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<br />Gary Hausler <br />Western States Water Resources, LLC <br />Email: losnniner@gunnison.cc <br />Phone: 970-209-9515 <br /> <br />Submittal for Senate Committee on Energy & Natural Resources, Water Conference <br />Discussion Topic: Water Supply and Resource Management Coordination <br /> <br />Executive Summary: <br /> <br />A <br />Sustainable Source <br />Of Water for the <br />Western United States <br />Since the days of the Forty-niners, the Western U.S. has suffered from a chronic shortage <br />of water. The Colorado River runs approximately 12,000,000 acre-feet (AF) annually. With <br />intense population pressure throughout the entire Colorado River drainage, the river does not <br />produce enough water to fill demand. <br />The Mississippi River above New Orleans runs approximately 2,000,000 AF per day <br />during spring run-off which lasts about ten days each year. This totals more than the entire <br />annual flow of the Colorado. The Mississippi has average annual flows exceeding 300 million <br />AF. <br />Local, regional, and state water departments in the Southwest and Southern Plains states <br />are struggling to develop plans to provide adequate water supplies for current and future <br />environmental needs, growth, and to sustain agriculture. <br />A consortium of states, similar to the Colorado River Compact, can be formed to build a <br />pipeline from the Mississippi River south of Cairo, Illinois to pump an initial 1,000,000 AF of <br />water annually. The western terminus of the pipeline could be the divide between the South <br />Platte and Arkansas River drainages south of Denver on the Eastern Slope of the Continental <br />Divide. Water diverted from the Mississippi would amount to less than 1 \2 of 1 % of average <br />annual flow. <br />The project is estimated to cost between $ 15 and $ 20 billion for the initial 1,000,000 AF <br />per year. The project can be financed, without Federal money, by permitting 400,000 AF <br />currently diverted from the Colorado River into the Mississippi River drainage to flow down the <br />Colorado River to water users in Arizona, Nevada and California for a one-time charge of $ , <br />20,000 per acre-ft. An additional 200,000 AF of Colorado's Colorado River Compact entitlement <br />could be sold to lower basin users to bring the total to 600,000 AF or $ 12 billion. The remaining <br />$ 8 billion of a total $ 20 billion cost could be raised in the commercial financial markets. Debt <br />service would be approximately $ 850 per AF for the duration of the assumed 20 year finance <br />period at 5 % interest plus annual operating and maintenance costs of $ 1,925 per net AF <br />delivered. Total annual cost would be $ 2,775 per net AF. This is less than charges currently <br />being paid by some residential customers in the Denver metro area. Finance and operating costs <br />would have to be distributed and paid for by water users in all the states that receive benefit. <br />The initial pipeline\canal system would be sized to accommodate water users in states <br />that the system passes through. Extensions could be built to pump water through existing tunnels <br />under the Continental Divide for increased flows down the Colorado River and others into the <br />Rio Grande River drainage. <br />There would be.great benefits throughout the Southwest and Southern Plains for the <br />environment, endangered species, agriculture, and metropolitan areas from increased flows in the <br />regions' rivers including the South Platte,. Arkansas, Colorado, and Rio Grande. <br />