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Alternative Agricultural Water Transfer Methods -Grant Application F©rm <br />aanUa~y aooa <br />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 HDR 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 2008. Special counsel concluded that a water leasing program <br />could be implemented under existing law through an adjudication of a change of 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 2D06, 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 an 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 />Previous Studies <br />To the maxirnu~n extent possible, the results of any previous studies and investigation should be <br />utilized and incorporated into the proposed program/project. The application for funding should <br />include a brief summary of the results of previous studies and how they will be utilized. <br />The Lower District evaluated the feasibility of a Lower Valley water leasing program, <br />to prove the concept, and to address essential antecedent issues to the formation of the <br />Super Ditch Company. Principle studies and investigations to date include: <br />a. Technical proof of concept. HDR Engineering; lnc., "Lower Arkansas Valley Water <br />Leasing Potential Preliminary Feasibility Investigation," Aug. 2D08. This engineering <br />investigation confirmed that adequate water rights would be available for lease in the <br />Lower Valley for lease to meet water users. For example, approximately 250,000 acre <br />feet of water would be available for lesae in an average year, and over 100,000 acre-feet <br />in an exceptionally dry year, like 2002. <br />10 <br />