Arkansas - Rotational Land Fallowing - Water Leasing Program_Contract & Scope of Work

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� Deliverable: Forty-year Financial Plan for the operation of the Super Ditch Company, including the spreadsheet model and its supporting documentation. AA of the deliverables for TASK E will be included in an Economics Technical Memorandum. Task F— Pipeline Alternatives (Alternative Permanent Ag Transfer Method Grant Program) HDR's Final Feasibility Study involved an assessment of the exchange capacity remaining in the Arkansas River between Pueblo Reservoir (upstream) and the John Martin Reservoir. This quantity was estimated as the minimum flow rate remaining after meeting all existing demand requirements, including minimum instream flows and downstream commitments. While it appears that there may be some capacity to exchange Super Ditch water upstream to Pueblo Reservoir, in reality, much of that capacity may be consumed by exchanges already adjudicated or pending in water court, e.g., Colorado Springs et al's Colorado Canal decreed exchange, and the Aurora- Highline Canal pending exchange. The recent Boyle pipeline study looked at combining the alignments of four contemplated pipeline projects. Because the Arkansas River exchange capacity is quite limited, it will be necessary to find other means to transport water to the Project's customers. One such option is the construction of new transmission pipeline(s). This Task will build on the information in the Boyle study and identify the following with regard to water leases by the Super Ditch Company: • Required pipeline capacities • Number of pipelines to be constructed (i.e., would there be multiple pipelines taking water from various points along the Arkansas River, or would there be one major pipeline, with branches serving various customers) • Location and timing of diversions to pumping facilities • Pump station locations and capacity requirements (e.g., number of pumps, pump power requirements, etc.) • Pipeline delivery locations • Cost estimate, including materials, construction, O&M, right-of-way/easement acquisition, etc. All pipeline configurations developed during this phase of analysis would be preliminary and subject to revision during final design. However, a level of detail would be achieved that is sufficient to meet any requirements for a water court application or local land use permit, as described below: 1. Refine the Pipeline Alignment for the preferred altemative (Timber Lakes) • Identify more hydraulically efficient alignment(s) • Research and identifjr environmental concems and obstacles • Evaluate costs and availability of electrical power • Identify right-of-way corridors and sign�cant property barriers • Recommend a preferred alignment 2. Refine Pu►�p Station concepts • Further develop the pump station concepts — pumping head, pump size & no. of pumps per pump station, pump type January 22, 2009 7