ALP 4

October 16, 2012
Jennifer Gimbel, Director ✓
Tim Feehan, Assistant Director, Resource Management
Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO 80203
RE: ALP Water, La Plata Archuleta Water District ( "District ")
Dear Ms. Gimbel and Mr. Feehan,
RECEIVE.-
2 IV
OCT 22 2012
Colorado Etter
Conservation Board
The District Board of Directors have authorized me to make the following proposal for
acquisition of ALP Water by the District from the Colorado Water Conservation Board
( "CWCB") to provide a firm source of raw water for the District's future treatment needs. The
District has supported the CWCB's acquisition of the State's allocation of ALP Water and has
consistently indicated its desire to acquire a portion of that allocation. We understand that
CWCB has nearly completed this acquisition and will entertain proposals for acquisition of some
of this water by water providers in southwestern Colorado. Please consider this letter to be the
District's Proposal for those purposes.
Assumptions
Subject to correction by either Party, for purposes of this Proposal it is assumed that
10,460 acre -feet of ALP Water has been acquired by CWCB (as indicated in Ms. Gimbel's letter
of July 18, 2012 to the District) and it is further assumed that the current estimated cost of the
Water to the State is $3,545/AF, subject to the final Reclamation cost allocation. OM &R
expenses are presently projected to be approximately $10 /AF per year until water is actually used
from the reservoir.
Purchase Agreement / Lease - Purchase Agreement
The District would like to develop an agreement that preserves intact its present voter
debt authorization. Any such agreement must be subject to annual appropriations in the sole
discretion of the District Board for both the payment of the purchase price for the ALP Water to
be acquired and for the payment of any portion of the OM &R expenses.
The District proposes to commit to the incremental acquisition of up to 2,500 AF of ALP
Water during the term of an Agreement ending December 31, 2060. The District would also
intend to pay the OM &R expenses on 2,500 AF of ALP Water for the term of such Agreement.
As each incremental purchase is completed, the District shall be solely responsible for paying all
future OM &R expenses for all of the ALP Water it has acquired. So long as the District
continues to have the opportunity to purchase additional ALP Water, it will continue to pay the
OM &R expenses on that Water as well.
P.O. Box 1377 / Ignacio. Colorado 81137
(970) 563 -0320