GunnisonComments14

• Basin: Gunnison
• Title: Comments 14
• SWSI - Doc Type: Comments

Gary Hausler
Western States Water Resources, LLC
"A Sustainable Source of Water for the Western U.S."

20f4

The Base Proposal

Form a consortium of states, similar to the Colorado River Compact, to build a
pipeline with associated reservoirs and pump stations from the Mississippi River south of
Cairo, Illinois to pump an initial 1,000,000 acre-feet of surplus water annually. The
western terminus of the pipeline would be the divide between the South Platte and
Arkansas River drainages south of Denver on the Eastern Slope of the Continental
Divide. Mississippi River water is governed by the doctrine of riparian rights and is
administered by the U. S. Army Corps of Engineers.
In an exchange with downstream states, allow the approximately 400,000 acre-
feet currently diverted from the Colorado River to Colorado's Eastern Slope to flow
down the river naturally. In addition, the Colorado River Return Reconnaissance Stud;
identified between 250,000 and 500,000 acre-feet of water annually that is surplus to
Colorado's current needs. A portion of this water or 200,000 acre-feet for the purposes
of this exercise could also be sold to Nevada, California, and Arizona who could then
divert a total of 600,000 acre-feet annually to reduce the shortfalls they currently face.
On a long-term basis, this could reduce California's diversion from the Sacramento River
plus help solve San Diego's shortage.
The net 600,000 acre-feet produced by the Mississippi Project (after the currently
diverted water is replaced) could be used for agriculture, environmental flows, and urban
consumption on the eastern plains in the states of Colorado, Nebraska, Kansas,
Oklahoma, Arkansas, and Missouri.
The estimated cost for the basic Mississippi Project is between $15 and $20
billion. The estimate was developed by the writer with costs reconciled to those used in
the Colorado River Return Reconnaissance Study where possible. The attached estimate
details a cost of $18.4 billion; however, the higher cost of $20 billion is used for
discussion.
Current value of diverted Colorado River water to the Eastern Slope is
approximately $20,000 per acre-foot based on recent western Colorado purchases.
Using this number, the value of the 400,000 acre-feet of Colorado River water diverted
east becomes $ 8 billion. California, Nevada, and Arizona should be interested in this
exchange and purchase. In addition, other water, part of Colorado's Colorado River
Compact entitlement, possibly 200,000 acre-feet, could be available for sale generating
another $4 billion for a total of $12 billion of the $ 20 billion estimated base project cost.
Referendum A, a $2 billion funding mechanism for Colorado water projects was
defeated at the polls on November 4, 2003, primarily because it was viewed as a blank
check with no projects associated with it. Passage of such a provision should be possible
ifvoters are shown a viable, long-term solution to water availability.
With eastern Colorado municipalities such as Douglas County and a multitude of
others interested, the remaining $8 could be raised in private capital markets. Principal
and interest on $8 billion, based on a 20 year loan at 5 % would be approximately $700
million per year or $850 per net acre-foot plus operating costs estimated to be $1,925 per

2 Colorado R.iver Return. Rec.onnaissance Study, State of C:olorado, prepared by Boyle Engineering C:orp,
11./14/03.