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Lower San Miguel yVa~er Resource Planning Study Page 18 VII. D Sale of the Uravan Water Ri~hts- This alternative considers the sale of the Uravan Water Rights to the highest bidder. This would include both the Miguel Power Company Canal water rights and the Johnson Ditch water rights and Well water rights. Factors Considered • Potentially the CWCB could generate some revenue from the sale of the water rig ts. • The expected revenue would reflect the value of the water rights which due to the history of use could be very small. • The local governments identified in the MOU have indicated they would invoke their right of first refusal. They are concerned they may not have sufficient resources to be competitive with other bidders. • The water rights would be out of the CWCB's or local government's control and could have a negative impact on the basin. • The water rights administration in the basin could be substantially changed by the exercise of a senior call by the new water rights owner. This could result in a call that the basin has not experienced for over 60 years. This could significantly alter the current water right administration and historic use of water in the basin. f nnrl»cinnc The potential impacts to the local governments in the lower San Miguel Basin, and the potential administrative affects throughout the San Miguel Basin could be very disruptive. The amount of revenue gained by the CWCB may not justify the basin-wide impacts. Should the CWCB consider this option the local governments have indicated they would invoke their right of first refusal. VILE Relinquish the Uravan Water Rights to the Stream- This alternative would contemplate the CWCB relinquishing the Miguel Power Company Canal water rights and the Johnson Ditch water rights to the stream. Factors Considered • The "status quo" would remain on the stream relative to water use and water administration over recent history. A significant concern expressed by water users in the basin over the Uravan Water Rights dealt with potential for the current call structure to change due to the exercise of these senior water rights that have not been used for over 60 years. • No benefit would be received from the relinquishment of all the Uravan Water Rights to the stream. There would be no benefit gained from an instream flow or from a community standpoint. (rnnrl»cinnc While this alternative would maintain the "status quo" of the stream and not change the water administration picture, it would do so at the expense of the potential benefit that could be realized to instream flows and the local governments, with minimal impact to water administration in the basin. ~Iuly 2008