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PROJC02178
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Last modified
6/15/2011 8:57:22 AM
Creation date
12/2/2008 10:04:39 AM
Metadata
Fields
Template:
Loan Projects
Contract/PO #
C150275
Contractor Name
Republican River Water Conservation District
Contract Type
Loan
Water District
0
County
Lincoln
Logan
Sedgwick
Washington
Yuma
Phillips
Kit Carson
Loan Projects - Doc Type
Approval Letter
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Republican River Water Conservation District Agenda Item 26e <br />November 10, 2008 (UPDATED NOVEMBER 19, 2008) <br />Page 5 of 7 <br />voluntarily retired in the basin under CREP and EQIP, or approximately 6% of the irrigated acreage <br />in the basin. An amendment to the Republican River CREP designed to retire an additiona130,000 <br />irrigated acres has been submitted to the U.S. Department of Agriculture for approval. The <br />Republican District remains committed to continue providing local cost-sharing for the retirement <br />of irrigated land. In 2002, irrigated land in the Basin accounted for nearly 22% of all irrigated acres <br />in the state. <br />Water Rights <br />The water included in this North Fork Lease totals 43 cfs, along with certainrights-of--way and <br />infrastructure. The North Fork Lease is subject to a review of the current owner's title to the water <br />rights and rights to convey the same, and a requirement by the current owners to sign covenants to <br />dry-up the property on which the water rights were historically used. <br />The Republican District has leased a portion of the water rights in 2008, which demonstrated the <br />value of leasing such water to reduce the consumptive use charged to Colorado under the <br />Republican River Compact Administration's accounting procedures. <br />Project Description <br />The Yuma County Water Authority reviewed the pending lawsuit which seeks to redraw the <br />boundaries of the NHP Basin and may result in the curtailment of 1,338 irrigation wells (plus <br />commercial and municipal wells) in Yuma County and studied the following alternatives: <br />Alternative 1-Litigate Dispute: Both parties to the litigation were confident that they would <br />prevail in the June 2008 hearing before the Groundwater Commission. It should be noted that both <br />sides were equally confident prior to the District court appeal that lead to the hearing. At the <br />District Court level both sides won some arguments and lost some arguments. The Yuma County <br />PID expected that the parties would experience this same level of success as the litigation <br />continued. Unless the NHP Basin groundwater users were completely successful there was a <br />likelihood of curtailment of 300 to 1,300 wells. Case No. OS-GW-14 was set for a month long <br />hearing in June 2008 in front of a hearing officer for the Groundwater Commission. The Yuma <br />County PID estimated that it may take 4 to 10 years for a final conclusion to the dispute and cost <br />between $3 to $8 million for attorney and engineering fees. It was unlikely that litigation would <br />eliminate the need to mitigate impacts to the surface water users. <br />Alternative 2 -Buy out the Water Rights (SELECTED): The North Fork surface users initially <br />sought more than $40 million for their water rights, but after a year of negotiations settled for $20 <br />million. The 2003-2007 average compact depletion charged to these rights was 2,578 AF/yr for the <br />irrigation of 1,000 to 1,500 acres. This alternative prevents further litigation concerning a dispute <br />lasting more than 30 years and threatening curtailment of the water supply to 190,000 irrigated <br />acres. Coupled with the compact compliance pipeline, this purchase secures the irrigation, <br />municipal, and commercial water supplies for the NHP Basin for many years. In addition, the water <br />can be relied upon by Yuma County cities as an emergency augmentation supply in the event that <br />compact compliance efforts fail and municipal wells are curtailed. (per North Fork Lease) The <br />purchase contract also includes a dry up covenants from the sellers. There maybe additional <br />
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