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<br />DISCUSSION
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<br />To-date the Subdistrict has purchased $1,837,000 in water rights and has constructed $8,638,700
<br />worth of lined gravel pit storage, for a total of $10,475,700. The Subdistrict has been reimbursed
<br />for 90% of these costs, or $9,428,130, by the CWCB. A detailed summary of these expenditures
<br />has been provided in a letter dated June 2, 2006, by the District, which is attached for your review.
<br />
<br />The original estimate provided by the District to purchase the water rights was based on a cost of
<br />$3,000 per acre-foot. Since November of 2004, the cost to purchase senior water rights in the:::
<br />Greeley and Brighton area has increased from $3,000 an acre-foot to over $8,000 an acre-foot..
<br />This substantial increase has greatly diminished the Subdistrict's ability to purchase senior water
<br />rights. To offset this dramatic cost increase, the Subdistrict is actively pursuing the development of
<br />a groundwater recharge program. To-date the Subdistrict has completed 11 recharge sites near the:::
<br />Towns of Platteville, Gilcrest, and LaSalle. These 11 sites have a combined diversion rate of 110
<br />cfs and a total capacity of 1,371 acre-feet. The 11 sites are gravity filled from the Farmers, Western
<br />Mutual, and the Platteville/Milling Ditches. Based on the District's 2005 water decree, the District
<br />is anticipating having a 3 week fill period on an average water year, with no ability to fill in drought
<br />years, for these various recharge sites. Additionally, the Subdistrict is working on a recharge project
<br />near Orchard, Colorado, involving 4 new recharge wells, pumping to a 150 acre recharge site. Thc:::
<br />District in estimating that they will spend between $2,000,000 and $4,000,000 for groundwater
<br />recharge projects for the sites indicated above. A location map and a project summary of thes(~
<br />various sites have been provided by the District and are attached.
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<br />The District is requesting that they be able to submit this recharge work for reimbursement under
<br />their current $20,200,000 loan (C150194) with the CWCB. The District feels that these
<br />groundwater projects are the most economical method available to provide a reasonable source of
<br />augmentation water for the W AS members, given the extremely high price for senior water rights.
<br />The District will continue to pursue the purchase of senior water rights, when those rights can be
<br />purchased within the $5,000 per acre-foot range.
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<br />STAFF RECOMMENDATION:
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<br />Staff recommends that the Board approve the addition of groundwater recharge work, to the
<br />work that is reimbursable under Loan Contract C150194, to the Well Augmentation Subdistrict
<br />(WAS) of the Central Colorado Water Conservancy District.
<br />
<br />The loan project descriptions as shown in the original loan appropriation, SB05-084, must be
<br />revised in the 2007 projects bill before funds can be released.
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<br />cc: Tom Cech, Manager, Central Water Conservancy District
<br />Vaughn McWilliams, CWCB
<br />Amy Stengel, AGO
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