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216 I . Helton & Williamsen estimated that the total cost of pumping to mainstem irrigators at about $22 per acre-foot which includes $5.30 in augmentation costs, $10.29 in energy costs, and $6.00 in maintenance and replacement costs. This is relatively expensive irrigation water but, depending upon the value of the irrigated crop, probably not prohibitive. . SCHEDULE The purchases would be staged over a period of two years. For the Highland Irrigation Company, 2,702 shares would be purchased in 1997 and the remaining 867 shares would be purchased in 1998. All of the Fort Bent Ditch Company shares would be purchased in 1998. The closing for the first purchase of Highland shares is scheduled for May 30th of this year. Since the last Board meeting somewhat more than $600,000 has been released from the escrow account, as approved by the Board in March, for use as "earnest money" for the Highland purchase. The "earnest money" is refundable in the event the sale is not consummated. CONCLUSIONS . The stafffinds no reason why the proposal would not be technically feasible. As noted on page two oftms memo, these water rights would provide a reliable new supply of water and would function very well in LAWMA's overall augmentation program. The total estimated average annual yield of about 16,700 acre-feet from all of LA WMA' s holdings, with the Highland and Fort Bent shares included, would provide for all but about 1,300 acre-feet ofLAWMA's estimated future replacement requirement based on the recent rulings of the Special Master in Kansas v. Colorado. As shown in Table 2 above, the cost per acre-foot of the Highland and Fort Bent shares is substantially higher than the X- Y and Manvel acquisitions. Also, the Paddock and Milenski appraisal indicates that the price for the Highland and Fort Bent shares is higher than the average price paid for water rights in several lower Arkansas Basin ditches over the last several years. It is to be expected that, as the demand for augmentation water increases, the price will also increase. Nevertheless, the Board should be aware that the price is at the high end of the current market and that the future value of the water rights as collateral for the loan mayor may not remain at these levels. With regard to economic and financial feasibility, Table 4 provides a summary of total annual costs to LA WMA for operations, engineering, legal fees, and debt service in the year 2009 when the highest level of debt service payments begins. The proposal would appear to be feasible at any of the three lending rates indicated with a cost ranging from $5.25 to $5.56 per acre-foot. e 5