PROJ01895 ‎(2)‎

• Contract/PO #: C153768
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Contract Documents

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The Ami.ty purchase represents an opportunity for LA WMA to diversify its water rights
portfolio with a reliable source of replacement water with associated storage. While the
cost is somewhat higher than the proposed Fort Bent purchase ($231,458 as opposed to
$177,000), more w~ter would be obtained to offset the depletion requirement. The costs
per acre-foot for A~ty or Fort Bent water would be essentially the same.

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Drv- Y ear Shortages

Helton & Williamsen have submitted to us a revised draft of the second feasibility study
for LA WMA' s WatFr Rights Acquisitions and Augmentation Program. The report
presents several opt~ons for reducing stream depletions in a dry year or obtain~ng
additional replacemrnt supplies including:
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· Permanent remdval of irrigated fields relying solely on wells,

· Temporary remc>vaI of irrigated fields during a drought year,

. Spot market acq]Jisitions of water,
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· A progressive dues structure resulting in higher rates for larger blocks of pumping,
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· A change in LA WMA's organizational structure to allow volumetric pumping
limitations.

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LA WMA will decide which, if any, of these strategies it may choose to adopt.
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Offset Account

The Board's May 1997 approval of the HighlandIFort Bent loan included a
recommendation that the CWCB staff evaluate further the economic and financial
implications of the qffset Account in John Martin Reservoir. The following paragraphs
describe the Offset Account and provide a brief economic analysis for the year 1997.
Staff would like to suggest that a full discussion of the Offset Account be deferred as a
separate item for a future Board meeting.
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In March 1997, the ~kansas River Compact Administration approved a resolution for all
offset Account in John Martin Reservoir. The resolution established a 20,000 acre-foot
storage account, which may be used by Colorado well owners to regulate replacement
supplies. It is expected that Highland water and LA WMA' s Article n Storage Account
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water could be regulated in this account to make up depletions with respect to usable
stateline flow.

The disadvantage of 4sing the account is the payment of "Storage Charge Water" to
Kansas in the amount of 500 acre-feet annually plus 5 percent of water stored in excess of
10,000 acre-feet. Also. the water regulated in the account may be charged for up to two
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