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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Current Organization

LAMW A has a CUlTent method for allocating water among its members and charging the
expenses associated with water right purchases. LA WMA has sought to obtain enough
water to replace the impact its members typically would have on the Arkansas River. The
amOlll1t of pumping, depletion and amount of replacement water are all based on a
pumping records for five year average from 1990 - 1994 (this information was taken
from reports written by Helton and Williamsen, P.C.). From Table I, LA WMA has
estimated that a typical year will involve 77,381 af of pumping requiring that LA WMA
replace 18,049 af of surface water rights. Each year, LA WMA submits a plan to the State
Engineer indicating how the release of waters from its holdings will compensate for the
pumping by members. LA WMA owns 22,160 af of water rights. The expenses of these
water rights depends on the payout schedule of various loans and overall expenses but is
approximately $400,000 per year. LA WMA must collect revenues to cover these
expenses. LA WMA charges each member an annual "fixed" fee per well (independent of
pumping levels) and $6.50 for each af of depletion. Table 2 indicates current sources of
LA WMA revenue based on the number of wells and the current water rates.

Table 2: Revenues and Water Rates

Municipal
Recent
Senior

Rate/well
275
375
275

Number of
Wells
95
204
203

Total
Revenue
$26,125
$76,500
$55,825
$158,450

WeDs

Pwnping Pumping Depletion Rate
Sole-source 23,299 14,925 $6.50 $97,009
Supplemental 49,966 14,990 $6.50 $97,434
Tributary 4,116 82 $6.50 $535
77,381 29,997 $194,978

LA WMA' s current organization and rate structure has limitations during a dry year:

1. There is no curtaihnent method to cut back the amount of member pumping if
LA WMA' s replacement pool diminishes because of a water short year.
LA WMA holds both junior and senior rights. In a water short year, some of
the junior rights may be restricted by calls on the river. Thus, the replacement
pool is reduced. However, there is currently no method to reduce member
pumping in proportion to the reduced water availability. LA WMA may be
able to lease water (subject to availability) on a temporary basis, but this is not
a long-term solution.

EnWater Resource Consultants September 5, 1997 Final Report

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