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Preliminary Approach <br />a. An IGA for signature by the water owners, intended water users, and other stakeholders (i.e. county <br />government), <br />b. Engineering Study for the ditch wide consumptive use study, <br />c. An economic/business practice study providing the economic basis for the deal. This study will focus <br />on the benefits and costs to the ditch share holders, the intended water users and other stakeholders. <br />d. An operations manual for the ditch company, the intended water users, and other stakeholders which <br />details the procedures that will be followed in order to actually operate and manage <br />• a rotational fallowing program, <br />• growing reduced consumptive use crops, <br />• a deficit irrigation program, and <br />• a water bank. <br />This operations manual will include necessary accounting designed to meet the requirements of the <br />Division 1 Engineer. <br />e. Letter reports and memos detailing possible necessary legal and institutional changes which will <br />facilitate the implementation of a successful alternative transfer to buy and dry for the transfer of <br />owner's water to the intended water user. <br />Necessary applications for change of water rights and plans for augmentation will not be part of this <br />project; such work will be funded by the water owners and intended water users. <br />9. Provide necessary deliverables to CWCB that will assist in spreading the word on how to actually <br />implement alternatives to buy and dry transfers throughout Colorado. These deliverables will consist of: <br />a. A final report to CWCB that summarizes the project and that provides recommendations for <br />extrapolating the results of the study to similar situations across Colorado. <br />b. A guidebook for implementing alternatives to buy and dry transfers in Colorado. <br />~.~ [leliv~rabl~s <br />This project will result in several useful deliverables and benefits to the project participants. The project <br />participants are responsible for 10% of the project costs with the CWCB providing the remaining 90%. It is <br />anticipated that the project participants will evenly share in the 10% matching obligation. Deliverables to be <br />provided as a result of project activities include: <br />1. Historic Use Analysis and Report -The water owner will receive a report documenting the historic use <br />analysis, which will aid in estimating the value of the water owner's shares. This will also benefit the <br />intended water users in that they will have a better understanding of the number of ditch company shares <br />and potential costs to supply their water needs. <br />2. Economic Feasibility Report -The project participants will receive a report that describes the means by <br />which water can be shared by agriculture and municipalities an economically sustainable fashion. <br />3. Operations Manual -The all stakeholders will benefit from the use of an operations manual. Because <br />operational procedures will be established prior to the transfer of water, the potential for future <br />disagreements and operational problems will be greatly lessened <br />~ ~ ~ - <br />3 <br />M:\FY2008\CWCB\S Platte and Arkansas Alternative Agriculture Grant\Proposal\Generalized Approach for Letter of Intent 3-25-08.doc <br />