LPPD000391

• Contract/PO #: C153715
• 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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March 1996 Final

The Type B classification applies to relatively new members who have not yet paid their back
dues. Once a Type B member has paid his or her back dues, he or she becomes a Type A
member. The exempt category applies to wells that are located out of the main stem area
since they do not have replacement obligations under the Amended Rules and Regulations.
The "per acre-foot of pumping" charges for Type A and B members were applied to the
estimates for average pumping during 1992-94; LAWMA's intention for future years is to use
the average pumping during the previous 5 years.

This dues schedule is expected to generate approximately $302,000 of income to
LAWMA in 1996. Approximately $49,000 of this total will be generated by the commercial,
municipal, exempt, and inactive wells, and the remaining $253,000 will be generated by the
active, main stem irrigation wells. This latter category of wells will have replacement
obligations in 1996. The well pumping used in figuring this income was 74,742 acre-feet.
This dues schedule represents increases in dues of more than 139 percent since 1995 and
more than 267 percent since 1994. Many of the LAWMA members have complained bitterly
about these increases. Thus, the dues will be more than three and one-half times what they
were for 1995 and more than twice what they were in 1995. Table 1 in the July 1995 report
shows that LAWMA's main stem, irrigation pumping averaged 60,547 acre-feet annually
during 1986-94. Assuming this level of pumping is representative of the long term average,
LAWMA's present rate schedule would generate $219,000 from main stem irrigation wells.
This equates to approximately $3.61 per acre-foot of pumping.

In the future, LAWMA's dues will have to be sufficient (1) to cover its ongoing
operating, engineering, and legal expenses, (2) to make payments to the Southeastern
Colorado Water Conservancy District for the Fryingpan-Arkansas Project return flow, and (3)
to retire the debt from the acquisition of replacement water. As specified in the July 1 995
report, the ongoing operating, engineering, and legal expenses should run about $130,000 per
year once the augmentation program is operating. Under LAWMA's current dues schedule,
approximately $49,000 will be generated from the commercial, municipal, exempt, and
inactive wells, leaving $81,000 to be generated from the active, main stem irrigation wells,
for which there will be replacement obligations. Annual payments to the Southeastern
Colorado Water Conservancy District for the Fryingpan-Arkansas Project return flow were

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