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<br />06S0 <br /> <br />acre-feet. The Winter Water Spill Credit will apply to the actual amount of Winter <br />Water spilled from Pueblo Reservoir in any year, but shall not exceed a maximum <br />of 62,000 acre-feet. The Winter Water Spill Credit will not apply to any Winter <br />Water Storage in Pueblo Reservoir by the Applicants in excess of 62,000 acre- <br />feet. <br /> <br />2.4 Funding the Winter Water Spill Credit- Funding for the Winter Water <br />Spill Credit will come from those entities participating in Re-operations. The <br />funds will be collected in the form of a surcharge based on the amount of storage <br />utilized under a re-operations contract of each entity. It is expected that Re- <br />operations contracts will begin in 2005. Therefore money must be available at <br />that point in case there is a spill in the fIrst year. Those entities that have decided <br />to participate in Re-operations will need to begin contributing to this fund in <br />2003. Collections for 2003 and 2004 will be $60,000 each year. This amount <br />will be prorated to the participants based on their percentage of Re-operations <br />space used. <br /> <br />Beginning in 2005 and continuing until there is a balance sufficient to cover two <br />consecutive average spills, each participant in re-operations will continue to pay a <br />surcharge. Tlris collection total should range between $40,000 and $70,000 each <br />year and will be charged on a proportionate basis of total storage space under <br />contract. The fund will be monitored each year and if there is a shortage, or if <br />there are sufficient funds, then the surcharges will be adjusted accordingly. At <br />some point the fund should be self-funding, as the fund will be collecting enough <br />interest to keep itself solvent. If the fund should ever drop below $300,000 then <br />the surcharge will be reinstated until the fund is able to sustain itself. <br /> <br />Based on an estimated level of participation in re-operations and the amount of <br />the winter water spills, the surcharge on re-operations contracts will range <br />between a low of $ .73 per acre foot to a high of $ 2.75 per acre foot, with an <br />expected surcharge of $1.75. This surcharge will be collected upon signing a re- <br />operations contract and each year thereafter for the duration of the contract. The <br />fund will be reviewed each year with the participants to determine if there is a <br />need for a collection and how much that collection will be. <br /> <br />The table on page 10 shows how the Winter Water Spill Credit Fund will operate. <br />These numbers are based on an average spill of 47,000 acre-feet. However as <br />noted above, this credit could go as high as 62,000 acre feet in any given year. If <br />the spill were to be 62,000 acre-feet then the collections would have to be <br />adjusted to compensate for this higher payout. If all of the spills were 62,000 <br />acre-feet, then the collections would need to be about $70,000 per year. <br /> <br />9 <br />