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August 26, 2007 <br />Page 3 <br />Stated Project Goal: retire 30,000 acres fr om agriculture, and reduce agricultural <br />water consumption by 35,000 acre feet. <br />Water retirement is forever <br />; retirement from agricultu re is for a 14 or 15 year <br />contract term, after which dry-land cropping is allowed. <br />To be eligible, acreage must be legally and physically capable of irrigation and <br />have been irrigated within the last year. <br />Incentive payments vary depending upon pr oximity to Republican and Arikaree <br />Rivers <br />Existing CREP - $1,890/acre to $2,615/acre <br />o <br />Proposed new CREP - $1,950/acre to $2,175/acre <br />o <br />Total paid over 15 years <br />o <br />D. Process and Considerations for Implem entation of a CREP Program in the South <br />Platte River Basin : <br />Begin by identifying the ge ographic area of concern. <br />Identify resource objectives (increase water quantity by removing lands from <br />irrigation). <br />Identify source of 20% matchi ng non-federal funds (see below). <br />Proposal created with state, federal, local partners, for instan ce: Central Colorado <br />Water Conservancy District; Northern Co lorado WCD; Lower South Platte WCD; <br />Division of Wildlife, Colorado Water Conservation Board. <br />Perform Environmental Assessment, with public participation.. <br />Morgan and Weld counties are currently at 25% cap; Logan County is close to <br />limit. Removal of cap must be ad dressed as part of any proposal. <br />Land formerly irrigated by wells currently curtailed is not “legally” capable of <br />being irrigated and, therefore, not eligible. <br />Affects, for example, Central WAS wells and Orphan Wells of Wiggins <br />o <br />Central GMS wells should be eligible <br />o <br />Prepare draft Agreement. <br />Negotiate and develop terms with input from USDA/FSA (see above). <br />Approximate time to implementation: one year (based on Republican River <br />experience). <br />E. Sources of 20% Matching Funds <br />Conservancy District assessments – water use fees, mill levy, acreage fees – spreads <br />burden to all water users. <br />Mill levy would require affirmative vote of those affected. <br />Water use fee may not require vote. Re publican River WCD imposed per acre fee <br />without vote, but had authorization to impos e a “use fee” and “service charges” in its <br />enabling legislation. Legislative authorization may be advisable. <br />