STATEMENT OF BASIS AND PURPOSE AND SPECIFIC STATUTORY AUTHORITY:
DEPARTMENT OF NATURAL RESOURCES 
State Engineer, acting with responsibility and authority for the 
Division of Water Resources for the implementation of:
RULES AND REGULATIONS GOVERNING THE MEASUREMENT OF GROUND WATER DIVERSIONS AFFECTING THE REPULICAN RIVER COMPACT WITHIN WATER DIVISION NO. 1
PROPOSED STATEMENT OF BASIS AND PURPOSE:
The Rules and Regulations Governing the Measurement of Groundwater Diversions Affecting the Republican River Compact within Water Division No. 1 are found at 2 CCR 402-16.  A rulemaking hearing was held on September 10, 2015, at the Burlington Community Center, South 14th Street, Burlington, Colorado 80807.  The State Engineer has authority to make and enforce regulations that enable the state of Colorado to meet its compact commitments.  The basis of these rules is to allow Colorado to measure and report diversions from wells within Republican River Compact Administration Groundwater Model domain, including the Affected Wells, as required by the Republican River Compact and Final Settlement Stipulation between Kansas, Nebraska, and Colorado. 
The Notice of Rulemaking was issued October 31, 2014, and published by the Secretary of State on November 10, 2014.  The proposed rules titled “Rules and Regulations Governing the Measurement of Ground Water Diversions Affecting the Republican River Compact Within Water Division No. 1” (“Amended Rules”), have been available for review at the Division of Water Resources website since October 2, 2014.  The Hearing Officer took testimony at the public rulemaking hearing on September 10, 2015 and completed his deliberations on the proposed rules on September 16, 2015.  The rules were accepted through formal public hearing and approved by the Attorney General.
The purposes of the rulemaking were to:
1) modify the geographic boundary of the rules to incorporate wells that are included in Colorado’s Republican River Compact Accounting Groundwater Model; 
2) define additional terms and include clarifying language; and 
3) provide standards regarding the minimum allowed accuracy and application of the Power Conversion Coefficient (PCC) as an alternate method of measurement.
	The State Engineer adopted the Amended Rules contained within 2 CCR 402-16.
	The Hearing Officer finds, as required by §24-4-103(4)(b), C.R.S. that the record of the rulemaking proceeding demonstrates the need for the rules; the proper constitutional and statutory authority exists for the rules; to the extent practicable, the rules are clearly and simply stated so that their meaning will be understood by anyone required to comply with the rules; the rules do not conflict with other provisions of the law; and any duplication or overlapping  of the rules, if any, has been explained.
	The specific authority of the State Engineer to promulgate these rules is found at § 37-80-102(1)(g)(2014), C.R.S., and §37-80-104, C.R.S.
	The rules adopted shall become effective September 16th, 2015.
	Dated this 16th day of September, 2015

/s/Dick Wolfe__________________
Dick Wolfe
State Engineer
Office of the State Engineer, 
Division of Water Resources