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This alternative involves purchase of approximately 45 to 70 acre-feet of senior consumptive <br />use water rights that would be acceptable to augment the existing water rights. The exact rights <br />that the KTC will purchase are yet to be determined, because of the uncertainties of availability <br />and purchase price. (Senior water rights have a current market value of about $5,500 to $7,500 <br />per acre-foot of consumptive use.) This alternative also has engineering and legal costs <br />associated with conversion of those rights to augmentation use, and the engineering and <br />construction costs associated with installation of a low-level outlet in the emergency spillway, <br />and raising the dam approximately12 inches. Our preliminary opinion of the project cost for <br />Alternative 4 is summarized below: <br />Table 1. Preliminary Opinion of Probable Costs <br />For Selected Alternative 4 <br />Water Ri hts $550,000 Bud eted urchase cost of water ri hts onl <br />Construction $150,000 Installation a�d material costs for outlet works, and <br />raisin the dam crest elevation <br />Engineering $50,000. Diligence investigation of potential water rights for <br />purchase, engineering studies to support water right <br />transfer in water court, assist legal counsel with water <br />right transfer, reservoir operation studies, finalize design <br />of outlet works and dam modifications, obtain permits <br />and other required approvals, and construction <br />observation. <br />Legal $50,000 Negotiations of contract(s) to purchase water, water <br />right appraisal(s), legal activities associated with getting <br />a decreed au mentation lan. <br />TOTAL $800,000 <br />Implementation Schedule <br />Currently the KTC has leased augmentation water for 2001. The purchase and transfer of water <br />rights is estimated to take at least one year. During the year the KTC will need finances for <br />engineering and attorney fees. The actual availability of senior water rights for transfer can very <br />due to market considerations and the willingness of current right holders to sell. Currently the <br />KTC has contacted two different water right owners for possible sources of augmentation water <br />but has no firm schedule for the purchase of water. <br />Permitting <br />No new easements or right-of-ways are required for this project. A preliminary inquiry to the <br />Dam Safety Engineer of Water Division 1 in Greeley indicated that the level of improvements <br />contemplated under the selected alternative could be handled on an administrative level without <br />requiring a permit from the State Engineer. When the augmentation water is identified the <br />magnitude of the proposed improvements can be quantified and a specific determination on this <br />issue can be made. The assumption at this point is that no permit will be required. There appear <br />to be no 404 permitting requirements at this time. <br />Kenosha Trout Club _ Page 6 of 9 <br />Feasibility Study - Augmentation Water Purchase 1038KTCO2 <br />March 2001 <br />