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... CHAPTER 1. BACKGROUND -,...,,-,.-" NFWCD no longer collects asse~sments from FMCC and LCWUA for improvement work. In addition, growth in the mill levy assessment has allowed the NFWCD to cover the annual Paonia Project repayment without revenue from FMCC and LCWUA. The private ditch companies collect water assessments to co~er operation and maintenance. For the FMCC, an annual flat rate assessment is billed to water users. Assessment rates are determined during an annual budgeting process. For the 2000 irrigation season, FMCC charged $0.45 per share, which equals approximately $630 per cubic foot per second (CFS) of water. Table 1-1 displays water prices for other districts in the region. In general, FMCC water is relatively cheaper. TABLE 1-2 Water Pricing for Other Districts Organization Cost per Acre-foot Fire Mountain Canal Company $2.59 Overland Ditch Company $8.70 Leroux Creek Water Users Association . $15.30 Redlands Mesa Water Users Association $15.35 Uncompahgre Water Users Association $4.55 - $4.75 Grand Valley Water Users Association $3.575 The Paonia Project The Paonia Project provides full and supplemental irrigation water for 15,300 acres in the North Fork of the Gunnison River valley. Of the 15,300 acres, 13,100 acres receive supplemental water and approximately 2,230 acres receive full water supply. Before construction of the Project, most irrigated lands received an inadequate water supply. Project construction included Paonia Dam and Reservoir, and enlargement and e>rtension of Fire Mountain Canal and Leroux Ditch. The Paonia Project was authorized on March 18, 1939, by presidential approval of the Secretary of the Interior's feasibility findings. dated March 16, 1939. Subsequent findings prompted issuance of a revised report in 1940, 1946. and 1951. Following revisions, the project was reauthorized as a participating project under the Colorado River Storage Project on April 11 , 1956. Construction of Paonia Dam, Fire Mountain Canal extension, and Leroux Ditch enlargement was completed in 1962. The NFWCD assumed responsibility for the operation, mainten~nce, and safety of the Paonia Project on June 1. 1962. The NFWCD is responsible for the operation qnd maintenance of the Paonia Dam and associated structures. In 1962, the NFWCD entered an operating agreement with the FMCC. FMCC remains the operating entity of Paonia Dam and Fire Mountain Canal. FMCC is responsible for the operation and maintenance of Fire Mountain Canal and associated structures. In addition. the LDEC is responsible for the operation and maintenance of the Leroux Ditch and associated structures. However, contract language allows the U.S. Bureau of Reclamation (USIPOR) to require the NFWCD to take over operation and maintenance of the Fire Mountain Canal and Lerpux Ditch, if needed. In addition, contract language allows USBOR to take over operations and maintenance at the expense of the NFWCD. Paonia Dam is located on Muddy Creek approximately 1 mile upstream of its confluence with Anthracite Creek, which in turn forms the North Fork of the Gunnison River.. The dam is an earthfill structure containing 1,302,000 cubic yards of embankment fill. Paonia Reservoir has a surface area of 334 acres 1-7 I -I- I ,.--,) I I I I I I I ()I I I I I I I I ()I I