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STATE OF COLORADO Colorado Water Conservation Board Department of Natural Resources 1313 Sherman Street, Room 721 Denver, Colorado 80203 Phone: 003)866-3441 FAC<: (303)866-4474 www.cwcb.state.co.lis MEMORANDUM (Updated March 16,2004) Bill Owens Governor TO: Colorado Water Conservation Board Members Russell George Executive Director FROM: John Van Sciver, P.E. Mike Serlet, P.E., Chief Water Supply Planning and Finance Section. Rod Kuharich CWCB Director Dan McAuliffe Deputy Director DATE: March 2, 2004 SUBJECT: Agenda Item 25d., March 16-17,2004 Board Meeting FL Gill H20 LLC Introduction The FL Gill H20 LLC (FGH LLC) is applying for a $114,750 loan to construct a groundwater recharge I well augmentation project and purchase water rights. The estimated total cost of the project is $127,500. Please see the attached project summary and map. Backaround The FGH LLC, located in Washington County, consists of the owners of 3 contiguous farms under the Johnson and Edwards Ditch, with a combined irrigated acreage of 910 acres. In November 2003 the CWCB approved a loan to the Johnson and Edwards Ditch to construct a well augmentation project. However, the shareholders of the ditch voted to not proceed with the loan, and staff has received a letter requesting that that loan be deauthorized. In spite of this, the need to augment junior wells remains, leading to the formation of the FGH LLC and a proposal to construct an alternative project. There are 4 junior wells under the FGH LLC, used as a supplemental supply to the ditch water. The depletions from the pumping of the FGH LLC wells must be replaced during times when there is a "call" on the river by a senior downstream water right. GASP has successfully been used for the past 30 years to cover the depletions on these wells. However, GASP operates on a year-to-year basis with no guarantee of continued coverage. The recent drought has brought to the foreground just how difficult it is to provide adequate augmentation for well users. GASP has indicated it will not be able to provide augmentation of these wells. The FGH LLC wants to develop a recharge system that will generate augmentation credits to be used to offset the depletions caused by their 4 wells. By generating their own augmentation the FGH LLC members can protect themselves from curtailment. Feasibility Studies Brent Nation, P.E. of Nation Engineering Services, has completed the feasibility study. The report includes an evaluation of alternatives available to generate an augmentation supply for the FGH LLC.