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<br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br />. <br /> <br />1. Buyer and Seller are typically motivated. <br /> <br />2. ' Both parties are well informed and are acting in what they consider their best interests. <br /> <br />3. A reasonable time is allowed to offer the property on the open market. <br /> <br />4. The price represents the normal consideration for the property sold, unaffected by special <br />or creative financing or sales concessions granted by anyone associated with the sale. <br /> <br />PURPOSE <br /> <br />The purpose of this report is to estimate the market value of the fee simple title to a one-half <br />interest in the water rights of the Keesee Ditch and a one-halfinterest in its storage account in John Martin <br />Reservoir under the 1980 Operating Plan as amended, subject to limiting conditions previously set forth. <br />To do so, this report provides an estimated market value of the consumptive use portion of the water rights <br />to be used for augmentation purposes. <br /> <br />INSPECTION AND SCOPE <br /> <br />Inspection: No inspection of the Keesee Ditch or the historically-irrigated lands has been made <br />in connection with this report. <br /> <br />Scope: The approach used to estimate market value of the Keesee Ditch Water Rights is <br />principally that of comparable sales. The market in Water District No. 67 and upstream on the Arkansas <br />River to the headgate of the Colorado Canal was searched for sales of water rights that have happened <br />in the past with emphasis on comparable water rights sales within the last fIve years. Several comparable <br />sales include land and water rights. The value of an acre-foot of consumptive use water is extracted from <br />the sales as follows: A market value for cropland that must be dried up is subtracted from the irrigated land <br />value. This gives an indication of what irrigation water for one acre ofland is worth in the market. The total <br />value of the irrigation water is then divided by an estimate of the historical consumptive use of the water <br />purchased with the property to arrive at a value per acre-foot of consumptive use. This method for <br />estimating value is necessarily less precise than the values derived from sales of water rights only. <br /> <br />I. AREA DESCRIPTION <br /> <br />A. Bent and Prowers Counties and the Arkansas River <br /> <br />The Keesee Ditch and the lands served by it are located downstream of John Martin Dam in <br />eastern Bent County and abuts the Bent County- Prowers County line in southeastern Colorado. The City <br />of Lamar is the county seat ofProwers County and is located six to eight miles east of the lands served by <br />the Keesee Ditch. Bent and Prowers Counties are semi-arid, have low precipitation, low humidity, <br />abundant sunshine, highly variable temperatures, and consistent winds. Precipitation at Lamar averages <br /> <br />Page 7 of 66 <br />