$100 million agreement ends lawsuit, pushing $2 billion Colorado reservoir project forward

(UI) — A long-disputed reservoir project in Northern Colorado is moving forward after a legal settlement between Northern Water and the environmental group Save the Poudre.

The agreement, approved on Feb. 28 by Northern Water’s Board of Directors, clears the way for construction of the Northern Integrated Supply Project (NISP). It also establishes a $100 million fund over the next two decades to support improvements along the Poudre River. The fund will be managed by a foundation and will finance projects benefiting recreation, wildlife, and water quality.

The settlement ends a lawsuit challenging the federal Clean Water Act permit issued by the U.S. Army Corps of Engineers in January 2023. Northern Water officials say the project is needed to secure long-term water supplies for growing communities.

“This is a milestone day for the communities participating in the project,” said Northern Water General Manager Brad Wind. “The settlement agreement will close the permitting process for the project, open the door to constructing a project that will deliver much-needed water supplies to vibrant communities, and allow for dozens of large-scale riverine investments in and along the Poudre River.”

NISP’s program manager, Carl Brouwer, said the additional funding will enhance existing mitigation measures required by permitting agencies.

The $2 billion project will include Glade Reservoir northwest of Fort Collins, Galeton Reservoir northeast of Greeley, 50 miles of buried pipelines, four pump plants, and improved river diversions for fish passage. A section of U.S. Highway 287 will be rerouted around Glade Reservoir at project participants’ expense. Once fully operational, NISP is expected to provide 40,000 acre-feet of water annually.

Preliminary work, including a fish passage at Watson Lake and a wetlands area at Eastman Park in Windsor, has already been completed. Major construction, including pipeline segments, highway relocation, and the Glade Reservoir dam, is set to begin in 2026. Galeton Reservoir construction will follow.

The project’s 15 participants include municipalities and water districts across Northern Colorado, such as Windsor, Erie, Fort Morgan, and Frederick. State officials have identified water storage projects like NISP as critical to Colorado’s long-term water strategy.

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