April 21, 2021

Compromise Will Bring Conclusion to Federal Lawsuit on Chimney Hollow Reservoir

The Northern Water Municipal Subdistrict has voted to approve a settlement of a federal lawsuit over Chimney Hollow Reservoir. 

In a meeting Wednesday, April 21, 2021, the Municipal Subdistrict Board voted 10-1 to authorize its participation in the settlement. 

The settlement means construction of Chimney Hollow Reservoir will begin this summer and the Colorado River Connectivity Channel in Grand County next year. In return, the Municipal Subdistrict will contribute $15 million to a foundation to pay for projects that enhance the Colorado River and its many watersheds in Grand County. 

“This settlement shows there is an alternative to costly litigation that can provide benefits both to the environment in Grand County and the Colorado River, as well as acknowledging the need for water storage,” said Northern Water General Manager Brad Wind. 

Chimney Hollow Reservoir logo with valley in background.

The compromise will bring to a close a lawsuit in federal court filed by Save the Colorado, Save the Poudre, WildEarth Guardians, Living Rivers, Waterkeeper Alliance and the Sierra Club in October 2017. The suit challenged the permit issued by the Bureau of Reclamation and Army Corps of Engineers for the construction of Chimney Hollow Reservoir. On Dec. 19, 2020, the federal court ruled against the environmental organizations. The ruling was then appealed in February, and as part of the appeals process, both sides were required to engage in court-ordered mediation, which resulted in this settlement. 

Chimney Hollow Reservoir, the key component to the Windy Gap Firming Project, will bring a reliable water supply to the 12 municipalities, water providers and utilities paying for its construction as well as provide a much-needed recreation area to be managed by the Larimer County Department of Natural Resources. Chimney Hollow Reservoir will be located in a dry valley just west of Carter Lake in southwest Larimer County and will store 90,000 acre-feet of water from the Windy Gap Project for use by 12 participants, including Broomfield, Platte River Power Authority, Longmont, Loveland, Greeley, Erie, Little Thompson Water District, Superior, Louisville, Fort Lupton, Lafayette and the Central Weld County Water District. Chimney Hollow Reservoir will make the Windy Gap water supply serving those participants more reliable and meet a portion of their long-term water supply needs. Each participant will also enact a water conservation plan to comply with state law and permit requirements. 

The compromise will also move forward other environmental measures related to the Project, including the Colorado River Connectivity Channel, a newly proposed channel around the existing Windy Gap Reservoir to reconnect the Colorado River above and below the reservoir. The channel will restore the ability for fish, macroinvertebrates, nutrients and sediment in the river to bypass the reservoir. Many other environmental protections are included, such as improving streamflow and aquatic habitat in the Colorado River, addressing water quality issues, providing West Slope water supplies and more. The Northern Water Municipal Subdistrict negotiated with Colorado River stakeholders to develop this package of environmental protections and received a permit from Grand County and approvals from others, including Trout Unlimited and the State of Colorado, to move forward with the Project. 

Water storage such as Chimney Hollow Reservoir was specifically identified in the Colorado Water Plan as a necessary component for Colorado’s long-term water future. It joins conservation, land use planning and other solutions to meet future water needs in the state.