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I I I I I I I I I I I I I I I I I I I Permanent Removal of Irrigated Fields. This option was discussed with two farmers utilizing wells for sole-source supplies. The idea is to offer a favorable dues structure to farmers wishing to cease irrigating fields with marginal production capability and to return the fields to native grasses. Both said that dry-land production or pasture will not generate enough income to make mortgage payments on irrigated land. Essentially, LA.WMA would have to buy and retire the irrigated land at a cost comparable to acquiring surface water rights. Temoorarv Removal of Irrigated Fields. This option involves decreasing the dues payment rate for farmers with sole-source wells who commit to cease irrigation in years when the replacement supplies may be insufficient. Both farmers interviewed stated that this condition probably would be difficult to implement. They felt that the added expense of re- establishing a crop and maintaining the well and equipment may exceed the value of the reduced dues. Also, the farmer would have to be notified well in advance so that he could plant winter wheat, spring grains, or other drought-tolerant crops. Soot Market ACQuisitions. Currently, additional water supplies are available on an annual basis from the Cities of Pueblo and Colorado Springs. Both cities have consumable in- basin and transmountain water supplies available for these annual sales. The State Engineer has prohibited LA.WMA from using transmountain water supplies to replace the well users' depletions with respect to Usable Stateline Flows thus limiting LA.WMA's ability to obtain inexpensive water on a spot market basis. It is anticipated that both cities will continue to have some water for sale for about 20 years, but then the cities will require these supplies for their own use, particularly in dry years. Other well associations also use these supplies to replace their depletions, so competition for these supplies probably will increase as the cities start to rely on these sources. Accordingly, it is believed these sources are suitable and economical for short term but not reliable in dry years. Spot market acquisitions of in-basin consumable water (not transmountain water) can be stored in the Offset Account described elsewhere in this report, thereby preserving LA.WMA's Article II Account water for dry years. Progressive Dues Structure. This option involves changing the dues structure such that larger blocks of pumping invoke higher payment rates and thereby encouraging reductions in pumping. This option was discussed with LA.WMA's board of directors. The dues structure in 1997 was based on a minimum payment per well plus a charge per acre-foot of well-head depletion calculated on a five-year running average. The annual pumpage by sole-source wells does not fluctuate as much as supplemental wells, and therein lies the conflict in establishing an equitable dues structure let alone a structure that encourages conservation. As part of this feasibility study, the dues structure was investigated by EnWater Resource Consultants, as described in the following section. Page 14