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Water Allocation Among Owners <br />The method of delivering water to shareholders in the Terrace system depends on the supply <br />available at the river. When the Company is only able to divert under its smaller priorities, they <br />break the total amount into 1 to 2 cfs streams, and rotate the delivery around to different farms. <br />When the larger priorities come into priority, the total is divided up into numerous small streams <br />and a constant amount is delivered to owners. For much of the irrigation season, water is <br />delivered on a rotation basis. Because some shareholders own a greater number of shares, they <br />may receive water on a constant stream basis even during periods of rotation. <br />Reservoir water is allocated to shareholders on a prorata basis depended on share ownership. <br />Each year the amount of available storage water is determined and a per share allocation <br />assigned. The Company applies a 10 percent shrinkage of allocated reservoir water and assigns a <br />10 percent loss to the river for storage deliveries. <br />Use of Storage Water <br />The Company owns and operates Terrace Reservoir located approximately 7 miles upstream of <br />its canals. The Reservoir has decreed storage rights for 17,227.5 af, although a 1981 bathimetric <br />survey indicated a capacity of about 15,000 af. The Colorado Division of Wildlife owns a <br />conservation pool of 1,500 a£ Furthermore, the Company is required by the State to maintain an <br />emergency flood pool of about 2,000 af. Therefore, the useable capacity of the reservoir is only <br />about 11,500 af. <br />The Company is generally able to store water between November 1St and April 1St (during the <br />winter runoff period). Storage also may be possible during high runoff periods although this only <br />occurs about every four years. Typically between April 1St and October 31St, the Reservoir gates <br />are operated daily to hold the storage level. The District 21 Water Commissioner reads the <br />reservoir gage on a daily basis and requests gate changes from the Company if necessary. <br />The Reservoir fills approximately once every 5 to 8 years. In an average year, approximately <br />8,500 of is stored. Storage water is often used entirely each year, but occasionally a small amount <br />is carried over the winter period. <br />Reservoir water is typically called for beginning in early July. Farmers can call for water <br />whenever the want it, and communicate with the Company Superintendent for these requests. <br />Travel time between the Reservoir and farms in the Terrace system is approximately 7 hours. <br />Reservoir gates have sufficient capacity to release water as fast needed for demands from <br />shareholders (about 850 to 900 cfs when the Reservoir is 2/3 full). <br />Use of Groundwater <br />The Company does not own any groundwater wells, although most individual share owners have <br />their own wells for supplemental supply. These wells are used primarily as alternate supplies for <br />center pivot sprinkler systems, most often later in the irrigation season. The canal lining project <br />completed in the early 1990s allowed shareholders to rely less on groundwater supplies. The <br />Company does not keep records of groundwater use within its service area. <br />Most wells within the Terrace system are deep, ranging from 300 to 700 feet. Wells started going <br />in around the 1950s as the sub level was declining. Almost all wells in the system had been <br />C:Acdss\Terrace.doc Terrace Irrigation Company Interview June 18, 1999 -Page 4 of 6 <br />