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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average-year and dry-year replacement water requirements to 18,974 acre-feet and 25,360

acre-feet, respectively.

ECONOMIC ANALYSIS

An economic analysis of LAWMA's expected income and expenses was presented in
the March 11, 1997 letter report included in Attachment 1. Those projections were based on
the acquisition costs of the Highland and Fort Bent water rights using an interest rate of 2
percent. The CWCB approved the loan but with an interest rate of 3 percent. The revised cash
flow analysis is enclosed as Table 14. The revised analysis shows that LAWMA will need to
generate about $462,000 annually beginning in 2008. Assessments to municipal, post-1985
well users, and tributary well users will generate about $52,000 annually. The resulting cost to
mainstem users through their assessments would be about $410,000 annually or $6.07 per
acre-foot pumped.

SUMMARY

1. For its 1998 replacement plan LAWMA included 583 wells, of which 510 wells are
located in the mainstream area and 73 wells are located in tributary areas. Further
broken-down, there are 489 irrigation wells, 80 municipal wells and 14 commercial wells.
LAWMA's primary service area is the Arkansas River mainstem area below John Martin
Reservoir, although it has members in the Big Sandy Creek and Two Butte Creek basins
and a few members above John Martin Dam. LAWMA membership also includes
several municipal and rural domestic water suppliers that rely on Dakota and Cheyenne
wells which are exempt from the use rules.

2. The mainstem irrigation pumping averaged 61,180 acre-feet annually from 1986 through
1997, and ranged from 22,575 acre-feet in 1987 to 88,892 acre-feet in 1991. For
planning purposes, it is expected that LAWMA's mainstem irrigation pumping will
average about 67,500 acre-feet annually and will reach 100,000 acre-feet in a dry year.

3. The replacement requirements will average about 18,049 acre-feet annually, of which
13,412 acre-feet are required for the river segment between the Lamar Canal diversion
to the Stateline. For the second consecutive dry year following a series of average
years, the replacement requirements would reach 24,435 acre-feet, of which 17,822
acre-feet are required below the Lamar Canal diversion.

4. LAWMA has acquired 3,382 shares of Highland Irrigation Company stock out of 3,800
shares outstanding and plans to acquire additionally 187 shares. The Highland Canal

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