PROJC01741 ‎(3)‎

• Contract/PO #: C153768
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Feasibility Study

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depletions with respect to Usable Stateline Flows. Also, part of the Highland water would be
regulated to replace its historical return flows with respect to conservation storage during the
winter.

The Offset Account also could be used to store spot market purchases of water.
Oftentimes, such water is available occasionally at reasonable rates but only during a particular
month. Such water could be purchased and conveyed to the Offset Account at these
opportunities and thereby preserve LAWMA's Article \I Account water for use in subsequent
years.

LAWMA has been required to book over its Article \I Account water as needed to the
Offset Account. This water includes consumable and return flow components but only the
consumable portion may be used to replace depletions with respect to Usable Stateline Flows.
The return flow component must be released in a manner consistent with historical conditions
for use by Colorado ditches as determined by the Division Engineer. The return flow
components for the X- Y Graham and Stubbs Article \I Account water historically entered the
river below all of the active Colorado ditches and accrued to Stateline flow. Such return flow
would be booked over to Kansas which in turn could call for the water at any time regardless of
the historical timing.

The Division Engineer calculates LAWMA's replacement obligation and determines the
replacement supplies from LAWMA's other sources. Water stored in the Offset Account is
charged against any replacement shortfalls with respect to Usable Stateline Flows. The
calculations are given to Kansas for review, and if Kansas agrees, the Offset Account water
required to make up the shortfall plus the historical return flow component would be transferred
to Kansas. The time required for the Division Engineer to make the determination is about 20
to 30 days and Kansas can use 30 days to review the calculations. Meanwhile, the water is
stored in the Offset Account and the evaporation for two months is charged to LAWMA.
Operating in this fashion means that the replacement water is accepted by Kansas two months
after the depletions occur.

This transfer of water to the Offset Account costs LAWMA an additional two months of
evaporation on the water placed in the account. Assuming that LAWMA transfers 10,400 acre-
feet to the account in addition to the Storage Charge Water as was projected in the 1997
replacement plan, the additional evaporation charge to LAWMA would be about'380 acre-feet.
Accordingly, LAWMA's total cost in using the account would be 925 acre-feet (500 acre-feet
storage charge + 45 acre-feet storage charge for deliveries to the account greater than 10,000
acre-feet + 380 acre-feet of evaporation). This additional' charge to LAWMA increases its

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