PROJ02131

• Contract/PO #: C150167
• Contractor Name: FL Gill H20 LLC
• Contract Type: Loan
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

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Alternatives Evaluated

A range of alternatives were considered on how to generate an
augmentation supply for the Gill LLC including 1) don't build a
project and continue to solely rely upon GASP for augmentation,
2) purchase a senior water right and use it for augmentation, 3)
construct recharge ponds filled using a recharge well and
purchase 1 share of Jackson Lake water.

An evaluation of the alternatives follows:

1. Don't build a project:

If a project were not pursued, the Gill LLC would continue
to solely rely upon GASP for augmentation. Even though GASP
has provided augmentation coverage for the past 30 years,
there is no certainty of total augmentation coverage with
the GASP plan. Supplies currently used to augment the 4 Gill
LLC wells are entirely secured by GASP on a one-year lease
basis. If any of these leases are not renewed or can not be
renewed because of the extreme drought conditions, the Gill
LLC could not operate their wells. This would be an annual
loss of approximately 1,200 acre feet of irrigation water.
This event, if it occurred, could lead to a major loss of
crops under their system. This alternative is not acceptable
to the Gill LLC.

2. Purchase a senior water right and use it for
augmentation:

This alternative is currently used by many municipalities
for the very same reason. Shares of Prewitt Reservoir water
can be purchased for augmentation. Currently, shares of
Prewitt, specifically Morgan-Prewitt shares, are selling for
$20,000 or approximately $1,250 per acre-foot of water.
Prewitt Reservoir water could be used by the Gill LLC system
if enough was available to be purchased. This alternative
would cost the Gill LLC over $1,000,000.

3. Construct recharge ponds filled using a recharge well:

This alternative would consist of the Gill LLC using a
recharge well to fill the recharge ponds during the winter
months when there is generally not a call on the river.
Feasibility Study
FL Gill H20 LLC Aug Project
February 2003

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