From the Summit County Voice (Bob Berwyn):
County commissioners Tuesday gave their go-ahead for the enlargement of Old Dillon Reservoir, a $7 million project that will give local water users some new options, with storage high in the Blue River Basin. The 62-acre-foot reservoir was built in 1936 and stored water for Dillon until the town was relocated when Dillon Reservoir was created by Denver Water. Under the proposed enlargement, formally approved by the U.S. Forest Service last week, Old Dillon Reservoir’s capacity would be upped to 286 acre feet…
County officials have estimated the construction and preliminary soft costs like planning and design will total about $7 million, but they’re hopeful that the economic climate will result in some favorable bids that would lower the total cost. The county will pay for about 53 percent of the project, with Silverthorne kicking in about 8 percent and Dillon paying for the rest. Dillon stands to benefit significantly from the project. The town currently depends on surface water from Straight Creek, which is vulnerable to pollution from I-70. During the 2002 drought, Straight Creek flows dropped to a point that had Dillon thinking about direct diversions from Dillon Reservoir. The water in Old Dillon Reservoir could also be used to enhance stream flows in the Snake and Lower blue under other scenarios.
More coverage from the Summit Daily News (Julie Sutor):
The proposed expansion would enlarge Old Dillon Reservoir’s capacity from 62 acre-feet to 286 acre-feet by raising its north and south dams. The $7 million project would create new water-storage and water-supply capacity for the town of Dillon, the town of Silverthorne and unincorporated Summit County. All three entities project that demand for municipal water in their respective service areas will increase in coming years. Old Dillon Reservoir was originally constructed in 1936 as a water-supply source for Dillon. The 14-acre reservoir is fed by water diverted from Salt Lick Gulch, just to its north. Salt Lick Gulch is a tributary of the lower Blue River.
In 1963, Denver Water constructed the new Dillon Reservoir to supply drinking water to Denver, requiring the town of Dillon to relocate from its original location to its current one. Since the move, Dillon has been unable to use the water in Old Dillon Reservoir, but the town has maintained the reservoir and the water rights to it. In the spring of 2008, a culvert carrying water from Old Dillon Reservoir failed under Interstate-70’s westbound lanes, causing a portion of the highway to collapse. The culvert was replaced, but the Colorado Division of Water Resources ordered the Town of Dillon to drain the reservoir over concern for safety of its north dam. The reservoir is to remain drained until either the proposed expansion is conducted or the Town of Dillon reconstructs the north dam.