PROJ01945 ‎(3)‎

• Contract/PO #: C150193
• Contractor Name: Dolores Water Conservancy District
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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XI.10.2 ECONOMIC ANALYSIS
The benefit to cost ratio for the additional 2,200 acres in Contract #2 of WETP ACK indicates the
economics of irrigating the new land. The preparation of a new farm budget analysis is beyond
the scope of this feasibility study, therefore, the farm budget values derived for the original 1977
Dolores Project Definite Plan Report (DPR) are used. Although the input values to the DPR
farm budget are out-dated, the total benefits of $74.70 per acre-foot for the Dove Creek irrigated
area is an acceptable estimate. Based on 4,500 acre-feet of water, the annual benefits are
$336,150.

The annual #2 Contract cost is $158,774 for debt service and $112,000 for OM&R, a total of
$270,774 per year.

The benefit to cost ratio is 1.24 to 1.0. The ratio is greater than one to one indicating an
economically feasible project.

XI.11 PERMITTING AND APPROVAL REQUIREMENTS
The construction of the pipelines may require an Army Corp of Engineers 404 Permit if the
pipelines cross natural channels. The need for a 404 Permit will be evaluated prior to
construction and if necessary is expected to be a Nationwide 12.

A contract has been completed with USBR to allow conveyance of non-project WETP ACK
water through Dolores Project facilities.

XI.12 NUMBER OF PERSONS BENEFITING
The people benefiting from the first phase of WETP AKC include:

(1) 10 landowners who will receive water;

(2) 173 existing full service farmers who presently irrigate about 28,000 acres. The
OM&R costs will be spread out over an additional 2,200 acres;

(4) the availability of affordable irrigation water will help to keep family farms a viable
economic entity in Montezuma and Dolores Counties;

(5) open space will be maintained through viable agriculture;

(6) economic benefits will be provided to the entire community because the 2,200 acres
of new irrigated lands will produce approximately $250 more per acre per year than dry
land, a yearly total of $550,000. The additional income will primarily be circulated
within the local area. The increased irrigated land will help stabilize an historically boom
and bust economy due to the variability of precipitation.

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