From The Telluride Watch (Samantha Wright):
The agreement shores up Telluride’s ability to develop a new municipal water supply high above town in Bridal Veil Basin, and streamlines its path toward constructing the new Pandora Water Treatment Plant at the foot of Black Bear Pass.
Idarado, meanwhile, gets assurances that enough water from Bridal Veil Basin will continue to flow into the San Miguel River during low-flow winter months to dilute the zinc discharged by the historic Treasury Tunnel, thus enabling the mining company to adhere to strict state-imposed environmental obligations.
Council also unanimously passed on second reading a related ordinance authorizing the conveyance of certain remedial and residual water rights back to Idarado.
Witnessing the occasion were Larry Fisk, the vice president of Idarado Mining Company, and Jay Montgomery, a Boulder-based water rights attorney who for two decades has captained the town’s complicated legal skirmishes with Idarado.
Telluride obtained extensive water rights in Bridal Veil Basin from the Idarado Mining Co. in the 1992 settlement of a lawsuit arising out of the contamination of wells in Town Park. Over the course of years of legal wrangling, the town won the approval to convert those historic industrial water rights to municipal use.