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Alternative Agricultural Water Transfer Methods -Grant Application Form <br />January 2008 <br />4. ProgramlProjectEligibilhy. Please describe how the proposed program/project meets each of the following <br />eligibility requirements (please see Criteria and Guidelines for additional information regarding the alternative <br />water transfer methods/strategies that qualify for funding). Note: If these requirements are addressed in other parts <br />of the application you may simply reference the applicable section(s). <br />a) A description of how, if implemented, the proposed program/project will protect property and water <br />rights. <br />The proposed project would demonstrate water transfers under the auspices of a broker (i.e., the Super <br />Ditch Company). Such transfers offer agricultural water rights holders a realistic and profitable <br />alternative to simply selling these rights. In this regard, leasing is a strategy that helps farmers and rural <br />communities protect their water rights, while still utilizing them for application elsewhere on a <br />temporary basis. Demonstration of the strategy will aid in gaining farmer "buy in" to this approach. <br />b) Identified group(s) of agricultural users that are or may be willing to transfer a portion of their water and <br />identified entity(s), group(s) or area(s) where the transferred water could or would be put to the new use <br />and a description of the new use. <br />The Lower Arkansas Valley Water Conservancy District will help to identify farmers associated with the <br />Rocky Ford High Line Canal Company and the Holbrook Mutual Irrigating Company who may be willing <br />to transfer a portion of their water in coordination with this project (Winner, personal communication). <br />The Rocky Ford High Line Canal, for instance, is presently involved in a leasing program which has <br />already been accepted by much of its membership, but the land involved is largely managed by the leasing <br />entity (City of Aurora) through the Arkansas Valley Range Project, <br />The water associated with the proposed activities and demonstration sites will be transferred to the <br />extent that M & I interests work with the Super Ditch Company. It is likely that transferred rights may <br />be utilized by the City of Aurora (see attached Letter of Support), which has entered into multiple leasing <br />arrangements throughout the Valley. The cities of Colorado Springs and Fountain, the Colorado Division <br />of Wildlife, and the Colorado Division of Parks have also expressed interest in leasing water for drought, <br />drought recovery, Colorado River calls, and recreational use. <br />c) The program/projectrnust at a minimum conceptually describe the technical, institutional, and legal <br />elements of the water transfer. Grant monies may be used to address one or more of these elements. If <br />grant monies are not requested for all three elements, the grant applicant must describe how the applicant <br />has or intends to address the elements, which are not included in the grant request, through other efforts. <br />These three elements are described in detail in Part B (Question 1) of this application under "Purpose of the <br />Program/Project." Grant monies will be used to demonstrate the technical, institutional, and legal elements <br />of water transfers under rotational fallowing and interruptible supply agreements, Grant monies will be <br />used to compensate cooperators for lost income due to fallowing and also for management required to <br />prepare land for production after the fallow period. Grant monies are also requested to assist CSU <br />personnel in conduct research and research-based outreach on the project. Pertinent legalities of water <br />transfers will be coordinated in cooperation with the City of Aurora or the Lower Arkansas Valley Water <br />Conservancy District, therefore no funding is requested for legal assistanc. <br />d) If grant monies are proposed for use for legal assistance then the use of those funds shall be oriented <br />toward advancing the knowledge of alternative agricultural water transfer methods and techniques; not <br />for preparation of a specific water court case. The total requested funds for legal assistance shall not <br />exceed 40 percent of the total grant request. In addition, grant monies proposed for use for legal <br />12