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compliance water and also added an emergency augmentation supply for municipal wells. 1. Timeliness/Litigation costs Alternative 1 could have taken 10 years without a guarantee that wells would not eventually be curtailed. Alternative 2 ended the litigation and its costs immediately without well curtailment. 2. Economic Impact Under Alternative 1 there was still a possibility of eventual well curtailment. The court ruling allowing reference to the model relied on by the state presented a real possibility that the surface water users could show thousands of acre feet of well impacts. The resultant curtailment would cost the community tens of millions per year. Alternative 2 not only prevented curtailment, but also established the maximum extent of economic impact at a level much less than what would have been caused by curtailment. 3. Compact Compliance Water Alternative 1 would not have added to the water supply used to bring Colorado into compact compliance. Alternative 2 will provide up to 2578 acre feet of compact credits and will prolong the useful life of the compact compliance wells and pipeline. 4. Emergency Augmentation Supply Nearly 6,000 people live in cities in Yuma County. Unlike the small domestic wells that provide water for rural residents in the rest of Yuma County, the municipal designated basin wells are subject to curtailment. Unlike other water basins in the state, there is no source of augmentation or replacement water to allow continued operation of these municipal wells. The Wray wells are so close to the river that even the smallest potential curtailment would result in their wells being shut down. Alternative 1 would only protect all of the municipal wells if the NHP Basin well users won on every issue and even then it would provide no protection from a compact call. Alternative 2 would prevent curtailment from both de-designation and a compact call. 4.0 COST The purchase price for the North Fork Water Rights Purchase is $20 million. Of this amount, RRWCD WEA will pay $5 million in the form of a one-time, upfront lease payment under the North Fork Lease. The remaining $15 million will be payable by YCWA PID and shall be financed from funds derived from bonds issued by YCWA PID and, in part, by the funds from the requested CWCB loan. There may be additional engineering and legal costs to complete the Transaction, enter into and administer the North Fork Lease, maintain ditch and reservoir infrastructure related to the Water Rights 12368\1\1204400.5 7