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Delivery Deficits 2 . August 26, 2003 <br />Then, of all such water delivered in excess of this specified amount, 11 percent of those <br />deliveries shall.be transferred to the Kansas account and 24 percent of those deliveries shall <br />be transferred to the account of the Colorado Water District 67 ditches. Transfers into the <br />accounts for Colorado Water District 67 ditches shall be distributed according to the <br />percentages in Subsection II D (3). herein; except the Amity shall not share in distributions <br />of deliveries under Subsection III A, herein." — Emphasis added. <br />These sections provide . that if there is a transit loss (delivery deficit) on a Kansas release, then the <br />extent of those losses are determined and replenished from the Transit Loss account. For example, if <br />the delivery deficit is 600 AT and there is at least 600 AF in the Transit Loss account, then 600 AF is <br />transferred to the Kansas Section H account, thus replenishing that account. <br />However, if a transit loss occurs that exceeds what is available in the Transit Loss account, then <br />the deficit is to be replenished from the next available water under Section III.D., which in part <br />provides: <br />"First, transfers from deliveries shall make up deficits, if any, in the Kansas transit loss <br />account which result from Subsection II E (4), herein, and shall then also fill the said Kansas <br />transit loss account to the amount of 1,700 acre - feet." — Emphasis added <br />Under this condition, the Kansas release as physically measured at the stateline resulted in a delivery <br />deficit in an amount that exceeded the water available in the Transit Loss account. The Transit Loss <br />account cannot fully replenish the Kansas Section II account. The actual deficit can onlybe attributable <br />to the Kansas Section II account. Section III.D. is very clear that any deficit is to be made up first. <br />After any deficit is made up, the 35% charge fills the Transit Loss account to 1700 AF. Please note that <br />under this description, there does not exist an amount greater than 1700 AF in this account, because the <br />transfer into and out of the Transit Loss account satisfies the outstanding delivery deficit first. This <br />section even goes onto say that the 35% charge in excess of the 1700 AF is to be allocated between the <br />Colorado and Kansas Section H accounts. <br />We have discussed the need to look at this language, and possibly propose clarifying language. <br />The current language seems to provide a well defined process to address any delivery deficits that may <br />occur as the result of a Kansas Section II release. Therefore, I do not see any need for clarifying <br />language. Should you bave any questions, please feel free to call this office. <br />KLS:kls <br />pc: Jim Rogers, ARCA Rep <br />David Brenn, ARCA Rep <br />Sincerely, <br />ter, P.E. <br />aer Team <br />