Water Supply and Demand Study 1/13/11

A -LP Water Animas -La Plata Water Marketing Supply and Demand Study Section 1
1.2.2 A -LP Water Marketing Supply and Demand Study
In March 2010 the State, SWCD and LPAWD began a cooperative partnership to further identify options
for utilizing State Water. Brown and Caldwell was tasked with answering the following questions
regarding State Water:
• Verify A -LP Project Water Supply and Update State Water Costs
• Identify Additional Water Demands in the Study Area
• Identify Legal and Water Right Considerations Associated with Using State Water
• Identify Implications of State Water Reverting to Ute Mountain Ute and Southern Ute Tribes
• Identify Methods to Market State Water
A -LP Project Water Supply and Updated State Water Costs
Brown and Caldwell was tasked with fully describing the physical availability, physical and legal
constraints and other water rights that can limit the use of State Water from Lake Nighthorse. This
includes review of technical studies and evaluations prepared by Reclamation and /or the Association
that describe any constraints or requirements regarding physical availability of water
Brown and Caldwell also refined capital repayment and estimated OM &R costs required to allow
marketing of the State Water. Brown and Caldwell worked with Reclamation to update the fiscal year
2011 Project Capital Cost allocation (including IDC) developed in the previous A -LP Project Study
conducted by Brown and Caldwell. In addition to refining the capital costs, Brown and Caldwell was also
tasked with identifying both the annual Fixed OM &R and Variable cost components and how payment of
those costs were required by the Animas -La Plata Operations and Maintenance Association (Association)
and lastly describing the proposed operations of the Association as related to the State Water and State
participation in the Association.
Upon determining what the projected costs for State Water were, Brown and Caldwell then developed
alternatives for paying both capital and OM &R costs. All of the capital costs have been developed by
Reclamation. The State will negotiate capital costs during development of repayment contract.
Identify Additional Water Demands in Study Area
To assist CWCB, SWCD and LPAWD with looking at marketing the State's water, Brown and Caldwell
conducted the following tasks to expand the list of possible municipal water purchasers of the State's
Water that can be reached by exchange or direct diversion. To accomplish this, the following tasks were
completed:
• Follow up with water providers identified in previous studies to verify if their planned demands have
increased, decreased or remained the same.
• Brown and Caldwell reviewed CWCB updated planning documents to identify any additional in -basin
demands for State Water in coordination with CWCB.
• Conducted an exchange analysis to identify any additional demands that could be satisfied by the
exchange of State Water into the Dolores /San Juan /San Miguel and Colorado River Basins.
• Using the results of the exchange analysis, Brown and Caldwell identified the feasibility of using State
Water to eliminate or reduce the frequency of water right "calls" on reservoirs such as McPhee,
Vallecito, Lemon, Jackson, Summit and others.
• Brown and Caldwell reviewed the possibility of using State Water for Colorado River Compact
compliance purposes to meet Colorado's obligations during droughts.
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FINAL ALP Report_1_13_11_LL.Docx