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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2.0 INTRODUCTION
This report presents the results of a feasibility study that was completed for the Arkansas Groundwater
Users Association (AGUA) under a loan from the Colorado Water Conservation Board (CWCB). The
investigation focused on the feasibility of purchasing water rights for use as a permanent augmentation
water source in AGUA's Arkansas River replacement plan, enlargement of the Excelsior Ditch and
construction of a recharge pond. AGUA relies heavily upon annual or short-term augmentation water
leases to replace its well pumping depletions. Potential lease sources include the Board of Water Works
of Pueblo (PBWW), Southeastern Colorado Water Conservancy District (SECWCD), Colorado Springs
Utilities (CSU), Cherokee Metropolitan District (Cherokee) and the Excelsior Ditch Company. AGUA
currently owns 1,007 shares of Excelsior Ditch, which provide its only owned source of replacement
water. It is AGUA's goal to acquire 50 to 60 percent of its total augmentation replacement requirements
through purchasing water rights in the next 20 to 25 years. It is also AGUA's goal to continue to slowly
phase-in the acquisition of water rights so as to gradually increase the fees assessed to its members.
� AGUA purchased 1,007 Excelsior Ditch company shares in March of 1998 from Mr. C.R. (Dick) Evans.
Funding for that purchase was provided through a loan from the CWCB and therefore a feasibility study
' was prepared as required by, and in accordance with, CWCB guidelines. The 1997 feasibility study was
prepared by Tetra Tech RMC (Rocky Mountain Consultants). We have used data available in that report
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as a basis for this feasibility study as directed by the CWCB in Section 4.2.3 of the Water Project
Construction Loan Program Guidelines for Financial Assistance through the Colorado Water
Conservation Board Construction Fund which states "To the maximum extent possible, the results of
any previous studies and investigation should be utilized for the current feasibility study". We also
prepared an unpublished draft report for MAGUA in October of 2000 titled "Feasibility Study — Draft
Report — Augmentation Water Acquisition Of The Middle Arkansas Groundwater Users Association" in
anticipation of MAGUA requesting a CWCB loan for the purchase of water rights. We have also used
and referenced information presented in that draft report in our current analysis for AGUA.
Six water right purchase alternatives were examined in AGUA's 1997 feasibility study. AGUA was
approached by the sellers of the water rights and had not actively searched to purchase other water rights
for augmentation. The six water right purchase alternatives investigated were:
' AGUA - 2003 Feasibility Study - 3- August 15, 2003