PROJC02291 (2) - Laserfiche WebLink

Home Browse Search

Park Center Water District January 20, 2009 -Updated January 27, 2009 Page 2 of 6 Agenda Item l la 2) Prior to signing a contract with the CWCB, the District must obtain written approval of the well drilling Project from the BLM as required in its existing lease document. Staff further recommends the following clause be included in the contract: If the District is successful in obtaining federal assistance through congressional funding or it (in conjunction with the BLM) receives emergency funds for well drilling, it will apply such funds towards repayment of the CWCB loan. Background Park Center Water District is located in Fremont County on the north side of Canon City. The District was formed in 1968 by irrigators of small ranches and farms as a means of supplying residents with drinking water. Prior to the District formation, the residents hauled water to fill cisterns or they took water directly from the ditch, which flowed with the Park CenterlBLM well (well) water. In the 1960s, a water system was constructed to deliver water to area residents. Until 1995, the sole source of this supply was the well. The 3,216 foot deep well was originally drilled as an oil exploration well between 1923 and 1927. The well failed to produce oil or gas; however, a large artesian aquifer was discovered. The BLM purchased the well from the oil company and began selling water to area users in 1937. The well has a 1938 decree for 2.67 cfs and is nontributary. The District has leased this well for forty years and has a first right of refusal to renew the lease when the current lease expires in 2021. The BLM currently charges the District $0.43 per 1,000 gallons of water for municipal and domestic use and $0.23 per 1,000 gallons of water diverted for irrigation use. The BLM has the right to modify the lease at five year intervals for purpose of updating the pricing of water. In the spring of 2008, the well developed a leak allowing water to reach the surface. The BLM had a contractor inspect the well and it was determined that leaks existed from 10 feet to 2,400 feet below the surface. The well leaks are causing water to come up outside of the casing. The District has installed piping to take pressure off of the well and is diverting this water to an irrigation ditch until repairs can be made. In addition to seeking funding through the CWCB, the District is attempting to get federal assistance through congressional funding and/or funds from the BLM for emergency well drilling. If it is successful in obtaining other funding, the CWCB contract will require that those funds be applied towards repayment of the CWCB loan. Loan Feasibility Study The Loan Feasibility Study titled "Feasibility of Drilling a New Well at the Existing Park Center Well, November, 2008" was prepared by Debbie Marsicano, District Manager, with technical support from Roy Smith, Water Rights Specialist, BLM. The study was prepared in accordance with the CWCB guidelines and includes a hydrogeologic report and cost estimates.