LPPD000265

• Contract/PO #: C153756
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Feasibility Study

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Range of Organizations

There are numerous organizational arrangements by which LA WMA can achieve its
objectives of allocating and pricing scarce water supplies. Each arrangement has different
pros and cons with respect to how they impact the different types of irrigators. In this
report we outline a range of possible organizational arrangements that LA WMA can
evaluate. To understand this range of possibilities, we use the following terms:

Organization is defmed as a legal organizational structure, In this report, we
outline two broad type of organizational arrangements: 1) LA WMA's current
non-profit structure in which members have voting rights but ownership of all
assets are held by LA WMA itself which in turn charges its members for the use of
these assets (the current organization); and 2) a cooperative consisting of
ownership shares issued to LA WMA members (the shares organization).

Allocation Method: Within an organization, there are alternative ways in which
LA WMA can specifically allocate association costs and water to its members. For
each of the two main organization types, we describe several internal allocation
methods. The allocation methods analyzed in this report are outlined here and are
described in detail below.

Current Organization:

Relative Supply Allocation Method (CI)

Relative Demand Allocation Method (C2)

Shares Organization:

N ormal Year Allocation Method

(S1)

Dry Year Allocation Method (S2)

Normal Year/II Allocation Method (S3)

Criteria for Evaluating the Organizations: Different Impact Measures

We will evaluate the allocation methods with respect to how they would be expected to
impact the different user groups in LA WMA. An allocation method can impact a user
group in a number of different ways. To facilitate the evaluation, we have composed
three different impact measures: Demand Shortfall, Curtaihnent and Bill Impact.
Specific values for these impact measures will be derived for each LA WMA user group
under each allocation method. In this section we describe how the impact measures are
derived. In addition to the impacts on individual user groups, we will discuss the impacts
on LA WMA's revenue stability.

EnWater Resource Consultants September 5, 1997 Final Report

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