Southeastern Coloraodo Water Conservancy District 2002 Annual Report

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2002 Water Allocation Policy in Review Each spring, the Board of Directors distributes and accepts applications from municipal and agricultural water users. This begins the process of allocating the available water from the Fryingpan- Arkansas Project. By May 1 of each year, the U.S. Bureau of Reclamation estimates the amount of water available for allocation based on estimates of spring runoff available for diversion in the Project collection system. This estimate of allocable Fry -Ark diversions is the basis for the allocation, which is finalized by the Board at their May meeting. Municipal and agricultural water users within the boundaries of the Southeastern Colorado Water Conservancy District are eligible to receive an allocation of water from the Fry -Ark Project. Fry -Ark Project water provides a supplemental source of water for irrigation and domestic use. The District's Allocation Principles allow for domestic use of Project water to take priority over irrigation usage. Fifty -one percent (51 %) of the available Project water is reserved for municipal purposes, and forty -nine percent (49 %) is reserved for irrigation purposes. Since the Project started delivering water, 2002 was the first year that the demand for Project water by municipal water users exceeded the full fifty -one percent (51 %) of the water to be allocated. Historically agricultural water users have been allocated more than their forty -nine percent (49 %) share. Water for farms within the District is allocated on an acre -foot per acre basis. The 2002 Project water rate was $7.00 per acre -foot. This rate was charged to both agricultural and municipal water users. The U.S. Bureau of Reclamation, in consultation with the District, sets the rate for Fry -Ark Project water. The rate for Project water is reviewed by Reclamation every four years, and is subject to change based on a formal Repayment Analysis and Ability to Pay Study. Additionally, a Safety of Dams surcharge of $1.25 for agricultural entities and $2.00 for municipal entities is added to the price of the Project water. All of the revenue generated from the sale of Project water goes to Reclamation to pay for the ongoing operation and maintenance of the Project facilities. Over the last decade the District has allocated an average of 74,982 acre -feet of Project water each year. In 2002, the District allocated 10,864 acre -feet of Project water (including 2,200 acre -feet of Enterprise owned Project water). The District has a formal application process for those interested in purchasing Project water. The Allocation Committee based on the District's Allocation Principles and Allocation Policy reviews each application. Copies of these documents are available from the District staff and would be useful for anyone interested in purchasing Fry -Ark Project water. Historic Allocation of Fryingpan- Arkansas Project Water 1972 —2002 13