COOPERATIVE AGREEMENT

FOR PLATTE RIVER RESEARCH AND OTHER EFFORTS RELATING

TO ENDANGERED SPECIES HABITATS

ALONG THE CENTRAL PLATTE RIVER, NEBRASKA

ATTACHMENT I

MILESTONES FOR THE COOPERATIVE AGREEMENT

COOPERATIVE AGREEMENT FOR PLATTE RIVER RESEARCH

AND OTHER EFFORTS RELATING TO ENDANGERED SPECIES HABITATS

ALONG THE CENTRAL PLATTE RIVER, NEBRASKA

ATTACHMENT I

MILESTONES FOR THE COOPERATIVE AGREEMENT

YEAR 1 OF THE COOPERATIVE AGREEMENT

Research Measures

R1-1 The U.S. Fish and Wildlife Service ("FWS")(1) will document the habitat and species conditions existing in the Central Platte River region as of the effective date of the Cooperative Agreement to compare against future changes/improvements in habitat and species status.

R2-1 A technical committee appointed by the Governance Committee will develop protocols for and initiate habitat and species monitoring and research.

R3-1 FWS will develop procedures to determine the means of ascertaining biological response of species and habitat to mitigation measures, and the time frame required to measure such biological response.

R4-1 A technical committee appointed by the Governance Committee will establish guidelines and procedures for peer review of the documents required in Milestones R1-1, R2-1, and R3-1. This committee will develop and implement a peer review work plan for the period of the Cooperative Agreement.

R5-1 The Nebraska Districts(2) will implement any research and monitoring measures required by new FERC license articles for FERC Projects Nos. 1417 and 1835.

Land Measures

L1-1 The Governance Committee will establish a Land Committee with appropriate representation, including private land owners, and establish roles and responsibilities for the Committee to directly oversee land rights acquisition and management.

L2-1 The Land Committee will develop criteria and guidelines for future habitat protection, restoration and acquisition under a Program, and will develop and implement processes/mechanisms/procedures as appropriate to acquire, administer, restore, and manage any land or habitat (wet meadows, channel, etc.) provided for wildlife for incorporation into or protection under a Program. Measures will include identification and evaluation of potential habitat areas; an evaluation of past and/or ongoing habitat management practices; and identification and evaluation of potential alternative habitat management methods. The Committee will also develop a process for acquisition, oversight and continued protection of land interests, including the reversion of or protection of land interests if a Program fails.

L3-1 The Nebraska Districts will implement any habitat measures required by new FERC license articles for FERC Projects Nos. 1417 and 1835.

L4-1 The Governance Committee (or the Land Committee if so designated) will begin to identify and evaluate beneficial and adverse impacts to third parties, including net changes in tax revenue resulting from the protection of land as endangered species habitat.

L5-1 The Governance Committee will develop and implement a financial agreement for the collection and expenditure of funds collected pursuant to the Cooperative Agreement or collected pursuant to biological opinions for existing water projects and for new water depletions. The Committee will also establish and implement criteria for the expenditure of such funds for habitat protection and restoration.

Water Measures

W1-1 The Governance Committee will establish the Water Management Committee and direct it to develop a Scope of Work for a Water Conservation/Supply Reconnaissance Study as outlined in Attachment II of the Cooperative Agreement. The Scope of Work will indicate that the consultant is to use the data and information developed by the Water Management Committee pursuant to Milestones W14-1 and W11-2 to conduct the analysis. Once the Scope of Work is approved by the Governance Committee, the Water Management Committee will be directed to engage the services of a competent hydrologic engineering entity through a competitive bid process, and thereby initiate the Study. The Governance Committee, acting through the Water Management Committee, will identify and initiate any demonstration water conservation/supply projects that could be pursued immediately without the benefit of further information to be derived from the study.

W2-1 The Nebraska Districts will implement any water reregulation and water conservation measures required by new FERC license articles for FERC Projects Nos. 1417 and 1835.

W3-1 Nebraska will develop means for protecting Program water deliveries, above the existing flow conditions, to and through the critical habitat and will, in cooperation with the other parties, select pilot projects for potential protection under Nebraska Statute 46-252.

W4-1 Nebraska will develop means for protecting, where appropriate, existing flow conditions in Nebraska by: monitoring and documenting new water related activities in the Platte River Basin in Nebraska upstream of the confluence with the Loup River and, in coordination with the depletion impact analysis described in Milestone W14-1, identifying and beginning to evaluate optional ways to mitigate, offset for, or prevent any new depletions if a Program is initiated.

W5-1 Colorado will develop means, if such are necessary, for protecting Program water deliveries to the Colorado-Nebraska state line and, as appropriate, the Colorado-Wyoming state line.

W6-1 Within six months from the effective date of the Cooperative Agreement, Colorado will provide to the Governance Committee population estimates within the South Platte River Basin in Colorado (in accordance with Att. III, App. A, Tab 3B).

W7-1 Within six months from the effective date of the Cooperative Agreement, Colorado will provide to the Governance Committee an estimate of the expected population increase within the South Platte River Basin in Colorado for the period ending five years from the effective date of the Cooperative Agreement (in accordance with Att. III, App. A, Tab 3B).

W8-1 Within six months from the effective date of the Cooperative Agreement, Colorado will recommend to the Governance Committee assumptions concerning the monthly distribution of the accretive/depletive effects of sources of supply in accordance with Att. III, App. A, Tab 3B. The Governance Committee will review and verify assumptions concerning the monthly distribution of the accretive/depletive effects of the sources of supply at the end of the first reporting period as provided for in Att. III, App. A, Tab 3B.

W9-1 Within six months from the date the Water Management Committee completes the "Tracking/Accounting Procedure" described in Milestone W14-1, Colorado will provide to the Governance Committee a calculation of the average monthly distribution of the cumulative effect at the state line for anticipated water related activities in the South Platte River Basin in Colorado for the period ending five years from the effective date of the Cooperative Agreement (in accordance with Att. III, App. A, Tab 3B).

W10-1 Colorado will monitor population increase and net change, location and mix of water sources in the South Platte River Basin in Colorado and, within one year of the effective date of the Cooperative Agreement, report such information to the Governance Committee (in accordance with Att. III, App. A, Tab 3B).

W11-1 Colorado will elect which option it will undertake for new water related activities in the North Platte River Basin in Colorado as provided in Att. III, App. A, Tab 3B.

W12-1 Wyoming will develop means, if such are necessary, for protecting Program water deliveries to the Wyoming-Nebraska state line.

W13-1 Wyoming will develop means for protecting existing flow conditions in Wyoming by: monitoring and annually reporting new water related activities in the North Platte River Basin in Wyoming within its boundaries; and, using the procedures and methodologies developed pursuant to Milestone W14-1, analyzing means of offsetting such depletions if a Program is implemented.

W14-1 The Governance Committee (or the Water Management Committee if so designated) will begin developing a "Tracking/Accounting Procedure for Determining Depletion/Accretion Impacts for the Three Program Water Projects and New Water Related Activities, Including Water Conservation/Supply Projects." This procedure will include:

1. Although specific parties have been assigned responsibility for completing the activities set forth in these Milestones, it is understood that such activities must be completed in cooperation with other interested parties and be reviewed and approved by the Governance Committee.

2. Nebraska Districts refers to the Nebraska Public Power District and the Central Nebraska Public Power and Irrigation District, collectively.

3. Contributions by DOI will include the direct costs of conducting a programmatic environmental impact statement and ESA consultation on the Program. Estimated cost including reviews and revisions is between $3.0 and $5.0 million. Contributions by the states will include their costs in providing information and data requested by DOI for NEPA review and ESA consultation. The remaining state and federal funds will be available for implementation of research, analysis, and other measures that will benefit the target species and the associated habitats, as set forth in these Milestones for the Cooperative Agreement. It is anticipated that the combined cash and non-cash contributions from the non-federal parties will be equal to the DOI share for all three years.

4. See footnote to Milestone A3-1.

5. At year end, the Governance Committee will assess accomplishments, implement measures to correct any shortfalls, and evaluate and adjust future year milestones accordingly.