (5) years after substantial completion of the project. In addition, the WWDC can recommend that the accrual of interest also be deferred during the term of the payment deferral. These special conditions shall be granted only on a limited basis. The sponsor's method of repayment and the longevity of the sponsor’s existence as a legal entity shall be key considerations in determining if this deferment should be granted. In no event can the combined deferment and term of the loan exceed fifty (50) years.

4. If a project sponsor does not have the authority or ability to collect sufficient funds for the operation and maintenance of a project, an operations and maintenance account shall only be required for project sponsors that have taken out a loan for any portion of the project expense and shall not be required after the loan has been repaid. The funds required in any operations and maintenance account shall not exceed ten percent (10%) of the project cost.

F. Special Considerations for Subdivisions, Rural Domestic Projects or Business Parks

1. In accordance with the WWDC’s support of the regional concept to solve water supply problems, funding preference will be given to those water supply

16 Approved November 5, 2020??????, 202? projects for subdivisions or rural domestic projects that are proposing to connect to another existing public water supply system.

2. Financing plans for water supply systems for subdivisions or rural domestic projects will ensure that the developer of the subdivision does not receive a “windfall” from project.

3. Water system improvements to support development of new business parks are typically funded by the developer. WWDC funding may be used to supply water to industrial and business parks when the development is not the primary justification for the water supply project.

G. Sponsor’s Contingency Funds

The Wyoming Legislature was granted authority to use appropriations for the New Development and Rehabilitation Programs to provide supplemental funding for sponsors' existing Level III new development construction projects when construction budgets have been rendered insufficient due to inflation or an unexpected increase in material costs, change in materials or increase in the quantities of materials necessary to complete the final project design. The WWDC is authorized to consider and approve supplemental funding to complete existing water development program Level III construction projects any time during the calendar year. The supplemental funding is added in proportion to the grant/loan mix for the project.

H. Reimbursement of Temporary or Emergency Funding

The WWDC may recommend that the legislature reimburse or provide refinancing for projects in which the project sponsors acquired temporary or emergency funding from the State Land and Investment Board (SLIB), if those projects meet these criteria and if the WWDC agreed to recommend refinancing prior to the application for SLIB funding.

I. State/Local Partnerships

The program has a philosophy that water development can be achieved through state/local partnerships. The sponsor can complete a water supply project with state funding assistance. If the sponsor uses all of the water, the project basically belongs to the sponsor. However, if there is the opportunity to sell water for other purposes, the sponsor and state share in the revenues. This ensures that a project sponsor will not receive a “windfall” from the sale of water that was made available, in part, from a state grant. Therefore, if the project develops a new water supply, the WWDC shall establish the terms of the program's participation in the future sale of water in the project agreement in the following manner:

1. There shall be no lease, sale, assignment or transfer of ownership of water from municipal and irrigation projects funded by the program without prior written approval of the WWDC.

2. There shall be no lease, sale, assignment or transfer of ownership of water from rural domestic projects funded by the program without prior written approval of the WWDC.

17 Approved November 5, 2020??????, 202? 3. If the WWDC approves such sales, the program will receive a share of the revenues from the sale commensurate with the percent of the grant used to construct the project.

4. There shall be no lease, sale, assignment or transfer of ownership of a project funded by the program until the project loan is paid in full and until prior written approval is obtained from the WWDC. The WWDC will ensure that the project sponsor does not receive a “windfall” from the state’s investment in the project.

J. Abandonment of Construction Projects

If the WWDC determines that any project sponsor has, without good cause, abandoned the completion of the project, that sponsor, in addition to being required to repay the loan, shall be obligated to repay the grant funds actually expended plus interest as established by the state auditor in an amount equal to the interest that would have accrued on the expended grant funds. If these payments are deemed by the WWDC to provide a financial hardship on the sponsors, the WWDC may recommend to the legislature that a loan be approved to repay the program. The recommended interest on the loans will be 4% per year and the term will be based on the ability to pay of the sponsor.

18 Approved November 5, 2020??????, 202? Chapter 5 Priorities of Projects-New Development and Rehabilitation Projects

A. Project Priorities

As previously discussed, the statutory guidelines are sufficiently broad to allow the program to address all types of projects involving water. However, in order to establish priorities and to utilize available program funds effectively and efficiently, it is necessary to develop priorities relative to the types of water projects the program should pursue. The WWDC has established eligible project priorities for each of the three Water Development Funds. Those priority schedules are listed in Attachment III.

B. Ineligible Projects and Associated Costs

In order to further clarify the list defined under program priorities, the following are examples of projects/investments that shall not be considered for funding under the program:

1. Refinancing of Previously Completed Improvements – Refinancing of existing projects that have been financed with non-state resources is not an allowable program expense. Further, refinancing may conflict with goals and objectives of other programs.

2. Wastewater Projects – Wastewater treatment plants and collector systems shall not be funded under the program.

3. Recreation – Projects with the sole purpose of providing recreation benefits are difficult to pursue under the program given its purpose to promote consumptive use. However, the opportunity to provide recreation benefits should be considered in the operating plan of new storage projects.

4. Environmental Enhancement – Although the feasibility of providing or rehabilitating environmental improvements shall be considered on all program projects, the program does not have the resources to pursue projects that solely serve environmental enhancement purposes.

5. Flood Control – Projects that deal solely with flood control are essential in many parts of the state. There are active federal funding programs that serve this purpose. Therefore, sponsors are encouraged to seek funding from these alternate sources.

6. Hydropower Projects – Hydropower facilities should be generating sufficient revenues to finance operation, maintenance, and replacement without state assistance. As such, the program will not provide Level III funding for permitting, design and construction of hydropower projects.

7. Erosion Control – While improvements to natural streams are sometimes necessary to keep existing water supplies viable, these improvements are typically performed through private or federal funding and should not be funded under the program.

19 Approved November 5, 2020??????, 202? 8. Distribution Systems – For purposes of program implementation, distribution systems are considered to be those facilities whose primary purpose is to deliver water to individual users. There is alternate financing available for distribution systems through other state and federal programs.

9. Water Treatment Facilities – The program has not participated in water treatment facilities with the exception of disinfection facilities needed to connect groundwater wells to a supply system when it expedites the completion of the project. The need for improvements to treatment facilities is considered in the generation of master plans. However, project sponsors are advised that they will need to seek alternate funding for water treatment plants.

10. Subdivisions – For those subdivisions required to undergo review pursuant to W.S. 18-5-306(c), the WWDC shall disqualify a project proposed to correct problems identified in the review performed by the Department of Environmental Quality where the Board of County Commissioners approved a subdivision application notwithstanding the Department's recommendation that the application be disapproved.

11. System Maintenance – Those project components that the Water Development Office staff considers to be more appropriately constructed as a maintenance improvement.

12. Legal Fees – Legal fees required by the sponsor to review contracts, easements, settle disputes or otherwise advise the Sponsor on legal issues pertaining to the project are the responsibility of the Sponsor.

13. Water Rights – The development of petitions to the Wyoming Board of Control (BOC) to change existing water rights or representing the Sponsor in any BOC matters.

14. Engineering Fees – Engineering fees, including design, inspection and construction contract administration costs in excess of twenty percent (20%) of WWDC approved construction costs.

15. Audits – All costs associated with audits of sponsor operations, revenues and expenditures.

20 Approved November 5, 2020??????, 202? Chapter 6 Dam and Reservoir Program

The scope of the Dam and Reservoir Program specifically pertains to projects that enlarge existing storage projects by 1,000 acre-feet or greater or for proposed new dam and reservoirs with a capacity of 2,000 acre-feet or greater. The WWDC uses its River Basin Plans and Watershed Studies to promote project sponsors for dam and reservoir projects. Use of the storage water upon project completion is a key consideration in the viability of dam and reservoir projects. Therefore, the WWDC is seeking partners that will put the water to use. In order to attract these partners, the WWDC has adopted the following exceptions to the criteria for the New Development and Rehabilitation Programs, specifically for the Dam and Reservoir Program.

A. Applications

The WWDC may accept applications related to the construction of dams and reservoirs from applicants that are not public entities. As the evaluations of the feasibility of new dams are complex, this will allow the applicant to know if the proposed reservoir is feasible prior to becoming a public entity. However, the applicant must be a public entity before applying for Level II, Phase III funding.

Applicants shall provide evidence of support for the application by providing letters or petitions from interested water users as a substitute for a resolution. . B. Level II-Phase III

In addition to the traditional two-phased evaluations completed at Level II status, the Level II process for dams and reservoirs includes a third phase. Work that would normally be completed under the Level III construction process for the New Development and Rehabilitation Programs can be completed under Level II-Phase III for dam projects. Work included under this phase includes final engineering design, reviews required by the National Environmental Policy Act, consultations required by the Endangered Species Act, and acquisition of state and federal permits. Level II-Phase III may be warranted as the federal permitting process for dams and reservoirs is very complex and could ultimately impact the feasibility of the project. If the Level II-Phase III process is successful and the sponsor decides to proceed to Level III-Construction, the sponsor shall share in the cost of the Level II, Phase III services unless the WWDC agrees to pay these costs in accordance with subsection C.2 below. Legislative approval, through the omnibus water bill process, is required before initiation of Level II, Phase III activities.

C. Financial Plan – Special Considerations for Dams and Reservoirs

1. The WWDC may recommend a loan/grant mix based on the sponsor’s ability to pay a portion of the project costs and all of the operation, maintenance, and replacement costs.

2. The WWDC may recommend that permitting and design costs be paid by the program thereby reducing the costs applied to the loan/grant mix.

21 Approved November 5, 2020??????, 202? 3. The WWDC may recommend that the program pay for the storage capacity needed to provide water for environmental mitigation and enhancement thereby reducing the costs applied to the loan/grant mix.

4. The WWDC may recommend any combination of the above.

5. The statutes allow the WWDC to recommend that the payment of interest and principal be deferred up to five (5) years after substantial completion of the project. In addition, the WWDC can recommend that the accrual of interest also be deferred during the term of the payment deferral. These special conditions shall be granted only on a limited basis. The sponsor's method of repayment and the longevity of the sponsor’s existence as a legal entity shall be key considerations in determining if this deferment should be granted. In no event can the combined deferment and term of the loan exceed fifty (50) years.

22 Approved November 5, 2020??????, 202? CHAPTER 7 Recommendation Process

The Water Development Commission uses the following process to generate funding recommendations for legislative consideration.

1. Level I and II Applications

The deadline for Level I and II project applications is the first of March. Upon receipt, new applications and supporting documentation are reviewed, and project sites are visited as applicable. The WWDC makes preliminary recommendations regarding applications at its November meeting.

2. Level III Applications

The deadline for Level III project applications is the first of September. Typically, consultant project reports are drafted by this date and are reviewed to determine whether the projects warrant advancement in the program.

3. Preliminary Recommendations

At the November WWDC meeting, the WWDO director presents funding recommendations for new applications and existing projects. Project sponsors are given the opportunity to present their requests. The WWDC takes preliminary action on the sponsor’s request at this meeting.

4. Public Meetings

If a proposed Level I Reconnaissance Study or Level II Feasibility Study is of particular concern or controversy, the WWDC may solicit public input at a public meeting prior to finalizing its project recommendation.

5. Public Hearings

The Commission holds formal public hearings on all projects that are proposed for Level III Construction funding.

6. Coordination with the Governor

The WWDC provides the Governor with its preliminary recommendations and a financial report addressing impacts to the water development accounts. The Governor may provide input throughout the recommendation process.

7. Final Recommendations

The WWDC meets in December or early January to finalize its legislative recommendations on new applications and existing projects. The Commission considers public input received at the meetings and hearings and recommendations from the Governor. Sponsors and interested parties who disagree with the

23 Approved November 5, 2020??????, 202? Commission’s preliminary recommendation are provided the opportunity to address the Commission with their concerns.

8. Select Water Committee

The Select Water Committee is comprised of 6 senators and 6 representatives. They provide legislative oversight for the program, and review the Commission's recommendations and budgets. Typically, the Select Water Committee serves as the sponsor for the Water Development Program legislation.

9. Legislative Process

The legislature must authorize the allocation of funds from the water development accounts to particular projects. This approval is solicited through the Omnibus Water Planning and Construction Bills.

24 Approved November 5, 2020??????, 202?

ATTACHMENT I LEVELS OF PROJECT DEVELOPMENT

ATTACHMENT I Levels of Project Development

The following levels of project development are based on complex new development projects. Some aspects of the studies may not be necessary for some new development projects or rehabilitation projects in which the scope of the project is better defined.

A. Level I Study Description

Level I studies are preliminary analyses and comparison of development alternatives. However, the designation of a Level I study is also used for master plans, watershed improvement studies and other water planning studies. The following outline relates to project specific Level I studies:

1. The typical Level I study shall identify or provide the following:

a. Development options;

b. Potential project beneficiaries and the benefits each option could provide;

c. Factors that could impair or prohibit the development of any identified option including legal constraints.

d. An analysis of water rights including identification of conflicting prior rights; and

e. Option comparisons based on physical and legal water availability, technical, economic, legal, and environmental considerations.

f. A review of the sponsor’s methods for financing the operation, maintenance, and replacement of the existing water supply.

2. Level I studies shall be performed in sufficient detail to identify projects or project options, if any, that should be pursued. In evaluating projects that could be advanced to Level II, the following considerations shall be made:

a. Whether there is an opportunity to economically develop water or maintain an existing supply for Wyoming's use and benefit;

b. Whether the project may be configured to provide service to a regional service area encompassing more than a single entity;

c. Whether there are viable solutions to resolve technical, legal and environmental problems.

25 Approved November 5, 2020??????, 202? B. Level II, Phase I – Study Description

The typical Level II process consists of two phases, which serve first to address project feasibility and then, if the project is determined feasible, to refine the project to the status necessary for a Level III funding request.

1. A Level II, Phase I investigation shall provide the following:

a. A reasonable quantification of the amount of water that can physically and legally be developed or maintained;

b. A determination of water needs that could be or are being served by the project;

c. A determination of technical feasibility including a safety analysis; and for dam and reservoir projects (including stock ponds), a geotechnical and basin geomorphology analysis;

d. A general configuration depicting preliminary physical characteristics of the project;

e. A preliminary project operation plan;

f. Cost estimates for construction, consultant services, and operation, maintenance, and replacement;

g. Identification of direct and indirect benefits that result from the implementation of the project;

h. Identification of costs and benefits that would result by incorporating recreation, hydropower generation, and flood control functions into the project operation;

i. A description of economic, legal, environmental, and administrative problems and identification of alternate solutions to those problems;

j. Identification of lands that may be affected by the project;

k. An analysis of the project sponsor’s ability to pay;

l. A determination of project components that are eligible for WWDC funding and project components that are not eligible; and

m. A financing plan identifying changes in the sponsor’s water financing methods including water rates or charges, tap fees, sinking funds, and other revenues that should be implemented to fund the project. In addition, the financing plan should address alternate sources of funding for the project including project components that are not eligible for WWDC funding. The financing plan should

26 Approved November 5, 2020??????, 202? provide a comparison of alternate sources of funding identifying the costs and schedule associated with achieving such funding. Associated inflation costs caused by the time required to achieve the funding will be considered.

2. Once all Level II, Phase I investigations have been completed, the WWDC will evaluate the results and will consider the sponsor's need for the project, interest in the project, and willingness and ability to financially participate in the project to determine if the project should proceed to Level II, Phase II.

C. Level II, Phase II – Study Description

A Level II Phase II investigation shall include the following design and technical services:

1. Hydrological investigations;

2. An operating plan that addresses water management during and after construction;

3. A conceptual design and general configuration of the project;

4 The identification of state and federal permits and clearances necessary to construct the project;

5. An environmental analysis, including environmental assessments, etc., of the proposed project’s operation and configuration, including:

a. The identification of anticipated impacts on or improvement to water quality which may occur as a result of the project, i.e., total dissolved solids or total suspended solids, etc.;

b. An assessment of the longevity of dam and reservoir projects, including stock ponds, with respect to sediment loading and hydrologic events;

c. Identification of the potential to develop wetlands eligible for Wyoming’s Wetland Banking Program; and

d. The performance of a cultural resource survey of the general project area, as applicable.

6. The development of a detailed schedule of the activities necessary to complete the project;

7. The preparation of an itemized project budget that includes costs for design engineering, permitting, land acquisition, construction, construction engineering, operation, maintenance and replacement, and a financing plan; and

27 Approved November 5, 2020??????, 202? 8. The preparation of a socioeconomic analysis of the costs and benefits of the proposed project. This analysis shall include the net present value of the stream of benefits and costs associated with the project. The net present value shall be calculated using a discount rate based on a real rate of return as opposed to a market or nominal rate of return. Sociological and environmental consequences of the project shall be described where values are difficult to place on either benefits or costs.

9. Presently, there are federal programs which provide funding assistance for some types of water development projects. However, in order to access these funds, costly feasibility/environmental studies are often needed. If these studies cause a financial burden and if the proposed project alleviates a water development, management, rehabilitation problem, or allows the continued beneficial use of water, the WWDC shall consider participating in the studies. The amount of the WWDC’S financial participation shall be based on the proponent’s ability to pay.

10. Input from Local Officials

During the Level II process when it is apparent that the project will be a candidate for Level III funding, the following analyses will be completed:

a. Implications of the project on water and energy use of the community or general area;

b. Implications of the project on the future growth of the community or general area; and

c. The impacts of the project on the operating expenses of any other city, county or special district possessing jurisdiction over a service obligation to the project area. Written verification from the impacted city, county, or special district must be submitted documenting that the impacts to them are understood and accepted.

D. Level III Construction

The following activities must be addressed once the Legislature appropriates funds to construct the project:

1. The project agreement, note and security agreement, which formalize sponsor and WWDC project responsibilities and the financing procedures, shall be the first activity undertaken. Funds cannot be committed for expenditure until these documents are executed.

For those projects where the sponsors wish to pursue construction using their own manpower and equipment, the project agreement shall reflect that funding is only available to pay the cost of invoiced materials. Permit and easement acquisition and retaining labor, equipment and professional services are the obligation of the sponsor.

28 Approved November 5, 2020??????, 202? 2. For projects that are funded through a combination of funding sources, the sponsors shall certify that all funding has been secured and is available for project purposes before construction can commence.

3. The Sponsor shall select a design and construction delivery method. The sponsor may select one of the following delivery methods: design-bid-build, design- build, or construction manager at risk.

4. Professional services required for design, permitting and construction engineering shall be secured pursuant to the requirements of the State Board of Engineers and Surveyors and the Board of Registration for Professional Geologists.

If the sponsor wishes and, if approved by the director, the sponsor may retain the firm that completed the project specific Level I or Level II study for the project under contract with the program. This option is only available if it meets the requirements and procedures of the sponsor and if the firm is a resident Wyoming firm.

5. For projects other than storage projects, environmental impact statements or assessments shall be prepared, as required.

For storage projects, environmental review and permitting may be addressed during the Level II, Phase III Study.

6. For projects other than storage projects, permit applications shall be prepared to secure all necessary construction permits and approvals.

For storage projects, environmental review and permitting may be addressed during the Level II, Phase III Study.

7. For projects other than storage projects, the construction documents, including technical specifications, drawings and contract documents shall be prepared. This work may be performed concurrently with the permitting process if it doesn’t adversely impact project feasibility.

For storage projects, final engineering design, the construction documents, including technical specifications, drawings an d contract documents, shall be prepared during the Level II, Phase III Study. This work may be performed concurrently with the permitting process. The Commission may issue a stop work order for those storage projects where ongoing permit activities indicate that the project may be fatally flawed.

8. Easements or fee titles necessary to construct the project shall be acquired. The scheduling of this task shall be sequenced to minimize impacts to property owners and to expeditiously construct the project.

9. Mitigation of project impacts on cultural resources shall be undertaken.

10. Construction of the project and construction administration/inspection shall commence upon the issuance of the notice to proceed.

29 Approved November 5, 2020??????, 202? 11. The date project benefits accrue to the sponsor, for purposes of triggering loan repayment schedules, shall be determined by the Commission.

12. Once compliance with regulatory permitting conditions has been achieved and reclamation and mitigation activities have been completed, project close- out procedures may be initiated.

30 Approved November 5, 2020??????, 202?

ATTACHMENT II PROGRAM STATUTES TITLE 41

Attachment II Program Statutes Title 41

41-1-106. Water and related land resources planning; commission’s responsibility

The commission is responsible for the coordination of Wyoming’s water and related land resources planning and with the approval of the governor is authorized to enter into contracts and agreements with the United States of America or its duly authorized representative agency for planning pertaining to the utilization of Wyoming’s water and related land resources.

41-1-107. Water and related land resources planning; authority of commission

(a) With the approval of the governor the commission is authorized to accept federal funds through grants or matching funds or from other sources for water and related land resources planning.

(b) The commission is authorized:

(i) To adopt rules and regulations as are necessary to implement any programs which may be required of the state by federal water and related land resources planning legislation; and

(ii) To implement any programs which are required by this legislation to make the state eligible to receive funds from the federal government to carry out water and related land resources planning.

41-2-107. Water resources plans; review; submission to commission.

The commission shall formulate and from time to time review and revise water and related land resources plans for the state of Wyoming and for appropriate regions and river basins. The plans shall implement the policies stated in the Wyoming constitution and in statutes pertaining to the state’s water and related land resources.

41-2-108. Water resources plans; powers of commission.

(a) In the formulation of these plans the commission may:

(i) Repealed by Laws 1979, ch. 59, § 5.

(ii) Consult with and receive the views of persons, local groups and organizations representing water users, special interests, industries and the public interest, and acquire data and information relating to water, water use, water conservation, and water quality from government agencies, departments and other sources;

(iii) Coordinate the water resources plans with other government agencies and departments;

30 Approved November 5, 2020??????, 202?

(iv) Undertake studies, investigations, surveys and research relevant to the formulation of the water resources plans and enter into contracts and arrangements for the same with any government agency, department, or any person, firm, university, institution, or state or national organization;

(v) Adopt, in whole or in part, studies and reports made by other governmental agencies, state or federal; and

(vi) Perform other related activities or functions as are relevant and appropriate to the formulation of water resources plans.

41-2-109. Water resources plans; contents.

(a) The water resources plans shall, to the extent deemed practical:

(i) Identify, describe and inventory the occurrence, amounts, availability and quality of water resources, current uses of water, activities that affect the quality of water, and activities that are dependent on, affected by, or relate to water and uses of water;

(ii) Identify and describe prospective needs and demands for water and opportunities for water development, control, withdrawal, storage, conservation, supply, distribution, drainage and disposal;

(iii) Identify and specify for each plan appropriate state, regional and local goals and objectives for management of water resources, including the obtaining of economic efficiency and a desirable distribution of income, the protection of the health, safety and welfare of the people, the protection and encouragement of particular industries and activities, the protection and enhancement of the environment and recreation; and

(iv) Evaluate and compare prospective and anticipated uses and projects, including combinations and coordinations thereof, uses of alternative sources of water and alternative uses of water, in terms of goals identified pursuant to paragraph (iii) of this subsection.

41-2-110. Water resources plans; duties of commission.

(a) The commission shall:

(i) Publish the water resources plans as they are formulated and adopted and disseminate them to people, industries and government departments and agencies;

(ii) Give advice and assistance if requested to government departments and agencies, furnish to them the appropriate plans, and make available related subsidiary and additional data and information, or data and information related to plans in the process of preparation; 31 Approved November 5, 2020??????, 202?

(iii) Recommend action or legislation needed to implement and carry out the plans.

(iv) Repealed by laws 1979, ch 59, § 5.

41-2-112. Wyoming water development program.

(a) The Wyoming water development program is established to foster, promote and encourage the optimal development of the state's human, industrial, mineral, agricultural, water and recreational resources. The program shall provide, through the commission, procedures and policies for the planning, selection, financing, construction, acquisition and operation of projects and facilities for the conservation, storage, distribution and use of water, necessary in the public interest to develop and preserve Wyoming's water and related land resources. The program shall encourage development of water facilities for irrigation, for reduction of flood damage, for abatement of pollution, for preservation and development of fish and wildlife resources and for protection and improvement of public lands and shall help make available the waters of this state for all beneficial uses, including but not limited to municipal, domestic, agricultural, industrial, instream flows, hydroelectric power and recreational purposes, conservation of land resources and protection of the health, safety and general welfare of the people of the state of Wyoming.

(b) In developing financing recommendations under the Wyoming water development program, the commission shall:

(i) Emphasize multi-purpose water projects for maximum benefits and cost allocation;

(ii) Identify project costs and benefits;

(iii) Recommend an allocation of project costs, including expenditures of state funds for Level I reconnaissance studies and Level II feasibility studies, to be reimbursed by project beneficiaries and to be borne by the state;

(iv) Recommend terms and conditions of financing project costs, maintenance and operation, based on the benefits to be derived by project beneficiaries and their respective ability to pay;

(v) Consider all funds, assets and revenue sources of all project beneficiaries and recommend financing plans which will reimburse expenditures of state funds, except as such expenditures may be allocated to a state benefit, including enhancement of fish and wildlife habitat or recreation;

(vi) Consider state construction and ownership of any project which requires the state to finance unreimbursed costs in excess of ten percent (10%) of the total project cost, and submit recommendations 32 Approved November 5, 2020??????, 202?

on project costs and potential revenues from sale of water or power from the project;

(vii) Consider any other factors necessary to develop comprehensive financing recommendations.

41-2-113. Definitions.

(a) As used in W.S. 41-1-106 through 41-1-108 and 41-2-107 through 41-2-118:

(i) “Project” means any dam, reservoir, canal, ditch, well or well field, hydroelectric power plant, regulatory work and all works and facilities necessary for the supply and utilization of water for beneficial uses, including the improvement of any feature, facility, function or portion of a project;

(ii) “Construct” means to construct, to acquire by legal means, to contribute or loan funds for the construction of and to finance the construction or acquisition of a project;

(iii) “Commission” means the Wyoming water development commission created by W.S. 41-2-117.

41-2-114. Development of water projects; rehabilitation of water projects.

(a) The commission shall, on the basis of the state water plan or as otherwise directed by the legislature and after consultation with and advice from state agencies and officials, other appropriate agencies and officials, the joint business council of the Eastern Shoshone and Northern Arapaho Indian tribes, the business council of the Eastern Shoshone Indian tribe, the business council of the Northern Arapaho Indian tribe and members of the public, identify and select potential projects to be studied for inclusion in the Wyoming water development program pursuant to the following schedule:

(i) Level I reconnaissance studies shall, to the extent possible:

(A) Describe the project;

(B) Identify the need for the project including supplies and demands for the water;

(C) In cooperation with the state engineer, assess the status of water rights, including existing conflicts and recommendations for resolution of the conflicts and other potential obstacles;

(D) Assess and describe federal permits required for construction;

(E) Assess environmental considerations and constraints, including recreational use of the water in storage; 33 Approved November 5, 2020??????, 202?

(F) Identify legal constraints to development;

(G) Identify alternate sources of supply including both surface water and groundwater;

(H) Summarize public testimony received at meetings held by the commission in the basin of origin; and

(J) Contain the commission's recommendation to the legislature whether to terminate further consideration of the proposed project or to continue the project at its current level of study, or to proceed with further activity under paragraph (a)(ii), (iii) or (iv) of this section.

(ii) Level II feasibility studies shall to the extent possible:

(A) Include a detailed analysis of factors relevant to development, operation and maintenance;

(B) Identify major problems and opportunities concerning development and the environmental, recreational, social and economic effects of development;

(C) Identify the desired sequence of events, including commencement of state and federal permitting activities and acquisition of land;

(D) Summarize testimony received at public hearings held by the commission in the basin of origin;

(E) Include test drilling for groundwater projects;

(F) Contain final concept design and cost estimates;

(G) Include the project financing plan;

(H) Identify the interests in land and water rights to be acquired and the means and costs of acquisition. An “interest in land” may include the fee simple title or any other interest in land less than a fee simple; and

(J) Include draft legislation describing in detail the construction, operation and financing of the proposed project, including reimbursement of predevelopment costs from the beneficiaries of the project.

(iii) Repealed by Laws 1988, ch. 79, § 11.

34 Approved November 5, 2020??????, 202?

(iv) Level III construction and operation plans shall proceed as authorized and approved by the legislature under the immediate direction and control of the commission. Preference in the marketing of hydroelectric power from any such project shall be given to utilities serving Wyoming municipalities and to rural electric cooperatives where economical and permissible under federal law. Pursuant to legislative authorization for water development projects and prior to completion of Level III construction the commission may:

(A) Design, construct, acquire or purchase water development projects for the conservation, storage, distribution and use of water or any feature, facility, function or portion of a project;

(B) Contract for the performance of any power under subparagraph (A) of this paragraph, and consult with or employ experts and professional persons;

(C) Acquire by purchase, lease, appropriation, gift, exchange or eminent domain, necessary land, easements and other property for construction, operation and maintenance of water projects and accept gifts, grants and contributions of money from any source;

(D) Acquire by purchase, lease, appropriation, development, gift or exchange necessary water rights for construction, operation and maintenance of water projects and accept gifts, grants and contributions of money from any source;

(E) Contract for the sale, lease or delivery of water, water rights, water storage or hydroelectric power, and fix charges, rates, rents, fees and tolls;

(F) Contract with, contribute to or receive contributions from any legal subdivision of the state, special district, the joint business council of the Eastern Shoshone and Northern Arapaho Indian tribes, the business council of the Eastern Shoshone Indian tribe, the business council of the Northern Arapaho Indian tribe, private corporation or person for the construction, operation, management and maintenance of any project or any interest in any facility or function of a project.

(v) After completion of Level III construction, the commission:

(A) Shall be responsible for the operation and maintenance of state owned facilities constructed under the direction and control of the commission;

(B) Shall manage contracts and agreements entered into by the commission pursuant to paragraph (iv) of this subsection;

35 Approved November 5, 2020??????, 202?

(C) May contract for the sale, lease or delivery of water, water rights, water storage or hydroelectric power and fix charges, rates, rents, fees and tolls for any project constructed pursuant to paragraph (iv) of this subsection not in conflict with contracts and agreements entered into by the commission;

(D) May contract with, contribute to or receive contributions from any legal subdivision of the state, special district, the joint business council of the Eastern Shoshone and Northern Arapaho Indian tribes, the business council of the Eastern Shoshone Indian tribe, the business council of the Northern Arapaho Indian tribe, private corporation or person for the operation, management and maintenance of any project or any interest in any facility or function of a project.

(b) State agencies shall cooperate fully with the commission in the preparation of the studies. In the execution of these activities, the commission shall:

(i) Receive and acquire data relating to water, water use and water quality from any source as it relates to the project;

(ii) Repealed by Laws 1979, ch. 59, § 5.

(iii) Hold public hearings within the basin of origin water division where the proposed project will be wholly or partly constructed, consult with and receive the views of private persons, local groups, associations and organizations representing water users, industries and the public interest;

(iv) Coordinate the feasibility studies with the plans of other government agencies and departments;

(v) Undertake studies, investigations, surveys and research relevant to the completion of the study and enter into contracts and arrangements for its completion with any government agency, department or any person, firm, university, institution or state or national organization;

(vi) Undertake studies, investigations, surveys, and research relevant to outright purchase by the state of Wyoming of water interests from the federal government;

(vii) Perform any other related activities or functions relevant and appropriate to the completion of the feasibility study; and Maximize the use of all existing information, data, reports and other materials, and no funds shall be expended to duplicate existing information, data, reports and other materials.

(c) Repealed by Laws 1982, ch. 59, § 2.

36 Approved November 5, 2020??????, 202?

(d) The commission may suspend the expenditure of time or funds on a project at any level of activity, if it is established that it would be in the public interest. The commission shall report the reason for any suspension of activity to the legislature.

(e) Any person seeking financial assistance from the water development account to rehabilitate an existing water project shall submit that request to the commission. The commission shall:

(i) Review and develop plans and recommendations for the project as provided in this section.

(ii) Repealed by Laws 1986, ch. 109, § 3.

(f) The commission shall make a recommendation to the legislature for disposition of projects it retains under subsection (e) of this section.

41-2-115. Report; authorization; assignment.

(a) In preparation of the final concept design under W.S. 41-2-114(a)(ii), the commission shall after giving public notice hold a public hearing within the affected water division. Any interested person, association or state or federal agency may appear and participate as a party. Following the hearing, the commission shall make public a report of their findings relative to whether the project is in the public interest, stipulating if the proposed project functions and services can be served by any person, association or corporation engaged in private enterprise, or if private enterprise has refused to provide the functions and services identified as being required by the proposed project. The commission shall then proceed as set forth in subsections (b) and (c) of this section. Nothing in this section shall be construed to interfere with the duties of the state engineer or the state board of control.

(b) The commission shall within ninety (90) days following the public hearings transmit its findings and recommendations to the governor and legislature pursuant to W.S. 41-2-114(a). Within thirty (30) days following receipt of the findings and recommendations of the commission, the governor shall submit separate recommendations concerning the projects to the legislature. If the recommendations of the governor differ from those of the commission, the governor shall state the reasons for nonconcurrence with the recommendations of the commission.

(c) If the commission finds that a project is desirable and in the public interest, and that some other governmental agency, public district or private corporation or association is desirous and capable of constructing, operating and maintaining the project and accomplishing the public interest to be served thereby, the commission, with the approval of the governor and the legislature, shall transfer or assign the project and any property or rights connected therewith to the agency, district, corporation or association upon agreed terms 37 Approved November 5, 2020??????, 202?

for reimbursement of the expense of predevelopment costs, payment for property and assurances of construction, operation and maintenance.

41-2-116. Water rights.

(a) The director of the Wyoming water development office shall, at the direction of the governor, file applications in the name of the state of Wyoming for permits to appropriate water, to construct dams and other works, and to take the steps necessary to acquire, maintain or preserve the priority of any right essential to any project which is or may become a project of the Wyoming water development program, except that nothing in this subsection shall be construed to authorize or empower the director of the Wyoming water development office to acquire water rights through the power of eminent domain.

(b) All laws of the state relating to the appropriation and use of water shall apply to any projects of the Wyoming water development program.

41-2-117. Wyoming water development commission; membership; removal; terms.

(a) The Wyoming water development commission is created to consist of ten (10) members. The membership shall include:

(i) Nine (9) persons, two (2) shall be residents appointed from each water division of the state as defined in W.S. 41-3-501, at least one (1) will be a person having an adjudicated water right. One (1) resident of Wyoming shall be appointed at large and one (1) shall be an enrolled member of the Arapahoe or Shoshone Indian tribes who is resident on the Wind River Indian Reservation:

(A) They shall be appointed by the governor, after consultation with the superintendent of each water division and approval of the senate, and may be removed by the governor as provided in W.S. 9-1- 202;

(B) Not more than seventy-five percent (75%) of the members shall be of the same political party;

(C) Appointments are for a term of four (4) years;

(D) Five (5) of the first appointees shall serve two (2) year terms and four (4) appointees shall serve four (4) year terms;

(E) No person shall be appointed for more than two (2) consecutive terms;

(F) If any member ceases to reside in or is absent from the division from which appointed for a continuous period of six (6) months or more, the governor shall declare his office 38 Approved November 5, 2020??????, 202?

vacant and shall appoint a successor from the same division for the unexpired term;

(G) The governor shall fill a vacancy for an unexpired term in a like manner to subparagraph (F) of this paragraph;

(H) The commission shall annually select one (1) of its members as chairman and one (1) of its members as secretary;

(J) To serve as consultants without vote, the following are designated:

(I) The state engineer or his designee;

(II) The chief executive officer of the Wyoming business council or other person designated by the council; and

(III) A person with interest, training and expertise in water resource matters from the University of Wyoming or the Wyoming Water Resource Research Institute, appointed by the president of the university with the approval of the board of trustees.

(b) Members from the four (4) water divisions, the at-large member and the tribal member shall be voting members of the commission. Six (6) members constitute a quorum for the transaction of commission business.

(c) All grant and loan programs over which the commission has authority shall be administered by the Wyoming water development office.

41-2-118. Powers, duties, salaries and expenses of commission.

(a) The commission shall:

(i) Repealed by Laws 1992, ch. 42, § 4.

(ii) Have authority to contract for legal counsel upon approval of the governor to assist in matters related to water resource development as directed by the commission. By request of the commission and upon approval of the governor, the legal counsel shall be entitled to use monies appropriated for legal matters relating to water development. Legal counsel shall consult with the commission, director of the Wyoming water development office, state engineer and attorney general on a regular basis;

(iii) Submit an annual report of its activities, expenses, recommendations and other items to the governor and the joint agriculture, state and public lands and water resources interim committee by December 31;

39 Approved November 5, 2020??????, 202?

(iv) Meet quarterly and as necessary and as the governor may direct;

(v) Biennially on or after March 1 elect a chairman from the nine (9) persons;

(vi) Establish and adjust priorities for water development projects;

(vii) Adopt rules and regulations to implement the provisions of W.S. 41- 1-106 through 41-1-108 and 41-2-107 through 41-2-118, including establishment of qualifications for the administrator;

(viii) Perform other duties as directed by law;

(ix) As nearly as possible represent and assist all interests advocating water development and conservation in the state;

(x) Have the duty and the authority to conduct studies, develop plans, and recommend legislation which may be enacted for the purpose of securing full utilization of the waters of the state of Wyoming, giving priority to projects for utilization of waters not now being beneficially used in Wyoming;

(xi) Repealed by Laws 1992, ch. 42, § 4.

(xii) Establish an application fee not to exceed one thousand dollars ($1,000.00) which shall be paid by potential project beneficiaries prior to commission consideration of a project for inclusion in the water development program. Application fees shall be deposited into water development account I;

(xiii) Represent or advocate the state's interests in negotiations and construction of water projects assigned by the legislature or the governor;

(xiv) Have authority to temporarily defer the principal amount due on debt service payments for money loaned to an irrigation district, watershed improvement district, conservation district or a conservancy district for construction of water development projects whenever the governor has declared that a drought emergency exists within the affected district's service area. The district shall be eligible for the temporary deferral of the principal amount due, provided the interest payments on the remaining principal amount are paid and current. The commission shall amend the amortization schedule to reflect the length of time from the date the affected district seeks the temporary deferral to the date the governor declares the emergency drought condition no longer exists;

(xv) With the approval of the governor, have the authority to enter into contracts and agreements with the United States of America or its duly 40 Approved November 5, 2020??????, 202?

authorized representative agency to accept federal funds through grants or matching funds or from other sources for project costs pertaining to the utilization of Wyoming’s water resources; and

(xvi) Have authority to promulgate rules to delegate administrative duties to the Wyoming water development office to facilitate the effective operation of the commission.

(b) Commission members shall receive a salary of one hundred twenty-five dollars ($125.00) per day and actual and necessary traveling expenses while away from home while engaged in the performance of commission duties.

41-2-119. Groundwater studies.

(a) The Wyoming water development commission may grant not to exceed eight million eight hundred thousand dollars ($8,800,000.00) to incorporated cities and towns, water and sewer districts and improvement and service districts in Wyoming for exploration for and feasibility studies of the use of underground water for municipal and rural domestic purposes, not to exceed four hundred thousand dollars ($400,000.00) for any one (1) exploration or study. The grants shall be made from revenues from water development account I and those revenues are hereby so appropriated. Any city or town, water and sewer district or service and improvement district receiving a grant pursuant to this section shall provide at least twenty-five percent (25%) of the cost of the exploration or study from its own funds. The commission shall adopt rules and regulations governing application procedures for the grants.

(b) The commission may expend from the funds appropriated under subsection (a) of this section for exploration and for feasibility studies of the use of underground water for municipal and rural domestic purposes subject to the following conditions:

(i) The exploration or study shall be conducted in conjunction with an incorporated city or town, water and sewer district or service and improvement district in Wyoming under an agreement;

(ii) Not more than four hundred thousand dollars ($400,000.00) in state funds shall be expended for any one (1) exploration or study under this subsection;

(iii) The incorporated city or town, water and sewer district or service and improvement district shall provide at least twenty-five percent (25%) of the cost of the exploration or study from funds other than under this subsection;

(iv) The incorporated city or town, water and sewer district, or improvement and service district shall apply for participation in this program under procedures established by rules and regulations adopted by the commission. 41 Approved November 5, 2020??????, 202?

41-2-120. Approval of loans, construction or water contracts and agreements.

All loans, construction or water contracts and agreements to which the state is a party, entered into pursuant to this act or W.S. 41-2-114, shall be submitted to the select [water] committee for thirty (30) days for its review and recommendation and approved and executed by the governor and the head of the agency, commission or board.

41-2-121. Criteria for water development projects; disclosure of personal interests by commission.

(a) The water development commission shall establish criteria for evaluation and administration of water development projects. Criteria shall include but not be limited to the following:

(i) All water development proposals submitted to the legislature shall be reviewed by and accompanied by the recommendation of the water development commission;

(ii) The commission's recommendation shall:

(A) Emphasize projects developing unappropriated water;

(B) Give preference wherever possible to projects developing new storage capacity;

(C) Consider the potential for development of hydroelectric power in any project through Level II;

(D) Include a summary of the commission's findings under W.S. 41-2-112(b);

(E) Include financing methods subject to the following:

(I) Any water development project may be financed by grants not to exceed seventy-five percent (75%) of the total cost of the project;

(II) Storage projects may be financed by grants for the full cost of the storage capacity but not to exceed public benefits as computed by the commission;

(III) Loans may be made for domestic, municipal, agricultural, industrial, recreational or fish and wildlife enhancement purposes;

(IV) The term of a loan shall not exceed fifty (50) years after substantial completion of a project;

42 Approved November 5, 2020??????, 202?

(V) Payment of interest and principal on loans may be deferred for not more than five (5) years after substantial completion of the project;

(VI) Loan contracts for project construction shall include provisions to ensure [that] the project shall be operated and maintained during the term of the loan;

(VII) The state may elect to own all or a part of a project and enter into water service repayment contracts with project developers;

(VIII) A project involving a transbasin diversion shall address the impact of the diversion and recommend measures to mitigate any adverse impact identified in the basin of origin;

(IX) Interest on a loan should provide a reasonable return to the state but shall not be less than four percent (4%) except when the commission recommends a lower interest rate because of public benefits;

(X) Loan contracts for project construction shall provide for payment of interest on defaulted payments at a rate of ten percent (10%) per annum.

(iii) Repealed by Laws 1986, ch. 109, § 3.

(iv) The commission may disqualify from consideration or give lower priority to a project proposed to correct problems identified in a review performed by the department of environmental quality under W.S. 18- 5-306(c) where the board of county commissioners approved a subdivision application notwithstanding the department's recommendation that the application be disapproved.

(b) Any member of the commission who has a personal or private interest in any matter proposed or pending before the commission shall publicly disclose this fact to the commission and shall not vote thereon.

(c) Within sixty (60) days after the effective date of this subsection or within sixty (60) days following appointment and annually on or before January 1, each member of the commission shall file written disclosures relative to all interests held by the member or the member's spouse, including interests in partnerships and corporations, with the secretary of state, of:

(i) Any water rights, permits or applications held, whether for direct flow, reservoirs or underground water;

43 Approved November 5, 2020??????, 202?

(ii) Any interests in engineering or construction firms which engage in designing or constructing water projects.

(d) The promulgation of operating procedures and program criteria by the commission under this section and decisions of the commission relating to the recommendation, prioritization or disqualification of projects are specifically exempt from all provisions of the Wyoming Administrative Procedure Act including provisions for judicial review under W.S. 16-3-114 and 16-3-115.

(e) Prior to authorizing a water development project, the commission shall require each project sponsor to demonstrate that the entity has the authority to adequately assess fees or collect funds to cover operation and maintenance expenses related to the water development project. Any entity that does not have the authority or ability to collect sufficient funds for the operation and maintenance of the project may be required by the commission to establish an operations and maintenance account as provided in this section. The commission shall develop criteria related to the establishment of an operations and maintenance account which shall include:

(i) An operations and maintenance account shall only be required for project sponsors that have taken out a loan for any portion of the project expense and shall not be required after the loan has been repaid;

(ii) The funds required in any operations and maintenance account shall not exceed ten percent (10%) of the project cost.

41-2-122. Protection and rights of landowner.

(a) The Wyoming water development commission shall include in the planning process at Level I notification to a landowner whose lands may be flooded or otherwise physically affected, as determined by the administrator. The commission shall include in the planning process at Level II consultation with any landowner whose land may be flooded or otherwise physically affected by a proposed water project and shall include a report on the proposed mitigation of landowner impacts as jointly identified by the commission and the landowner.

(b) The Wyoming water development commission shall consult with and supply copies of reports and studies to any landowner whose land will be flooded or physically affected by any proposed water development project. The commission and any employees or other persons under the control of the commission shall mitigate any damages and disruption of the landowner's operations during the study phase including prevention of public nuisances and shall enter on private property only in the manner provided by W.S. 1-26- 506 and shall also be subject to W.S. 1-26-507 and 1-26-508.

(c) In proceeding with Level III, construction and operation plans, the commission shall follow the requirements of the Wyoming Eminent Domain Act, shall negotiate in good faith with affected landowners and, in addition, 44 Approved November 5, 2020??????, 202?

shall attempt to mitigate damages which may occur from the impacts enumerated in subsection (a) of this section.

41-2-123. Project studies generally; hearings; reimbursement of costs; source of funding; use of unobligated funds; recommendations to legislature.

(a) The commission, after public notice, is authorized to conduct public workshops and public hearings in the affected regions on projects which have been approved for study by the legislature pursuant to W.S. 41-2-114.

(b) For each project authorized for Level I or Level II study by the legislature, the commission shall make a recommendation on the following alternatives:

(i) Proceed with next level of activity;

(ii) Continue study at the presently authorized level of activity; or

(iii) Terminate consideration of the project.

(c) Funds appropriated by the legislature for Level I reconnaissance studies and Level II feasibility studies may be included in the costs to be reimbursed by project beneficiaries as provided by W.S. 41-2-112(b)(ii), unless otherwise specifically provided by the legislature.

(d) For projects completed and in use prior to 1970, the funding for Level I and Level II activities shall come from those within water development account II unless otherwise specifically provided by the legislature.

(e) The water development commission may commence and contract for a Level II feasibility study of a project using unobligated funds authorized by law for a Level I reconnaissance study of the project if:

(i) The Level I study is substantially complete;

(ii) The due date for the Level I study report established by the legislature has not occurred;

(iii) The commission finds the Level II study to be in the best interest of the state;

(iv) The select water committee created under W.S. 28-11-101 reviews the commission request to proceed with the Level II study.

(f) All recommendations, including proposed legislation, from the water development commission to the legislature required by law regarding specific water projects shall be presented to the select water committee created by W.S. 28-11-101 not later than fifteen (15) days prior to commencement of the legislature to which the reports are due. The committee shall review and make

45 Approved November 5, 2020??????, 202?

recommendations to the legislature regarding commission recommendations and proposed legislation.

41-2-124. Accounts created; unexpended balance.

(a) The following accounts are created:

(i) Water development account I into which shall be deposited revenues pursuant to law;

(ii) Water development account II into which shall be deposited revenues pursuant to law;

(iii) Water development account III into which shall be deposited revenues pursuant to law.

(b) Any unexpended balance in water development accounts I, II and III as defined by subsection (a) of this section shall be invested by the state treasurer and the interest earned shall be credited to the account.

(c) The state treasurer shall transfer such sums of money from water development accounts I and II created by subsection (a) of this section to the state drinking water revolving loan account created by W.S. 16-1-302 to provide not to exceed one-half (1/2) of the twenty percent (20%) state matching funds for each federal capitalization grant to the drinking water state revolving fund program account. The transferred funds shall be proportioned between water development accounts I and II as directed by the water development commission.

(d) No new dam with storage capacity of less than two thousand (2,000) acre-feet of water or expansion of a dam with a storage capacity of less than one thousand (1,000) acre-feet of water shall be funded with funds from water development account III. Without the approval of the legislature, funds deposited into water development account III shall not be diverted from that account, other than for the purpose of financing projects related to dam construction or expansion.

(e) There is transferred to the water development account III created by paragraph (a)(iii) of this section effective July 1, 2005:

(i) Fifty-four million seventy thousand dollars ($54,070,000.00) from water development account I reserved for the Green River/Wind River project development fund established in W.S. 99-3-604. The transfer of money into water development account III shall not eliminate recognition of the water storage potential in the Green River/Wind River basins;

(ii) Ten million dollars ($10,000,000.00) from the budget reserve account.

46 Approved November 5, 2020??????, 202?

41-2-125. Office of water programs created; duties; annual report.

(a) There is created the office of water programs within the office of research at the University of Wyoming. The office of water programs shall:

(i) Work directly with the director of the Wyoming water development office to identify research needs of state and federal agencies regarding Wyoming's water resources, including funding under the National Institutes of Water Resources (NIWR);

(ii) Serve as a point of coordination for and to encourage research activities by the University of Wyoming to address the research needs identified in paragraph (i) of this subsection;

(iii) In conjunction with the Wyoming water development office, submit a report annually prior to each legislative session to the select water committee and the Wyoming water development commission on the activities of the office.

Title 99 General Provisions

99-3-2401. Definitions.

(a) As used in this article:

(i) “Commission” means the Wyoming water development commission;

(ii) “Sponsor” means the municipality, conservancy district, irrigation district, water district, improvement and service district, water and sewer district, watershed improvement district, joint powers board, business council of the Eastern Shoshone Indian tribe or business council of the Northern Arapaho Indian tribe that will receive funding for one (1) or more of the projects identified in this article;

(iii) “Water development account I” means the account created by W.S. 41-2-124(a)(i);

(iv) “Water development account II” means the account created by W.S. 41-2-124(a)(ii);

(v) “Water development account III” means the account created by W.S. 41-2-124(a)(iii).

Source notes for subsection (a): (Laws 2019, Ch. 55, § 1.)

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99-3-2402. General authorization.

(a) The commission shall contract with each sponsor identified in this article for the design, construction and operation of the project in a manner consistent with this article and administer the contract on behalf of the state of Wyoming.

Source notes for subsection (a): (Laws 2019, Ch. 55, § 1.)

(b) Upon execution of the contract outlined in subsection (a) of this section, the sponsor may design, construct and operate the project in a manner consistent with the terms and conditions outlined in the contract.

Source notes for subsection (b): (Laws 2019, Ch. 55, § 1.)

99-3-2403. General conditions for Level III construction projects-new development.

(a) Except as otherwise specifically provided, each Level III new development construction project identified in this article shall be subject to the following general conditions:

(i) Each sponsor shall offer security for the project loan as deemed adequate and acceptable to the attorney general;

(ii) The commission shall establish repayment schedules for project loans in accordance with the conditions prescribed in this section;

(iii) Each sponsor shall supervise design and construction of the project and submit all requests for payment to the commission for approval;

(iv) A sponsor shall not make construction funding commitments until after the commission has reviewed and approved construction budgets and construction plans;

(v) The commission shall make payments directly to the sponsor;

(vi) The sponsor shall be responsible for operation and maintenance of the project;

(vii) The sponsor is responsible for all project expenditures in excess of the total project appropriation;

(viii) If the commission determines that any sponsor has, without good cause, abandoned completion of the project, that sponsor, in addition to being required to repay the loan, shall be obligated to immediately repay the full amount of all grant funds actually expended plus interest as established by the state treasurer in an amount equal to the interest that would have accrued on the expended grant funds in the water development account from the date of expenditure; 48 Approved November 5, 2020??????, 202?

(ix) Principal and interest payments made in repayment of loans shall be deposited in water development account I;

(x) There shall be no lease, sale, assignment or transfer of ownership of water from the project for purposes other than the designated project purpose without prior written approval of the commission and the state engineer or board of control. If such a transaction is approved, the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project shall be utilized to retire principal on the project loan. After that loan is paid in full, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project cost paid by the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project cost paid by the project grant;

(xi) There shall be no lease, sale, assignment or transfer of ownership of any project until the project loan is paid in full, and until prior written approval is obtained from the commission. If these conditions are met, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project cost paid by the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project cost paid by the project grant. Before the sponsor may lease, sell, assign or transfer ownership of the project, the state of Wyoming shall be given a one (1) year first right of refusal option to purchase the sponsor's interest in the project for an amount equal to the principal, interest, maintenance and replacement costs incurred by the sponsor at the date the option is exercised;

(xii) After the project loan is paid in full, the sponsor may purchase the position of the state of Wyoming, as described in paragraphs (x) and (xi) of this subsection, for the amount of the project grant plus the interest that would have accrued on the grant amount in the water development account from the date the project was substantially completed as defined by the commission. The interest that would have accrued on the grant amount shall be established by the state treasurer;

(xiii) Any revenues generated by the state from the lease, sale, assignment or transfer of ownership of any project or project water shall be deposited in water development account I.

Source notes for subsection (a): (Laws 2019, Ch. 55, § 1.)

49 Approved November 5, 2020??????, 202?

99-3-2405. General conditions for Level III construction projects; rehabilitation.

(a) Except as otherwise specifically provided, each Level III rehabilitation construction project identified in this article shall be subject to the following general conditions:

(i) Each sponsor shall offer security for the project loan as deemed adequate and acceptable to the attorney general;

(ii) The commission shall establish repayment schedules for project loans in accordance with the conditions prescribed in this section;

(iii) Each sponsor shall supervise design and construction of the project and submit all requests for payment to the commission for approval;

(iv) Sponsors shall not make construction funding commitments until after the commission has reviewed and approved construction budgets and construction plans;

(v) The commission shall make payments directly to the sponsor;

(vi) The sponsor shall be responsible for operation and maintenance of the project;

(vii) The sponsor is responsible for all project expenditures in excess of the total project appropriation;

(viii) If the commission determines that any sponsor has, without good cause, abandoned completion of the project, that sponsor, in addition to being required to repay the loan, shall be obligated to immediately repay the full amount of all grant funds actually expended plus interest as established by the state treasurer in an amount equal to the interest that would have accrued on the expended grant funds in the water development account from the date of expenditure;

(ix) Principal and interest payments made in repayment of loans shall be deposited in water development account II.

Source notes for subsection (a): (Laws 2019, Ch. 55, § 1.)

99-3-2407. General conditions for Level III construction projects-dams and reservoirs.

(a) Except as otherwise specifically provided, each Level III dam and reservoir construction project identified in this article shall be subject to the following general conditions:

(i) Each sponsor shall offer security for the project loan as deemed adequate and acceptable to the attorney general; 50 Approved November 5, 2020??????, 202?

(ii) The commission shall establish repayment schedules for project loans in accordance with the conditions prescribed in this section;

(iii) Each sponsor shall supervise design and construction of the project and submit all requests for payment to the commission for approval;

(iv) A sponsor shall not make construction funding commitments until after the commission has reviewed and approved construction budgets and construction plans;

(v) The commission shall make payments directly to the sponsor;

(vi) The sponsor shall be responsible for operation and maintenance of the project;

(vii) The sponsor is responsible for all project expenditures in excess of the total project appropriation;

(viii) If the commission determines that any sponsor has, without good cause, abandoned completion of the project, that sponsor, in addition to being required to repay the loan, shall be obligated to immediately repay the full amount of all grant funds actually expended plus interest as established by the state treasurer in an amount equal to the interest that would have accrued on the expended grant funds in the water development account from the date of expenditure;

(ix) Principal and interest payments made in repayment of loans shall be deposited in water development account III;

(x) There shall be no lease, sale, assignment or transfer of ownership of water from the project for purposes other than the designated project purpose without prior written approval of the commission and the state engineer or board of control. If such a transaction is approved, the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project shall be utilized to retire principal on the project loan. After that loan is paid in full, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project paid by the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project paid by the project grant;

(xi) There shall be no lease, sale, assignment or transfer of ownership of any project until the project loan is paid in full, and until prior written approval is obtained from the commission. If these conditions are met, the sponsor shall receive a proportionate share of the revenues 51 Approved November 5, 2020??????, 202?

generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project paid by the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project paid by the project grant. Before the sponsor may lease, sell, assign or transfer ownership of the project, the state of Wyoming shall be given a one (1) year first right of refusal option to purchase the sponsor's interest in the project for an amount equal to the principal, interest, maintenance and replacement costs incurred by the sponsor at the date the option is exercised;

(xii) After the project loan is paid in full, the sponsor may purchase the position of the state of Wyoming, as described in paragraphs (x) and (xi) of this subsection, for the amount of the project grant plus the interest that would have accrued on the grant amount in the water development account from the date the project was substantially completed as defined by the commission. The interest that would have accrued on the grant amount shall be established by the state treasurer;

(xiii) Any funds generated by the state from the lease, sale, assignment or transfer of ownership of any project or project water shall be deposited in water development account III.

Source notes for subsection (a): (Laws 2019, Ch. 55, § 1.)

52 Approved November 5, 2020??????, 202?

ATTACHMENT III PROGRAM PRIORITIES for WATER DEVELOPMENT ACCOUNT I WATER DEVELOPMENT ACCOUNT II WATER DEVELOPMENT ACCOUNT III

ATTACHMENT III

PROGRAM PRIORITIES

WATER DEVELOPMENT ACCOUNT I

(New Development)

Project Priority Ranking and Project Description

Project Priority Project Description

1 Level III projects developing new storage

Level III projects developing unappropriated water – examples include wells & 2 diversion structures requiring the issuance of new water rights

3 Level III transmission pipelines

4 Level III potable water storage tanks

5 Level III irrigation canals and structures serving new lands

6 Level II feasibility studies

7 Watershed Studies

8 Level I reconnaissance studies

9 Weather modification projects

10 River basin plans

11 Level II hydropower studies (level II studies only)

12 Level III raw water system controls and control valves

13 Level III water system controls and control valves

14 Previously approved subdivision improvements

53 Approved November 5, 2020??????, 202?

ATTACHMENT III

PROGRAM PRIORITIES

WATER DEVELOPMENT ACCOUNT II

(Rehabilitation)

Project Priority Ranking and Project Description

Project Priority Project Description

1 Level III rehabilitation of water diversion or control structures

2 Level III rehabilitation of existing irrigation canals

3 Level III replacement of existing transmission pipelines

4 Level III rehabilitation of existing water storage tanks

5 Level III rehabilitation of raw water storage facilities

6 Level III rehabilitation of existing reservoirs

7 Level II feasibility studies

8 Level I reconnaissance studies

9 Level III raw water systems to irrigate parks and lawns

10 Level III replacement of water system controls & control valves

11 Previously approved subdivision improvements

12 Level II hydropower studies (level II studies only)

54 Approved November 5, 2020??????, 202?

ATTACHMENT III

PROGRAM PRIORITIES

WATER DEVELOPMENT ACCOUNT III

(Dams and Reservoirs)

Project Priority Ranking and Project Description

Project Priority Project Description

1 Level III development of new storage in excess of 2000AF

2 Level III development of storage enlargements in excess of 1000 AF

3 Purchase of existing storage as an alternative to building new storage

4 Level II feasibility studies

5 Level I reconnaissance studies

55 Approved November 5, 2020??????, 202?

2021 Irrigation System Survey Results

● Biennial Survey ● Interim Topic Questions 2021 Survey Response Rate

● 157 Entities Contacted ● 78 Responses (50%) ● Representation ○ Approximately 2/3 of lands irrigated by organized entities ○ 7 of 10 of the largest irrigation entities in the state (>20K acres)

Conveyance and Structure Extent

2368 3434

3706 4318 Age of Conveyances and Structures Conveyance Condition by Capacity

(2368 Miles) (259 Miles) (777 Miles) Structure Condition by Capacity

(3706 Structures) (509 Structures) (103 Structures) Reservoir Condition Planned Projects Costs AUGUST 11, 2021

GUIDANCE DOCUMENT SMALL WATER PROJECTS PROGRAM WYOMING WATER DEVELOPMENT COMMISSION

JODIE PAVLICA, PE PROGRAM MANAGER Wyoming Water Development Office

Table of Contents Chapter 1 Program Eligibility ...... 3 Public Entities ...... 3 Public Benefit ...... 3 Estimated Total Project Cost...... 3 Project Readiness ...... 4 Chapter 2 Eligible Projects ...... 5 Small Reservoirs ...... 5 Wells ...... 5 Solar Platforms, Pipelines & Conveyance Facilities, Windmills ...... 5 Spring Development ...... 5 Wetland Development ...... 6 Environmental Projects ...... 6 Irrigation Projects...... 6 Rural Community Fire Suppression ...... 6 Recreational ...... 6 Ineligible Projects/Expenses ...... 6 Chapter 3 Project Evaluation ...... 8 Project Description ...... 8 Project Location (Private, State, Federal) ...... 8 Project Partners ...... 8 Project Priorities ...... 9 Account I Priorities ...... 9 Account II Priorities ...... 9 Shovel Ready ...... 9 Limited Funding Analysis ...... 10 Chapter 4 Project Development & Construction ...... 11 Sponsors’ Responsibilities ...... 11 Notice to Proceed ...... 11 Project Sponsor Checklists ...... 11 Project Changes After Funding Award ...... 11 Bid Process ...... 12

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Certification of Completed Project ...... 12 Project Timeline ...... 12 Chapter 5 Payments & Funding ...... 14 Eligible Expenses...... 14 Required Documentation ...... 14 Key Dates for Payment ...... 14

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Chapter 1 Program Eligibility Small Water Project applications are due by November 15th of each year. Applications may be downloaded from the Small Water Project Program website at: https://wwdc.state.wy.us/small_water_projects/small_water_project.html

Applications may be submitted digitally to the Small Water Project Program Manager ([email protected]), or by mail to 6920 Yellowtail Rd, Cheyenne, WY 82002. Applications must be fully completed and signed by an authorized representative of the applying public entity. Applications must also contain a map of the project area that documents the location of the project and the proposed project components. Public Entities Applications for Small Water Projects may be submitted by eligible public entities as defined by the program criteria. Applications cannot be accepted from landowners.

The public entity is accepting several important responsibilities with a successful application to the Small Water Project Program. Successful Applicants (Sponsor’s) will enter into a contractual arrangement with the Water Development Commission. Under this agreement sponsors are required to provide project designs, specifications, proof of permits, certify that a project has met all legal requirements necessary for construction, submit the project payment request, and make sure that all necessary deadlines are met prior to the expiration of the Project Agreement. It is important for the project sponsor to know that the Water Development Office (WWDO) is available to help with these tasks, but the responsibility for their completion is ultimately that of the sponsor. In other words, the WWDO will not allow the project sponsor to apply for the project, then turn over their responsibilities to the landowner. Public Benefit The Small Water Project Program is a State of Wyoming Funded Grant Program. Eligible projects will improve watershed condition and function, provide multiple benefits, and meet the funding criteria specified by Wyoming Statutes.

Wyoming Statutes 99-3-1903(k)(viii)(c), and 99-3-1904(m)(viii)(c) require that the public benefit of the project be substantiated by the project sponsor. Section 24 of the project application is provided for the Sponsor to document these benefits. This information will be quoted in the recommendation that is submitted for the Commission’s approval at their March meeting. If the Commission believes that the public benefit is inadequate to justify the project grant they may ask the project sponsor to testify, to assist them in their decision to fund the project. Estimated Total Project Cost Section 29 of the project application includes the Sponsor’s Estimated Total Project Cost. This value is used to determine the requested grant. The program legislation allows a 50% grant on eligible project expenses up to $35,000. The sponsor’s estimated total project cost is not adjusted by the WWDO, therefore it is important for the project sponsor to include in that estimate all eligible expenses, including estimates for contingencies. The WWDO can not authorize additional grant funding for the project after the project application is accepted and approved for funding by the Commission at their March meeting.

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Project Readiness Section 31 in the application gives project sponsors who wish to apply for shovel ready status the opportunity to document their readiness for construction. This step is not required for an application to be complete and recommended for funding. This is only required for projects that wish to seek a shovel ready funding priority. (Please refer to Chapter 3 for more information.) If a project sponsor is not seeking shovel ready status then it is better if the application and map are all that is provided. Project checklists are not helpful at this stage because the project design is incomplete, and as a result there are too many final details to be completed for the checklist to be relevant.

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Chapter 2 Eligible Projects Section C in the program criteria documents eligible project types. Projects are defined according to 11 specific definitions outlined in this section. Project eligibility is further determined by public benefits accrued as described in the previous chapter. Small Reservoirs The program criteria include small reservoirs as an eligible project type. The criteria do not limit the size of the reservoir, the use of the reservoir, or the cost of the reservoir. Project applications will be reviewed for public benefit and constructability based on the project description provided in the application. Project funds may also be used to rehabilitate existing small reservoirs. Wells Wells and their appurtenances may be eligible for program funding depending on the depth of the well and scope of the project. Well appurtenances may include pumps, power sources (either fixed in place solar or conventional electric service), storage tanks, troughs, and any plumbing necessary to make the project function in the manner intended. In most cases these items are required to put the water to beneficial use which is a prerequisite for payment.

Wells are divided into two categories, those that are drilled into proven aquifers and those that are drilled into unproven aquifers. The distinction of a proven vs unproven aquifer determines the requirements upon which the project is eligible for payment, with the primary difference being in the acceptance of risk.

If the proposed well is targeting an unproven aquifer, then the sponsor accepts the risk of proceeding with the project, knowing that if the quality or quantity of the well isn’t sufficient to meet the demands of the project that they will have to bear the full cost. The program criteria explain this distinction in further detail. In order to facilitate the determination of a proven or unproven aquifer the project sponsor is required to provide a geologic report on the proposed well site prior to the issuance of Notice to Proceed. The geologic report will be reviewed by a professional geologist at the Water Development Office. If the proposed well is determined to be targeted for an unproven aquifer then the sponsor will be notified prior to the issuance of Notice to Proceed so that they may decide if they want to accept the risk associated with this designation. Solar Platforms, Pipelines & Conveyance Facilities, Windmills Solar Platforms, Pipelines & Conveyance Facilities, and Windmills are all eligible for program funding. These project components are frequently bundled with other project components like wells, and may be new construction or the rehabilitation of existing facilities. Stock water troughs and storage tanks are also eligible for funding as they are required to beneficially use the water, and beneficial use of the water is required before funds can be issued. Larger projects that may need to be phased, such as long stock water pipelines, are eligible for program funding as long as each phase provides a beneficial use of the water when it is complete. Spring Development Improving flows of existing springs and installation of collection facilities associated with springs may be eligible for program funding. These projects are frequently bundled together with tanks and solar systems.

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Wetland Development The development of wetlands may be eligible for funding through the program. Wetland projects must provide multiple benefits in addition to those discussed in the public benefit section of the application. Environmental Projects Environmental projects are defined as those that provide for stream bank stability, water quality improvements, or erosion protection. Projects in this category often provide multiple benefits that improve not just water quality but stream habitat as well. Projects outside of this definition may be eligible for funding under another project definition such as wetland development, recreational, or small reservoir. Irrigation Projects Program criteria states that Irrigation Projects may be eligible for funding through the program. This document attempts to provide guidance to the project sponsors as to which irrigation projects are eligible and which are not. See the list below for more details:

1. On Farm Improvements: On farm improvements such as center pivots and their appurtenances are not eligible for small water program funding. These projects don’t meet the public benefit requirements outlined earlier in this document. 2. Ditch to pipe conversions: The conversion of an earthen ditch to pipe is an eligible project, with the understanding that the program will not pay for gated pipe for the same reason that center pivots are not eligible. 3. Diversion structures: Diversion structures are eligible projects, including those that are designed to be fish friendly using rock check structures. 4. Large projects that need to be phased: Large projects that may need to be phased are eligible for program funding as long as each phase provides a beneficial use of water when it is complete. As an example, the WWDC won’t provide reimbursement funds for a well that is not pumping water into a stock tank. The same rule applies for larger irrigation projects, each phase must be complete and function on its own. Rural Community Fire Suppression Projects eligible for rural community fire suppression include projects that are in keeping with the larger Agency mission of “Supply, Transmission, and Storage”. Projects that would not be eligible include: distribution lines, fire hydrants, irrigation systems for the purposes of green area buffer zones, etc. Recreational Recreational projects may be considered for funding through the Program. Projects must meet the same public benefit standards required of other projects. Eligible projects might include, but are not limited to: stream channel projects for the purposes of habitat improvement, fish passage, or fish screens. Ineligible Projects/Expenses Over the years there have been several project types that are regularly requested that are not recommended for funding. Those are listed below.

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1. Cleaning or reshaping an earthen ditch: This is considered maintenance and is therefore not eligible for project funding. 2. Flumes and Measurement Devices: These expenses are the responsibility of the permit holder and not eligible expenses in the program. 3. On Farm Projects: These projects often have a difficult time providing the necessary public benefit documentation required by the legislation. 4. Drinking Water Projects: Projects of this type do not comport with the original intent of the program and therefore are not eligible. 5. Fencing: Fencing is only eligible as it is used to protect the infrastructure that is installed by the program. Program funds shall not be used to fence off riparian areas or wetland habitats. 6. Distribution Systems for Rural Community Fire Suppression: The installation of water distribution lines for the purposes of Rural Community Fire Suppression are not eligible for funding. Eligible projects must focus on supply, storage, and/or transmission. 7. Rehabilitation of a structure that has already been rehabilitated once. Program criteria limit projects to a one-time construction of a new project, a single rehabilitation of an existing project, or eligible subsequent appropriations provided the total grant doesn’t exceed $35,000. 8. Completed Projects: Program criteria prohibit the use of funds for the purposes of refinancing projects that have already been completed. 9. Sponsor budgets: Program criteria prohibit funds being used to augment operating budgets. Therefore, sponsors may not send invoices for employee time unless those employees are Licensed Professional Engineers or Geologists whose time was directly used to prepare Small Water Project deliverables. 10. Maintenance: Program criteria prohibit the use of funds for the purposes of maintenance. 11. Personal Items used to complete the project: Items like tools, fuel, generators, and extended warranties that were purchased through the course of the project are not eligible for reimbursement.

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Chapter 3 Project Evaluation New project applications are due by November 15th. This gives the Office time to evaluate the number of applications and prepare a request for funding the Small Water Program accounts with approval by the Commission and Select Water Committee at their December\January meetings.

Applications will be reviewed for eligibility and completeness by the Water Development Office and recommendations on specific projects will be made to the Commission and Select Water Committee at their March meetings. Applications may be downloaded at the following website. https://wwdc.state.wy.us/small_water_projects/small_water_project.html Project Description This is an important part of the project application not only for describing the project in general terms to understand the larger picture benefits, but also for specifically detailing the project components that are proposed for installation. This information is used to determine eligibility and is included in the recommendation that is presented to the Commission for their approval. Any project changes that may be requested later in the project are first compared to the project description that was approved by the Commission. No changes will be approved by the office without Commission consideration if they are outside of the approved project description.

Additionally, the sponsor shall identify if the work is to be performed on a project that has already been funded by the Small Water Project Program, and if so, provide the previous project’s name, the year the previous grant was awarded, and the total amount of SWPP funds disbursed by the Commission under the previous Small Project. Additionally, the project description shall contain enough detail to describe both projects and why it is necessary to split up the work. It is important to understand that the total amount of all WWDC appropriations for the same site shall not exceed $35,000. Project Location (Private, State, Federal) Eligible projects may be located on Federal, State, other public, or private lands. Items 26 and 27 are included in the project application to document the owner of the land that the project is being constructed on and the owner of the project components that are being installed. Because these two owners are not always the same, this information is used to determine what documentation will be required for Notice to Proceed. If the project is being installed by someone who is different than the person who owns the land that it is being installed on, then a letter of approval will be required from the landowner prior to the issuance of construction. This saves money on formal legal authorizations, but still documents the landowner’s awareness and acceptance of the project. These letters can come from federal agencies, private landowners, or public entities like the State of Wyoming. Project Partners Section 25 in the application is titled “Project Participants”. This is the section of the application that documents who will be contributing to the project and what their role will be. Things like financial and technical oversight should be listed here. This data will help the Office determine if the project is ready for grant funding or if more project development time is required before a grant is awarded.

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Project Priorities Project priorities were established in the program criteria to effectively and efficiently utilize available program funds when the demand for grant dollars exceeds availability. Project priorities are listed below. Please note that the program priorities are not directly equivalent to the eligible project definitions identified in Chapter 2. This is because the project priorities are primarily looking at the purpose of the project, not the project type. In order to assign the new project applications to a priority, the Office relies heavily on the Project Description, the project components table, detailed cost estimates, and the public benefits statement provided with the application.

As an example, if a stock water project application is received and the single largest expense is the pipeline, then it will probably be classified as a priority 3 project. Whereas a similarly named stock water project whose largest expense is a well might be classified as a priority 1 project. Listed below with the project priority are some example projects and where they might fit into the priority system. Account I Priorities 1. Source Water Development: Wells, New Spring Developments 2. Storage: New Small Reservoirs, Wetlands 3. Pipelines, Conveyance Facilities, Solar Platforms, and Windmills: Stock water systems, pipelines, etc. 4. Irrigation: New irrigation infrastructure (not rehabilitation of an existing system) 5. Environmental: Stream bank stabilization projects 6. Recreational: Fish or habitat projects not associated with irrigation system improvements Account II Priorities 1. Diversion Structures and Spring Developments: Rehabilitation of existing diversions and spring developments 2. Storage: Rehabilitation of a washed-out stock pond, wetland restoration if an embankment is required 3. Pipelines, Conveyance Facilities, Solar Platforms, and Windmills: Rehabilitation of existing systems 4. Irrigation other than the above: Rehabilitation of turnouts or other in canal structures 5. Environmental 6. Recreational Shovel Ready Projects that are ready for construction before applying for Program funding may request a “shovel ready” classification. Projects receiving this classification may be considered as a priority at the Commission’s discretion. This is usually represented with a #1 priority, as the projects would be ready to start as soon as the contracts are signed putting the Commission’s money to work on the ground sooner. In order to qualify as a “Shovel Ready” project the application must include the following:

1. Completed 100% design plans 2. Specifications as necessary to instruct a contractor in proper construction 3. Letters of authorization from landowners as necessary 4. Before photos 5. One Call Notifications or other utility crossing approvals

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6. All necessary permits, rights of way, and/or easements 7. Finalization of all other necessary financial agreements

If these items are provided with the application, a Notice to Proceed Review will be completed to establish the project’s readiness for construction. Limited Funding Analysis Program Criteria allow the Commission to prioritize applications according to project priority during times of limited funding. New projects applications will be assigned a priority according to their primary project purpose as outlined in the project description and public benefits sections. It is recommended that the project sponsor include a detailed cost estimate with their application that includes a breakdown of project costs. This will allow the Office to better understand where project funds will be spent, which will allow for a more accurate classification of project priority.

Project Application funding will be cut off at an even priority, no effort will be made to fund projects in the next highest priority if not all of the projects within that priority can be funded. Any remaining funds would then stay in the Small Water Program Accounts and roll over to be used the next year. Additionally, the Commission may take into consideration a sponsor’s existing back log of previously funded projects that are not completed when awarding grants for new projects.

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Chapter 4 Project Development & Construction After new project applications are approved by the Commission and Select Water Committee, projects will require the approval and signature of the sponsors governing body on a Project Agreement between the State of Wyoming and the sponsoring district. The project sponsor may proceed with project development after the final signed document is received by the Water Development Office. Sponsors’ Responsibilities The sponsor is responsible for acquiring all necessary access agreements, permits, plans, specifications, change orders, operation & maintenance plans, funding participation & construction budgets, and any other document deemed necessary by the Commission. These documents will be submitted to the Office for review with the signed and completed checklists available for download at the Small Water Projects Program website. The documentation described above should be submitted to the Office prior to the start of any construction. Notice to Proceed The previous section discusses the documents that the Sponsor is required to provide the Office before written authorization to begin with construction will be issued. That written authorization is called “Notice to Proceed”. The purpose of the review is to document the Sponsor’s readiness to begin construction, and to document the project components that are being installed. This documentation will be used to ensure correct payments when reimbursement for completed construction is requested at the end of the project. If the Sponsor initiates the construction process without prior written notification by the Commission to proceed with the project, then the Sponsor shall bear all costs resulting from said action. Project Sponsor Checklists To aid the project sponsor with their project development responsibilities and to help with communication between the Office and Sponsor, checklists were developed. The first is the Project Sponsor Checklist. It includes a list of items that are required by the Office, and several more items that are often required by other State and Federal Agencies. Many of these items will be required before Notice to Proceed will be issued. For those components that are not always required, like a 404 permit, there is a NA box for the sponsor to check on the form. The Project Sponsor Checklist was designed to be filled out and signed right before the Sponsor is ready to submit a project for a Notice to Proceed Review, so the sponsor can use it to ensure the package is complete. It is much less helpful when this checklist is provided with the project application (unless shovel ready). This is because in most cases the project still has to complete final designs and acquire permits when the application is submitted, and that process often changes the sponsors answers on the checklist.

The second checklist that is required by the office is the Sage Grouse Analysis Sheet. The purpose of this checklist is to document the projects location relative to Sage Grouse Core Area and specific Sage Grouse Leks. Based on the answers provided in this document, guidance in the Notice to Proceed Letter will be given regarding project construction timing. Project Changes After Funding Award It is common with all types of construction for unexpected things to happen while working on a project. Small Water Projects are no exception. Therefore, it is important for project sponsors to stay in touch

11 | P a g e with the Office when changes are necessary to ensure that there are no problems with payments upon completion. Sponsors should either call or email the office before committing to any changes that might affect funding. The Office will document the change and provide a written approval for the sponsor’s records.

The exception to this would be if the changes were significant enough to bring the project outside of the description originally provided to the Commission in the Recommendation when the initial application was approved. In that case, approval for a proposed change might have to wait until approval could be obtained at an upcoming Commission Meeting. Bid Process Program criteria require that construction contractors be selected using a competitive bid process. Sponsors should establish a procedure with their boards that is fair, open, and well documented. Records should be kept for the bid process on each project so they are available if they are requested by the Commission. Certification of Completed Project Program criteria require that the project engineer certify the project is functioning in the manner intended and providing a beneficial use of water before funds can be disbursed. In practice, this is sometimes difficult for project sponsors, so the Office also accepts a letter of inspection from a federal agency stating they have inspected the project and it is functioning in the manner intended and providing a beneficial use of water. Inspections by the project sponsor are not an acceptable substitute for the letter from a federal agency or for signed as-built plans from the Engineer. Project Timeline New Projects will expire on December 31st approximately 2 ½ years following the signatures on the project agreement. The bullets below give an overview of project deliverables and timelines:

1) Applications are due by November 15th. Project funding is awarded at the March Commission and Select Water Committee meetings the following spring. 2) Immediately following the project approval, agreements are sent to the Sponsors for signature by the respective district board. 3) After the sponsor signs the Project Agreement, all copies are sent back to the Office for additional processing. At this time the sponsor may begin to acquire permits, final designs, specifications, access letters (if necessary), before photos, and any other documentation required for construction. 4) When the documentation addressed in the previous item is complete, the project sponsor should assemble the required documentation along with signed copies of the Project Sponsor and Sage Grouse Checklists, available from the Small Water Website, and send to the Small Water Projects Program Manager ([email protected]) for review. 5) After the previous documents have been reviewed, the Office will provide any questions or comments to the sponsor via email. Once the Project Sponsor satisfactorily addresses the questions/comments, a Notice to Proceed Letter will be issued. This letter authorizes the project sponsor to begin construction. If construction begins before the date on the Notice to Proceed Letter, then according to the program criteria it is ineligible for program funding. a) Project sponsors may, however, with acceptable documentation, purchase off the shelf materials (such as pipe and troughs) in advance of the notice to proceed letter, as long as they

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are willing to accept the risk that if the plans are changed by the final plan review and the purchased materials are not longer required, they are solely responsible for those costs. This exception does not include the construction of custom items such as diversion boxes that are sized specifically for the project in the final plans. 6) Once the Sponsor receives their Notice to Proceed Letter, construction may begin. Project criteria require the selection of a construction contractor through a competitive bid process. The project sponsor is responsible for establishing the process through which Contractors are selected, and for maintaining a record of the bid process should the Office request a copy of the records. 7) After completion of project construction, the project sponsor will need to prepare a payment request for reimbursement of expenses. It is important that project sponsors keep very close track of project invoices as payment can only be made based on itemized invoices. Similarly, an “Affidavit of Publication” should be provided to document final settlement and the completion of the 41-day advertising period if the project Sponsor determines the project to be a “public work” as defined in W.S. 16-6-101 (a)(ix). 8) After receipt of the complete payment request package, the Office will review the documents provided by the project sponsor and provide any comments. Once the questions/comments are addressed then project funds are released to the project sponsor. Project sponsors are paid for 50% of invoiced eligible expenses up to $35,000 not to exceed the approved grant amount. Remaining grant funds will revert to the small water program accounts for use on other projects. Program legislation allows for progress payments to be made throughout the project, but program criteria limit these types of payments to components that are providing beneficial use of water. In practice, most project sponsors prefer one payment request at the end of the project.

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Chapter 5 Payments & Funding Eligible Expenses Small Water Program funds may be used for design, permit procurement, project land procurement, construction engineering, project materials, and invoiced contractor expenses.

In kind expenses, such as labor and materials are also eligible for reimbursement as long as they were purchased specifically for the project as documented by invoices. All invoices/receipts will be reviewed for ineligible items such as tools, extended warranties, personal items, portable generators, fuel, and fencing beyond that which is necessary for protection of the installed infrastructure. In kind invoices will also be reviewed for mileage and hourly labor rates. The Office understands that these rates will vary across the state, so no preapproved mileage and labor rates are provided. However, the sponsor will need to document the rates used should there be a need to review their reasonableness. Required Documentation Program Criteria lists several items that are required of each small water project. In addition to the items in the Criteria, the office also has a few items that that are required before final payment can be made. The required submittals are listed below.

• Operation and Maintenance Plan • Certified Pay Request from Sponsor • Contractor Invoices signed by the Project Sponsor • Before & After Photos • Latitude & Longitude Coordinates • Affidavit of Publication of Final Settlement if the project is determined to be a “public work” by the project sponsor. • Final As-Built Drawings, or a Letter of Certification that the project is providing beneficial use and functioning in the manner intended from a Federal Agency • Finalized SEO Paperwork for Wells

Many of these items are required before notice to proceed is issued. However, because of their importance, a review of the file will be conducted before final payment is made to make sure that they are present. Key Dates for Payment Regarding the final payment, there are two key dates that the project sponsor needs to be aware of. The first is the date that Notice to Proceed was issued. Construction activities that occur before the date Notice to Proceed was issued are not eligible for program funds. All invoices that are submitted for reimbursement will be compared to the date that Notice to Proceed was issued, for eligibility.

The second date that is important for each project is the expiration date listed in the Project Agreement. Project expiration dates are always set for December 31st, so working back from that date the following schedule is set for project sponsors who are finishing their projects in the final year of the agreement.

• Final payment requests need to be turned into the Office by December 1st so there is time for review and corrections, if necessary, before the expiration date at the end of the month.

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• In order to have the 41-day advertising completed by December 1st on those projects where it is required for the affidavit of publication, construction should be finalized in early October.

Utilizing the above dates as a starting point, a letter is sent to all project sponsors with expiring projects in May. The letter lists the projects that are expiring and the dates listed above for their reference when discussing project completion schedules with landowners and contractors.

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Wyoming Water Development Commission Commissioner Orientation Cheyenne, Wyoming May 12, 2021

1. Chairman Clinton W. Glick called the meeting to order at 1:30 p.m.

2. Commissioner Introductions

3. Water Development Staff Introductions

4. Roll Call – Secretary Ron Kailey led roll call of the Commission.

Commission Attendance: Liisa Anselmi-Dalton Robert Choma Leonard A. “Lee” Craig Clinton W. Glick Ron Kailey, Jr. Mark Kot Sheridan Little – Excused Larry Suchor Bill Yankee

Advisor Attendance: Darren Cook, Attorney General’s Office

5. Water Development Program Overview Director Brandon Gebhart provided a brief overview of the Water Development Program, including its origins, relationship to the Select Water Committee, and staffing of the Commission and Water Development Office. He also explained the general funding process/timeline and informed the Commission of Wyoming’s current water investments.

6. Financial Overview Fiscal Manager David Ray provided a financial overview of the organization. He explained the significance of the Mineral Severance Tax and purpose of each of the three Water Development Accounts.

Accountant Janet Belmonte explained the compensation and reimbursement processes. She informed the Commission of which expenses were eligible for reimbursement.

Wyoming Water Development Commission Special Meeting Minutes May 12, 2021 Page 1

7. Planning Division Deputy Director Barry Lawrence provided an overview of the Planning Division. He explained the application, recommendation, funding, and consultant selection processes for Level I and II Planning Projects. He also differentiated between the three levels of projects and the expected progression from Level I, to Level II, to Level III Construction.

8. Weather Modification Program Manager Julie Gondzar provided an overview of the Cloud Seeding/Weather Modification Program. She briefly explained how cloud seeding works to boost snowfall, the benefits and limitations of the program, and funding processes.

9. Small Water Project Program Program Manager Jodie Pavlica provided an overview of the Small Water Project Program. She explained the types of projects served by the program, eligibility requirements, and methods for prioritizing and selecting which projects to fund.

10. Instream Flow Program Program Manager Chace Tavelli provided an overview of the Instream Flow Program. He gave a brief history of the instream flow law and explained the three coordinating agencies and their roles. He also explained the key tasks associated with instream flow studies, including an inventory of water rights, hydrology analysis, flow measurements, storage analysis, and more.

11. Groundwater Exploration Grants Program Manager Kevin Boyce provided an overview of the Groundwater Exploration Grant Program. He elaborated on the concept of test wells, and the eligibility criteria, application process, and funding process.

12. Construction Division Project Managers Bill Brewer and Wade Verplancke provided a brief overview of the Construction Division. They outlined the application process, eligibility requirements, and match funding responsibility of Sponsors.

13. Dams and Reservoirs Deputy Director Jason Mead briefly explained the Dam and Reservoir construction process, beginning with early planning phases and progressing through permitting and design phases. He elaborated upon the complex funding process associated with these projects.

Wyoming Water Development Commission Special Meeting Minutes May 12, 2021 Page 2

14. State Revolving Fund Program Manager Wade Verplancke provided an overview of the Drinking Water State Revolving Fund (DWSRF). He explained eligibility requirements and how projects are prioritized.

15. MOA/Basin States Program Manager Bill Brewer briefly explained the MOA/Basin States Programs. He explained the primary users and objectives of the Basin States Program, which is centered around irrigators in the Colorado River Basin States with the goal of reducing salt load in the Colorado River. He also discussed the MOA program which focuses on Colorado River Storage Project Act (CRSPA) facilities.

16. Discussion

17. Adjourn

Respectfully submitted,

Ron Kailey, Jr., Secretary

Wyoming Water Development Commission Special Meeting Minutes May 12, 2021 Page 3

Wyoming Water Development Commission/Select Water Committee Joint Meeting Cheyenne, Wyoming May 13, 2021

1. Chairman Clinton W. Glick called the meeting to order at 8:30 a.m.

2. The pledge of allegiance was recited.

3. Roll Call – Secretary Ron Kailey led roll call of the Commission.

Commission Attendance: Select Water Attendance: Clinton W. Glick, Chairman Sen. Larry Hicks, Vice-Chairman Bill Yankee, Vice-Chairman Sen. Brian Boner Ron Kailey, Jr., Secretary Sen. Ogden Driskill Liisa Anselmi-Dalton Sen. Tim French Robert Choma Sen. Mike Gierau Leonard A. “Lee” Craig Sen. Cheri Steinmetz Mark Kot Rep. Evan Simpson, Chairman Sheridan Little Rep. Chad Banks Larry Suchor Rep. John Eklund Rep. Dan Laursen Rep. Chip Neiman Rep. Jerry Paxton Advisor Attendance: Darren Cook, Attorney General’s Office Greg Kerr, University of Wyoming Steve Wolff, State Engineer’s Office

4. Commissioner and Committee Member Introductions

5. Audience Introductions

6. Approval of Minutes Commissioner Liisa Anselmi-Dalton made a motion to approve the WWDC Workshop Minutes from March 18, 2021. Commissioner Ron Kailey seconded the motion; motion carried unanimously.

Commissioner Bill Yankee made a motion to approve the WWDC Meeting Minutes from March 19, 2021. Commissioner Larry Suchor seconded the motion; motion carried unanimously.

7. Aquatic Invasive Species Update – Wyoming Game and Fish

Wyoming Water Development Commission/Select Water Committee Joint Meeting Minutes May 13, 2021 Page 1

Director Gebhart informed the Commission and Committee Members of the threat of Zebra Mussels to the state of Wyoming. He encouraged prompt removal and reporting if they are ever to be discovered.

8. Planning Closeout Memos • Bluff/Upper Bluff Irrigation Districts Master Plan, Level I Study Project Manager Jodie Pavlica provided a brief summary of project findings. Commissioner Ron Kailey moved acceptance of the Bluff/Upper Bluff Irrigation Districts Master Plan project report as being complete and further, made the following finding relative to this project: • That the Commission recommend proceeding to the next Level of project development upon the submittal of an appropriate funding application.

Commissioner Anselmi-Dalton seconded the motion; motion carried unanimously.

• Crook County Rural Water Supply Plan, Level I Study Project Manager Kevin Boyce provided a brief summary of project findings. Commissioner Sheridan Little moved acceptance of the Crook County Rural Water Supply Plan project report as being complete and further, made the following finding relative to this project: • That the Commission recommend proceeding to the next Level of project development upon the submittal of an appropriate funding application.

Commissioner Liisa Anselmi-Dalton seconded the motion; motion carried unanimously.

9. Aladdin Water District Water Service Contract Renewal Director Gebhart proposed a two-year time extension to the Water Service Contract between the Commission and the Aladdin Water District. The time extension would allow the District to address violations identified by the EPA before purchasing the well from the Commission.

District Manager Randy Strader reconfirmed the District’s continued desire to purchase the well once the violations are resolved.

Commissioner Anselmi-Dalton made a motion to approve the contract renewal. Commissioner Little seconded the motion; motion carried unanimously.

10. Mortgage Release Director Gebhart announced that both loans to Park Reservoir Irrigation District for the Park Reservoir Dam Construction Project, in the amounts of $1.2 million and $570 thousand dollars issued on October 14, 1981 and April 5, 1982, respectively, have been paid in full. Wyoming Water Development Commission/Select Water Committee Joint Meeting Minutes May 13, 2021 Page 2

Commissioner Yankee made a motion to release Park Reservoir Irrigation District of both mortgages. Commissioner Suchor seconded the motion; motion carried unanimously.

11. 2022 Level I Reconnaissance Study, Account I New Development Project Applications

• Clarks Fork/Upper Shoshone Watershed Study • Dayton Water Master Plan • Riverton Regional Water Master Plan

Commissioner Kailey made a motion to preliminarily approve all 2022 Level I Reconnaissance Study, Account I New Development Projects and allow the Water Development Office to proceed with consultant selection. Commissioner Lee Craig seconded the motion; motion carried unanimously.

12. 2022 Level II Feasibility Study, Account I New Development Project Applications

• LaGrange Groundwater Supply and Improvements • Pavillion Groundwater Supply • Pinedale Water System Improvements Since the time of application, the Town of Pinedale determined that a Level II Study is not necessary and formally requested withdrawal of the Level II application.

Commissioner Kot made a motion to preliminarily approve all 2022 Level II Feasibility Study, Account I New Development Projects and allow the Water Development Office to proceed with consultant selection. Commissioner Little seconded the motion; motion carried unanimously.

13. 2022 Level I Reconnaissance Study, Account II Rehabilitation Project Applications

• West Afton/Nield String Master Plan Director Gebhart announced that this is a joint application and that neither entity is currently an eligible entity for the Program, and independently, do not meet the minimum irrigated acreage criteria. Discussion ensued that West Afton is in the process of forming an entity. It was also discussed that the entities may evaluate formation of a single entity and that the proposed study would investigate this.

Wyoming Water Development Commission/Select Water Committee Joint Meeting Minutes May 13, 2021 Page 3

Commissioner Kot made a motion to waive the minimum acreage and public entity requirements, preliminarily approve the 2022 Level I Reconnaissance Study, Account II New Rehabilitation Project, and allow the Water Development Office to proceed with consultant selection. Commissioner Anselmi-Dalton seconded the motion; motion carried unanimously.

14. 2022 Level II Feasibility Study, Account II Rehabilitation Project Applications

• Dowlin Diversion Rehabilitation

Commissioner Kailey made a motion to preliminarily approve the 2022 Level II Feasibility Study, Account II Rehabilitation Development Project and allow the Water Development Office to proceed with consultant selection. Commissioner Bob Choma seconded the motion; motion carried unanimously.

15. Planning Contract Amendments

• Lake DeSmet/Healy Reservoir Utilization, Level II Study, Amendment No. 2 An amendment to extend the contract time with Engineering Associates from June 30, 2021 through June 30, 2022 to provide additional time to account for unforeseen delays caused by additional investigation of possible contract water from other sources.

Commissioner Suchor made a motion to approve the amendment to the Lake DeSmet/Healy Reservoir Utilization, Level II Study planning contract. Commissioner Anselmi-Dalton seconded the motion; motion carried unanimously.

• LaPrele ID Rehabilitation, Level II, Phase II Study, Amendment No. 4 An amendment to the budget in the amount of $1.71 million dollars and to the scope to include increasing the Project Management Task, addition of new tasks of site characterization, surveying, design advancement, replenishing the discretionary task and a 10% design task.

Commissioner Yankee made a motion to approve the amendment to the LaPrele ID Rehabilitation, Level II, Phase II Study planning contract. Commissioner Little seconded the motion; motion carried unanimously.

Senator Mike Geirau made a motion to approve the approval. Committee member seconded the motion; motion carried unanimously.

Wyoming Water Development Commission/Select Water Committee Joint Meeting Minutes May 13, 2021 Page 4

• UW Water Research Program MOU (2018), Amendment No. 1 An amendment to extend the contract with the University of Wyoming Water Research Program from June 30, 2021 through December 31, 2021 to account for time lost due to closed and restricted access to campus laboratories due to the COVID pandemic.

Commissioner Choma made a motion to approve the amendment to the UW Water Research Program MOU (2018) planning contract. Commissioner Anselmi-Dalton seconded the motion; motion carried unanimously.

16. UW Water Research Program

• 2022 RFP for the Water Research Program Greg Kerr, Director of the Office of Water Research at the University of Wyoming, briefly explained the Water Research Program and project selection process. He provided a short statement on each of the following topics proposed by the advisory committee: • Protecting Public Health • Dam Operation and Sediment Management and Transport • Investigating the Hydrologic and Physical Effects of Voluntary Fallowing of Fields • Understanding and Responding to Future Change in Hydrologic Variability

Senator Hicks recommended removing the topic of Understanding and Responding to Future Change in Hydrologic Variability and adding a topic pertaining to the economic and technological needs for the production and treatment of groundwater in the Rock Springs uplift for the purpose of mining lithium and other available constituents.

Commissioner Anselmi-Dalton made a motion to approve all topics as presented in the RFP, including a new topic regarding Rock Springs uplift, membrane technology, and water extraction to access lithium and other minerals. Commissioner Kot seconded the motion; motion carried unanimously.

Senator Hicks stated that he would provide a write-up to the Commission and Select Water Committee and invited others to weigh-in.

Representative John Ecklund made a motion to concur with the recommendation of the Commission. Representative Chip Neiman seconded the motion; motion carried unanimously.

Wyoming Water Development Commission/Select Water Committee Joint Meeting Minutes May 13, 2021 Page 5

17. Construction Project Amendment

• Middle Piney Dam Reconstruction Project An amendment to increase the total Contract dollar amount by $681,000to $2,680,217 million dollars, amend the responsibilities of the consultant, and to change the consultant’s name from Wenck Associates, Inc. to Stantec Consulting Services, Inc.

Director Gebhart explained that the project had been slowed by an unanticipated amount of groundwater and expanded grouting program. The increase in Contract amount is expected to cover more construction management, additional travel and per diem, replenishing the discretionary task and additional grouting design and oversight. Discussion ensued.

Representative Simpson suggested that the $200,000 replenishment of discretionary task funds be eliminated and award the remainder of the request.

Commissioner Kot made a motion to approve the amendment without Discretionary Task No. 7, reducing the increase in total Contract dollar amount by $200,000for a new total increase of $481,000 dollars. Commissioner Kailey seconded the motion; motion carried unanimously.

Senator Hicks made a motion to recommend the approval and was the motion was seconded; motion carried with opposition from Senator Tim French.

18. Public Comment for Joint WWDC/SWC Items Paul Dey, Aquatic Habitat Program Manager with the Wyoming Game and Fish Department, expressed his support for the Dowlin Diversion Rehabilitation project.

19. Future Meeting’s Schedule and Director’s Comments

20. WWDC Adjournment

Respectfully submitted,

Ron Kailey, Jr., Secretary

Wyoming Water Development Commission/Select Water Committee Joint Meeting Minutes May 13, 2021 Page 6

FINAL PROJECT CLOSEOUT MEMO FOR LEVEL I AND II PLANNING PROJECTS

WYOMING WATER DEVELOPMENT OFFICE

PLANNING DIVISION

The Planning Project listed below is complete and scheduled for closeout. This memo serves to summarize the findings of the final report and to document the final contract amount.

PROJECT: Cheyenne Municipal Storage LEVEL: II SPONSOR: Cheyenne Board of Public Utilities LOCATION: Carbon, Albany, and Laramie Counties PROGRAM: Dams and Reservoirs PROJECT MGR: Andrew Linch WWDC MTG DATE: August 13, 2021

AUTHORIZING LEGISLATION: Purpose Chapter Session Account Appropriation Due Date Level II 94 2018 III $330,000 2023

CURRENT CONTRACT: Consultant Trihydro Corporation Original Final Contract Contract Contract Savings Expiration Contract Number Executed Amount Amount Amount Date 05SC0297518 7-3-18 $328,500 $328,307.61 $ 192.39 3-31-21

PROJECT DESCRIPTION:

The City of Cheyenne (City), Board of Public Utilities (BOPU) uses a complex water system (System) that includes trans-basin diversions, water-right exchanges, reservoirs, pipelines, and other infrastructure that spans across Carbon, Albany, and Laramie counties in southeast Wyoming to supply surface and groundwater to approximately 75,000 people in the City. The current BOPU water supply system consists of eight reservoirs and dams, four groundwater wellfields, various pipelines and diversions, and a water treatment facility. Approximately 70% of the City’s water is supplied by surface water, while 30% is supplied by groundwater.

As recommended in the 2013 Cheyenne Water and Wastewater Master Plan, additional surface water storage alternatives were analyzed in this study and included raising the existing dams at Granite Springs, Crystal Lake, and Rob Roy Reservoirs. Other alternatives that were analyzed included additional pipelines to better connect existing infrastructure, system optimization, expanding well fields, vulnerability assessments, and dredging of reservoirs to remove accumulated sedimentation.

Building upon existing work created by and for the BOPU, this study also updated the demand projections and the hydraulic model of the entire BOPU system to aid in developing and screening alternatives and to provide a clear purpose and need for the study. Conceptual designs and cost estimates were developed for the top alternatives along with an environmental and economics analysis. Field reconnaissance was also conducted to investigate and confirm site conditions for the alternatives analyzed.

Page 1 of 4

A long list of 53 alternatives were identified, evaluated, and screened to determine the top alternatives that could satisfy the projected water demand and system vulnerabilities identified in the purpose and need. Two of the top five alternatives are already being considered for implementation by BOPU. These include lowering the groundwater blending ratio to 15% and expanding groundwater supply to reliably produce 4,000 ac-ft/year. Therefore, these alternatives were assumed to be completed before implementing other alternatives when modeling and ranking alternatives. The top three alternatives recommended for further evaluation in this study include the following:

1. Conveying North Crow Creek Pipeline System at the Wye to Sherard Water Treatment Plant Since the retirement of the Round Top water treatment plant there has not been a reliable way to get water from North Crow Creek (including North Crow Creek Reservoir) to the Sherard Water Treatment Plant (WTP). As a result, these flows are currently only used for raw water supply. With an average supply of approximately 2,000 ac-ft/year and a raw water demand of only 800 ac-ft/year, approximately 1,200 ac-ft of additional water per year is potentially available for potable demand by this option. Adding a few additional valves and re-routing existing supply pipelines, water pressures in the system could be adjusted so that water from North Crow Creek could be conveyed to the WTP.

2. Little Snake River Collection System Optimization The Little Snake River Collection system has sluice gates to control flow from each intake along the collection pipeline. When operations commenced for the Stage I/II collection system in the Little Snake River Drainage, the intake gates were each fully opened. Unfortunately, this operational approach resulted in a hydraulic imbalance in the collection pipeline, leading to surcharging of the pipeline and resulting in flows exiting the pipeline through manholes and lower collectors. The problem was addressed by installing some surcharge relief systems and setting all of the intake gates to 50% open. This combination of structural safeguards and gate settings has reliably prevented surcharging, but has limited the capacity of the system.

The updated MODSIM model results indicate that the operational efficiency of the collection and pipeline systems could be improved such that an estimated 10 to 20% increase in system diversions might be reliably obtained. This would result in 1,500 to 2,000 ac-ft of additional supply. Therefore, it is recommended that the hydraulic model results be refined with additional data and pipeline operations should continue to be explored in more detail including the installation of remote system flow and pressure monitoring along with automated gates to more efficiently operate the system.

3. Crystal and Granite Outlet Rehabilitation and Bypass Pipeline Crystal and Granite dam outlet works are over 100 years old and likely are nearing the end of their safe operating life. Currently, all of the BOPU’s surface water supply routes through the Crystal outlet works and part of the outlet works is no longer operational. If the Crystal outlet were to fail, surface water supply would halt leaving the City to rely on ground water and small amounts of surface water from North and South Crow Creeks. Rehabilitation of the outlet works at Granite and Crystal are seen as critical elements of the BOPU water supply. Rehabilitation could also include construction of a bypass pipeline to allow the system to operate as the rehabilitation work is completed, as well as reduce potential risk of water supply loss if Crystal were to fail or water quality was degraded due to wildfire for example.

The demand projections refined by this project indicate that an additional 3,000 to 10,000 ac-ft of additional water would be needed at the end of 50 years. These were based on a low growth rate of 0.87% and a high growth rate of 1.18%. As can be seen in the discussions above, an additional 2,700 to 3,200 ac-ft is anticipated from the implementation of these alternatives which satisfies the low growth projections, gets a good start on the high growth rate projection and therefore largely addresses the near to mid-term needs of the City. Furthermore, the alternatives provide needed system redundancy which will help mitigate the impact of aging infrastructure failure and natural disasters.

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Preliminary designs were developed for the recommended alternatives and their cost estimates are summarized in the table in the next section. An economic analysis was also completed to evaluate the costs and benefits of the alternatives, the BOPU’s revenues and expenses, and additional potential funding sources.

PROJECT FINDINGS/RECOMMENDATIONS:

Studies to date have concluded that there is no single answer to ensuring the sustainability of the City’s water supply. Additional surface water sources, increased storage, increased groundwater supplies, conservation, and innovative use on the demand side will need to play a role. Based on the Project results, continued development of each alternative is warranted. All alternatives meet portions of the documented Purpose and Need and are supported by BOPU.

The following table summarizes the projects recommended and their associated cost estimates.

Project Project Cost Conveying North Crow Creek Pipeline System at the Wye to $169,943 Sherard Water Treatment Plant Little Snake River Collection System Optimization $526,300 Crystal Outlet Rehabilitation $3,020,670 Granite Outlet Rehabilitation $1,535,550 Bypass Pipeline $4,245,256

The BOPU is planning to apply for funding for the Bypass Pipeline project this fall.

PUBLIC REPORT PRESENTATION HEARING: N Date Location City/Town 4-19-21 BOPU Monthly Board Meeting (online) Cheyenne, WY

FINAL REPORT/EXECUTIVE SUMMARIES ONLINE: Final Report: http://library.wrds.uwyo.edu/wwdcrept/Cheyenne/Cheyenne- Municipal_Storage_Level_II_Phase_I-Final_Report-2021.html

Executive Summary: http://library.wrds.uwyo.edu/wwdcrept/Cheyenne/Cheyenne- Municipal_Storage_Level_II_Phase_I-Executive_Summary-2021.html

WWDO RECOMMENDATION: All contract requirements have been met. Therefore, the WWDO recommends acceptance of the Final Report. Project findings, recommendations, and the cost estimate for the Bypass Pipeline is suitable for inclusion in a Level III construction funding application. The other projects are recommended for additional study before bringing a Level III construction funding application. The BOPU plans to complete these additional studies on their own in coordination with the WWDO.

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WWDC PROPOSED MOTION:

I move acceptance of the Cheyenne Municipal Storage project report as being complete and further, the WWDC makes the following findings relative to this project:

1. That the Commission recommend: • Proceeding to Level III of project development upon the submittal of an appropriate funding application by the sponsor.

2. Based on the findings in the final report, the project is determined to be in the public interest.

3. The project functions and services cannot realistically be provided by any person, association or corporation engaged in private enterprise.

Page 4 of 4

THE STATE OF WYOMING Water Development Office 6920 YELLOWTAIL ROAD TELEPHONE: (307) 777-7626 CHEYENNE, WY 82002

MEMORANDUM

DATE: August 3, 2021 TO: Wyoming Water Development Commission FROM: Keith E. Clarey, P.G., Groundwater Grant (GWG) Program Manager SUBJECT: Amendment One to the Town of Jackson Groundwater Exploration Grant Contract

The Town of Jackson is requesting additional funding for the Jackson Zone 3 Well Groundwater Grant Project (2020). The project was initially bid in April, but the successful bidding contractor subsequently determined they were not capable of completing the work, thereby forfeiting their bid bond. The project was re-bid this summer with the bid opening on July 27, 2021. The additional 2021 funding request is needed to address the discrepancy between the intended percentage match and the actual match necessary to cover increased project costs. The current project costs far exceed the initial 2020 grant estimate due to several factors, with the primary driver the unanticipated aquifer testing water disposal costs. Other cost increase factors include unforeseen increases in well casing/screen costs and general increases in local construction costs.

Project Description: The Town of Jackson desires the installation of a new groundwater supply well in Zone 3. The purpose of Amendment One is to provide an increase of $173,250.00 in funding for the existing Town of Jackson Groundwater Exploration Grant to cover the increased costs involving the well construction re-bids and discharge water costs during aquifer testing. With the approval of Amendment One, the total GWG contract cost of the 2020 Town of Jackson Zone 3 Well project would be increased from $101,250.00 to $274,500.00, with no change in the project timeline (contract expires August 31, 2022).

Memorandum Wyoming Water Development Office Page 1

PUBLIC WORKS DEPARTMENT

450 West Snow King Ave. ph: (307) 733-3079 P.O. Box 1687 fax: (307) 734-1664 Jackson, WY 83001 www.jacksonwy.gov

27 July 2021

Wyoming Water Development Commission 6920 Yellowtail Road Cheyenne, WY 82002

RE: Water Development Program – Groundwater Exploration Grant for Well #9 in Zone 3 of the Town of Jackson, WY Water Supply System

Dear Commission,

The Town of Jackson is informing you of an updated project schedule and respectfully requests additional funds for the subject project.

The project will need to be completed in the spring of 2022 due to uncertainty in supply chain for well screen delivery and the inability to dispose of pump testing water once the ground is frozen. Well screen type determination cannot be made until test well drilling is completed in September. Well drilling contractors report that screen fabrication and delivery times for larger screens are reported to be six weeks and potentially may take longer. The new stated final completion date is in June, after the level II report and draft grant application deadline of June 1 but the Town is optimistic that enough information can be gained from the project early enough prior to that to still complete the report and application in time.

Additional funds are needed to address the discrepancy between the intended percentage match and the actual match necessary to cover project costs. Project cost far exceeded the initial grant estimate due to several factors, with the primary driver the unanticipated pump testing water disposal costs. Well siting studies determined the optimal well location based on land owner ship and water distribution considerations. The selected site requires pump testing water disposal be routed via pipeline to the nearest irrigation ditch approximately ¼ mile distant. Other cost increase factors include well casing and screen costs and general increases in local construction costs. The project was initially bid in April. The awarded contractor signed the contract but subsequently determined they were not capable of completing the work. The bid bond was forfeited to the Town and the town has re-bid the project with the bid opening today, July 27.

Attached please find the bid information which would update part 5 of the original application and demonstrates the need for an additional $173,250 in grant funding, for a total of $274,500 Program 75% funding and $91,500 Town of Jackson 25% matching funds. We were advised that it would be useful to present the request in time to seek approval at the August meeting.

Page 1 of 2 K:\Engineering\PROJECTS Capital\WATER\2021 Well #9 Feasibility\00 Financial\Grants\2020_WWDC\Correspondence\20210727_Notification_ProjectTimeline-FINAL-clean.docx Thank you for your consideration,

Floren Poliseo

Public Works Director BID NUMBER: cld-03 DROJECTNAME: \)'-JQ__,\\ C\ 6 XR\~ '()Q

OPENING DATE & / d\\ I d.\ ODENEDBY: TIME: r d e('(\ Jfrf s:,,,l

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ARTICLE 1-BID RECIPIENT

1.01 This Bid Is submitted to: TOWN OF JACKSON POBox1687 150 East Pearl Avenue (Town Hall) Jackson, WV 83001 1.02 The undersigned Bidder proposes and agrees, if this Bid is accepted, to enter into a Contract with Owner in the form included In the Bidding Documents to perform all Work as specified or indicated in the Bidding Documents for the prices and within the times indicated in this Bid and in accordance with the other terms and conditions of the Bidding Documents.

ARTICLE 2 - BIDDER'S ACKNOWLEDGEMENTS

2.01 Bidder accepts all of the terms and conditions of the Instructions to Bidders. This Bid will remain subject to acceptance for 60 days after the Bid opening, or for such longer period of time that Bidder may agree to in writing upon request of Owner.

ARTICLE 3 - BIDDER'S REPRESENTATIONS

3.01 In submitting this Bid, Bidder represents that: A. Bidder has examined and carefully studied the Bidding Documents, and any data and reference items Identified in the Bidding Documents, and hereby acknowledges receipt of the following Addenda:

Addendum No. Addendum Date

1 07/16/201

2 07/23/2021

B. Bidder has visited the Site, conducted a thorough, alert visual examination of the Site and adjacent areas, and become familiar with and satisfied Itself as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Bidder is familiar with and has satisfied itself as to all Laws and Regulations that may affect cost, progress, and performance of the Work. D. Bidder has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or adjacent to the Site and all drawings of physical conditions relating to existing surface or subsurface structures at the Site that have been Identified in the Supplementary Conditions, especially with respect to Technical Data in such reports and drawings, and (2) reports and drawings relating to Hazardous Environmental Conditions, if any, at or adjacent to the Site that have been identified in the Supplementary Conditions, especially with respect to Technical Data in such reports and drawings.

EJCDC"' C-410, Bid Form for construction Contracts. Copyright C 2013 Natlonal Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Enalneers. All rights reserved. Page 1 ZONE 3 WELL EXPLORATION PROJECT Town of Jackson Bid No. 22-03 PROJECT # 19-330-03

ADDENDUM NO. 1 July 16th, 2021

NOTICE TO BIDDERS

This ADDENDUM shall be acknowledged both in the space provided on this ADDENDUM and on the BID FORM. Failure of any Bidder to properly acknowledge receipt of this Addendum both on this ADDENDUM and on the BID FORM may result in REJECTION OF THE BID.

This Addendum shall be attached to the Contract Documents and shall form a pa1t thereof. The following changes, additions and/or deletions shall be made in the Specifications, Contract Documents and/or Drawings.

CONTRACT DOCUMENTS

l . CHANGE the Advertisement for Bids to state: I - Sealed Bids will be received at the Office of the Town Clerk Town of Jackson, PO Box 1687, located at 150 East Pearl Avenue, Jackson, WY 83001 (Town Hall), emailed bids will be received at lynseylenamond@j acksonwy.gov, until Tuesday, July 27, 2021 at 2:00 PM Mountain Time.

Sincerely,

Philip Gyr, PE Project Manager *******************************

/ -l b -;;)-/ DATE

Addendum No. I , Pagel of l ZONE 3 WELL EXPLORATION PROJECT Town of Jackson Bid No. 22-03 PROJECT# 19-330-03

ADDENDUM NO. 2 July 12'1, 2021

NOTICE TO BIDDERS This ADDENDUM shall be acknowledged both in the space provided on this ADDENDUM and on the BID FORM. Failure of any Bidder to properly acknowledge receipt of this Addendum both on this ADDENDUM and on the BID FORM may result in REJECTION OF TH E BID. This Addendum shall be attached to the Contract Documents and shall form a part thereof. The following changes, additions and/or deletions shall be made in the Specifications, Contract Documents and/or Drawings.

CONTRACT DOCUMENTS

1. CHANGE Article 4.01 of the Agreement:

4.01 Contract Times A. The Work will be substantially completed not later than June 1, 2022, and completed and ready for final payment not later than June 15, 2022. There shall be a winter shutdown from November 1 2021 to April 1, 2022.

2 CHANGE Section 20000 Mobilization and Water Disposal: Part 3 Execution 3.1 General ADD E. Water disposal piping and appurtenances must be installed and removed expeditiously with total duration from installation to removal from pump testing to be no more than 10 days. High School Road crossing shall be installed the no more than 2 days prior to and removed no more than two days after pump testing. Pump testing water disposal shall be conducted prior to October 20 or after April 15th. F. Should the project be staged such that a test well is advanced more than 3 weeks prior to commencing final well drilling activities, the site must be remediated by removal of all spoils, smoothing of ruts, and the spot application of sod such that Park is usable by the public. The Engineer will inspect the site and has final approval of the acceptability of remediation. Sincerely, ~ ----- Philip Gyr, PE Project Manager *******************************

Addendum No. 2, Page I of I ARTICLE 9 - BID SUBMITIAL

BIDDER: {Indicate correct name of bidding entity]

Thomas Drilling , I n c .

By: {Signature] ~~ ~

[Printed name] ...-=- {If Bidder is a corporation==, a limiteds liability company, a partnership, or a joint venture, attach evidence of authority to sign.)

Attest : [Signature] ~a~ [Printed name] Sandy Thomas

Title: Secretary/Treasurer

Submittal Date: 07/27/2021

I Address for giving notices:

Thomas Drilling , Inc.

131 Rocky Road

Afton, WY 8 110

Telephone Number: 307-885-3976

Fax Number: 307-885-9257

Cont act Name and e-mail address: Sdndy Thomas

sandy@thomasdrillinginc . com

Bidder's License No.: 04WDPI068 (where applicable)

NOTE TO USER: Use in those states or other jurisdictions where applicable or required.

EJCoc• C-410, Bid Form for Construction Contracts. Copyright() 2013 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 5 3. "collusive practice" means a scheme or arrangement between two or more Bidders, with or without the knowledge of Owner, a purpose of which Is to establish bid prices at artificial, non-competitive levels; and 4. "coercive practice" means harming or threatening to harm, directly or Indirectly, persons or their property to Influence their participation In the bidding process or affect the e execution of the Contract.

ARTICLE S - BASIS OF BID

5.01 Bidder will complete the Work in accordance with the Contract Documents for the following price(s):

Bid for Zone 3 Well Exploration Project

Item Estimated Item Description Unit Unit Price Total Price # Quantitv 1 Mobilization LS 1 53,000.00 53,000.00 2 Force Account LS 1 $ - $ 10,000 3 OearlnlZ & Grubblna SF 3750 2.19 8,193 . 75 4 L.andscaolng & Restoration LS l 18,170 . 00 18,170.00 ,I ,, s Undasslfled Excavation eve so 51. 50 2,575.00 6 Drllllna for 20" Surface Casi nil! LF so 185.00 9,250.00 7 Casina - Temoorarv 2'1' Surface Caslnaz LF so 120.00 6,000.00 8 Drllllnrz for 16" Dia. caslna lF 50 148.00 7,400.00 9 CasinR - 16" Dia. lF 102 154.00 15,708.00 10 Bentonlte Grout Surface Seal LS 1 5,320.00 5,320.00 11 16" Telescoolng Well Screen LF 32 300.00 9,600.00 12 Well Screen Installation HRS 8 525. 00 4,200.00 13 Water Disposal Svstem LS 1 97,405.00 97,405.00 14 Well Development HRS 24 525. 00 12,600.00 15 Puma Mobilization LS 1 39,000.00 39,000.00 16 Develooment Pumclni HRS 10 375 . 00 3,750.00 17 Pump Testing HRS 44 375. 00 16,500 . 00 Total Project Cost 318,671.75 BOND AT 5% 15,933.59 GRAND TOTOAL PROJECT COST j334, 605. 34 *** ••• ANY DELAYS IN MATERIAL DELIVERIES WILL BE ADDED TO CONTRACT TIME FOR COMPLETION.

£1c:oc;e C-410, Bid Form for Canllructlon Contracts. Copyright e 2IDll Nallan.t Society of Pnllealonal Eftalneen. Amertran Council of Eiiali-"'8 Companies, and Amarlcan 5Dclety of Clvll (npleers. AU rtaf'ltS reserved. Pqe J ..

EJCDCil PENAL SUM FORM BID BOND

Any singular reference to Bidder, Surety, Owner or other party shall be considered plural where applicable.

BIDDER (Name and Address): Thomas Drilling, Inc. 131 Rocky Rd. Afton, WY 83110

SURETY (Name, and Address of Principal Place of Business): Atlantic Specialty Insurance Company 605 Highway 169 North, Suite 800 Plymouth, MN 55441

OWNER (Name and Address): Town of Jackson 150 E Pearl Avenue PO Box 1687 Jackson, WY 83001 BID Bid Due Date: July 27, 2021 Description (Project Name- Include Location): Water Supply Zone 3 Well 9 Exploration Jackson, WY 83001 BOND Bond Number: Date: July 22, 2021 Penal sum Five Percent of the Amount Bid S 5% of Bid (Words) (Figures) Surety and Bidder, intending to be legally bound hereby, subject to the terms set forth below, do each cause this Bid Bond to be duly executed by an authorized officer, agent, or representative. BIDDER SURm .. . _ : _ _ . Thomas Drilling, Inc. (Seal) Atlantic Specialty Insurance Company (Seal)..":°._: ·:.-:-. --~ -~ ·. ~- ·-. - -. -· -- Bidder's Name and Corporate Seal Surety's Name and Corporate Seal -~- ; ·_ _.·· ~ -.· --_<.,.. -._

~ - / "l> t .;;; ~-~ ;~· : _;·: ~ -~ By:-~~ By: ~ ~ &::. ~ . . =- ;.:.:. :.: . ··:- /sjgnure > Signature (Attach Power :itAttirmeY) '/ ·.. _ -=: .: : ..:.- / ~ _- -_ ~ ~--:- -<~' .--· - ·"' ··--· · ..... - ... _ ... · {'{5o ~ ( }\omf\ s Mitchell Lane Bringhurst -.:...... PrinfName Print Name

Attorney-in-Fact

Attest:~ ~Attest Sgnature

m,e5~IT~s Title Personal Lines Manager Note: Addresses are to be '/sed for giving any required notice. Provide execution by any additional parties, such as Joint venturers, If necessary.

max:e e.ao. 1111 Bond,,_. sum FClrml, l'ldllllhad zou. Plllpllfl!d by Illa e.nearsJalnt c:antrad Documln1I CommlUN. Pqelafl ..

PENAL SUM FORM 1. Bidder and Surety, Jointly and severally, bind themselves, their heirs, executors, administrators, successors, and assigns to pay to Owner upon default of Bidder the penal sum set forth on the face of this Bond. Payment of the penal sum Is the extent of Bidder's and Surety's liability. Recovery of such penal sum under the terms of this Bond shall be Owner's sole and exclusive remedy upon default of Bidder.

2. Default of Bidder shall occur upon the failure of Bidder to deliver within the time required by the Bidding Documents (or any extension thereof agreed to In writing by Owner) the executed Agreement required by the Bidding Documents and any performance and payment bonds required by the Bidding Documents.

3. This obligation shall be null and void If:

3.1 Owner accepts Bidder's Bid and Bidder delivers within the time required by the Bidding Documents (or any extension thereof agreed to In writing by Owner) the executed Agreement required by the Bidding Documents and any performance and payment bonds required by the Bidding Documents, or

3.2 All Bids are rejected by Owner, or

3.3 Owner falls to Issue a Notice of Award to Bidder within the time specified In the Bidding Documents (or any extension thereof agreed to In writing by Bidder and, If applicable, consented to by Surety when required by Paragraph 5 hereof).

4. Payment under this Bond will be due and payable upon default of Bidder and within 30 calendar days after receipt by Bidder .and Surety of written notice of default from Owner, which notice will be given with reasonable promptness, Identifying this Bond and the Project and Including a statement of the amount due.

5. Surety waives notice of any and all defenses based on or arising out of any time extension to Issue Notice of Award agreed to In writing by Owner and Bidder, provided that the total time for Issuing Notice of Award Including extensions shall not in the aggregate exceed 120 days from the Bid due date without Surety's written consent

6. No suit or action shall be commenced under this Bond prior to 30 calendar days after the notice of default required in Paragraph 4 above Is received by Bidder and Surety and In no case later than one year after the Bid due date.

7. Any suit or action under this Bond shall be commenced only In a court of competent jurisdiction located In the state In which the Project Is located.

8. Notices required hereunder shall be In writing and sent to Bidder and Surety at their respective addresses shown on the face of this Bond. Such notices may be sent by personal delivery, commercial courier, or by United States Registered or Certified Mall, return receipt requested, postage pre-paid, and shall be deemed to be effective upon receipt by the party concerned.

9. Surety shall cause to be attached to this Bond a current and effective Power of Attorney evidencing the authority of the officer, agent, or representative who executed this Bond on behalf of Surety to execute, seal, and deliver such Bond and bind the Surety thereby.

10. This Bond Is Intended to conform to all applicable statutory requirements. Any applicable requirement of any applicable statute that has been omitted from this Bond shall be deemed to be lnduded herein as If set forth at length. If any provision of this Bond conflicts with any applicable statute, then the provision of said statute shall govern and the remainder of this Bond that Is not In conflict therewith shall continue In full force and effect

11. The term "Bid" as used herein Includes a Bid, offer, or proposal as applicable.

EICDC9 c.aQ. Bid Band (Penal Sum Form). Publlshecl 20U. Prepared brthe Enatnee,slolntCGnb'act~ Commltlae. PqeZofZ ., .. ...

One-~ Beacon Power of Attorney INSURANCE GROUP

KNOW ALL MEN BY THESE PRESENTS, that ATLANTIC SPECIALTY INSURANCE COMPANY, a New York corporation with its principal office in Plymouth, Minnesota, does hereby constitute and appoint: Dana Kaye Benson, Adam Christensen, Shauna Johnson, Mitchell Lane Bringhunt, Alyssa Pollock, Alicia Vest, each individually if there be more than one named, its true and lawful Auorney-in-Fact, to make, execute, seal and deliver, for and on its behalf as surety, any and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof; provided that no bond or undertaking executed under Ibis authority shall exceed in amount lhe sum of: unlimited and lhe execution of such bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof in pursuance of these presents, shall be as binding upon said Company as if they had been fully signed by an authorized officer of the Company and sealed wilh lhe Company seal. This Power of Attorney is made and executed by authority of the following resolutions adopted by lhe Board of Directors of ATLANTIC SPECIALTY INSURANCE COMPANY on the twenty-fifth day of September, 2012: Resolved: That the President, any Senior Vice President or Vice-President (each an" Authorized Officer'') may execute for and in behalf of lhe Company any and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof, and affix the seal of the Company thereto; and that lhe Authorized Officer may appoint and authorae an Attorney-in-Fact to execute on behalf of lhe Company any and all such Instruments and to affix the Company seal thereto; and that the Authorized Officer may at any time remove any such AUorney-in-Fact and revoke all power and authority given to any such Attorney~in­ FacL

Resolved: That the Attorney-in-Fact may be given full power and authority to execute for and in the name and on behalf of the Company any and all bonds, recognaances, contracts of indemnity, and all other writings obligatory in the nature thereof, and any such instrument executed by any such Attorney-in-Fact shall be as binding upon the Company as if signed and sealed by an Authorized Officer and, funher, the Attorney-in-Fact is hereby authorized to verify any affidavit required to be attached to bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof.

This power of attorney is signed and sealed by facsimile under the authority of the following Resolution adopted by the Board of Directors of ATLANTIC SPECIAL TY INSURANCE COMPANY on the twenty-fifth day of September, 2012: Resolved: That the signature of an Authorized Officer, the signature of the Secretary or the Assistant Secretary, and the Company seal may be affixed by facsimile to any power of attorney or to any cenificate relating thereto appointing an Attorney-in-Fact for purposes only of executing and sealing any bond, undenaking, recognizance or other written obligation in the nature thereof, and any such signature and seal where so used, being hereby adopted by the Company as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the same force and effect as though manually affixed.

IN WITNESS WHEREOF, ATLANTIC SPECIAL TY INSURANCE COMPANY has caused these presents to be signed by an Authorized Officer and the seal of the Company to be affixed this twenty-seventh day of April, 2020.

By STATE OF MINNESOTA Paul J. Brehm, Senior Vice President HENNEPIN COUNTY

On this twenty-sevenlh day of April, 2020, before me personally came Paul J. Brehm, Senior Vice President of ATI.ANTIC SPECIAL TY INSURANCE COMP ANY, to me personally known to be lhe individual and officer described in and who executed the preceding instrument, and he acknowledged the execution of the same, and being by me duly sworn, that he is the said officer of the Company aforesaid, and that the seal arfixed to the preceding instrument is the seal of said Company and that the said seal and the signature as such officer was duly affixed and subscribed to the said instrument by lhe authority and at the direction of the Company.

- - .... - ...... - ...... -- ....

I . ALISON DWAN NASH-TROUT ~

. 0 1 NOTARYPU8UC MINNES0TA ~ My Commission Expires ~ I January 31, 2025 Notary Public 8...... _.,..._._.__._...... ,...,...... I I, the undersigned, Secretaiy of ATLANTIC SPECIALTY INSURANCE COMPANY, a New York Corporation, do hereby certify that the foregoing power of attorney is in full force and has not been revoked, and the resolutions set fonh above are now in force. Signed and sealed. Dated 22nd day of July 2021

This Power of Attorney expires I January 31, 2025 I Kara Barrow, Secretary

2021 WATER DEVELOPMENT PROGRAM RECOMMENDATION GROUND WATER EXPLORATION GRANTS PROGRAM

Project Name: Town of Jackson Zone 3 Well

Program: New Development

Project Type: Municipal Water System

Sponsor: Town of Jackson

WWDO Recommendation: 75% Grant

Proposed Budget: $ 101,250 + $173,250 increase by GWG Amendment One = $274,500 Total GWG

Project Manager: Kevin J. Boyce, P.G./Keith E. Clarey, P.G.

I. PROJECT DESCRIPTION

New Municipal Public Water Supply Well

1. Describe existing status in the program and previous appropriations:

Year Project Appropriation 1994 Level III – Jackson Water Supply $ 2,300,000 1997 Level I – Teton County Master Plan $ 250,000 1999 Level III – Jackson Raw Water Supply $ 450,000 2010 Level III – Jackson Storage Tanks $ 4,000,000 2020 GWG Town of Jackson Zone 3 Well $ 101,250 (approved WWDC/SWC Aug ‘20)

2. Describe the location of the project: At a location to serve as supplement to Zone 3 source supply. Preferred location at Hereford Ranch, Tract 1 (NW¼SW¼ Sec. 6-T40N-R117W).

3. Summarize the request: A new municipal source supply well (proposed Jackson Well #9) to supplement existing Zone 3 supply, i.e., Jackson Wells #6, #7, and #8.

4. Summarize the reasons for the request: “[The] Town seeks to construct a new well to satisfy existing and future domestic and fire suppression needs in Zone 3 of the water system. The current infrastructure in Zone 3 experiences low pressures during periods of peak demands and lacks fire suppression capability to protect larger public and commercial buildings in Zone 3 that require a maximum fire flow capability of 3,250 gpm. The current summer average day, maximum day, and peak hour demands for Zone 3 are 1,600, 1,900, and 2,480 gpm, respectively. Estimated future (2080) buildout summer average day, maximum day and peak hour demands are 2,670, 3,160, and 4,130 gpm, respectively. Wyoming DEQ Chapter 12, Section 13, (a), (i), (D), requires systems with two or more wells to provide average day demand with the largest well out of service. According to this criteria, the existing supply wells #6, #7, and #8 are limited to 1,800 gpm capacity, which does not meet current max. day, or future average day needs.” (from funding application received 6/30/2020)

The additional 2021 funding request is needed to address the discrepancy between the intended percentage match and the actual match necessary to cover project costs. The current project costs far exceed the initial 2020 grant estimate due to several factors, with the primary driver the unanticipated pump testing water disposal costs. Other cost increase factors include unforeseen well casing and screen cost increases and general increases in local construction costs. Well-siting studies determined the optimal well location based on land ownership and water distribution considerations. The selected site requires pump testing water disposal routed via pipeline to the nearest irrigation ditch, approximately ¼-mile distant.

RECOMMENDATION GROUND WATER EXPLORATORY GRANTS PAGE 1 OF 8 II. WWDC ELIGIBILITY CONSIDERATIONS

1. Is the Sponsor a public entity? Yes 2. Project Priority According to WWDO Criteria: 2. Wells & Diversion Structures

3. Will the project serve at least 15 water taps? Yes A. Number of Taps: 4,045 Total; 1,631 in Zone 3 4. Is the sponsor eligible for funding from other state or federal programs? Yes A. If so, what are they (RUS, SRF, other)? RUS, SRF, MRG, etc. 5. Is the Sponsor under any federal (EPA) mandates to improve its system? (e.g., Administrative Orders, violations, actions taken, etc.)? No 6. Is the Sponsor currently served by a regionalized water supply system (specify): No Or will the Sponsor consider regional solutions to the purpose and needs of its water supply system? Not contemplated in this application, however previous WWDC studies in Teton County have examined regionalization including the Town of Jackson system in supply and transmission concepts. 7. What is monthly residential water bill for 5,000 gallons? $70.82 A. 20,000 Gallons? $102.62 B. Average residential monthly water bill? ≈ $70.82 8. Theoretical Monthly Water Bill (Median Household Income X 2.5%/12): @ Jackson Town MHI $75,150 = $156.56 9. Can the project be delayed or staged? Staged? No Delayed? Possible A. Should it be? Addition of a new Zone 3 well would compensate for added future Zone 3 storage capacity. 10. Basis for the Funding Recommendation: The sponsor is an eligible program applicant and the project falls within the criteria for program fund utilization.

III. PERTINENT INFORMATION

1. Existing Water Supply System A. EPA Public Water System (PWS) Identification Number: WY5600213 B. Groundwater (1) Number of Wells: 7 (2) Primary Supply Aquifer(s) or Formation(s): Quaternary Alluvium – Snake River and tributaries (3) Total Average Production Yield of All Wells (GPM): 8,220 gpm; 3,000 gpm for Zone 3 C. Surface Water (1) Source Name(s): None (2) Type of Diversion(s) (Headgate, Infiltration Gallery, Pumps, Etc.): N/A (3) Total Average Diversion Yield (CFS of GPM): N/A D. Springs (1) Name of Spring(s): None (2) Total Average Production Yield of All Springs (CFS or GPM): N/A E. Water Rights (1) For the water source supply (or supplies) described above, does the Sponsor possess valid and/or adjudicated water rights? Yes, with a total adjudicated water right of 11,150 gpm.

RECOMMENDATION GROUND WATER EXPLORATORY GRANTS PAGE 2 OF 8 F. Transmission Pipeline (1) Maximum Capacity of the Transmission Pipeline(s) (Gallons per Day): Zone 3 – 2.59 MGD (2) Increased Capacity Needed (If Known) (Gallons per Day): Zone 3 - 2.09 MGD (3) Approximate Distance from Source(s) to Distribution System: 8,270 linear feet (4) Transmission Pipe Diameter(s): 14” (5) Type of Transmission Pipe Material(s): Ductile Iron Pipe (6) Age of Transmission Pipeline(s): 25 years (7) Condition of Transmission Pipeline(s): Good G. Water Storage (1) Raw (Volume and Tank Description): None (2) Treated (Volume and Tank Description): 3 tanks – 2MG, 1.3 MG, 0.13; 3.43 MG Underground Concrete Tanks H. Treatment (1) Specify Water Treatment (None, Chlorination, Filtration, Etc.): Chlorination

2. Existing Water Distribution System A. Is the water use metered? Yes B. Are billings based on meter readings? Yes C. Identify unmetered usage (e.g., irrigation of parks, cemeteries, fire protection, etc.): All metered D. Average Day Demand Water Usage (Gallons per Capita per Day, Total/Zone 3): 581/576 gpcd E. Maximum Day Demand Water Usage (Gallons per Capita per Day, Total/Zone 3): 657/684 gpcd F. Peak Hourly Demand Water Usage (Gallons per Capita per Day, Total/Zone 3): 949/893 gpcd G. Distribution Pipe Diameter(s): 4” through 14” H. Type of Distribution Pipe Material(s): PVC or DIP I. Age of Distribution Pipeline(s): Up to 60 years J. Condition of Distribution Pipeline(s): Good K. Estimated System Water Losses (Percentage): <10% L. Describe any fire flow protection that the system provides: Provided throughout the system within Town limits. Supply is provided from existing supply wells and storage facilities and delivered through system hydrants. M. What water conservation measures are employed? Well production and system users are metered for the purpose of identifying unaccounted for water. The Town is currently exploring the implementation of a tiered rate structure. N. Is there an independent raw water irrigation system? No (1) Source: N/A (2) Raw Water System Capacity (Gallons per Day): N/A (3) Average Annual Raw Water Usage (Gallons per Year): N/A

3. Demographic Information and Existing Water Service Area A. Population (2010 Census): 9,577 B. Current Population Estimate: 10,500 C. Does the applicant have a comprehensive planning boundary? Yes (1) If so, what is the estimated additional population that may be served in the future? 17,500 D. How many taps are served within the service area? 4,045 Total; 1,631 in Zone 3 E. How many taps are served outside the service area? 0

RECOMMENDATION GROUND WATER EXPLORATORY GRANTS PAGE 3 OF 8 F. Identify names of other water system served: N/A G. Identify any existing planning reports (municipal or county) that address growth management in the project area. Provide titles and how copies of the reports could be obtained: Jackson-Teton County Comprehensive Plan – https://www.jacksonwy.gov/403/Development-Regulations-Comprehensive-Pl

4. Financial Information A. Rates (1) Tap Fee(s) – Residential/Irrigation>Commercial: ¾” up through 6”, $981 to $45,753 (2) Tap Fee(s) – Commercial: See above (3) Average Residential Monthly Water Bill and Corresponding Gallons Used: $70.82 for 5,000 gallons (4) Water Rates - Potable: $53.00 Service + Base charge $7.22/mo. (3/4”) to $159.34/mo. (6”) + $2.12/1,000 gallons 5) Identify any local conditions that affect water rates (e.g., flow-through for frost prevention, etc.): None

B. Financial Statement (of Water Utility) (1) Revenues a. Annual Revenues Generated from Water Sales: $ 2,458,987 b. Annual Revenues from Tap Fees: $ 45,451 c. Annual Revenues from Other Sources: $ 462,183 d. Total Annual Revenues: $ 2,966,621 (2) Expenditures a. Annual Budget for Operation and Maintenance Expenses: $ 1,926,274 b. Annual Payments for Debt Retirement: $ 153,220 c. Annual Payments to a Repair and Replacement Fund: $ 719,219 d. Annual Payments to an Emergency Fund: $ 100,000 e. Annual Payments for Other Purposes: $ 0 d. Total Annual Payments: $ 2,898,713 (3) Other a. Balance in Repair and Replacement Fund: $ 4,766,359 b. Balance in Emergency Fund: $ See above c. Annual Cost of Water Quality Testing: $ 11,990

(4) Is the operation of the water system self-supporting in terms of revenues offsetting costs for operation, maintenance, debt retirement, replacement funds, emergency funds, etc.? Yes a. If not, how is the difference subsidized? Does not operate at a deficit C. Ability of applicant entity to provide match funding and completion: Town of Jackson is planning to fund the sponsor cost share through fiscal budget expenditure. The estimated cash on hand is expected to be in excess of $4M.

5. Project Cost Estimate Preparation of Hydrogeologic Analysis and/or Well Siting Study $ 5,000.00 Permitting $ 6,500.00 Advertising, Contractor Procurement, Contracts $ 5,800.00 Well Construction (07/27/21 bid) * $ 318,105.34 Aquifer (Pump) Testing (07/27/21 bid) * $ 16,500.00 Water Quality Analysis $ 2,000.00 Project Management/Subcontracts $ 4,300.00

RECOMMENDATION GROUND WATER EXPLORATORY GRANTS PAGE 4 OF 8 Miscellaneous Applications/Procurements (specify) $ 0.00 Reports $ 7,100.00

Total Project Cost $ 365,305.34

Rounded [75%/25%] $ 366,000.00 [$274,500/$91,500]

75% WWDC Ground Water Exploration Grant $ 274,500.00 [existing grant $101,250]

[1] Including, but not limited to: Mobilization, Bonds & Insurance, Drill-Furnish-Install Casing/Screen, Furnish-Install Filter Pack/Seal, Rig Time, Standby Time, Geophysical/Video Log, Development, Disinfection, Plugging and Abandonment, De-Mobilization, Reclamation. Any inflation costs, as determined by the WWDC, will be applied to the Total Project Cost.

RECOMMENDATION GROUND WATER EXPLORATORY GRANTS PAGE 5 OF 8 PROJECT AREA MAP

RECOMMENDATION GROUND WATER EXPLORATORY GRANTS PAGE 6 OF 8 RESOLUTION

RECOMMENDATION GROUND WATER EXPLORATORY GRANTS PAGE 7 OF 8

SEO LETTER

RECOMMENDATION GROUND WATER EXPLORATORY GRANTS PAGE 8 OF 8 RN__/F

AMENDMENT ONE TO CONTRACT NO. 05SC0298679 BETWEEN THE WYOMING WATER DEVELOPMENT COMMISSION AND THE TOWN OF JACKSON GROUNDWATER EXPLORATION GRANT

1. Parties. This Amendment is made and entered into by the Wyoming Water Development Commission [Commission], whose address is: 6920 Yellowtail Road, Cheyenne, Wyoming 82002; and the Town of Jackson, Wyoming [Sponsor], whose address is: 150 East Pearl Avenue, P.O. Box 1687, Jackson, Wyoming 83001.

2. Purpose of Amendment. This Amendment shall constitute the first amendment to the Contract between the Commission and the Sponsor. The purpose of this Amendment is to increase the total Contract dollar amount by one hundred seventy-three thousand, two hundred fifty dollars ($173,250.00).

The original contract, dated September 8, 2020 required the Sponsor to acquire certain technical, professional, or contract services as required to construct a new public water system well for a total Contract amount of one hundred one thousand, two hundred fifty dollars ($101,250.00) with an expiration date of August 31, 2022.

3. Term of the Amendment. This Amendment shall commence immediately upon the date the last required signature is affixed hereto, and shall remain in full force and effect through the term of the Contract, as amended, unless terminated at an earlier date pursuant to the provisions of the Contract, or pursuant to federal or state statute, rule or regulation.

4. Amendment.

A. The first paragraph of Section 4.A of the original Contract is hereby amended to read as follows:

“The Commission agrees to pay the Sponsor an amount equal to seventy-five (75%) maximum of total original invoices provided for the services described in Attachment A, which is attached to and incorporated into this Contract by this reference. Total payment under this Contract shall not exceed two hundred seventy- four thousand, five hundred dollars ($274,500.00).

5. Amended Responsibilities of the Sponsor.

Responsibilities of the Sponsor have not changed.

6. Amended Responsibilities of the Commission.

Responsibilities of the Commission have not changed.

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7. Special Provisions.

A. Same Terms and Conditions. With the exception of items explicitly delineated in this Amendment, all terms and conditions of the original Contract, and any previous amendments, between the Commission and the Sponsor, including but not limited to sovereign immunity, shall remain unchanged and in full force and effect.

B. Counterparts. This Amendment may be executed in counterparts. Each counterpart, when executed and delivered, shall be deemed an original and all counterparts together shall constitute one and the same Amendment. Delivery by the Sponsor of an originally signed counterpart of this Amendment by PDF shall be followed up immediately by delivery of the originally signed counterpart to the Commission.

8. General Provisions.

A. Entirety of Contract. The Original Contract, consisting of thirteen (13) pages; Attachment A, Scope of Services, consisting of fifteen (15) pages; and this Amendment One, consisting of three (3) pages, represent the entire and integrated Contract between the parties and supersede all prior negotiations, representations, and agreements whether written or oral.

THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK

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9. Signatures. The parties to this Amendment, either personally or through their duly authorized representatives, have executed this Amendment on the dates set out below, and certify that they have read, understood, and agreed to the terms and conditions of this Amendment.

This Amendment is not binding on either party until approved by A&I Procurement and the Governor of the State of Wyoming or his designee, if required by Wyo. Stat. § 9-2- 1016(b)(iv).

WYOMING WATER DEVELOPMENT COMMISSION:

______Clinton Glick, Chairman Date

______Ronald E. Kailey, Jr., Secretary Date

TOWN OF JACKSON

______Morton Levinson, Mayor Date

ATTORNEY GENERAL'S OFFICE: APPROVAL AS TO FORM

______Megan Pope, Senior Assistant Attorney General Date

Amendment One to the Contract between Wyoming Water Development Commission and The Town of Jackson Groundwater Exploration Grant Page 3 of 3 THE STATE OF WYOMING Water Development Office 6920 YELLOWTAIL ROAD TELEPHONE: (307) 777-7626 CHEYENNE, WY 82002

MEMORANDUM

DATE: July 14, 2021 TO: Wyoming Water Development Commission FROM: Jodie Pavlica P.E., Small Water Project Program Manager SUBJECT: Amendment One to the Blackrock Creek Stabilization & Irrigation Improvement Project Agreement

The Teton Conservation District is requesting a one-year time extension for the Blackrock Creek Stabilization & Irrigation Improvement Project. The Teton Conservation District is coordinating funding through multiple sources for the completion of this project, including Trout Unlimited. Planning and design for this project have been held up due to uncertainty caused in part by COVID–19. As a result, the district is requesting a one-year time extension.

Project Description: Blackrock Creek is a Wild & Scenic freestone tributary of the Buffalo Fork, a major tributary to the Snake River. The project is located in the Bridger-Teton National Forest (BTNF) along the Blackrock Creek levee, 550 feet east of the BTNF Blackrock Ranger Station and upstream of the US Highway 26 bridge on the creek’s river left bank. Due to the lateral migration of Blackrock Creek, coupled with high flow events in recent years and the high near bank stress against the leveed bank, the levee has become compromised in recent years and required emergency stabilization measures in spring 2017 to combat flooding of the ranger station. In addition, the existing irrigation head gate and ditch at the upstream end of the levee may currently be a “weak point” along this bank, that could potentially fail and send an uncontrolled release of the creek’s water during high flows to once again flood the ranger station as well as private properties downstream (down the ditch). The rip-rapped bank and pushup diversion also does not provide high quality habitat for native fish along this stream reach, although Blackrock Creek in this vicinity is a popular destination for the angling public.

The goals of the Blackrock Creek Stabilization, Irrigation Rehabilitation, and Habitat Enhancement Project are to improve flood protection of public and private property and streambanks within the project reach in a manner more compatible with the national Wild and Scenic Rivers Act; improve and/or rehabilitate existing irrigation infrastructure to reduce maintenance needs and flood risk resulting from potential failure; and enhance habitat and reduce entrainment for all life stages of native fish. The project’s objectives include: 1) installing instream structures to alleviate near bank stress against the leveed bank; 2) reconfiguring the levee from its emergency repair state to include bioengineering techniques such as vegetation and a bankfull bench to further alleviate near bank stress and provide better cover for aquatic species; 3) reconfiguring and/or strengthening the head gate and diversion to reduce risk of failure, reduce instream disturbance, reduce debris loading, improve reliability of water delivery, and reduce entrainment of native fish; and 4) increasing quality and diversity of habitat for native Snake River cutthroat trout and other native fish.

Memorandum Wyoming Water Development Office Page 1 RN072021/F

AMENDMENT ONE TO PROJECT AGREEMENT MSC NO. 05SC0298492 BLACKROCK CREEK STABILIZATION & IRRIGATION IMPROVEMENT PROJECT BETWEEN WYOMING WATER DEVELOPMENT COMMISSION AND TETON CONSERVATION DISTRICT

1. Parties. This Amendment is made and entered into by and between the Wyoming Water Development Commission [Commission], whose address is: 6920 Yellowtail Road, Cheyenne, Wyoming 82002; and the Teton Conservation District, Teton County, Wyoming, a duly organized conservation district existing under the laws of that state [Sponsor], whose address is: 420 W. Pearl Ave, PO Box 1070, Jackson, WY 83001.

2. Purpose of Amendment. This Amendment shall constitute the first amendment to the Agreement between the Commission and the Sponsor. The purpose of this Amendment is to extend the term of the Agreement through December 31, 2023.

The original Agreement, dated May 29, 2020 authorized the design and construction of the Blackrock Creek Stabilization & Irrigation Improvement Project and all appurtenances necessary to make the project complete and function in the manner intended.

3. Term of the Amendment. This Amendment shall commence upon the date the last required signature is affixed hereto (Effective Date), and shall remain in full force and effect through the term of the Agreement, as amended, unless terminated at an earlier date pursuant to the provisions of the Agreement, or pursuant to federal or state statute, rule or regulation.

4. Amendments. The third sentence of Section 4(D) of the original Agreement is hereby amended to read as follows:

“The Sponsor shall complete the PROJECT no later than December 31, 2023 and shall have settled all claims and paid all project expenses by said date.”

5. Amended Responsibilities of the Sponsor.

Responsibilities of the Sponsor have not changed.

6. Amended Responsibilities of the Commission.

Responsibilities of the Commission have not changed.

7. Special Provisions.

A. Same Terms and Conditions. With the exception of items explicitly delineated in this Amendment, all terms and conditions of the original Agreement, and any

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previous amendments, between the Commission and the Sponsor, including but not limited to sovereign immunity, shall remain unchanged and in full force and effect.

B. Counterparts. This Amendment may be executed in counterparts. Each counterpart, when executed and delivered, shall be deemed an original and all counterparts together shall constitute one and the same Amendment. Delivery by the Sponsor of an originally signed counterpart of this Amendment by PDF shall be followed up immediately by delivery of the originally signed counterpart to the Commission.

8. General Provisions.

A. Entirety of Agreement. The Original Agreement, consisting of seven (7) pages; and this Amendment One, consisting of three (3) pages; represent the entire and integrated Agreement between the parties and supersede all prior negotiations, representations, and agreements whether written or oral.

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9. Signatures. The parties to this Amendment, through their duly authorized representatives, have executed this Amendment on the dates set out below, and certify that they have read, understood, and agreed to the terms and conditions of this Amendment.

This Amendment is not binding on either party until approved by A&I Procurement and the Governor of the State of Wyoming or his designee, if required by Wyo. Stat. § 9-2- 1016(b)(iv).

WYOMING WATER DEVELOPMENT COMMISSION:

______Clinton Glick, Chairman Date

______Ronald E. Kailey, Jr., Secretary Date

TETON CONSERVATION DISTRICT:

______Steve McDonald, Chairman Date

ATTORNEY GENERAL’S OFFICE: APPROVAL AS TO FORM

______Megan Pope, Senior Assistant Attorney General Date

Amendment One to the Blackrock Creek Stabilization & Irrigation Improvement Project Agreement Between the Wyoming Water Development Commission and Teton Conservation District Page 3 of 3

THE STATE OF WYOMING Water Development Office 6920 YELLOWTAIL ROAD TELEPHONE: (307) 777-7626 CHEYENNE, WY 82002

MEMORANDUM

DATE: July 14, 2021 TO: Wyoming Water Development Commission FROM: Jodie Pavlica P.E., Small Water Project Program Manager SUBJECT: Amendment Two to the Lower Snake River Ranch Bank Stabilization & Fish Habitat Project Agreement

The Teton Conservation District is requesting a one-year time extension for the Lower Snake River Ranch Bank Stabilization & Fish Habitat Project. The Teton Conservation District is coordinating funding through multiple sources for the completion of this project, including Trout Unlimited. Planning and design for this project have been held up due to uncertainty caused in part by COVID–19. As a result, the district is requesting a one-year time extension.

Project Description: The Lower Snake River Ranch Bank Stabilization and Fish Habitat Project area is located on the Snake River Ranch’s property along the Snake River, approximately 8 miles downstream of the town of Wilson, WY, and near Munger Mountain. The pasture adjacent to the Snake River at this location is used for cattle grazing, and although there is currently riparian fencing installed along the bank, there is little to no woody riparian vegetation established. The pasture has experienced significant bank erosion and land loss at this location, downstream of the river-right terminus of the Snake River levee, which demonstrates the river’s highly variable range of flows and geomorphic dynamism. From 2009-2017, approximately 180 feet of bank and irrigated pastureland were lost, or about 22.5 ft/year. Currently, this eroded bank is not along the main channel of the Snake River, however, as recently as the summer of 2017, the main channel was along this bank and accelerated rates of bank erosion were observed. There is about 1,000 feet of exposed, vertical, actively eroding banks along the Snake River, and an additional 2,000 feet of eroding banks in a smaller side channel of the Snake River behind a vegetated island (which includes a small portion of public land). Protecting these banks by adding length to the Snake River levee is not allowed by the U.S. Army Corps of Engineers at this site. In addition, there is very little cover or rearing habitat for Snake River cutthroat trout in this section of the river.

Trout Unlimited, the Snake River Ranch, and the Wyoming Game and Fish Department (WGFD) are collaborating on this project to address bank erosion, land loss, and lack of quality fish habitat within the project area. Project partners will select a design consultant with extensive experience in designing bank stabilization treatments in large (>30,000 cfs peak flow) rivers with dynamic stream types (braided or anastomosing) such as the Snake River to ensure that the selected bank treatments have been modeled to withstand a wide range of flows and forces, and are expected to remain robust over time.

Memorandum Wyoming Water Development Office Page 1 RN072321/F

AMENDMENT TWO TO PROJECT AGREEMENT MSC NO. 05SC0298490 LOWER SNAKE RIVER RANCH BANK STABILIZATION & FISH HABITAT PROJECT BETWEEN WYOMING WATER DEVELOPMENT COMMISSION AND TETON CONSERVATION DISTRICT

1. Parties. This Amendment is made and entered into by and between the Wyoming Water Development Commission [Commission], whose address is: 6920 Yellowtail Road, Cheyenne, Wyoming 82002; and the Teton Conservation District, Teton County, Wyoming, a duly organized conservation district existing under the laws of that state [Sponsor], whose address is: 420 W. Pearl Ave, PO Box 1070, Jackson, WY 83001.

2. Purpose of Amendment. This Amendment shall constitute the second amendment to the Agreement between the Commission and the Sponsor. The purpose of this Amendment is to extend the term of the Agreement through December 31, 2023.

The original Agreement, dated May 29, 2020 authorized the design and construction of the Lower Snake River Ranch Bank Stabilization & Fish Habitat Project and all appurtenances necessary to make the project complete and function in the manner intended.

Amendment One, dated July 21, 2021, updated submittal requirements for distribution of funds in keeping with recent statutory changes as relates to the affidavit of publication documenting final settlement.

3. Term of the Amendment. This Amendment shall commence upon the date the last required signature is affixed hereto (Effective Date), and shall remain in full force and effect through the term of the Agreement, as amended, unless terminated at an earlier date pursuant to the provisions of the Agreement, or pursuant to federal or state statute, rule or regulation.

4. Amendments. The third sentence of Section 4(D) of the original Agreement is hereby amended to read as follows:

“The Sponsor shall complete the PROJECT no later than December 31, 2023 and shall have settled all claims and paid all project expenses by said date.”

5. Amended Responsibilities of the Sponsor.

Responsibilities of the Sponsor have not changed.

6. Amended Responsibilities of the Commission.

Responsibilities of the Commission have not changed.

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7. Special Provisions.

A. Same Terms and Conditions. With the exception of items explicitly delineated in this Amendment, all terms and conditions of the original Agreement, and any previous amendments, between the Commission and the Sponsor, including but not limited to sovereign immunity, shall remain unchanged and in full force and effect.

B. Counterparts. This Amendment may be executed in counterparts. Each counterpart, when executed and delivered, shall be deemed an original and all counterparts together shall constitute one and the same Amendment. Delivery by the Sponsor of an originally signed counterpart of this Amendment by PDF shall be followed up immediately by delivery of the originally signed counterpart to the Commission.

8. General Provisions.

A. Entirety of Agreement. The Original Agreement, consisting of seven (7) pages; Amendment One consisting of three (3) pages; and this Amendment Two, consisting of three (3) pages; represent the entire and integrated Agreement between the parties and supersede all prior negotiations, representations, and agreements whether written or oral.

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9. Signatures. The parties to this Amendment, through their duly authorized representatives, have executed this Amendment on the dates set out below, and certify that they have read, understood, and agreed to the terms and conditions of this Amendment.

This Amendment is not binding on either party until approved by A&I Procurement and the Governor of the State of Wyoming or his designee, if required by Wyo. Stat. § 9-2- 1016(b)(iv).

WYOMING WATER DEVELOPMENT COMMISSION:

______Clinton Glick, Chairman Date

______Ronald E. Kailey, Jr., Secretary Date

TETON CONSERVATION DISTRICT:

______Steve McDonald, Chairman Date

ATTORNEY GENERAL’S OFFICE: APPROVAL AS TO FORM

______Megan Pope, Senior Assistant Attorney General Date

Amendment Two to the Lower Snake River Ranch Bank Stabilization & Fish Habitat Project Agreement Between the Wyoming Water Development Commission and Teton Conservation District Page 3 of 3

THE STATE OF WYOMING Water Development Office 6920 YELLOWTAIL ROAD TELEPHONE: (307) 777-7626 CHEYENNE, WY 82002

MEMORANDUM

DATE: July 14, 2021 TO: Wyoming Water Development Commission FROM: Jodie Pavlica P.E., Small Water Project Program Manager SUBJECT: Amendment One to the Spread Creek Irrigation Rehabilitation & Fish Passage Project Agreement

The Teton Conservation District is requesting a one-year time extension for the Spread Creek Irrigation Rehabilitation & Fish Passage Project. The Teton Conservation District is coordinating with multiple entities for the completion of this project, including the National Park Service (NPS) and various other grant sources. As a result of COVID-19 the NPS didn’t have the capacity to oversee the project last fall and several of their grant sources were pending.

Project Description: In 2010, the Spread Creek dam, a crumbling diversion dam for irrigation located just outside of Grand Teton National Park on Bridger-Teton National Forest lands was removed. It was replaced through a partnership effort led by TU's Wyoming Water Project, opening up over 50 miles of Spread Creek to migratory Snake River cutthroat trout for the first time in over 50 years.

Since the dam was removed and replaced with a fish passage-friendly diversion structure and new water delivery system (Phase 1 of the project), project partners have documented successful fish movement through the new diversion. They have also documented fish entrained in the Spread Creek irrigation system. This project is phase 2 of the Spread Creek Fish Passage project which will prevent future losses of migratory cutthroat trout to the Spread Creek system by installing a fish screen that will return entrained fish to Spread Creek and by stabilizing and improving the diversion structure (which was damaged by flooding in 2011) for more reliable water delivery for irrigators.

Spread Creek is located along the east margin of Grand Teton National Park, near Jackson Hole, Wyoming. Lower Spread Creek traverses through relatively pristine National Park lands before joining the Upper Snake River approximately 15 miles below Jackson Dam. This diversion site irrigates the Elk Ranch to the north and a part of Grand Teton National Park that is leased to a private lessee, the Pinto Ranch. As part of an agreement between the Park, Pinto Ranch, and Bridger-Teton National Forest, a cattle grazing allotment in the Bridger-Teton Wilderness was exchanged for the Elk Ranch pasture lands to reduce grizzly bear conflicts. The diversion also irrigates the Antler Ditch to the south, providing water for pasture and stock for the Triangle X and Moosehead Ranches through a splitter box and siphon under Spread Creek.

Memorandum Wyoming Water Development Office Page 1 This project will, 1) install a fish screen in the diversion that is designed to prevent fish entrainment in ditches while continuing to deliver water even if clogged; 2) rehabilitate the diversion structure and changing it from a series of rock weirs to a rock ramp, to provide better long-term stability and a more favorable elevation for water delivery; 3) add instream structures such as rock barbs, root wads, and engineered log jams to protect banks and irrigation infrastructure within the project area; and 4) expand the sediment basin to reduce siltation in the ditches.

Technical Memorandum Type Title Here Wyoming Water Development Office Page 2 RN072021/F

AMENDMENT ONE TO PROJECT AGREEMENT MSC NO. 05SC0297962 SPREAD CREEK IRRIGATION REHABILITATION & FISH PASSAGE PROJECT BETWEEN WYOMING WATER DEVELOPMENT COMMISSION AND TETON CONSERVATION DISTRICT

1. Parties. This Amendment is made and entered into by and between the Wyoming Water Development Commission [Commission], whose address is: 6920 Yellowtail Road, Cheyenne, Wyoming 82002; and the Teton Conservation District, Teton County, Wyoming, a duly organized conservation district existing under the laws of that state [Sponsor], whose address is: 420 W. Pearl Ave, PO Box 1070, Jackson, WY 83001.

2. Purpose of Amendment. This Amendment shall constitute the first amendment to the Agreement between the Commission and the Sponsor. The purpose of this Amendment is to extend the term of the Agreement through December 31, 2022.

The original Agreement, dated April 24, 2019 authorized the design and construction of the Spread Creek Irrigation Rehabilitation & Fish Passage Project and all appurtenances necessary to make the project complete and function in the manner intended.

3. Term of the Amendment. This Amendment shall commence upon the date the last required signature is affixed hereto (Effective Date), and shall remain in full force and effect through the term of the Agreement, as amended, unless terminated at an earlier date pursuant to the provisions of the Agreement, or pursuant to federal or state statute, rule or regulation.

4. Amendments. The third sentence of Section 4(D) of the original Agreement is hereby amended to read as follows:

“The Sponsor shall complete the PROJECT no later than December 31, 2022 and shall have settled all claims and paid all project expenses by said date.”

5. Amended Responsibilities of the Sponsor.

Responsibilities of the Sponsor have not changed.

6. Amended Responsibilities of the Commission.

Responsibilities of the Commission have not changed.

7. Special Provisions.

A. Same Terms and Conditions. With the exception of items explicitly delineated in this Amendment, all terms and conditions of the original Agreement, and any

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previous amendments, between the Commission and the Sponsor, including but not limited to sovereign immunity, shall remain unchanged and in full force and effect.

B. Counterparts. This Amendment may be executed in counterparts. Each counterpart, when executed and delivered, shall be deemed an original and all counterparts together shall constitute one and the same Amendment. Delivery by the Sponsor of an originally signed counterpart of this Amendment by PDF shall be followed up immediately by delivery of the originally signed counterpart to the Commission.

8. General Provisions.

A. Entirety of Agreement. The Original Agreement, consisting of six (6) pages; and this Amendment One, consisting of three (3) pages; represent the entire and integrated Agreement between the parties and supersede all prior negotiations, representations, and agreements whether written or oral.

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9. Signatures. The parties to this Amendment, through their duly authorized representatives, have executed this Amendment on the dates set out below, and certify that they have read, understood, and agreed to the terms and conditions of this Amendment.

This Amendment is not binding on either party until approved by A&I Procurement and the Governor of the State of Wyoming or his designee, if required by Wyo. Stat. § 9-2- 1016(b)(iv).

WYOMING WATER DEVELOPMENT COMMISSION:

______Clinton Glick, Chairman Date

______Ronald E. Kailey, Jr., Secretary Date

TETON CONSERVATION DISTRICT:

______Steve McDonald, Chairman Date

ATTORNEY GENERAL’S OFFICE: APPROVAL AS TO FORM

______Megan Pope, Senior Assistant Attorney General Date

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THE STATE OF WYOMING Water Development Office 6920 YELLOWTAIL ROAD TELEPHONE: (307) 777-7626 CHEYENNE, WY 82002

MEMORANDUM

DATE: July 12, 2021 TO: Wyoming Water Development Commission FROM: Andrew Linch P.E., Dam & Reservoir Division SUBJECT: Silver Lake Dam Rehabilitation, Level II Study

This memo is to serve as an explanation for the Silver Lake Dam Rehabilitation, Level II Study Contract. The contract effectively takes the place of Amendment No. 1 for the previous Silver Lake Dam Rehabilitation, Level II Study, which was approved by the WWDC in March of 2021. The Amendment No. 1 was lost in the mail and unintentionally expired on March 31, 2021, before it could be fully executed. The new contract extends the original expiration date with Rio Verde Engineering from March 31, 2021 to June 30, 2023.

During the 2018 Budget Session, a $250,000 appropriation was authorized for a Level II feasibility study to analyze rehabilitation alternatives for Silver Lake Dam. The study includes tasks for federal agency coordination, dam safety flood routing analysis, hazard classification verification, geotechnical investigation, environmental evaluation, permitting, preliminary designs, construction cost estimates, and an economic analysis. Work on the dam safety flood routing and hazard classification tasks was completed and a minimum requirements analysis (MRA) document was submitted to the USDA Forest Service (USFS) during the summer of 2018, requesting permission to conduct a geotechnical investigation at the dam site. After extensive coordination with the USFS, the MRA was completed in early 2020. However, before the geotechnical work could be completed, a NEPA analysis was required, as the dam is located in the Bridger Wilderness. An Environmental Assessment for the geotechnical investigation ensued and was finished in time for the field work to be completed in September of 2020.

With the geotechnical investigation complete, rehabilitation alternatives are now being developed. A second Environmental Assessment and MRA is scheduled for 2021-2022 to analyze the rehabilitation alternatives, as NEPA is required for permitting of construction activities and a MRA is needed for any work done in Wilderness areas. Assuming a finding of no significant impact (FONSI) is achieved through the NEPA process, the project would then be ready for a final design and construction funding request.

Concurrent to the events described above, the Silver Lake Irrigation District (District) applied for and received NRCS PL-566 funds. The awarded funds are eligible to be used for a NRCS required Watershed Plan. The Watershed Plan is mainly centered on meeting requirements for NEPA, but will also develop preliminary designs and cost estimates for the proposed alternative, in anticipation of subsequent NRCS final design and construction funding requests. As many of the tasks in the NRCS Watershed Plan are similar to the WWDC Level II feasibility study tasks, the WWDO has been coordinating extensively with the District and NRCS to ensure a unified effort

Memorandum Wyoming Water Development Office Page 1 to provide an efficient and complete solution for the Sponsor. This has led to the majority of the work, after the federal award, being completed under the NRCS funding. However, the WWDC funding was committed by the District in their agreement with NRCS and may be needed to finish the Watershed Plan that would then make the project eligible for federal design and construction funding. Therefore, it is recommended to extend the contract expiration date to allow this project to continue in coordination with the NRCS and for the District.

In short, this renewed contract for the Project serves to allow Rio Verde Engineering to continue working on rehabilitation alternatives, with the recently acquired geotechnical data, and to complete the remaining MRA and NEPA requirements of the USFS and NRCS Watershed Plan so that the project could be eligible for federal design and construction funding.

Encl., Consultant Contract for Services

Technical Memorandum Wyoming Water Development Office Page 2 Silver Lake Dam Rehabilitation, Level II Study

Technical Memorandum Wyoming Water Development Office Page 3 RN071221/F

SILVER LAKE DAM REHABILITATION, LEVEL II STUDY CONSULTANT CONTRACT FOR SERVICES NO. ______

1. Parties. The parties to this Contract are the Wyoming Water Development Commission (Commission), 6920 Yellowtail Road, Cheyenne, Wyoming 82002 and K & E Engineering, Inc., d/b/a Rio Verde Engineering (Consultant), PO Box 642 Pinedale, WY 82941.

2. Purpose of Contract. The purpose of this Contract is to set forth the terms and conditions under which the Commission will retain the services of the Consultant to render certain technical or professional services hereinafter described in connection with an undertaking to be financed by the Commission, and administered by the Wyoming Water Development Office (Office) through its Director or his designee.

3. Term of Contract. This Contract is effective when all parties have executed it (Effective Date). The term of the Contract is from the Effective Date through June 30, 2023. All services shall be completed during this term.

This Contract may be extended by agreement of both parties in writing and subject to the required approvals. There is no right or expectation of extension and any extension will be determined at the discretion of the Commission.

4. Payment.

A. Reimbursement of Expenses. The Commission agrees to pay the Consultant an amount based on the approved hourly rate and reimbursable expenses price schedules depicted in Attachment B, attached to and incorporated into this Contract by this reference, for the services described in Attachment A, attached to and incorporated into this Contract by this reference. Total payment under this Contract shall not exceed one hundred seventy thousand, six hundred eighty-five dollars and thirty-seven cents ($170,685.37).

B. Project Budget. The project budget for each task included in Attachment A is as follows:

Task Estimated Cost

1. Scoping and Project Meetings $ 3,542.05 2. Background Information Collection and Review $ 382.50 3. PMP and Hydrologic Modeling $ 4,616.69 4. Geotechnical Investigation $ 49,324.48 5. Rehabilitation Plan $ 19,577.75 6. Environmental Analysis and Permitting $ 5,391.90

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7. Preliminary Designs and Cost Estimates $ 42,700.00 8. Economic Analysis and Project Financing $ 6,000.00 9. Discretionary Task $ 21,750.00 10. Draft Report $ 5,300.00 11. Report Presentations $ 8,600.00 12. Final Report and Deliverables $ 3,500.00

TOTAL PROJECT COST $ 170,685.37

The amounts for each task are estimates only, but are not to be exceeded unless authorized in writing by the Commission. The Contract total amount is controlling. Payment shall be made directly to the Consultant. The Consultant shall maintain hourly records of time worked by its personnel to support any audits the state or the Commission may require. Billing reports shall be submitted no more often than monthly for activities and costs accrued since the last billing report and shall be made on forms approved in advance by the Commission. A brief project progress report summarizing project activities in the billing period must be submitted with each billing.

C. Billing Procedures. The Consultant shall submit billing reports as the services are performed for the various tasks outlined in Attachment A. The Commission shall initiate the payment process within forty-five (45) days after submission of a verified statement of services pursuant to Wyo. Stat. § 16-6-602.

D. Money Withheld. No payment shall be made for work performed before the Effective Date of this Contract. Should the Consultant fail to perform in a manner consistent with the terms and conditions set forth in this Contract, payment under this Contract may be withheld until such time as the Consultant performs its duties and responsibilities to the satisfaction of the Commission.

E. Final Payment. The final payment shall be made upon acceptance of the final report and receipt of the final billing.

5. Responsibilities of Consultant.

A. Scope of Services. The Consultant shall perform the specific services required under this Contract in a satisfactory and proper manner as outlined in Attachment A.

B. Personnel. All of the services required hereunder will be performed by the Consultant or under its supervision, and all personnel engaged in the work shall be fully qualified and shall be authorized, licensed, or permitted under state law to perform such services, if state law requires such authorization, license, or permit.

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C. Subcontracts.

(i) Approval Required for Subcontracts. Any subcontractors and outside associates or consultants required by the Consultant in connection with the services, work performed or rendered under this Contract will be limited to such individuals or firms as were specifically identified in the proposal and agreed to during negotiations or are specifically authorized by the Commission during the performance of this Contract. The Consultant shall submit a list of the proposed subcontractors, associates or consultants; the scope and extent of each subcontract; and the dollar amount of each subcontract prior to Contract execution to the Commission for approval. During the performance of the Contract, substitutions in or additions to such subcontracts, associates, or consultants will be subject to the prior approval of the Commission. The Commission approval of subcontractors will not relieve the Consultant from any responsibilities outlined in this Contract. The Consultant shall be responsible for the actions of the subcontractors, associates, and subconsultants.

(ii) Billings for Subcontractors. Billings for subcontractor, associates or subconsultants services will not include any mark up. The subcontract costs will be billed to the Commission at the actual costs as billed to the Consultant. Subcontract costs will be documented by attaching subcontractor billings to the Consultant's billing submittals. Subcontractors will utilize billing forms provided by the Commission, or alternate forms if approved in advance by the Commission.

(iii) Copies of Subcontracts. The Consultant shall provide to the Commission copies of each subcontractor contract immediately following execution with the subcontractor. All subcontracts between the Consultant and a subcontractor shall refer to and conform to the terms of this Contract. However, nothing in this Contract shall be construed as making the Commission a party of any subcontract entered between the Consultant and a subcontractor.

D. Requests from the Commission. The Consultant shall be responsible and responsive to the Commission and the Office in their requests and requirements related to the scope of this Contract.

E. Presentation of Data. The Consultant shall select and analyze all data in a systematic and meaningful manner so as to contribute directly in meeting the objectives of the project, and shall present this information clearly and concisely, in a professional and workmanlike manner.

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F. Draft of Final Report. The Consultant shall provide to the Commission a draft of the final report covering all work elements of the project including maps, charts, conclusions and recommendations prior to the publication of any final report and no later than the date specified in Attachment A. The Commission will respond promptly with written comments to the Consultant. The Consultant will address the comments of the Commission in the final report.

G. Project Completion Report. A final project completion report in the form described in Attachment A shall be submitted to the Commission by the date specified in Attachment A.

H. Reports, Maps, Plans, Models and Documents. One (1) copy of maps, plans, worksheets, logs, field notes or other documents prepared under this Contract, and one (1) copy of each unpublished report prepared under this Contract shall be submitted to the Commission. If the Consultant writes or uses a computer program or spreadsheet as a part of this project, the Consultant shall submit to the Commission for approval all proposed program names and data formats prior to beginning work on that task. All data shall be submitted to the Commission in written and digital forms with the final report. Digital media shall be labeled by the Consultant to provide sufficient detail to access the information on the media. All user manuals shall be submitted by the Consultant to the Commission providing complete documentation of computer programs developed under this Contract. The user manual shall also specify the source code language and the type of computer equipment necessary to operate the program(s). Any programs or computer software generated as a part of this Contract shall be the sole property of the Commission.

6. Responsibilities of the Commission.

A. Designated Representative. The Director of the Office shall act as the Commission’s representative with respect to the Consultant’s services to be performed under this Contract and shall have complete authority to transmit instructions, receive information, and interpret the Commission’s policies and decisions with respect to services covered by this Contract.

B. Data to be Furnished to the Consultant. All information, data, reports, and maps as are available to the Commission and necessary for the carrying out of the Scope of Services set forth herein shall be furnished to the Consultant without charge and the Commission shall cooperate with the Consultant in every way possible in the carrying out of the project.

C. Review Reports. The Commission shall examine all studies, reports, sketches, opinions of the construction costs, and other documents presented by the Consultant

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to the Commission and shall promptly render in writing the Commission’s decisions pertaining thereto within the time periods specified in Attachment A.

D. Provide Criteria. The Commission shall provide all criteria and full information regarding its requirements for the project.

7. Special Provisions.

A. No Finder's Fees. No finder's fee, employment agency fee, or other such fee related to the procurement of this Contract, shall be paid by either party.

B. Publicity. Any publicity given to the projects, programs or services provided herein, including, but not limited to, notices, information, pamphlets, press releases, research, reports, signs, and similar public notices in whatever form, prepared by or for the Consultant, shall identify the Commission as the sponsoring agency and shall not be released without prior written approval from the Commission.

C. Monitoring Activities. The Commission shall have the right to monitor all activities related to this Contract that are performed by Consultant or its subcontractors. This shall include, but not be limited to, the right to make site inspections at any time and with reasonable notice; to bring experts and consultants on site to examine or evaluate completed work or work in progress; to examine the books, ledgers, documents, papers, and records pertinent to this Contract; and to observe all Consultant personnel in every phase of performance of Contract related work.

D. Kickbacks. The Consultant certifies and warrants that no gratuities, kickbacks, or contingency fees were paid in connection with this Contract, nor were any fees, commissions, gifts, or other considerations made contingent upon the award of this Contract. If the Consultant breaches or violates this warranty, the Commission may, at its discretion, terminate this Contract without liability to the Commission, or deduct from the Contract price or consideration, or otherwise recover, the full amount of any commission, percentage, brokerage, or contingency fee.

8. General Provisions.

A. Amendments. Any changes, modifications, revisions, or amendments to this Contract which are mutually agreed upon by the parties to this Contract shall be incorporated by written instrument, executed by all parties to this Contract.

B. Applicable Law, Rules of Construction, and Venue. The construction, interpretation, and enforcement of this Contract shall be governed by the laws of the State of Wyoming, without regard to conflicts of law principles. The terms “hereof,” “hereunder,” “herein,” and words of similar import, are intended to refer

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to this Contract as a whole and not to any particular provision or part. The Courts of the State of Wyoming shall have jurisdiction over this Contract and the parties. The venue shall be the First Judicial District, Laramie County, Wyoming.

C. Assignment Prohibited and Contract Shall Not be Used as Collateral. The Consultant shall not assign or otherwise transfer any of the rights or delegate any of the duties set out in this Contract without the prior written consent of the Commission. The Consultant shall not use this Contract, or any portion thereof, for collateral for any financial obligation, without the prior written permission of the Commission.

D. Audit and Access to Records. The Commission and its representatives shall have access to any books, documents, papers, electronic data, and records of the Consultant which are pertinent to this Contract. The Consultant shall immediately, upon receiving written instruction from the Commission, provide to any independent auditor or accountant all books, documents, papers, electronic data, and records of the Consultant which are pertinent to this Contract. The Consultant shall cooperate fully with any such independent auditor or accountant during the entire course of any audit authorized by the Commission.

E. Availability of Funds. Each payment obligation of the Commission is conditioned upon the availability of government funds which are appropriated or allocated for the payment of this obligation and which may be limited for any reason including, but not limited to, congressional, legislative, gubernatorial, or administrative action. If funds are not allocated and available for continued performance of the Contract, the Contract may be terminated by the Commission at the end of the period for which the funds are available. The Commission shall notify the Consultant at the earliest possible time of the services which will or may be affected by a shortage of funds. No penalty shall accrue to the Commission in the event this provision is exercised, and the Commission shall not be obligated or liable for any future payments due or for any damages as a result of termination under this section.

F. Award of Related Contracts.

(i) The Commission may award supplemental or successor contracts for work related to this Contract or may award contracts to other contractors for work related to this Contract. The Consultant shall cooperate fully with other contractors and the Commission in all such cases.

(ii) The Commission, at its sole discretion and through duly authorized contract amendments, may request the Consultant to complete additional phases beyond the scope of services included in this Contract.

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G. Certificate of Good Standing. The Consultant shall provide to the Commission a Certificate of Good Standing from the Wyoming Secretary of State, or other proof that Consultant is authorized to conduct business in the State of Wyoming, if required, before performing work under this Contract. The Consultant shall ensure that all annual filings and corporate taxes due and owing to the Secretary of State’s office are up-to-date before signing this Contract.

H. Compliance with Laws. The Consultant shall keep informed of and comply with all applicable federal, state, and local laws and regulations in the performance of this Contract.

I. Confidentiality of Information. All documents, data compilations, reports, computer programs, photographs, data, and other work provided to or produced by the Consultant in the performance of this Contract shall be kept confidential by the Consultant unless written permission is granted by the Commission for its release. If and when the Consultant receives a request for information subject to this Contract, the Consultant shall notify the Commission within ten (10) days of such request and shall not release such information to a third party unless directed to do so by the Commission.

J. Conflicts of Interest

(i) The Consultant shall not engage in providing consultation or representation of clients, agencies or firms which may constitute a conflict of interest which results in a disadvantage to the Commission or a disclosure which would adversely affect the interests of the Commission. The Consultant shall notify the Commission of any potential or actual conflicts of interest arising during the course of the Consultant’s performance under this Contract. This Contract may be terminated in the event a conflict of interest arises. Termination of the Contract will be subject to a mutual settlement of accounts. In the event the contract is terminated under this provision, the Consultant shall take steps to ensure that the file, evidence, evaluation and data are provided to the Commission or its designee. This does not prohibit or affect the Consultant’s ability to engage in consultations, evaluations or representation under agreement with other agencies, firms, facilities, or attorneys so long as no conflict exists.

(ii) A conflict of interest warranting termination of this Contract may include, but is not necessarily limited to, acting on behalf of a client in an adversarial proceeding against the State of Wyoming, its agencies, boards, commissions, or the University of Wyoming, or initiating suits in equity including injunctions, declaratory judgments, writs of prohibition, or quo warranto.

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K. Entirety of Contract. This Contract, consisting of fourteen (14) pages; Attachment A, consisting of fifteen (15) pages; and Attachment B, consisting of one (1) page, represent the entire and integrated Contract between the parties and supersede all prior negotiations, representations, and agreements, whether written or oral. In the event of a conflict or inconsistency between the language of this Contract and the language of any attachment or document incorporated by reference, the language of this Contract shall control.

L. Ethics. The Consultant shall keep informed of and comply with the Wyoming Ethics and Disclosure Act (Wyo. Stat. § 9-13-101, et seq.), and any and all ethical standards governing Consultant’s profession.

M. Force Majeure. Neither party shall be liable for failure to perform under this Contract if such failure to perform arises out of causes beyond the control and without the fault or negligence of the nonperforming party. Such causes may include, but are not limited to, acts of God or the public enemy, fires, floods, epidemics, quarantine restrictions, freight embargoes, and unusually severe weather. This provision shall become effective only if the party failing to perform immediately notifies the other party of the extent and nature of the problem, limits delay in performance to that required by the event, and takes all reasonable steps to minimize delays.

N. Indemnification. The Consultant shall release, indemnify, and hold harmless the State, the Commission, the Office, and their officers, agents, and employees from any and all claims, suits, liabilities, court awards, damages, costs, attorneys’ fees, and expenses arising out of Consultant’s failure to perform any of Consultant’s duties and obligations hereunder or in connection with the negligent performance of Consultant’s duties or obligations, including, but not limited to, any claims, suits, liabilities, court awards, damages, costs, attorneys’ fees, and expenses arising out of Consultant’s negligence or other tortious conduct.

O. Independent Contractor. The Consultant shall function as an independent contractor for the purposes of this Contract and shall not be considered an employee of the State of Wyoming for any purpose. Consistent with the express terms of this Contract, the Consultant shall be free from control or direction over the details of the performance of services under this Contract. The Consultant shall assume sole responsibility for any debts or liabilities that may be incurred by the Consultant in fulfilling the terms of this Contract and shall be solely responsible for the payment of all federal, state, and local taxes which may accrue because of this Contract. Nothing in this Contract shall be interpreted as authorizing the Consultant or its agents or employees to act as an agent or representative for or on behalf of the State of Wyoming or the Commission or to incur any obligation of any kind on behalf of the State of Wyoming or the Commission. The Consultant agrees that no health or

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hospitalization benefits, workers’ compensation, unemployment insurance, or similar benefits available to State of Wyoming employees will inure to the benefit of the Consultant or the Consultant’s agents or employees as a result of this Contract.

P. Nondiscrimination. The Consultant shall comply with the Civil Rights Act of 1964, the Wyoming Fair Employment Practices Act (Wyo. Stat. § 27-9-105, et seq.), the Americans with Disabilities Act (ADA), 42 U.S.C. § 12101, et seq., and the Age Discrimination Act of 1975 and any properly promulgated rules and regulations thereto and shall not discriminate against any individual on the grounds of age, sex, color, race, religion, national origin, or disability in connection with the performance under this Contract.

Q. Notices. All notices arising out of, or from, the provisions of this Contract shall be in writing either by regular mail, e-mail, or delivery in person at the addresses provided under this Contract. Notice provided by e-mail shall be delivered as follows:

Commission/Office: [email protected], 307-777-6446 Consultant: [email protected], 307-367-2826

R. Notice of Sale or Transfer. The Consultant shall provide the Commission with notice of any sale, transfer, merger, or consolidation of the assets of the Consultant. Such notice shall be provided in accordance with the notices provision of this Contract and, when possible and lawful, in advance of the transaction. If the Commission determines that the sale, transfer, merger, or consolidation is not consistent with the continued satisfactory performance of the Consultant’s obligations under this Contract, then the Commission may, at its discretion, terminate or renegotiate the Contract.

S. Ownership and Return of Documents and Information. The Commission is the official custodian and owns all documents, data compilations, reports, computer programs, photographs, data, and other work provided to or produced by the Consultant in the performance of this Contract. Upon termination of services, for any reason, Consultant agrees to return all such original and derivative information and documents to the Commission in a useable format. In the case of electronic transmission, such transmission shall be secured. The return of information by any other means shall be by a parcel service that utilizes tracking numbers. Upon Commission’s verified receipt of such information, Consultant agrees to physically and electronically destroy any residual Commission-owned data, regardless of format, and any other storage media or areas containing such information. Consultant agrees to provide written notice to Commission confirming the destruction of any such residual Commission-owned data.

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T. Patent or Copyright Protection. The Consultant recognizes that certain proprietary matters or techniques may be subject to patent, trademark, copyright, license or other similar restrictions, and warrants that no work performed by the Consultant or its subcontractors will violate any such restriction. The Consultant shall defend and indemnify the Commission for any infringement or alleged infringement of such patent, trademark, copyright, license, or other restrictions.

U. Prior Approval. This Contract shall not be binding upon either party, no services shall be performed, and the Wyoming State Auditor shall not draw warrants for payment, until this Contract has been fully executed, approved as to form by the Office of the Attorney General, filed with and approved by A&I Procurement, and approved by the Governor of the State of Wyoming, or his designee, if required by Wyo. Stat. § 9-2-1016(b)(iv).

V. Insurance Requirements.

(i) During the term of this Contract, the Consultant shall obtain and maintain, and ensure that each subcontractor obtains and maintains, each type of insurance coverage specified in Insurance Coverage, below.

(ii) All policies shall be primary over any insurance or self-insurance program carried by the Consultant or the State of Wyoming. All policies shall include clauses stating that each insurance carrier shall waive all rights of recovery under subrogation or otherwise against Consultant or the State, its agencies, institutions, organizations, officers, agents, employees, and volunteers.

(iii) The Consultant shall provide Certificates of Insurance to the Commission verifying each type of coverage required herein. If the policy is a “claims made” policy instead of an “occurrence” policy, the information provided shall include, but is not limited to, retroactive dates and extended reporting periods or tails.

(iv) All policies shall be endorsed to provide at least thirty (30) days advance written notice of cancellation to the Commission. A copy of the policy endorsement shall be provided with the Certificate of Insurance.

(v) In case of a breach of any provision relating to Insurance Requirements or Insurance Coverage, the Commission may, at the Commission’s option, obtain and maintain, at the expense of the Consultant, such insurance in the name of the Consultant, or subcontractor, as the Commission may deem proper and may deduct the cost of obtaining and maintaining such insurance from any sums which may be due or become due to the Consultant under this Contract.

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(vi) All policies required by this Contract shall be issued by an insurance company with an A.M. Best rating of A- VIII or better.

(vii) The Commission reserves the right to reject any policy issued by an insurance company that does not meet these requirements.

W. Insurance Coverage. The Consultant shall not commence work under this Contract until it has obtained all the insurance required by the Commission and the State. The Consultant shall obtain and maintain the following insurance in accordance with the Insurance Requirements set forth above:

(i) Commercial General Liability Insurance. Commercial general liability insurance (CGL) coverage, occurrence form, covering liability claims for bodily injury and property damage arising out of premises, operations, products and completed operations, and personal and advertising injury, with minimum limits as follows:

(a) $1,000,000.00 each occurrence; (b) $1,000,000.00 personal injury and advertising injury; (c) $2,000,000.00 general aggregate; and (d) $2,000,000.00 products and completed operations.

The CGL policy shall include coverage for Explosion, Collapse and Underground property damage. This coverage may not be excluded by endorsement.

(ii) Workers’ Compensation and Employer’s Liability Insurance. Employees hired in Wyoming to perform work under this Contract shall be covered by workers’ compensation coverage obtained through the Wyoming Department of Workforce Services’ workers’ compensation program, if statutorily required. Employees brought into Wyoming from Consultant’s home state to perform work under this Contract shall be covered by workers’ compensation coverage obtained through the Wyoming Department of Workforce Services’ workers’ compensation program or other state or private workers’ compensation insurance approved by the Wyoming Department of Workforce Services, if statutorily required.

The Consultant shall provide the Commission with a Certificate of Good Standing or other proof of workers’ compensation coverage for all of its employees who are to perform work under this Contract, if such coverage is required by law. If workers’ compensation coverage is obtained by Consultant through the Wyoming Department of Workforce Services’ workers’ compensation program, Consultant shall also obtain Employer’s

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Liability “Stop Gap” coverage through an endorsement to the CGL policy required by this Contract, with minimum limits as follows:

(a) Bodily Injury by Accident: $1,000,000.00 each accident; (b) Bodily Injury by Disease: $1,000,000.00 each employee; and (c) Bodily Injury by Disease: $1,000,000.00 policy limit.

(iii) Unemployment Insurance. The Consultant shall be duly registered with the Department of Workforce Services and obtain such unemployment insurance coverage as required. The Consultant shall supply Commission with a Certificate of Good Standing or other proof of unemployment insurance coverage.

(iv) Automobile Liability Insurance. Automobile liability insurance covering any auto (including owned, hired, and non-owned) with minimum limits of $1,000,000.00 each accident combined single limit.

(v) Professional Liability or Errors and Omissions Liability Insurance. Professional liability insurance or errors and omissions liability insurance protecting against any and all claims arising from the Consultant’s alleged or real professional errors, omissions, or mistakes in the performance of professional duties under this Contract, with minimum limits as follows:

(a) $1,000,000.00 each occurrence; and (b) $1,000,000.00 general aggregate.

The policy shall have an extended reporting period of two (2) years.

X. Severability. Should any portion of this Contract be judicially determined to be illegal or unenforceable, the remainder of the Contract shall continue in full force and effect, and the parties may renegotiate the terms affected by the severance.

Y. Sovereign Immunity and Limitations. Pursuant to Wyo. Stat. § 1-39-104(a), the State of Wyoming, the Commission, and the Office expressly reserve sovereign immunity by entering into this Contract and specifically retain all immunities and defenses available to them as sovereigns. The parties acknowledge that the State of Wyoming has sovereign immunity and only the Wyoming Legislature has the power to waive sovereign immunity. Designations of venue, choice of law, enforcement actions, and similar provisions shall not be construed as a waiver of sovereign immunity. The parties agree that any ambiguity in this Contract shall not be strictly construed, either against or for either party, except that any ambiguity as to sovereign immunity shall be construed in favor of sovereign immunity.

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Z. Taxes. The Consultant shall pay all taxes and other such amounts required by federal, state, and local law, including, but not limited to, federal and social security taxes, workers' compensation, unemployment insurance, and sales taxes.

AA. Termination of Contract. This Contract may be terminated, without cause, by the Commission upon thirty (30) days written notice. This Contract may be terminated immediately for cause if the Consultant fails to perform in accordance with the terms of this Contract.

BB. Third-Party Beneficiary Rights. The parties do not intend to create in any other individual or entity the status of third-party beneficiary, and this Contract shall not be construed so as to create such status. The rights, duties, and obligations contained in this Contract shall operate only between the parties to this Contract and shall inure solely to the benefit of the parties to this Contract. The provisions of this Contract are intended only to assist the parties in determining and performing their obligations under this Contract.

CC. Time is of the Essence. Time is of the essence in all provisions of this Contract.

DD. Titles Not Controlling. Titles of sections and subsections are for reference only and shall not be used to construe the language in this Contract.

EE. Waiver. The waiver of any breach of any term or condition in this Contract shall not be deemed a waiver of any prior or subsequent breach. Failure to object to a breach shall not constitute a waiver.

FF. Counterparts. This Contract may be executed in counterparts. Each counterpart, when executed and delivered, shall be deemed an original and all counterparts together shall constitute one and the same Contract. Delivery by the Consultant of an originally signed counterpart of this Contract by PDF shall be followed up immediately by delivery of the originally signed counterpart to the Commission.

THE REMAINDER OF THIS PAGE WAS INTENTIONALLY LEFT BLANK.

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9. Signatures. The parties to this Contract, either personally or through their duly authorized representatives, have executed this Contract on the dates set out below, and certify that they have read, understood, and agreed to the terms and conditions of this Contract.

The Effective Date of this Contract is the date of the signature last affixed to this page.

WYOMING WATER DEVELOPMENT COMMISSION:

______Clinton Glick Date Chairman

______Ronald E. Kailey, Jr. Date Secretary

K & E ENGINEERING, INC., D/B/A RIO VERDE ENGINEERING

______Mike Jackson, President Date Employer Identification Number: 83-0302719

ATTORNEY GENERAL'S OFFICE: APPROVAL AS TO FORM

______Megan Pope Date Senior Assistant Attorney General

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ATTACHMENT A SCOPE OF SERVICES

A. AUTHORIZATION

The Wyoming Legislature has authorized the Commission to conduct the study described herein. The Consultant will complete the tasks and requirements outlined in Section D, Scope of Services, in this Attachment. The Commission, at its sole discretion and through duly authorized contract amendments, may request the Consultant to complete additional work phases beyond the following scope of services.

B. PROJECT DESCRIPTION

1. Location: The project is located in the Bridger Wilderness Area above Boulder, WY in the Bridger-Teton National Forest, within the New Fork River Drainage Basin; Sublette County, Wyoming.

2. Purpose: To perform a Level II study to investigate rehabilitation options and permitting requirements for Silver Lake Dam.

3. History: The outlet works for the Silver Lake Dam are no longer operable and the outlet control structure has collapsed in on the corroded CMP outlet pipe, allowing water to seep through the walls of the pipe. Also, preliminary dam safety analyses indicate the existing low hazard classification of the dam may be out of date and potential loss of life could occur if the structure were to fail. Rehabilitation would address the damaged infrastructure and safety concerns of the facility, and restore the Sponsors ability to utilize their water storage rights.

Additional information may be found at the Water Resources Data System, located at the University of Wyoming.

C. PROJECT REQUIREMENTS

1. Monthly Progress Reports and Billing Statements

The Consultant shall submit a brief monthly progress report outlining the study status, progress, and results to date, regardless of whether or not a billing statement is submitted, on or before the last working day of the month.

Each billing statement must include a task-by-task report justifying the cost items contained in the billing statement. The monthly progress report may be used as the justification for the billing statement as long as all cost items covered in the billing statement are addressed in the progress report.

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2. Computer Models, Geographic Information System (GIS), Statement of Assumptions, Project Work File

a. If the Consultant writes or uses a computer program or spreadsheet as a part of this project, the Consultant shall submit to the Commission for approval all proposed program names and data formats prior to beginning work on that task. All data shall be submitted to the Commission in written and digital forms with the final report. Digital media shall be labeled by the Consultant to provide sufficient detail to access the information on the media. User manuals shall be submitted by the Consultant to the Commission providing complete documentation of computer programs developed under this project. The user manuals shall also contain the source code language and the type of computer equipment necessary to operate the program(s). The computer programs and spreadsheets (written and digital forms) are due on the same date as the final report, which contains the information generated by the programs.

b. If the Consultant develops, collects, and/or uses GIS data as a part of this project, the Consultant shall do so in accordance with the WWDC GIS Standards Technical Memorandum utilizing provided Geodatabase Templates. Links to GIS Standards Technical Memorandum are available at http://water.geospatialhub.org/pages/wwdc-gis-standards. A webinar on required GIS Standards, hosted by WWDC and WRDS, will be available following consultant selection and is strongly recommended.

The Consultant shall adhere to the following GIS standards:

(i) FEATURE MAPPING. The Consultant shall acquire the appropriate Geodatabase Template for feature mapping from http://water.geospatialhub.org/search?groupIds=3e77928b1 d0d49858b8916ca63ca5ca4 prior to any GIS work. Five Geodatabase Templates are available and are specific to project type. These templates define the organization and naming requirements for feature classes, tables, and the required attributes within the feature classes. Data needed for the project and described in this contract may include core data or auxiliary data. Core data includes features which fit within one of the feature classes in the Geodatabase Template, whether newly created or acquired from another source. All core data shall be loaded into the Geodatabase Template and attributed according to the GIS data schema described in the GIS Standards Technical Memorandum. This shall include field attributes that indicate contract number, primary consultant, date modified, and accuracy. Auxiliary data sets, include features which do not fit within

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one of the feature classes in the Geodatabase Templates, whether newly created or acquired from another source. The auxiliary data can be linked to the templates or managed separately as needed for project completion.

(ii) FORMATS and STANDARDS. Metadata are required for the geodatabase file, each included feature class (including those obtained from another source) and for each newly created feature. Metadata shall be completed in accordance with the GIS Standards Technical Memorandum. A detailed example for feature class metadata is provided in the GIS Standards Technical Memorandum and included in the Geodatabase Templates. This includes required information and default language, where appropriate, for each of the five metadata sections. Feature-level metadata requirements are also described in the Memorandum. Codes or values used in attribute fields, which are not included as part of the core data templates, shall be defined in the metadata. GIS data shall be saved in a Decimal Degree Coordinate system with a NAD83 datum, specifically “GCS_North_American_1983,” as indicated in the GIS Standards Technical Memorandum. In addition to the Project geodatabase(s) and map file(s), GIS deliverables may also include linked nonspatial data/databases (.accdb, .xlsx), rasters (various formats), photographs (.jpg), maps (.pdf), and file integrated metadata references (.xml, .txt). Core data shall be delivered within the Geodatabase Template. Auxiliary data can be provided as .shp files and metadata are required.

(iii) MAPS. Project GIS deliverables shall be organized in such a way as to allow easy replication of the maps found in the final project report. The GIS project files should be provided as ESRI ArcGIS mxd files saved with relative path names to data sources.

c. To facilitate the Commission’s accurate evaluation of the Consultant's work product, computations, conclusions and recommendations, the Consultant shall:

(i) Include in the final report a section describing the assumptions and methodology used by the Consultant in generating the data and conclusions contained in that chapter.

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(ii) Maintain a project work file containing the materials used in project analysis. This file will be available for review by the Commission and should be organized in such a way as to allow replication of the steps and procedures used by the Consultant to reach the conclusions described in the study.

(iii) Prepare a project notebook containing a description of the assumptions and methodologies used in the project analysis. The notebook shall be organized in such a way as to allow replication of the steps, calculations, and procedures used by the Consultant to reach conclusions, described in the draft final report. The project notebook shall be submitted with the draft final report.

3. Cost Estimates

WWDC ELIGIBLE PROJECT COSTS

CONSTRUCTION COSTS Itemized Cost of Each Project Component $______$______$______$______Cost of Project Components TOTAL $______(subtotal #1)

Construction Engineering Cost (subtotal #1 x 10%) $______Components + Construction Engineering Costs $______(subtotal #2)

Contingency (subtotal #2 x 15%) $______Construction Cost Total (subtotal #2 + Contingency) $______(subtotal #3)

PRE-CONSTRUCTION COSTS Preparation of Final Designs & Specifications (subtotal #1 x 10%) $______Permitting and Mitigation $______Legal Fees (Title of Opinion Only) $______Acquisition of Access and Rights of Way $______Pre-construction Costs Total $______(subtotal #4)

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TOTAL WWDC Eligible PROJECT COST Total WWDC Eligible Project Cost (subtotal #3 + subtotal #4) $______(subtotal #5)

WWDC INELIGIBLE PROJECT COSTS

Itemized Costs of Ineligible Project Components $______$______$______$______Additional Cost for Construction Engineering $______Additional Cost for Preparation of Final Designs & Specifications $______Total WWDC Ineligible Project Costs Total $______(subtotal #6)

TOTAL PROJECT COST

Total Project Cost (subtotal #5 + subtotal #6) $______

MATERIALS ONLY TOTAL

Materials Only Total Project Cost ((Subtotal #1 + (Subtotal #1 x 10%))

$______

Note: Any inflation costs, as determined by the Consultant and the Office project manager, will be applied to the Total Project Cost.

4. Final Report

The Consultant shall use the Contract Scope of Services as the outline for draft and final reports so that Consultant compliance with Contract provisions can be verified. If the final report contains information of an engineering nature, the cover of the final report, all plates, and the executive summary must be stamped and signed by a Professional Engineer licensed in the State of Wyoming. If the final report contains information of a geologic nature, the cover of the final report, all plates, and the executive summary must be stamped and signed by a Professional Geologist licensed in the State of Wyoming. If the final report contains information of both an engineering and geologic nature, the cover of the final report, all plates, and the executive summary must be stamped and signed by both a Professional Engineer and a Professional Geologist licensed in the State of Wyoming.

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5. Final Report - Digital Format

In addition to the paper submittal described in Section C.4 above, the Consultant shall also provide the final documents and related materials in a digital format. This digital report shall be contained on CD/DVD(s), USB drive(s), or other media as approved by the Office project manager, and shall be in Searchable Image Adobe Acrobat format.

6. Anticipated Project Funding Assistance

The Consultant shall clearly identify project components eligible for Commission funding, both in cost estimates and in project mapping. The Consultant shall verify project component funding eligibility with the Office project manager prior to commencing any economic analysis. Unless otherwise directed by the Office project manager, the Consultant shall assume that projects will be funded with a sixty-seven percent (67%) grant. The remaining thirty-three percent (33%) shall be acquired from external sources (for municipal projects); or from external sources and/or a loan from the Commission (for agricultural projects). The Commission loan will be financed at an interest rate of four percent (4%) with a term to be specified by the Office project manager. If funding is anticipated from another agency, such as the Office of State Lands and Investments or the USDA Rural Utilities Service (RUS), the Consultant shall prepare cost estimates for system components not eligible for Commission assistance in a format and level of detail acceptable to the potential funding agency.

If required in the Contract Scope of Services, the Consultant shall provide the information necessary to complete applications to RUS, the Office of State Lands and Investments, and any other identified funding sources.

7. Project Access

The Consultant shall be responsible for obtaining access as required for project tasks.

8. Stand-By Time

The Commission will not reimburse the Consultant for stand-by time charges for the Consultant's supervisory personnel.

9. Well Permitting

All wells developed under this program shall list the State of Wyoming, Water Development Office as the permittee. The Consultant shall be responsible for obtaining the permit.

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10. Verification Log

After all casing has been installed in the well, the Commission may require that a geophysical log be performed on the well to verify casing placement. A copy of this log shall be included in the final report.

D. SCOPE OF SERVICES

Task 1. Scoping and Project Meetings

One meeting shall be conducted early in the project schedule. The purpose is to familiarize interested parties with the scope of the project and to obtain input from affected parties. The Consultant shall prepare a presentation including maps and other visual aids to explain the project. In addition, formal project meetings will be conducted as necessary for the coordination of project activities and for keeping the Silver Lake Irrigation District (Sponsor) informed of project progress. The Consultant shall also assume two formal meetings with the Office and Sponsor. These formal meetings shall be open to the public. Informal meetings with the Office and Sponsor will also be necessary during the course of the study. The Consultant shall assume two informal project meetings. In addition, monthly project update meetings will be conducted via teleconference with the Office and Sponsor. The Consultant will be responsible for setting and conducting all meetings in coordination with the Office project manager. Formal meetings shall be advertised in advance. In the interest of economy, meetings shall be scheduled to coincide with fieldwork whenever possible.

In addition, the Consultant shall budget for a minimum of five (5) total meetings (combined or separate) with the Office, Sponsor, Forest Service, the Wyoming Game and Fish Department (WGFD), the U.S. Army Corps of Engineers (USACE), Wyoming State Engineer’s Office (SEO) and others as necessary to corroborate analysis, assumptions, and permits as the project develops with respect to wilderness area, water rights, safety of dams, and permitting concerns/considerations.

No meeting shall be conducted without approval in advance by the Office project manager. The Consultant will prepare all notices and needed materials for the meetings, and the Consultant shall prepare meeting minutes for all meetings.

Task 2. Background Information Collection and Review

The Consultant will gather, review, update, and assemble all background information and references available from any previous work through the Sponsor and agencies such as the Office, Water Resources Data System, Forest Service, U.S. Geological Survey (USGS), Natural Resources Conservation Service, Wyoming SEO, U.S. Fish and Wildlife Service, WGFD, USACE, University of Wyoming, State Historic Preservation Office, and other agencies as appropriate including the preliminary reconnaissance work done as part of the New Fork River Watershed Study completed in 2018.

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The Consultant shall develop and present a “digital library” of documents reviewed that will be summarized and referenced in the draft and final reports. This shall include a detailed history of maintenance done to the facility since the 1955 construction.

Task 3. PMP and Hydrologic Modeling

The Consultant shall refine the inflow design flood (IDF) analysis, flood routing and spillway sizing. This may require updating topographic survey information and a more refined assessment of the drainage basin in accordance with current Wyoming Dam Safety Guidelines. This effort shall consist of the following subtasks:

• Review and refine the dam breach analysis presented in the Silver Lake Memo from the New Fork River Watershed Study to confirm an appropriate, updated hazard classification of the dam. The Consultant shall coordinate with the Office project manager, Wyoming SEO Safety of Dams personnel, and Forest Service to provide the analysis and information necessary for them to update the hazard classification of Silver Lake Dam. This shall be done early in the project schedule as subsequent rehabilitation concepts may vary depending on the hazard classification. • Evaluate basin characteristics, delineate the drainage basin, and develop hydrologic modeling parameters for the basin. • Obtain any additional topographic data needed and review hydrologic and other site information required to develop the Inflow Design Flood (IDF). • Develop the reservoir elevation-area-capacity curve. • Develop precipitation depths for the long-duration (general) and short-duration (thunderstorm) Probable Maximum Precipitation (PMP) using the Applied Weather Associates (AWA) Probable Maximum Precipitation Study for Wyoming or other as required by the appropriate permitting entity. • Develop a HEC-HMS hydrologic model to perform rainfall-runoff analyses and reservoir and spillway routing for the long-duration and short-duration PMP rainfall events.

The data and models produced in the New Fork River Watershed study for this project shall be used wherever possible to prevent duplication of effort. The Consultant shall prepare a hydrologic analysis memorandum suitable for inclusion as an appendix in the final report. The memorandum shall summarize the findings from this task and all models and accompanying data shall be packaged and delivered with the final report.

Task 4. Geotechnical Investigation

The Consultant shall conduct a geotechnical engineering investigation of the site to evaluate subsurface conditions. The Consultant shall review site geology and map site features to characterize the geologic units and any geologic hazards that may be present. The Consultant shall drill soil borings, excavate test pits, and complete laboratory testing as necessary to characterize the in-situ conditions and suitability for future construction

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efforts. Potential borrow areas shall be identified, mapped, and investigated. The Consultant shall be responsible for obtaining any permits and completing a Minimum Requirements Analysis (MRA) necessary to carry out the geotechnical investigation as may be required by the Forest Service.

The primary objectives of the investigations are to: 1) supplement existing archival information to support layout and preliminary analyses of the proposed dam improvements; and 2) identify any potential fatal flaw or challenging geologic or geotechnical conditions that may significantly impact the technical feasibility and/or construction cost of the proposed dam improvements.

Field boring logs and samples from borings should be checked and reviewed to confirm material types and geologic structures in the samples. Representative samples shall be selected for testing to evaluate the material type and grain size, in-situ moisture content, hydraulic conductivity, and estimate compaction properties. Final boring logs shall be prepared based on the field logs, office review of samples, and results of laboratory testing.

The Consultant shall conduct a seismic evaluation of the site which includes an estimate of the peak ground accelerations at the site. Seismic deformation analysis shall be performed to estimate the permanent embankment crest deformation that would result from the design peak ground accelerations. Static slope stability analysis should be performed for the maximum embankment section to confirm adequate stability is provided. Embankment freeboard and slopes shall be refined as necessary based on these analysis. The data produced by previous Commission studies and published USGS information shall be used wherever possible to prevent duplication of effort.

The Consultant shall prepare a geotechnical data memorandum suitable for inclusion as an appendix in the final report. The memorandum shall present the data and summarize the findings from this task.

Task 5. Rehabilitation Plan

The Consultant shall prepare a rehabilitation plan for the Silver Lake Dam based on the findings and results of the previous tasks described herein and prepare a Minimum Requirements Analysis (MRA) as may be required by the Forest Service. An MRA is a statutory obligation derived from Section 4(c) of the Wilderness Act of 1964 which states “…except as necessary to meet the minimum requirements for the administration of the area for the purpose of this Act…” Typically an MRA will make a determination whether a prohibited action is necessary and explore alternative methods to compare and consider the potential effects to the wilderness resource and character. The recommendations should be designed within the needs of the Sponsor, Forest Service, Bridger Wilderness Area policies and guidelines, existing deficiencies, geotechnical parameters, hydrologic and hydraulic analysis, dam safety standards, and remote location. The data and analysis produced in the New Fork River Watershed Study shall be used wherever possible to prevent duplication of effort.

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The Consultant shall prepare an overall description of the plan that provides permittable and constructible solutions to restore use of the facility, meet current dam safety, and permitting requirements. At a minimum the plan is expected to provide an overview of dismissed alternatives, the preferred alternative, and a breach and reclamation alternative. Other alternatives revealed in the MRA shall also be overviewed.

To meet the requirements of the MRA the Consultant shall coordinate with the Forest Service to complete a Minimum Requirement Decision Guide (MRDG) workbook in excel format and include the workbook as well as a description of the results in the report. MRDG instructions and guideline pdf’s may be found at www.wilderness.net.

Due to the nature and inherit complexity of topics contained within this study, while conducting this task, the Consultant shall remain responsive to the likelihood of some overlap in the tasks and issues in terms of communication and coordination with the Forest Service, site access, data collection efforts, written descriptions, and analyses. In addition, the Consultant should maintain a dynamic approach during the course of the study, recognizing limitations of what can be accomplished from a timing and budgetary standpoint, balancing efforts accordingly, and regularly coordinating with the Office project manager and Sponsor.

The Consultant shall evaluate whether the project is in the public interest stipulating if the proposed project functions and services can be served by any person, association, or corporation engaged in private enterprise or if private enterprise has refused to provide the functions and services identified as being required by the proposed project. This information shall be included in the draft and final reports for the project.

Task 6. Environmental Analysis and Permitting

The Consultant shall identify all permits, easements, and clearances necessary for implementation of the preferred rehabilitation alternative and associated construction activities. Permits and clearances shall include, but not be limited to, those that fall within the jurisdiction of the Clean Water Act, Endangered Species Act, Historic Preservation Act, 1964 Wilderness Act, the Fish and Wildlife Coordination Act, the Wyoming SEO, the Wyoming Department of Environmental Quality, the Forest Service, and the USACE or any other agency with jurisdiction that may affect the construction of a project. Work shall include providing timelines and levels of effort.

If determined to be necessary after consultation with the appropriate agencies, the Consultant will conduct cultural site investigations to determine any impacts and required mitigation for the proposed project.

The Consultant shall provide an overview of the next steps required sufficient to support a legislative request for Level III construction funding in the WWDC program. This shall include the anticipated level of NEPA, all permits, and requirements of the Forest Service, Wyoming SEO, USACE, and any other relevant agencies to construct the preferred

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rehabilitation concept. The Consultant will discuss said issues with the Forest Service, USACE, and others as needed to corroborate analysis and assumptions, and accurately ascertain the information.

Task 7. Preliminary Designs and Cost Estimates

The Consultant shall prepare preliminary design drawings and cost estimates for the preferred rehabilitation alternative. The cost estimates shall be prepared according to the outline in Section C, Project Requirements, and must be of sufficient accuracy to support a legislative request for Level III Construction funding.

The preliminary design drawings shall include details of all anticipated project components including, but not limited to existing site conditions, a plan view, section and details for the main dam embankment, spillway, wetland mitigation plans (if needed), as well as construction details (e.g. – access, limits of construction, staging areas, equipment needed, etc.). Additional design drawings may include details related to foundation treatment or modifications to the outlet works.

A draft set of preliminary design drawings will be provided to the Office project manager, Sponsor, and Forest Service for review and comment prior to inclusion in the draft report. A final set of preliminary design drawings will be delivered with the final report.

The Consultant shall develop a draft of the construction sequencing, and activities necessary to complete the preferred reservoir alternative (Gantt Chart) for the Office project manager, Sponsor, and Forest Service to review which will later be refined and delivered with the final report and become part of the overall rehabilitation plan described in Task 5.

The Consultant shall revise construction cost estimates prepared in the New Fork River Watershed study for this project and develop life cycle cost analyses based on the preliminary design drawings for the preferred alternative. This task will involve calculating material quantities and estimating equipment, material, and labor costs for the proposed construction and preparing an engineer’s Opinion of Probable Project Costs (OPPC) estimate based on local material supplier price data, data from R.S. Means’ Heavy Construction Cost Data, other industry standard sources, and price data developed by the Consultant for previous final design/construction projects.

The cost estimate shall include an itemized project budget that includes costs for, but not limited to design engineering, permitting, mitigation, legal, access, right of ways, construction, construction engineering, contingencies, operation, maintenance and replacement. The estimate will include unit and lump sum prices of the required construction items.

The OPCC shall be prepared in tabular form. The table will be broken down into both Commission eligible and non-eligible costs. The OPPC should be based on the year when

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this work is performed. The Consultant will work with the Office project manager to select an appropriate inflation factor that will be applied to the project’s current year total cost and projected into the future per the schedule of activities and time lines developed herein.

Task 8. Economic Analysis and Project Financing

The Consultant will provide information on potential funding sources for implementation of the identified rehabilitation plan. Potential sources to be evaluated should include the Commission, Natural Resource Conservation Service, and other potential state and federal funding sources.

The Consultant will provide an ability to pay analysis which shall, based on a financial planning model, determine conditions and the level of funding necessary for implementation. The Consultant will generate recommendations based on annual financial commitments of the Sponsor needed to cover construction costs and meet operation and maintenance obligations. This analysis will provide information necessary to determine end costs of project implementation under funding scenarios involving local, state, and Federal assistance. The Consultant shall clearly differentiate between project components eligible for Commission funding and non-eligible components.

Task 9. Discretionary Task

The Consultant will place $21,750 of the proposed project budget in this discretionary task. The task is to allow changes in the scope as the project develops or as new issues are discovered.

No work will be initiated or funds spent for this task without prior written authorization from the Office project manager.

Task 10. Draft Report

The Consultant shall submit to the Office and Sponsor up to five (5) hard copies of a draft report describing the results of all work completed in this study, no later than June 1, 2022. Up to five (5) CD, DVD, or USB drive copies containing the draft report in a text- recognized Adobe Acrobat (pdf) format will also be provided, along with two (2) CD, DVD, USB drive, or portable hard drive copies of the draft ArcGIS coverages (if applicable). The PDF version will be completely assembled into one standalone file, and shall be exactly the same version as the hard copy. Each CD, DVD, USB drive, or portable hard drive shall have a hard copy table of contents attached.

Task 11. Report Presentations

Upon completion of the draft report, the Consultant shall present the findings of the study at a public meeting near the project area. Information and materials to be presented at the public meeting shall be developed by the Consultant after consultation with the Office

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project manager. The Consultant shall be responsible for developing a record of the meeting which shall become an appendix in the final report. The record will include: any formal and/or informal notices; an affidavit of publication from the legal notice (public hearings only) as obtained from the Office; any materials presented or handed out at the meeting; a record of attendance; any written comments, statements, or exhibits received; recorded testimony, or a memorandum summarizing the views and comments presented at the meeting; and other pertinent data. The Consultant will also budget for a meeting in Casper or Cheyenne to present the results to the Commission. These presentations are independent of the meetings included under Task 1.

The Consultant shall coordinate with the Office project manager in planning for the presentations to ensure adherence to Office established policies and guidelines.

The report presentation for this Level II Study shall also serve as a public hearing with Office personnel serving as the hearing officer. The script for the hearing will be developed by the Office project manager and shall include the question as to whether there is a private entity interested in providing the proposed project functions and services in lieu of the Sponsor. The Office is responsible for publishing a legal notice of the meeting in a statewide newspaper once each week for three (3) weeks prior to the hearing and in the local publication up to three (3) times prior to the hearing.

Task 12. Final Report and Deliverables

After incorporation of the Office, Sponsor, and Forest Service review comments on the draft report, the Consultant shall submit one (1) final report and one (1) executive summary in hard copy along with one (1) CD or DVD or USB drive containing the final report and executive summary in a text-recognized Adobe Acrobat (pdf) format to the Office 1 to 2 weeks prior to the deadline for final comparison purposes. The pdf version shall be completely assembled into one stand-alone file and shall be exactly the same version as the hard copies. Any discrepancies discovered by the Office project manager between the hard copy and electronic copy during this final comparison are the responsibility of the Consultant to correct.

Upon completion of the final quality assurance process by the Office project manager, the Consultant shall submit all final documents and materials to the Office on or before August 1, 2022. These final documents and materials shall include: 1) Twelve (12) [MIN] hard copies of the final report and 2) Twelve (12) [MIN] hard copies of the executive summary. The executive summary shall outline the purpose, findings, recommendations and configuration of the project, and shall include detailed cost estimates. The summary should not exceed ten (10) pages. Any final reports which have been submitted in three-ring notebook format shall have spine labels clearly identifying the project, Consultant and date. Lettered or enumerated chapter and appendix tabs shall also be included with hard copy reports.

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Four (4) [MIN] CD, DVD, or USB drive copies containing the final report and executive summary in a text-recognized Adobe Acrobat (pdf) format will be provided. The pdf version will be completely assembled into one stand-alone file and shall be exactly the same version as the hard copy. Each CD, DVD, or USB drive shall have a hard copy table of contents attached.

Two (2) [MIN] CD, DVD, or USB drive copies containing the final report and executive summary in original formats (Word, Excel, etc.) and in a text-recognized Adobe Acrobat (pdf) format. The pdf version will be completely assembled into one stand-alone file. All electronic files shall be exactly the same version as the hard copies. Each CD, DVD, or USB drive shall have a hard copy table of contents attached.

Three (3) [MIN] CD, DVD, or USB drive copies of the hydraulic model project file and all associated files shall be provided if applicable. The files shall create a working model that is fully functional and can be modified. Each CD, DVD, or USB drive shall have a hard copy table of contents attached. In addition to the above, one (1) electronic copy of the hydraulic model project file and all associated files will be included in the project notebook.

As applicable, the Consultant shall provide three (3) CD, DVD, USB drive, or portable hard drive copies of the GIS data according to the WWDC GIS Framework Plan and Technical Memorandum. Links to these documents are available at http://wwdc.state.wy.us/index.html. Consultants are strongly recommended to attend a webinar on GIS project standards hosted by WWDC and WRDS. This webinar will follow consultant selection.

a. FEATURE MAPPING. As, applicable, the Consultant will request a data template for feature mapping from the Office project manager prior to any GIS work. These templates define the organization and naming of “core” GIS data. Auxiliary GIS data layers, as needed for the project and described in the final contract, can be linked to the templates or managed separately as needed for project completion. Mapped features will be attributed according to the GIS data schema described in the Technical Memorandum of WWDC GIS Framework Plan. All features modified or created shall include field attributes that indicate contract number, consultant, date modified, and accuracy.

b. FORMATS and STANDARDS. As, applicable, simplified metadata shall be completed in accordance with standards described in the Technical Memorandum of the WWDC GIS Framework Plan. Attribute codes not included as part of the “core” data templates shall be defined in the metadata. GIS data shall be saved in a Decimal Degree Coordinate system with a NAD83 datum, specifically “GCS_North_American_1983,” as indicated in the Technical Memorandum. Project GIS deliverables may also include linked nonspatial data/databases (.accdb, .xlsx), rasters (various formats), photographs (.jpg), maps (.pdf), and file integrated metadata references (.xml, .txt). Data shall be delivered within the Office geodatabase template provided by the Office project manager. Auxiliary GIS data layers can be provided as .shp files.

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c. MAPS. As, applicable, project GIS deliverables shall be organized in such a way as to allow easy replication of the maps found in the final project report. The GIS project files should be provided as ESRI ArcGIS mxd files saved with relative path names to data sources.

One (1) project notebook containing the working files used in this project will be provided. The project notebook files shall include descriptions of the assumptions and methodologies used in the project analysis. The notebook shall be organized in such a way as to allow replication of the steps, calculations, and procedures used by the Consultant to reach the conclusions described in the final report. The preferred format for the project notebook is digital, provided on a CD, DVD, or USB drive. Any project notebooks which have been submitted in three-ring notebook format shall have spine labels clearly identifying the project, Consultant and date.

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ATTACHMENT B HOURLY RATE AND REIMBURSABLE EXPENSES PRICE SCHEDULE 2018

RIO VERDE ENGINEEING

ENGINEERING - SURVEYING Hourly Rates Consulting Principal (P.E. or L.S.) $105 Professional Engineer $95 Party Chief/Surveyor $90 Engineering Technician $75 Clerical $60

OTHER EQUIPMENT GPS Surveying Equipment $60 per hour Field Vehicle $0.545 per mile All-Terrain Vehicles $75 per day Ranger $200 per day

RELATED EXPENSES Lodging at cost Shipping at cost M&IE* at cost 4 Foot Lath $30 per bundle 1 x 2 Stakes $25 per bundle Steel Post $10 each 24" x 36" Copy $5 per sheet 24" x 36" Plot $20 per sheet Copies Black $0.15 - $0.30 per page Color $0.50 - $1.00 per page

*M&IE can be billed when travel is more than 50 miles from the office for a period of three or more consecutive hours and/or involves an overnight stay.

All third party billing will be invoiced at cost. This includes outside services such as, laboratory testing, subcontractors, equipment/stock rental, materials not listed, installed equipment, etc.

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2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

DRAFT ONLY NOT APPROVED FOR INTRODUCTION

HOUSE BILL NO.

Disposition of water rights.

Sponsored by: Select Water Committee

A BILL

for

1 AN ACT relating to the subdivision of land and water

2 rights; requiring certification from the state engineer or

3 state board of control on the disposition of water rights

4 when subdividing land; requiring notice of the proposed

5 disposition to other appropriators; making conforming

6 amendments; providing applicability; and providing for an

7 effective date.

8

9 Be It Enacted by the Legislature of the State of Wyoming:

10

11 Section 1. W.S. 15-1-415 by adding a new subsection

12 (e), 18-5-306(a)(xi) and W.S. 18-5-316(b) are amended to

13 read:

1 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1

2 15-1-415. Additions to cities or towns by subdividing

3 landowners; plat requirements; filing and effect thereof;

4 controlling layout of streets.

5

6 (e) With respect to any water rights appurtenant to

7 lands to be subdivided in accordance with this section,

8 prior to certification and approval of the map or plat the

9 governing body shall require the owner to submit to the

10 governing body the following:

11

12 (i) The intended disposition of the water

13 rights, by:

14

15 (A) Written certification from the state

16 engineer or the state board of control that the owner

17 submitted to the state engineer or the state board of

18 control all documents necessary to voluntarily abandon the

19 water rights, cancel any unadjudicated permits or eliminate

20 applicable lands from any unadjudicated permits. The owner

21 shall notify any purchasers of this action;

22

2 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 (B) Written certification from the state

2 board of control that the owner submitted to the state

3 board of control all documents necessary to change the use

4 or place of use to provide for beneficial use of the water

5 rights outside the subdivision, which may include a

6 transfer to the city or town for use within its municipal

7 water service boundaries;

8

9 (C) A plan, accompanied by written

10 certification from the state engineer approving the plan,

11 for the distribution of the water rights appurtenant to the

12 land to be subdivided. The plan shall specify the

13 distribution of the water to the lots within the

14 subdivision and shall include written certification from

15 the state board of control that the owner submitted to the

16 state board of control all documents necessary for a change

17 of use, change of place of use or change in point of

18 diversion or means of conveyance in accordance with W.S.

19 41-3-103, 41-3-104 or 41-3-114; or

20

21 (D) Written certification from the state

22 board of control that it accepted an authorization to

23 detach water rights appurtenant to the lands to be

3 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 subdivided in accordance with rules and regulations

2 promulgated by the state board of control.

3

4 (ii) If the subdivision is located within lands,

5 served by or crossed by a ditch, irrigation company or

6 association or by an unorganized ditch, evidence that the

7 owner submitted the subdivision map or plat to the company,

8 association or remaining appropriators in the case of an

9 unorganized ditch for review and recommendation at least

10 sixty (60) days prior to the submittal of the map or plat

11 to the governing body;

12

13 (iii) Evidence that the owner will specifically

14 state on all offers and solicitations relative to the

15 subdivision the owner’s intent to comply with this

16 paragraph and that the owner does not warrant to a

17 purchaser that the purchaser shall have any rights to the

18 natural flow of any stream within or adjacent to the

19 proposed subdivision. The owner shall further state that

20 Wyoming law does not recognize any riparian rights to the

21 continued natural flow of a stream or river for persons

22 living on the banks of the stream or river;

23

4 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 (iv) If the subdivision is located within the

2 boundaries of an irrigation district that is subject to the

3 provisions of title 41, chapter 7 of the Wyoming statutes,

4 the map or plat shall be accompanied by recommendations

5 from the irrigation district regarding any changes to the

6 attached water rights and the irrigation district's

7 easements. If there is a conflict with the irrigation

8 district's recommendations, the owner shall certify that it

9 met with and made a good faith effort to resolve any

10 conflicts with the irrigation district; and

11

12 (v) If the subdivision will create a significant

13 additional burden or risk of liability to the irrigation

14 district, company, association or remaining appropriators

15 including appropriators on an unorganized ditch, the owner

16 shall provide an adequate and responsible plan to reduce or

17 eliminate the additional burden or risk of liability.

18

19 18-5-306. Minimum requirements for subdivision

20 permits.

21

22 (a) The board shall require, and with respect to

23 paragraph (xii) of this subsection may require, the

5 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 following information to be submitted with each application

2 for a subdivision permit, provided the board may by rule

3 exempt from any of the following requirements of this

4 subsection or subsection (c) of this section and may exempt

5 from , including paragraph (xii) of this subsection, the

6 subdivision of one (1) or more units of land into not more

7 than a total of five (5) units of land:

8

9 (xi) With respect to any water rights

10 appurtenant to lands to be subdivided in accordance with

11 this chapter and prior to final approval of the application

12 for a subdivision permit the subdivider shall provide the

13 following:

14

15 (A) The intended disposition of the water

16 rights, by:

17

18 (I) Evidence Written certification

19 from the state engineer or the state board of control that

20 the subdivider has submitted to the state engineer or the

21 state board of control the documentation all documents

22 necessary to relinquish voluntarily abandon the water

23 rights, cancel any unadjudicated permits or eliminate

6 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 applicable lands from any unadjudicated permits. The

2 subdivider shall and has notified notify any purchasers and

3 the board of this action;

4

5 (II) Evidence Written certification

6 from the state board of control that the subdivider has

7 submitted to the state engineer state board of control the

8 documentation all documents necessary to change the use, or

9 place of use or point of diversion to provide for

10 beneficial use of the water rights outside the subdivision;

11 or

12

13 (III) A plan, a copy of which was

14 submitted to and approved by the state engineer prior to

15 the final approval of the subdivision application

16 accompanied by written certification from the state

17 engineer approving the plan, for the distribution of the

18 water rights appurtenant to the land to be subdivided. The

19 plan shall specify the distribution of the water to the

20 lots within the subdivision and shall include written

21 certification from the state board of control that the

22 subdivider submitted to the state board of control all

23 appropriate applications for documents necessary to change

7 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 of the use, change of place of use or change in point of

2 diversion or means of conveyance in accordance with W.S.

3 41-3-103, 41-3-104 or 41-3-114.; or

4

5 (IV) Written certification from the

6 state board of control that it accepted an authorization to

7 detach water rights appurtenant to the lands to be

8 subdivided in accordance with rules and regulations

9 promulgated by the state board of control.

10 *********************************************************** 11 ******************* 12 STAFF COMMENT 13 Chapter 5, Section 6(d) of the Board of Control’s rules and 14 regulations currently provide for an authorization to 15 detach water rights without specific statutory authority. 16 The addition of this subsection will create specific 17 statutory authority for an authorization to detach water 18 rights. 19 *********************************************************** 20 ******************* 21

22 (B) If the subdivision is located within

23 lands, served by or crossed by a ditch, irrigation company

24 or association or by an unorganized ditch, evidence that

25 the subdivider submitted the plan has been submitted, to

26 the company, association or remaining appropriators in the

27 case of an unorganized ditch for review and recommendations

28 at least sixty (60) days prior to the submittal of the

8 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 application for the subdivision permit to the company, or

2 association, or the remaining appropriators in the case of

3 an unorganized ditch for their review and recommendations

4 board;

5

6 (C) Evidence that the subdivider will

7 specifically state on all offers and solicitations relative

8 to the subdivision his the subdivider’s intent to comply

9 with this paragraph and that the seller subdivider does not

10 warrant to a purchaser that he the purchaser shall have any

11 rights to the natural flow of any stream within or adjacent

12 to the proposed subdivision. He The subdivider shall

13 further state that the Wyoming law does not recognize any

14 riparian rights to the continued natural flow of a stream

15 or river for persons living on the banks of the stream or

16 river;

17

18 (D) If the subdivision is located within

19 the boundaries of an irrigation district that is subject to

20 the provisions of title 41, chapter 7 of the Wyoming

21 statutes, the application shall include a review and

22 recommendations from the irrigation district regarding any

23 changes to the attached water rights and the irrigation

9 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 district's easements. If there is a conflict with the

2 irrigation district's recommendations, the applicant

3 subdivider shall certify that it has met with and made a

4 good faith effort to resolve any conflicts with the

5 irrigation district; and

6

7 (E) If the subdivision will create a

8 significant additional burden or risk of liability to the

9 irrigation district, company, association or remaining

10 appropriators including appropriators on an unorganized

11 ditch, the applicant subdivider shall provide an adequate

12 and responsible plan to reduce or eliminate the additional

13 burden or risk of liability.

14

15 18-5-316. Requirements for large acreage subdivision

16 permits.

17

18 (b) The board may require any or all of, and with

19 respect to paragraph (ix) of this subsection shall require,

20 the following information to be submitted with an

21 application for a subdivision permit pursuant to this

22 section:

23

10 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 (ix) With respect to any water rights

2 appurtenant to lands to be subdivided in accordance with

3 this section and prior to final approval of the application

4 for a subdivision permit the subdivider shall provide the

5 following:

6

7 (A) The intended disposition of the water

8 rights by:

9

10 (I) Evidence Written certification

11 from the state board of control that the subdivider has

12 submitted to the state engineer the documentation state

13 board of control all documents necessary to relinquish

14 voluntarily abandon the water rights, cancel any

15 unadjudicated permits or eliminate applicable lands from

16 any unadjudicated permits. and has notified The subdivider

17 shall notify any purchasers and the board of this action;

18

19 (II) Evidence Written certification

20 from the state board of control that the subdivider has

21 submitted to the state engineer the documentation state

22 board of control all documents necessary to change the use,

23 or place of use or point of diversion to provide for

11 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 beneficial use of the water rights outside the subdivision;

2 or

3

4 (III) A plan, a copy of which was

5 submitted to and approved by the state engineer prior to

6 the final approval of the subdivision application

7 accompanied by written certification from the state

8 engineer approving the plan, for the distribution of the

9 water rights appurtenant to the land to be subdivided. The

10 plan shall specify the distribution of the water to the

11 lots within the subdivision and shall include written

12 certification from the state board of control that the

13 subdivider submitted to the state board of control all

14 appropriate applications for documents necessary to change

15 of the use, change of place of use or change in point of

16 diversion or means of conveyance in accordance with W.S.

17 41-3-103, 41-3-104 or 41-3-114.; or

18

19 (IV) Written certification from the

20 state board of control that it accepted an authorization to

21 detach water rights appurtenant to the lands to be

22 subdivided in accordance with rules and regulations

23 promulgated by the state board of control.

12 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1

2 (B) If the subdivision is located within an

3 irrigation district or within lands, served by a ditch,

4 irrigation company or association or by an unorganized

5 ditch, evidence that the subdivider submitted the plan has

6 been submitted to the district board, company, or

7 association, or the remaining appropriators in the case of

8 an unorganized ditch for their review and recommendations

9 at least sixty (60) days prior to the submittal of the

10 application for the subdivision permit to the board; and

11

12 (C) Evidence that the subdivider will

13 specifically state on all offers relative to the

14 subdivision his the subdivider’s intent to comply with this

15 paragraph and that the seller subdivider does not warrant

16 to a purchaser that he the purchaser shall have any rights

17 to the natural flow of any stream within or adjacent to the

18 proposed subdivision. He The subdivider shall further state

19 that the Wyoming law does not recognize any riparian rights

20 to the continued natural flow of a stream or river for

21 persons living on the banks of the stream or river.

22

13 [Bill Number] 2021 STATE OF WYOMING 21LSO-0062 Working Draft 0.3

1 Section 2. This act applies to subdivision

2 applications and related proceedings filed on and after

3 July 1, 2021.

4

5 Section 3. This act is effective July 1, 2021.

6

7 (END)

14 [Bill Number] July 27, 2021

1 41-3-904. By-product water; appropriation; conditions and limitation.

2 (a) Any person intending to appropriate by-product water for beneficial use shall file an 3 application with the state engineer on the forms and in the manner prescribed for 4 groundwater applications. By-product water shall be considered as being in the same class 5 as groundwater for the purposes of administration and control. An application may be filed 6 only if both the following conditions exist: 7 (i) The by-product water is intercepted while it is readily identifiable and before it has 8 commingled with waters of any live stream, lake, reservoir, or other surface 9 watercourse, or part of any groundwater aquifer; and 10 (ii) The developer of the water is the applicant, or an agreement is filed in the office of 11 the state engineer wherein the developer of the water gives the applicant 12 permission to use water as proposed in the application. The agreement must be 13 signed by the developer of the water and may contain provisions for reservation of 14 the water to use if the developer-grantor, and is so stipulated, the reservation can 15 be superior in right and title to any use by the applicant-grantee. 16 (b) In all other cases, an application to appropriate by-product water shall be governed by the 17 laws pertaining to surface water, and by-product water shall be considered as part of the 18 surface supply, subject to use by existing priority rights. 19 (c) The developer of by-product water shall not be liable in tort for consequences of 20 subsequent use of the by-product water by an applicant only if the following conditions 21 exist: 22 (i) The developer has through an agreement given the applicant permission to use the 23 water as proposed in the application as described in subsection (a)(ii) of this section; 24 (ii) The applicant has obtained all necessary permits or approvals from the Wyoming Oil 25 and Gas Conservation Commission to use the water as proposed in the application; 26 (iii) The applicant has obtained all necessary permits or approvals from the Wyoming 27 Department of Environmental Quality to use the water as proposed in the 28 application; and 29 (iv) Any consequences of subsequent use of the by-product water are caused by the use 30 of the water made by the applicant and not by the developer of the water.

LEGAL ASPECTS RELATING TO DITCH RIGHTS AND EASEMENTS

State of Wyoming

Board of Control

Revised 2009

LEGAL ASPECTS RELATING to DITCH RIGHTS and EASEMENTS

The law regarding ditch rights as a private property appurtenance separate from water rights is a confusing and often misunderstood concept in Wyoming water administration. The vast majority of water users in Wyoming have the misunderstanding that disagreements over the use of a ditch in all cases can be settled by decree of the water commissioner. While this may appear true under certain conditions (W.S. 41-6-301 through 41-6-308) the more common problems brought to the water commissioner are not settleable within his jurisdiction, and the most he can do is offer advice based on his knowledge of previous court decisions, always emphasizing that if his advice is not acceptable to all parties, those aggrieved should seek relief in civil court.

The Wyoming Supreme Court in 1912 noted the separation between water rights and ditch rights in the Collett vs Morgan case when it said:

“The Board of Control had no power or authority to determine as between the parties, the ownership or right to the use of the ditch. Its duties are confined to the distribution of the waters of the state between the several appropriators, the granting of permits to use the waters of the state for beneficial uses, to grant certificates therefor, and the general supervision of such waters…. The ditch ownership question cannot be settled by the Board but must be settled by agreement between the parties or by proceedings in court.”

Keeping this in mind, and observing the fact that ditch easement and ownership questions continue to come before the water commissioners, who are perceived by the public to be the logically empowered public servants from whom free ditch advice can be attained, following are some of the most commonly asked questions, and responses which most properly address the problems.

1. Question: Where in the water statutes can I find out what law is in regard to ditch easements and rights-of-way?

Answer: There is no water statute referencing ditch easements. These are matters of civil law and common law rather than water law and, as such, require agreement between the affected parties or litigation in court.

2. Question: How do I know if my ditch has an easement across my neighbor’s property?

Answer: Many times an easement for a ditch crossing neighboring properties will be recorded as such in the County Clerk’s office as an attachment to the deed to the property. If this is the case, the documented easement will normally contain specific lengths, widths and other conditions of the easement.

3. Question: If I check and find that no written easement has ever been recorded, does that mean my ditch has no easement?

Answer: No. In some cases, written easements may have been agreed to and signed by the affected landowners but not recorded. These are sometimes found in the possession of one or all of the affected landowners, and are usually binding although their legality should always be verified by a neutral party (such as a County Attorney) if any of the parties questions the terms. In other cases, no written documentation of any kind exists, but an unwritten easement acquired by prescription may protect the right-of-way of the ditch to cross neighboring property.

4. Question: If I can find no written easement of any kind, how do I know if I have a prescriptive easement?

Answer: The accepted understanding of prescriptive acquisition of ditch easements was enunciated by the Wyoming Supreme Court in the 1956 case of Haines vs Galles, wherein it was said: “Easements may be created by prescription or, more properly speaking under the modern doctrine, by presumption… . In time, the fiction of a “lost grant” [has been] adopted by the courts—that is, the courts presumed, from the long possession and exercise of right by the defendant with the acquiescence of the owner, that there must have been originally a grant by the owner to the claimant which has [since] become lost…. Today…in most of the states in the United States…, the rule is that the period for acquiring an easement …corresponds…to the local statute of limitations [which, in Wyoming, is ten (10) years]. It has been emphasized that a prescriptive right is founded upon the presumption of a grant.”

In short, the fact that a ditch is found to exist in its present location suggests that, at some time in the past, the landowners agreed that it could be constructed there. If it has existed there for a period of ten years or longer, it has probably established its easement and cannot be removed, except by agreement of all affected parties.

5. Question: What if the ditch has been in place for a period of time less than the period prescribed by the statute of limitations; i.e. less than 10 years?

Answer: Then it may not have established a prescriptive easement, and its existence may be challenged in a civil court by any affected party.

6. Question: If I am buying, or selling, a parcel of land with appurtenant water rights, and there is no documented easement for my ditch(es) which cross neighboring properties, what assurance do I have that the easements are secure, assuming I feel sure that they have been successfully acquired by prescription by having been in place ten years or longer?

Answer: This question was addressed by the Wyoming Supreme Court in 1893 and the answer is still in use today. In the Frank vs Hicks case, the courts stated:

“A water right acquired for irrigation of lands and the ditch or other conduit for the water passes by a conveyance of the realty without being specifically mentioned.” (emphasis added).

7. Question: Suppose I have acquired a ditch right by prescription across neighboring properties. What do the statutes say about the width of my easement; that is, how many feet am I allowed alongside my ditch to come and go on my neighbor’s property?

Answer: There is nothing in the statutes which specifies a required width for ditch easements. By definition, an easement is an interest held by one owner in the property of another which entitles the holder to a specific limited use. In the case of ditch easements, the ditchowner has the right only to the specific limited access which is attendant to the purpose and function of the ditch. In Wyoming, the accepted view has been that the holder of a ditch easement has only the right to expect his ditch to remain in its historic physical location, and the right to conduct reasonable maintenance on the ditch. Thus, the easement accompanying a small ditch would allow only small equipment for maintenance of the ditch, while a larger ditch would have a correspondingly larger area allowed for maintenance equipment.

There is no provision for the ditchowner to expect to be able to construct a road along his ditch through the other owner’s property, or to expect to be able to use any other roads, driveways, etc., which are not immediately in contact with the ditch easement. He must enter the property on the line of the ditch, confine all work to the line of the ditch, and leave the property on the line of the ditch, whenever possible to do so. In discussing entry on the lands of another for the purpose of waterway repair, the Wyoming Attorney General in 1965 quoted Kinney on Irrigation and Water Rights in stating:

…[an easement] thus acquired is one which must be held to the narrowest limits compatible with the principle right, which is the use of the water. No unnecessary injury must be done to the lands of another…or the [person] making it will be liable in damages.”

8. Question: If the ditch which brings water across a neighboring property from the stream source to my irrigated land, or takes my wastewater across another’s property, falls into disrepair, whose responsibility is it to have it repaired?

Answer: Wyoming Statute 41-5-101 clearly states that “The owner or owners of any ditch for irrigation, or other purposes, shall carefully maintain the embankments thereof so that the water of such ditch may not flood or damage the premises of others.” In addition to this statutory direction, the Wyoming Supreme Court, in the 1905 case of Howell vs Big Horn Basin Colonization Company observed that:

“The well settled rule is that the owner of an irrigating ditch is bound to exercise reasonable care and skill to prevent injury to other persons from such ditch, and he will be liable for such damages occurring to others as a result of his negligence or unskillfulness in constructing, maintaining or operating the ditch.”

It is generally agreed that the “owner” or “owners” of a ditch consist of anyone who uses the ditch or water there from for any purpose whatever. The proportionate ownership of the ditch among several owners is determined by the “ratio between the water right of each water user to the total water rights adjudicated under such irrigation works” (Wyoming Statute 41-6-303).

9. Question: If my neighbor fails to properly maintain his ditch across my property, can I ask the Water Commissioner, State Engineer’s Office, or Board of Control to institute damage or liability proceedings against him?

Answer: No. Since a ditch is, in essence, an object of private property, anyone who feels his private property rights have been violated must institute his own damage proceedings in a court of civil law. However, the water commissioner, upon inspection of an “under- maintained” ditch which cannot handle its properly adjudicated amount of water, may restrict the headgate of the ditch to where it only diverts what the ditch can safely carry. If one of the landowners’ crops suffer because of this restriction, he will probably have no recourse due to his own failure to provide adequate capacity by proper maintenance.

10. Question: What if I clean my ditch through a neighboring property, and then my neighbor runs his livestock in that same field or pasture, and those livestock break down the banks of my ditch and generally put it in a condition of disrepair. Am I obligated to continue spending time and maintenance efforts on the ditch so that my water doesn’t damage his property even though the disrepair is caused or accelerated by his livestock?

Answer: Technically, Wyoming Statute 41-5-101 (cited above in answer #8) is the only guidance which speaks to maintenance obligations. However, it is generally agreed that in an instance of this type, reasonable maintenance is all that is required. It is also generally agreed that one who causes his own problems, is not entitled to relief from another party. The Wyoming Supreme Court, in the 1976 Bard Ranch vs Weber case, has said:

“The owner of an easement and the owner of the land encumbered by the easement each possess rights, and each must, as far as possible, respect the other’s use.”

11. Question: It is clear that my neighbor has the right to enter my property to maintain his ditch. What will happen if I try to stop him?

Answer: The Wyoming Attorney General addressed this question in 1965 in quoting from Weil in “Water Rights in the Western States” when he said:

“As in the case of any easement, the ditchowner as the dominant, has the duty of keeping the ditch in repair, and not the landowner. Correspondingly, he has the right of entry upon the servient estate to make repairs and to clean out the ditches, and if the landowner interferes, injunction lies.”

However, it is often the case that a landowner who wishes to be in total control of his own property will persuade the ditchowner to allow him to maintain the ditch across his own property for the ditchowner. As long as he maintains it in a condition adequate for the passage of the proper amount of water, and in a condition acceptable to the ditchowner, there may be no reason for the ditchowner to enter the easement, although the right to do so continues to exist. If a conflict arises as to the adequacy of such maintenance, the matter may require litigation in the courts. Again, the Water Commissioner, State Engineer’s Office, or Board of Control, are not empowered to pass judgment on such a conflict.

12. Question: Suppose a neighbor’s ditch crossing my land is in a location which is cumbersome or a hindrance to the efficiency of my operation. Can I destroy the ditch?

Answer: No. Sutherland on Damages (4th ed. Vol. 4, pg.3760) says:

“one who destroys a private irrigating ditch is liable for the difference in the value of the land belonging to the owner without the ditch and with it.”

13. Question: Suppose a neighbor’s ditch crossing my land is in a location which is cumbersome or a hindrance to the efficiency of my operation. Can I require him to move the ditch or to put it in a buried pipeline in a location that allows me the full enjoyment of my property?

Answer: There is no statutory support for such forced requirement. In most cases, since such a change may be a benefit to both parties, both may agree to a shared project which may create advantages for each of them. However, if the ditchowner feels there will be no advantage to him, he may refuse to enter such an agreement, particularly if the ditch has historically been and continues to be adequate for his purposes and is well-maintained. In that case, the landowner whose property s encumbered by the ditch may seek permission from the ditchowner to make the changes himself and at his own expense. If the ditchowner agrees to allow such a change, he is entitled to expect that his historic amount of water and patterns of use are not affected in any way. If the change is carried out and the ditchowner’s use is affected, the landowner responsible for making the change is obligated to correct whatever problems he may have created. He may also have to accept responsibility for any additional long-term maintenance above what was originally required before the work was done.

14. Question: Suppose my ditch crossing a neighbor’s land has historically caused a seeped or boggy spot in his property. Am I required to repair the ditch to stop the seepage if he so demands?

Answer: Technically, yes (see question #8). However, numerous factors enter into a question of ditch seepage. If the problem has existed for many many years and not gotten any worse, there may be a defense. If the complaining landowner bought the land with knowledge that the boggy area was present and it had existed prior to his acquisition of the land, he may not be granted relief. In any case, this again is a matter to be litigated in civil court if the landowners cannot reach agreement. A competent court would be the only entity able to evaluate the opposing claims in terms of property damage, etc.

15. Question: Suppose I am the owner of a historic ditch crossing another owner’s property and he builds a new house or other structure in the vicinity of the ditch which creates and/or is later damaged by seepage from my ditch. Am I liable for damages?

Answer: Probably not. Wyoming Statute 17-12-103 pro-vides for a “priority of right by location” which essentially says that if the ditch was there first, the owners of any property introduced at a later time are compelled to protect themselves from any damages caused by the ditch. On the other hand, the same statute requires that if structures or other property were there before the ditch was built, the ditchowner is obligated to care for the ditch in such a manner as will prevent damage to any property located prior to ditch construction. If he fails to do so, he may be found liable for damages through civil proceedings.

16. Question: If I own irrigated land within the boundaries of an irrigation district or company, and a neighbor all of a sudden begins using a delivery lateral or waste ditch in which I have always been the only user, can I have the water commissioner, State Engineer’s office, or Board of Control throw him out of “my’ ditch?

Answer: No. Since there is no requirement that a permit map accompanying a filing to the State Engineer for a multi-owner ditch or canal has to show individual laterals for delivery of water to each individual farm or tract, there is seldom any record for water administrator use delineating who all is entitled to use a specific delivery lateral or waste ditch. In the absence of any documentation to the effect of who has a right to take water out of any given ditch, the only way to establish ownership is, again, by agreement of the parties or through litigation. It sometimes happens that the district or company will have its own map and/or listing of users entitle to take water from a certain headgate or lateral and in those cases, the findings of the directors would rule. Since state water administrators normally have no records to determine such matters, they have no authority deciding who can and can’t use a certain internal lateral or waste ditch.

17. Question: What statutory guidance exists as to the legalities of someone placing unauthorized obstructions or undersized culverts in an irrigation or wastewater ditch? What about other forms of conveyance interference?

Answer: Aside from the knowledge that basic common sense dictates that one just can’t obstruct a ditch or channel where water is accustomed to flowing, there are several references to ditch right or delivery matters in the Title 41 statutes. W.S. 41-3-614 applies to violations of the water commissioner’s administration in times of administrative regulation. Violations under this statute are clearly under the authority of the water commissioner.

Water administrators often refer to W.S. 41-5-110, “Prohibited acts; penalty for violation,” as the penalty reference for water theft, which reads as follows: “It shall be unlawful for any person without authority, to willfully interfere with or damage any dam, diversion structure or means of conveyance whether jointly owned by the person, on the property or in the lawful possession of another, with intent to injure any person, or for his own gain, to the injury of any other person lawfully entitled to the use of such water, diversion structure or means of conveyance. Any violation of this section shall be punishable pursuant to W.S. 41-3-616.”

Only that portion of W.S. 41-5-110 which applies to water appropriation related violations can be addressed under the jurisdiction of the water commissioner. W.S. 41-5- 111 and parts of W.S. 41-5-110 provide separate remedies for civil disputes, differences between private parties, and those who wish to pursue these should consult an attorney.

Other non-Title 41 Statutes may apply to certain situations which are not considered to be within the authority of state water administrators. Statutes that may be applicable are found under Title 23 (Game and Fish - W.S. 23-3-204(b)), Title 24 (Highway - W.S. 24-1- 116), and Title 35 (Publich Health and Safety - W.S. 35-10-401).

W.S. 23-3-204(b): “No person shall allow any refuse or substance to pass into any public water . . . which obstructs the natural flow, channels, or conditions of any stream or body of water.”

W.S. 24-1-116: “No person or persons . . . shall be permitted or allowed to dam the water or waters of any stream or . . . ditch or any waterway so that the water thus dammed . . . shall overflow any public road or highway . . . nor shall any person . . . owning or controlling any ditch or irrigated lands, allow any wastewater from the same to flow across or upon any public road or highway. Any person finding a public road or highway or bridge flooded or damaged by such wastewater may report the same to the road supervisor of the county in which the road, highway or bridge may be located, who shall make an examination and report to the county attorney for the county. If the report of the said road supervisor shows that such damage has occurred, it shall then be the duty of the county attorney to institute proceedings against the party or parties whose negligence has cause such damage.”

W.S. 35-10-401: “If any person, company or corporation . . shall anywise pollute or obstruct any watercourse, lake, pond, marsh . . or continue such obstruction or pollution. . . every person, company or corporation so offending shall upon conviction thereof, be fined not exceeding . . . $100.00; and every such nuisance may . . . be removed and abated by the sheriff of the proper county.”

18. Question: What if a landowner builds a fence right up next to the ditch or across any ditchbank which has been clearly established as being within the historic maintenance easement of that ditch? Answer: The answer to this question is the same as the answer to Question Number 11. If a landowner interferes with a ditchowner’s ability to maintain his ditch, the ditchowner may seek an injunction from the court ordering the landowner to refrain from interfering.

19. Question: Suppose a ditchowner or company, after cleaning its ditch through my property, leaves the silt or other dredged material in unsightly piles, or deposits it on my fence, road or other property. Am I obligated to accept such treatment?

Answer: Not necessarily. As discussed in the answer to Question Number 7, the ditch easement cannot be continuously expanded or exercised without consideration for the servient landowner. The ideal method of disposing of dredged material would often be to load it into dump trucks and haul it away. However, economics often dictate that this approach may not be feasible or desirable, or that the material is needed to rebuild the banks of the ditch in the same area. In these cases, the ditchowner should take care in depositing the dredged material so as not to cover any more property than has historically been covered and, upon completion of the cleaning, smooth the piles out into a level and sightly berm if requested by the landowner. As described in the answer to Question Number 7, any injury done to the landowner raises the possibility of liability against the ditchowner.

20. Question: Who determines the necessity and extent of ditch maintenance? Suppose my neighbor, with whom I share ownership of a ditch, decides that our ditch needs extensive work and, without talking to me, hires a contractor, or himself carries out work which I feel is far in excess of what was necessary to maintain the ditch in operating condition and then sends me a bill for my share. Am I obligated under W.S. 41-5-102 to pay my proportionate share of the cost of the job, if I feel sure the work could have been done for much less cost?

Answer: A co-owner in a ditch should never undertake to work on the co-owned ditch without discussing the necessity and extent of the proposed work with his co-owners and securing their agreement as to what work needs to be done and how it will be paid for. The statute that obligates a co-owner to pay “…his, her or their proportionate share of the work…” uses the phrase “…necessary for the proper maintenance and operation of such ditch…” as the guide. Work done over and above what is “necessary,” is done at the expense of the one who does, or contracts, the excess work and costs. Clearly, the only ones who can determine the necessity of maintenance work are the co-owners of the facility. In some cases, depending on his knowledge of the system, the local water commissioner may be asked to give his opinion as to the necessity and extent of work needed, based on the ditch capacity necessary to carry water to water rights on down the ditch, etc. If the work has already been done at the time the water administrator is contacted, unless he has personal knowledge of the condition of the ditch before the work, he should once again inform the complainants that their lawyers should be contacted to settle the matter. In the case of a company ditch, it sometimes happens that the company as a whole will vote to conduct maintenance or improvements on the ditch over the objection of one or more of its members, who, once the work is done, will refuse to pay for their proportionate share. Provided the benefits are deemed to be a value to the purpose of the whole company, it will generally be found that the enforcement provisions of W.S. 41-5-102, 103 and 105 are applicable.

21. Question: Does my ditch maintenance easement through neighboring properties include the right to cut down trees that have grown up along the ditchbanks?

Answer: Historically in Wyoming the understanding has been that the ditchowner has the right to cut all trees and brush along the ditch as part of his obligation to “maintain the embankments thereof so that the water of such ditch may not flood or damage the premises of other” (W.S. 41-5-101). Mature tree roots seeking water which grow out into the line of a ditch have the effect of catching trash and debris which can plug the ditch and cause it to overflow, creating a damage liability for the ditchowner. Stands of trees along any wagercourse often attract beaver which create obstruction problems by cutting trees so that they fall into the water with the same result. Tree root pathways in ditchbanks, the same as in reservoir dams, create conduits for seepage which can result in washouts and other injurious situations. Additionally, USDA SCS information shows that one mature cottonwood or willow tree will consume up to 250 gallons of water per day, revealing that the cumulative consumption effects of ditchbank phreatophytes can be negatively significant on appropriated water which is being conveyed through a ditch on its way to its designated land.

With the proliferation of subdivisions in irrigated land, the problem has taken on an additional dimension. Subdivision lot buyers who find an irrigation ditch traversing their property often see a landscaping opportunity in that the ditch provides sort of an automatic watering system. They will then plant expensive trees or shrubs in the ditch easement with the intent that the roots from their plants will grow directly to the ditch for water. When the ditchowner comes through to clean the ditch in the spring, his dual-tired tractor mashes, breaks or destroys the landscape trees and the fight is on. To date in Wyoming there has not been found a successful civil case wherein the tree owners have overcome the right and obligation of the ditchowner to maintain his ditch embankments under W.S. 41-5-101. While under certain circumstances the landowner and ditchowner might some sort of written agreement that the trees can stay as long as the landowner will accept a transfer of liability to himself in case an injurious situation occurs, any vegetation encroachment on the easement which negates the ability of the ditchowner to get his ditch cleaning equipment through as he historically has should be rejected.

22. Question: Suppose a spring flood or beaver work has changed the stream channel on my neighbor’s land so that water to satisfy my appropriation no longer comes to my headgate. Can I enter my neighbor’s land to restore the channel to protect my ability to divert?

Answer: The Wyoming Supreme Court and Wyoming Attorney General have answered this question in the affirmative (see Attorneys General Opinions, July 27, 1965, Opinion 34). In the 1903 case of Willey v. Decker, the Wyoming Supreme Court noted:

“That a valid appropriation of water from a natural stream constitutes an easement in the stream, and that such easement is an incorporeal hereditament, the appropriation being in perpetuity, cannot be disputed. He is an appropriator from the natural stream, through the intermediate agency of the ditch, and has the right to have the quantity of water so appropriated flow in the natural stream and through the ditch for his use.” The Wyoming Attorney General elaborated on this language by quoting Kinney on Irrigation and Water Rights:

“Where a person has acquired the right to a certain amount of water in a stream by the appropriation of the same, he also acquires the right to have that water flow in the natural stream and over the lands of others down to the head of his ditch. The appropriation of the water also carries with it an implied authority to do all that may become necessary to secure the benefit of the appropriation. He therefore has the right to enter the bed of the stream above the head of his ditch, even on the lands of others, and to remove sediment or obstructions which may have changed or obstructed the course of the current so as to prevent it from flowing down to and entering his ditch. Thus to this extent the appropriator acquires an easement in the lands through which the stream flows; but the right thus acquired is one which must be held to the narrowest limits compatible with the principal right, which is the use of the water. No unnecessary injury must be done to the lands of another in making the change, or the person making it will be liable in damages.

In summary, it is emphasized that this memorandum is not intended to provide conclusive legal answers to the questions posed. It is also emphasized that water administrators are not empowered to adjudge as between parties involved in ditch disputes. This memorandum is intended to provide the water administrator with a general background of historic practice the courts have used to resolve conflicts over the use of ditches, in order that the administrator may have documented references to support any advice he may be called upon to offer to persons involved in conflicts over ditch matters. It is also intended to provide water administrators with the ability to be consistent with their counterparts across the state, in the positions they may take when confronted with the situations noted. It is possible in some cases that litigation may be avoided by the water administrator’s ability to offer advice as a disinterested or neutral arbitrator, but he should not represent his advice as being a final decree. Upon receipt of the administrator’s advice, the parties must be allowed to make their own decision as to whether or not they wish to seek additional legal advice or pursue litigation. Notes

2021 WWDC/SWC MEETING SCHEDULE (Oct. 2020)

Date Day Program Item

MARCH

March 18, 2021 Thursday WWDC Workshop (Cheyenne) March 19, 2021 Friday WWDC Meeting (Election of Officers, Level I, II III, SWPP Contract Approval)

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MAY

May 12, 2021 Wednesday New Commissioner Orientation (Cheyenne) May 13, 2021 Thursday WWDC/SWC Workshop (Cheyenne) May 14, 2021 Friday WWDC/SWC Joint Meeting, (New Level I & II Apps Review/Approval, SRF-IUP) ______

AUGUST

August 11-13, 2021 Wed-Fri WWDC/SWC Workshop/Summer Tour/Meeting (TBD) ______

OCTOBER

October 5-7, 2021 Tues-Thurs Consultant Selection Interviews (Cheyenne) October 8, 2021 Friday WWDC Meeting, Selection Approval (Cheyenne)

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NOVEMBER

November 8, 2021 Monday WWDC/SWC Workshop (Casper) November 9-10, 2021 Tues-Wed WWDC/SWC Joint Meeting (Preliminary Funding Recs prior to WyoLeg) (Casper)

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