Laserfiche WebLink
<br />years. It is estimated that $20M will be needed to purchase water rights for this scenario. <br />Approximately 3,000 acre-feet of gravel pit storage and 6,500 acre-feet of senior water rights <br />would be obtained. <br /> <br />Alternative No.3: Purchase water rights to cover a 365-day period of call. This action was <br />not selected due to the extreme cost involved. The drought ofthe 1950s resulted in a call period <br />of approximately 600 days (nearly two years), and would require an expenditure of funds in <br />excess of $25 million to accumulate augmentation water for our current members in that <br />situation. The accumulation ofthis amount of water (approximately 4,000 acre-feet of gravel pit <br />storage and 12,500 acre-feet of senior water rights) would create a severe financial burden to be <br />placed on growers in the area, and would not be economical even during a good farm economy. <br /> <br />Financial Analysis of Alternative No.2 <br /> <br />The Subdistrict would use the $20 million loan from the CWCB to purchase senior water rights <br />in the Greeley and/or Fort Morgan area, and to develop lined gravel pit storage reservoirs in the <br />Greeley area. Cost of senior water rights around Greeley is holding at approximately <br />$3,000/acre-foot consumptive use, while in the Fort Morgan area the figure is closer to <br />$1,300/acre-foot consumptive use. Cost oflined gravel pit storage reservoirs in this area is <br />approximately $2,000/acre- foot of storage. Senior and junior water rights would be utilized to <br />fill these storage structures. The Subdistrict would work with local irrigation companies to <br />deliver the water rights back to the South Platte River in a manner acceptable to both the <br />company and the State Engineer. <br /> <br />The Subdistrict would repay the $20 million loan through the collection of an annual mill levy on <br />all property in the Subdistrict. Average cost per 160-acre farm would be approximately $30 per <br />year. A total of 6,500 acre-feet of senior water rights would be obtained at a cost of <br />approximately $1,300/acre-foot. Storage cost in lined gravel pits will be approximately <br />$2,0001 acre- foot. <br /> <br />Collateral for the $20 million loan would be in the form of the water rights purchased and the <br />water storage projects developed. Senior water rights would need to be changed in Water Court <br />from agriculture to augmentation. This process normally takes 2-3 years. <br /> <br />Implementation Schedule <br /> <br />The Board of Directors of the Subdistrict have voted to pursue the borrowing of funds as soon as <br />possible. Staff is currently seeking senior water rights for sale, and has numerous offers to <br />consider. <br /> <br />Alternative Financing Considerations <br /> <br />The Subdistrict Staff has met with representatives of Union Colony Bank, the Federal Land <br /> <br />8 <br />