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<br /> <br /> <br />Form Revised May 2007 <br /> <br />. From the demand side, this task will refine the range of water prices and terms that M&I water providers, <br />energy and industrial users, environmental agencies, and other agricultural users would be willing to pay <br />for additional raw water supplies from Lower Arkansas Valley. <br /> <br />.. On the supply side, this task will identify the range of water prices and terms that Valley irrigators would <br />be willing to accept to enter into leases with M&I water providers, energy and industrial users, <br />environmental agencies, and other agricultural users. <br /> <br />Together, these tasks will identify the economic common ground between the two sides, and lend insight to the <br />amount of water that might be available for transfer under varying prices and terms. <br /> <br />The primary approach to accomplish this task will be to model various lease scenarios building on the <br />information previously developed by HDR and Honey Creek Resources. This will be accomplished by <br />developing an interactive computer model of potential supplies, delivery locations, storage, water quality, and <br />demand schedules. <br /> <br />Deliverable: The economic analysis will be presented in a series of lease scenarios linking irrigator- <br />lessors and municipal/water user-lessees. The lease scenarios will encompass a range ofterms and conditions, <br />consistent with the willingness of irrigators to lease water and water users enter into leases. <br /> <br />Task B. <br /> <br />Storage Facilities <br /> <br />A key component ofthe Super Ditch system that would likely be operated in conjunction with various <br />transmission methods (i.e., exchanges or pipelines) is storage facilities. The participant ditches in the Super <br />Ditch project have historically delivered water for agricultural irrigation in the Arkansas River Valley. As such, <br />the water rights associated with the ditches generally restrict diversions to the April through October irrigation <br />season, although some ditches participate in the Winter Water Program, which facilitates winter water storage <br />for subsequent use. In contrast, the customers of the Super Ditch project are likely to be municipal entities or <br />other domestic water providers, which have year-round demands. <br /> <br />In order to effectively re-time the Super Ditch water to meet customer needs, it will be necessary to store <br />the water at least part of the year. Water will likely be diverted into storage during the irrigation season (a <br />change of usage for certain water rights from direct flow to storage will be required). Stored water can then be <br />released back to the river when necessary to facilitate exchange operations. Alternately, storage reservoirs may <br />serve as forebays for pipeline/pumping facilities, with stored water pumped from the reservoirs and delivered to <br />specified locations to meet customer needs. <br /> <br />The next phase of analysis will identify storage locations that be <br />into the Super Ditch system infrastructure. It is hoped that existing reservoirs could be used as much as possible. <br />While it may be necessary to pursue changes in some of the associated water rights, this Scope of Work will only <br />identify such issues. Reservoirs identified as having the potential for inclusion in the Super Ditch system include <br />the following, among others: <br /> <br />. Timber Lake <br /> <br />10 <br />