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Alternative Agricultural Water Transfer Methods -Grant Application Form <br />January 2008 <br />2. Study ArealService Area Description. The study arealservice area is generally the geographic area that is the <br />subject of the proposed program/project (include both the source of supply and location and type of new use). The <br />description should include the following items: <br />a) A narrative description of the study arealservice area including: the county, the location of towns or cities, <br />topography, and locations of major surface and ground water features. <br />StudyArea. Two demonstration sites on working farms will be established in Otero County, CO (1,270 <br />min), which is entirely comprised by the Arkansas River Basin. Otero County is home to the towns of <br />Cheraw, Fowler, La Junta, Manzanola, Rocky Ford, and Swink. The major surface water feature in Otero <br />County is the Arkansas River, which supplies water locally to the Catlin, Ft. Lyon, Holbrook, Horse Creek <br />Supply, Lake, Otero, Ninemile, Rocky Ford, Rocky Ford High Line Canal, and Two Buttes Canals, and their <br />associated laterals. Topography is generally flat, with elevations ranging from 4000-5000 ft, and <br />averaging 4611. <br />Demonstration Sites. The two demonstration sites will be established on farms owning shares in the <br />Rocky Ford High Line Canal and the Holbrook Canal. The Rocky Ford High Line Canal Company possesses <br />senior water rights and is involved in leasing of agriculture water to the City of Aurora in 2004 and 2005 <br />(Henrichs, 2008). This leasing program has proven beneficial in providing water to Aurora during times <br />of drought, while providingfarmersextra money for new equipment and improvementsfortheir <br />irrigation systems to help reduce labor and maintenance costs. Moreover, when the fallowed land is <br />irrigated and farmed again, during years of adequate water supplies, money is spent locally for seed, <br />fertilizer and other production items. The senior water rights owned by the Rocky Ford High Line Canal <br />Company date back to 1861, and are therefore of great value to M & I interests for both rotational <br />fallowing and interruptible supply agreements. <br />The Holbrook Canal, on the other hand, owns primarily junior water rights. The Holbrook Canal is not <br />currently engaged in a water leasing program, but the City of La Junta recently purchased four farms <br />with about 900 shares of the Holbrook Canal. La Junta plans to lease back the land and irrigation water <br />to willing farmers. In accordance with Colorado House Bill 03-1334, the city will use water in three years <br />out of 10, presumably in the driest of years. Working with the Holbrook Mutual Irrigating Company on <br />this project also offers the advantage of utilizing a storage facility (Holbrook Reservoir) to conduct <br />contract exchanges or "paper exchanges" with upstream water facilities. Water stored in Holbrook Lake <br />could be exchanged for water stored elsewhere, for instance, in Pueblo Reservoir or at a location more <br />conducive to conveyance to the final M & I user. The flexibility afforded by this approach may be quite <br />attractive to potential water leasers. <br />b) An area map showing each of the items above, as well as the locations of existing facilities, proposed <br />project facilities and boundaries of lands involved in the proposed program/project. <br />The project area will be located entirely within the Arkansas River Basin (see Figure 1, attached). <br />c) Information regarding the irrigated lands that are involved in the program/project. This must include a <br />tabulation of total irrigated acreage, description of cropping types, crop yields, and total average annual <br />water diversions for existing agricultural lands. <br />9