Arkansas - LAVWCD - SuperDitch_SummarySheet

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Discussion The applicant did a good job of describing how this project meets both the eligibility requirements and the evaluation criteria set forth in the criteria and guidelines. What is most important is that the project is seeking the development and implementation of a "on the ground" alternative to the traditional "buy and dry" approach. As seen in both the eligibility requirements and especially the evaluation criteria, the grant program is hoping to promote projects that examine all aspects of an alternative method including the technical, legal and institutional components. In the scope of work, an optional task was detailed, Task G, "Comprehensive Report on Water Leaving Concept and Super Ditch Company." Evaluation criteria #2: "The proposed project/program produces information that is transferable and transparent to other users and other areas of the state (i.e. would provide an example "template" or roadmap to others wishing to explore alternative transfer methods." The application states that the report would integrate technical, legal and institutional information related to the Super Ditch providing for useful background information, directly usable information, and a template or roadmap for others to pursue the concept in other areas. Staff is pleased that this is included in the scope of work and requests that this optional task is undertaken. Issues/Additional Needs Task EAntitrust Issues-this task states "The intent of the water leasing program is to provide an exclusive alternative to traditional `buy and dry'. As currently envisioned, a condition of leasing water from the Super Ditch Company will be that the lessees agree to forgo purchasing or leasing agricultural water in the Lower Arkansas River Valley and transferring it to other uses, except as may be permitted by the Super Ditch Company. Some have questioned whether such an arrangement would violate antitrust laws because it could limit the potential purchasers and lessees of agricultural water in the Lower Valley." The deliverable for this task is a legal analysis of antitrust issue discussed above. Staff feels that the results derived from this legal analysis are critical in determining whether the project meets the eligibility requirements or not. Requirement #2 is a "description of how, if implemented, it will protect property and water rights." As it currently stands, the restrictions described above would affect the water rights market and therefore affect property rights to some degree. The legal analysis described in Task E would hopefully determine to what extent these restrictions affect the water market including both Super Ditch participants and non-participants. • In the budget, direct costs (i.e. copies, travel, etc.) need to be itemized. • Please produce the comprehensive report described in Task G.