9356

• UCREFRP Catalog Number: 9356
• Author: Wigington, R.
• Title: Water Right Marketing Strategies to Protect Instream Flows in Colorado.
• USFW Year: 1990.
• USFW - Doc Type: \
• Copyright Material: NO

i
S. The last two parties come into play if the bypassed water
keeps Halligan Reservoir from filling in the spring. The winter
bypass is small enough so that Halligan Reservoir would fill up
anyway in most years but a shortfall in a dry year could force
the Company to reduce the yield to all shares in the Company
disproportionately. To keep the Company and its shareholders
whole in case the bypass did keep Halligan from filling, the
Conservancy agreed to purchase options to lease shares in the
Company thatlwould cover such shortfall on a 2 to 1 basis and not
take delivery on those shares. The 2 to 1 payback was necessary
to maintain a uniform yield per share throughout the Company if
Halligan did not fill. The Conservancy was then able to purchase
an option to lease 1 block of North Poudre shares from the City
of Fort Collins and an option to lease a number of CBT units from
the City of Loveland for trade to the City of Fort Collins for
the balance of the North Poudre shares required under the
agreement.
Last year, Halligan did not fill because of the bypass and
The Nature Conservancy exercised its option with Fort Collins and
paid $20,000 to maintain deliveries to all other shareholders in
the Company. This year because of the wet March, Halligan
Reservoir is about to spill and the Conservancy will be able to
release its options with Loveland and Fort Collins.
26