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Section 3 Alternative Agricultural Water Transfer Methods to Traditional Purchase and Transfer ~ Parizer Water and Sanitation District (PWSD) and. Logan County: PWSD purchased land and water rights in Logan County in the past and currently leases the water back to irrigators in the county. PWSD plans on using a portion of the purchased water (about 20 percent) at some point in the future, but anticipates the rest will be available for continual leaseback. The CU portion of the water that will eventually be used by PWSD is not expected to be needed by the irrigators at that time as a result of on-farm conservation practices. This project is still conceptual and water court transfer affirming the reduction in CU will likely need to be approved before implementation and with administrative protection and to guard against expanded use. ~ Northglenn and FRICO: The City of Northglenn entered into an exchange agreement in 1976 with FRICO for the first use of FRICO Standley Lake shares in irrigation use. Northglenn returned the water as effluent plus added a 10 percent water bonus. Northglenn also entered into 30-year ROFR with many of the FRICO irrigator shareholders. The FRICO Standley Lake supply was also part of the future supply for the cities of Thornton and Northglenn, who over the years purchased many of the shares. Due to the high costs of the initial infrastructure required for the program as well as high legal and transaction costs, Northglenn was financially unable to compete for the shares, including many of those for which they bad ROFRs. Thirty years later these ROFRs are expiring Rotational Fallow and there will soon be Irrigation District insufficient shares for ~~ ~ ~.', Northglenn to operate the ,, exchange. Northglenn ~ ~.-a ~~~' does not have the financial ~` ~'~ resources to acquire all of ~ - the shares needed to replace the water lost 50 farmers from the exchange due to 1,000 acreslfarm 2 acre-feet CUlacre the price appreciation 100,000 acrefeet CU from competition for the SbareS by Other Water Source: Harvey Economics providers. 3.8.3 Rotational Fallowing Example Purpose and Use of an Example Figure 3-5 depicts a hypothetical illustration that can be used to demonstrate how a dynamic activity might actually work as an instructive example. Here, an example is used to flesh out one of the alternative agricultural transfer techniques a rotational fallowing program. This example, developed by Harvey Economics, is based on case studies of actual rotational fallowing programs. This example is applicable to large agricultural areas that are not facing urbanization or other development pressures in the foreseeable future. Creation of the Rotational Fallowing Example In this case, the example consists of an irrigation district (termed "RFID" for Rotational Fallowing Irrigation District) willing to participate in a rotational fallowing program and a municipal user (MU) that would like to obtain additional water. Figure 3-5 illustrates the RFID and MU and provides a description of the fallowing program. The creation of the rotational fallowing program would include several steps: 1. RFID cooperates in MU Feasibility Study (FS), which includes a survey of farmer interest, means for protecting yield transfer, plans for erosion and weed control, third party impact monitoring and mitigation plan, and an ing RFID) Municipal User ;.. Seeking 10,000 AFlyear to meet customer demand ,2006 Figure 3-5 Rotational Fallowing Example 3-24 FINAL DRAFT