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Feasibility Study Southeastern Colorado Water Conservancy District Arkansas Valley Conduit Introduction The Fryingpan-Arkansas Project was approved by Congress and signed into law in 1962. This project is the result of years of work by the people of Southeastern Colorado in an effort to firm their precious, yet limited water resources. This project is a transmountain diversion system that delivers supplemental water to cities, farmers and ranchers all along the Arkansas River. Two parts of the original design of the project are conduits to move water from the terminal storage facility of Pueblo Reservoir to communities in need of clean water for treatment. One of these conduits, the Fountain Valley Conduit, has already been built and has been delivering water to Colorado Springs and its surrounding communities since 1985. The second conduit however has not yet been built. The Fryingpan-Arkansas legislation calls for the conduits to be paid for 100% by the communities that will be receiving the water. The large and growing population of Colorado Springs and its surrounding areas, made possible the construction of, and payoff of the Fountain Valley Conduit a reality. However, the lower Arkansas Valley was never able to afford the full cost of the conduit, thus it is still on the drawing board. There have been a couple of attempts to bring the Arkansas Valley Conduit to fruition, but always with the same answer - No, the conduit can not be built because the participants cannot pay 100% of the cost. In 2001, a group of water providers and governmental agencies in Otero County formed a group ~ called Waterworks. The group was formed to address water issues and it began the process of trying to get the Arkansas Valley Conduit built. This effort was successful in bringing the necessary groups together and starting the process of moving the conduit forward. After two years and a $200,000 study to verify that the conduit could be built, Waterworks asked the Southeastern Colorado Water Conservancy District to assume the responsibility of moving the conduit process to completion. The District agreed and is now working with water providers of the lower Arkansas Valley to accomplish this much needed project. This study proposed that the only way the valley could afford to build the project was if there was a federal cost share arrangement. Senator Allard has worked to draft legislation that will provide a federal cost share of approximately 80% paid by the Federal Government, and 20% paid locally. This legislation is working its way through Congress and it is hoped to be passed before the end of 2006. Project Sponsor The Southeastern Colorado Water Activity Enterprise, a business function of the Southeastern Colorado Water Conservancy District (SECWCD~ is the sponsoring agency for this project. The District is formed under C.R.S. 37-45 and the Enterprise is a function of the District that operates