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<br />burden of being considered by many both inside and outside the state <br />of Colorado as not yet needed, and that more acceptable, practical <br />projects can be built to provide yield with less impact. And that is <br />one of the major messages that was in the Two Forks veto. <br /> <br />In addition to new major projects, there are smaller projects <br />that people are considering building and are building that add on to <br />the existing system or connect pieces to the existing system. They, <br />again, bear a lot of cost, environmental impact, institutional <br />problems that may ultimately be solvable, but you couldn't categorize <br />them as easy to solve. <br /> <br />Besides new projects, there are four other major categories that <br />we looked at in the report. One involved the use of water between <br />agriculture and municipalities -- municipal use of agricultural <br />water -- and this, I think, is an enormously important area for the <br />state and for the Front Range. Agriculture in Colorado, in fact, is <br />in a very tough position right now. Real prices for agricultural <br />crops have continued to decline, the federal government is beginnning <br />to scrutinize more and more crop commodity prices, and at the same <br />time farmers face increased capital costs for new technology for <br />meeting environmental rules and regulations. As a result, one of the <br />most important assets that irrigated agriculture has is its water <br />supply. That creates a pressure for the potential sale and transfer <br />of that supply to municipal use. And it is a vast supply. There is <br />over two-million acre-feet of water diverted annually to agriculture <br />in the South Platte basin. <br /> <br />There are several ways that agricultural water can be used for <br />municipal water supply. Conventionally and historically, cities have <br />simply purchased farms and dried them up or simply grown into farm <br />areas and acquired agricultural water rights and changed them to <br />municipal use. There are not very many cities in Colorado that don't <br />have, as part of their water supply portfolio, water rights that were <br />at one time agricultural. And that continues to go on today. One of <br />the problems is that it does impact irrigated agriculture. It reduces <br />the amount of land irrigated: it does not necessarily address the <br />change of water rights and the no-injury provisions added on to those <br />decrees in water court. It does not necessarily protect against all <br />the injury in the local regional economies. There are socio-economic <br />impacts, tax-based impacts, and Mayor Carpenter talked about some of <br />those. <br /> <br />A second approach, and one that we have been intrigued with, is <br />the notion of going a little bit less than permanent purchase and dry- <br />up of agricultural land. That is what we have called interruptible <br />supply arrangements under which cities would come to agreements with <br />groups of farmers or ditch companies that would let them interrupt and <br />use that agricultural water supply in specified, critical dry years in <br />exchange for payment to those farmers for the water used. There are a <br />lot of issues involved with that, but we see that as a potentially <br />very interesting prospect that could provide additional water in dry- <br />year periods and have the additional benefit of being essentially <br />supportive of agriculture. It does not result in a net reduction or a <br />net loss of irrigated agriculture. It could done in a way that the <br />interruptible supply burden could actually be shared among several <br /> <br />29 <br />