Arkansas - Rotational Land Fallowing - Water Leasing Program_Application

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Form Revised May 2007 dried up in the Arkansas River Basin as M&I water providers continue to acquire and transfer agricultural water rights from outside their service area for use inside their service area. Id., at ES-l 0 - 11. This additional dry up would come on top of the more than 78,169 acres of irrigated land in the basin already dried up by the acquisition and transfer of agricultural water rights by M&I water providers. Charles W. Howe, The Regional Economic Impacts of Transfers of Water from Irrigated Agriculture in the Arkansas Valley of Colorado to In-Basin and Out-of-Basin Non-Agricultural Uses, at 6 (Dec. 2, 2002). To put these numbers in perspective, SWSI estimated the Arkansas Basin had 538,100 irrigated acres in 2004. Thus, additional M&I demands could dry up a further 13.4 percent of irrigated land in the basin, on top of the 14.5 percent already dried up. In short, the Arkansas River Basin could lose well over a quarter of its irrigated lands to M&I water providers by 2030. Rotational Land Fallowing-Water Leasing is a non structural method to meet consumptive and non- consumptive needs identified by SWSI and the roundtables within the Arkansas Basin, including agricultural, municipal, wildlife, and recreational demands. In addition, it builds on the work of the SWSI Technical Review Team on Alternatives to Agricultural Transfers by furthering the development of the most promising alternative identified: rotational fallowing. It is specifically intended allow M&I water providers to meet their future demands through an alternative to historical acquisition and transfer of agricultural water rights that will maintain land in irrigation. Thus, Rotational Land Fallowing-Water leasing will facilitate M&I water providers meeting future needs identified by SWSI, while fostering the continued irrigation of land in the Arkansas River Basin, along with its associated agricultural productivity and economic activity. 3. For Applications that include a request for funds from the Statewide Account, describe how the water activity meets the Evaluation Criteria. See Part 3 of Criteria and Guidelines. Not applicable. 4. Please provide an overview of the water proiect or activity to be funded, including type of activity, statement of what the activity is intended to accomplish, the need for the activity, the problems and opportunities to be addressed, expectations of the participants, why the activity is important, the service area or geographic location, and any relevant issues etc. Please include any relevant TABOR issues that may affect the Contracting Entity. Please refer to Part 2 of Criteria and Guidance document for additional detail on information to include. The purpose of the proposed Lower Arkansas Valley Rotating Land Fallowing-Water Leasing program and the so-called "Super Ditch Company" is to maximize the short- and long-term value of irrigation water in the Valley by developing a viable alternative to traditional municipal irrigation purchases and transfers. To implement the proposed Rotating Land Fallowing-Water Leasing program, irrigators will create an independent Super Ditch Company to lease water, made available from the fallowing of irrigated land, to municipalities and other water users. The program will offer an alternative to outright sale and transfer of water rights by irrigators to municipalities. Irrigators drawing water from ditch companies between Pueblo and John Martin Reservoirs may participate or not as they individually 5