C150156 FS

• Contract/PO #: C150156
• Contractor Name: Arkansas Groundwater Users Association
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Loan Projects - Doc Type: Feasibility Study

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I.0 EXECUTIVE SUMMARY
The Arkansas River Groundwater Users Association (AGUA) is a Colorado non-profit corporation that
was formed on January 12, 1995 to protect and develop the surface and underground waters of the State
of Colorado in the Arkansas River Basin. AGUA's current membership is over 435 wells with
approximately 350 of those wells active in 2003. AGUA also administers plans and provides
augmentation water for the Middle Arkansas Groundwater Users Association (MAGUA) with 18 active
wells, Booth Well Association (Booth) with 26 wells, 16 of those active in 2003, and a few small
substitute water supply plans. AGUA serves several different types of users with approximately 97°10 of
their replacement water provided for irrigation use and the remaining 3°Io for domestic, stock watering,
municipal and commercial uses. AGUA's primary service area is the main stem of the Arkansas River
between Pueblo Reservoir and John Martin Reservoir plus Fountain Creek. However, AGUA also has
members located above Pueblo Reservoir to the Arkansas River headwaters, and a small number of
members located on tributaries of the Arkansas and Fountain. Figure 1 shows the location of AGUA
wells.
Due to drought conditions in 2002, and continuing into 2003 resulting in a reduced availability of
replacement water, AGUA was unable to provide enough replacement water to support the total amount
of pumping ordered by AGUA members. AGUA's 2003 Arkansas River replacement plans for AGUA,
MAGUA and Booth allocated a total annual amount of pumping of 3,715 acre-feet compared to
approximately 30,880 acre-feet ordered by members for the plan year. Replacement water sources used
for replacement of stream depletions are currently leases of water from various sources and owned
Excelsior Ditch Company shares. AGUA owns 1,007 shares out of a tota13,333 shares of Excelsior
Ditch Company from a previous purchase funded by a Colorado Water Conservation Board (CWCB)
loan.
Due to the unreliability of leased replacement sources, a problem that has been magnified substantially in
' the last two years, it is AGUA's goal to acquire 50 to 60 percent of its total augmentation replacement
water need during the next 20 to 25 years. To continue working toward this goal, AGUA is currently
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requesting a loan from the CWCB for the purchase of an additiona1785 Excelsior Ditch shares offered to
AGUA by Mr. Dick Evans at $1,100 per share or a total cost of $863,500. Additionally, AGUA is
proposing the construction of a new recharge pond and enlargement of approximately four miles of the
' AGUA — 2003 Feasibility Study - 1- August 15, 2003