Reduce SRF’s liability. 2.1 Rebalance the assets and liabilities of SRF Different options can be explored but the solution needs to result in SRF having enough assets to cover its prepaid mitigation and its associated administrative costs (see below administrative endowment). The process needs to be perceived as fair by the participants to ensure a maximum of participation. One option could be to cancel a portion of the initial balance for all participants. The result would be that participants that have an existing account balance would see part of it forgiven through the restructuring process while participants that do not carry an existing balance may have to contribute additional funds. Another option would be to only reduce existing balances. Only companies with an existing balance would accept a diminution in value, while companies without balances would not be required to pay extra into the fund. Given the sensitivity of these discussions, we recommend that WAFWA SRF, in coordination with the participants, first provides the acceptable level of liability for the program and then allow the participants to negotiate an acceptable sharing of the burden by themselves.
Reduce SRF’s liability. 5.1 Cancel mitigation obligations and existing balances for participants that have been terminated Companies that have terminated their participation in the CCAA (either by non-payment or because their land was sold to non-participants) are still receiving mitigation benefits for past impacts and may still have an existing balance. We recommend that the balances be canceled and that the mitigation units be made available to the existing participants. Proposal C If the participants are not willing to rebalance SRF’s assets and liabilities, and if Proposal B does not create a long-term path to sustainability, then we recommend that WAFWA considers selling the excess lands, selling the building, terminating the CCAA, relinquishing the permit, dissolving SRF, and determining how to return the unused monies, including the sale of the assets, back to the Participants. Appendix C Workgroup 2 Concept Proposal Note: ICF distributed this concept proposal was distributed to CCAA participants prior to Workshop 3. ICF considered edits and comments on the concept proposal received during and subsequent to Workshop 3 in the Realignment Phase 1 Findings and Recommendations draft report. Concept Proposal: Lesser Prairie-Chicken CCAA Amendment to Improve Defensibility This concept proposal was developed by Xxxx Xxxxxxx (USFWS), Xxxxx Xxxxxxx (Occidental Petroleum), Xxxxx Xxxxxx and Xxxxx Xxxx (ICF), and Xxx Xxxxxxx (CIM)for consideration by Workgroup 2 and to support WAFWA’s decision on CCAA Realignment. Workgroup 2 is tasked with considering changes to the CCAA to that could potentially require a major amendment to the CCAA or result in developing an HCP. It appears that some of these proposed changes are unlikely to be accomplished via adaptive management or administrative changes. The focus of Workgroup 1 is on proposed changes intended to improve the financial sustainability of the CCAA and that are likely be accomplished utilizing adaptive management or administrative provisions of the CCAA. This proposal, while still considering financial implications, focuses on identifying strategies to improve the defensibility of the CCAA. This proposal’s intended use is for consideration and discussion as part of the CCAA’s realignment process. It is not intended to be decisional. Although it identifies strategies for XXXXX’s consideration, this proposal is not able to reach a conclusion on whether the CCAA is defensible. Therefore, this document does not determine, nor is it int...
