C150150 Market Report

• Contract/PO #: C150150
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• Loan Projects - Doc Type: Feasibility Study

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triggered a call for water by the other state. If one state called for water at its maximum release rate and
the other state called for water at less than its maximum rate, the state calling at the higher rate received a
proportionally larger share of the Conservation Storage. This, in turn, historically tended to result in a
premature call by both states for releases at the maximum allowable rates. This resulted in the less-than-
optimal use of stored water by water users in both states.

In an attempt to address this and other issues, in 1979, on a one-year trial basis, the Administration
fIrst created and operated a storage account system in John Martin Reservoir. In 1980, the Administration
adopted a revised storage account system and operating agreement. That operating agreement, which has
continued to operate to the present with only minor modifications, is commonly referred to as the "1980
Operating Plan." Under the 1980 Operating Plan, as relevant here, separate "accounts" are created for
each of the ditches in Water District No. 67. Commencing not later than April 7 of each year, waterin
Conservation Storage is "released" (i. e., transferred while still in storage) to the accounts of the State of
Kansas (40 percent) and the accounts of the Colorado water users (60 percent). The allowed rates of
"release" of water to Conservation Storage are the same as those permitted to the states in the Compact.
The account water need not be immediately released from the reservoir and applied to benefIcial use.
Instead, the owner of the water can leave the water in storage and release it when it is most beneficial. This
makes it possible to better manage the water supply.

The water in Conservation Storage and the water "released" to the accounts is subject to
evaporation charges while in storage. Kansas and the Water District No. 67 ditches may demand physical
releases of water from their respective accounts in John Martin Reservoir at any time and at whatever rates
they desire. Releases to Water District No. 67 ditches are subject to transportation losses between John
Martin Reservoir and the point of diversion from the river. Releases to Kansas are measured at the state
line. For purposes of Article V.F. of the Compact, Conservation Storage is deemed exhausted whenever
Conservation Storage has been completely "released" to the accounts, regardless of whether the accounts
have been physically emptied from the reservoir. When all Conservation Storage has been released to the
accounts, Colorado administers water rights in priority in Water District No. 67 as against each other and
as against decreed water rights diverted upstream of John Martin Dam.

The 1980 Operating Plan has been supplemented by the so-called "Agreement B" between the
Water District No. 67 ditches and some of the water users located upstream ofJohn Martin Dam in Water
Districts No. 14 and 17. Pursuant to that agreement, any water stored during the winter storage season
and not physically released from the reservoir by May 1 of the succeeding year, is considered to be
summer storage water. So long as a Water District No. 67 ditch has summer storage water in its account,
it may not exercise its call against water users upstream of John Martin Dam.

The 1980 Operating Plan may be terminated by either the State of Colorado or the State of Kansas
by giving notice oftermination, which must be provided by the state's Compact Administration members
to the Administration by February 1 of the Compact year. The termination will become effective on the
next succeeding March 31. In the event of termination, entities storing water in accounts prior to the

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