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The Lower District commissioned an engineering feasibility study ~ proof of concept <br />- in 2006. HDR prepared the study, which concluded that the formation of leasing program <br />was feasible encompassing ditches diverting from Pueblo Reservoir to John Martin <br />Reservoir. HDR Engineering, lnc., "Lower Arkansas Valley Water Leasing Potential, <br />Preliminary Feasibility Investigation" (June 19, 2006 -Draft). The Lower District <br />subsequently commissioned a detailed engineering study of a water leasing program, <br />which MDR completed in 2007. HDR Engineering, Inc., Rotational Land Fallowing-Water, <br />"Leasing Program Engineering and Economic Feasibility Analysis, Final Report" (Nov. <br />2007). <br />The Lower District also instructed special counsel to investigate the legal aspects of <br />a water leasing program in 2006. Special counsel concluded that a water leasing program <br />could be implemented under existing law through an adjudication of a change ofi water <br />right. Special counsel also identified institutional hurdles to a water leasing program, <br />including restrictions on place of use in ditch company articles of incorporation and bylaws, <br />and so-called 1041 permitting requirements of Lower Valley counties. <br />Also in 2006, special counsel contacted board members of the Palo Verde (Cal.) <br />Irrigation District ("PVID") and the general counsel of the Metropolitan Water District of <br />Southern California concerning the water leasing program they were negotiating, and <br />ultimately consummated at the end of 2006. In early 2007, the Lower District invited <br />representatives of Lower Valley ditch companies to participate in afact-finding trip to the <br />Imperial Valley of California to meet with irrigator-water lessors of the PVID. The trip <br />resulted in formation of a Steering Committee composed of Lower Valley irrigators to work <br />with the Lower District, its engineers, consultants, and attorneys on the formation of the <br />Super Ditch Company. The Steering Committee has been meeting bi-monthly with the <br />engineers, consultants, and attorneys to craft the organizational and operational details of <br />the Super Ditch Company. <br />Provided below is a summary of the applicant's scope of work: <br />• Task A-Economics (Determination of market price in wet, average, dry <br />years and further refinement of economic assumptions). <br />• Task B-Pipeline Alternatives (recommended pipeline alignment, capacity, <br />configuration, preliminary costs estimates, construction schedule). <br />• Task C-Delivered Water Quality <br />• Task D-Application of Arkansas River GedDSS to model effects on surface, <br />groundwater and water quality. <br />• Task E-Antitrust Issues -Analysis <br />• Task F-Effects on corn yield, nutrient needs and economics of land when <br />followed <br />• Task G-Report on Water Leasing Concept and Super Ditch <br />