Water Supply and Demand Study 1/13/11

Animas -La Plata Water Marketing Supply and Demand Study
Summary of Potential Alternatives
Table 2.7 is a summary of the alternatives for payment of the State's water.
Section 2
CAPITAL REPAYMENTALTERNATIVES
1. Three Payments of $12 Million
Approx. $36.4 million
10,460 AF
is estimate is based on currently available cost data
and will change as data Is updated
2. Purchase Full Allocation of State
Approx. $36.4 million assuming
10,460 AF
is estimate is based on currently available cost data
Water Overllme
no additional interest charges
and will change as data Is updated
3. Purchase of $12 Million Worth of
is estimate Is based on currently available cost data
data Is
A -LP Project Water
$12 million
3,450 AF
and will change as updated and assumes no
additional funding will be provided.
State would purchase a portion of State's Waterwith $12
4. 3120 Altemative
$10.8 Million
3,120 AF
million that Is appropriated, and retain a portion of this
fund for an escrow account to pay future OM &R costs.
5. 1560 Alternative
$5.4 Million
1,560 AF
State would retain a seat on the Association Manage-
ment Committee.
6. Allow State Water to Revert to
$0
0 AF
State's Water would revert to Tribes and State would not
Tribes
have a seat on the Association Management Committee
FIXED OM &R REPAYMENT ALTERNATIVES
Estimated to be $71,400 /year
Based on acquisition of all 10,460 AF and a fully
1. State assumes full responsibility
less payments received from
operational project
entities using State allocation
2. State assigns all or a portion of
State responsible only forthe
the Fixed OM &R costs
costs associated with water it
Based on using up to the full allocation of 10,460 AF
retains
3. State allows all or a portion of Its
No cost for waterthat reverts
Any water not sold or leased by State would revert to the
allocation to revert to the Tribes
Tribes. See Table 2.5 for incremental costs.
4. Fund an escrow account that will
Requires $2.4 Million assuming
Based on acquisition of all 10,460 acre feet
generate $72,000 annually
a 3% rate of return
Fund an escrow account orestablish
other mechanism to pay forVariable
OM &R costs if the $3,000,000
Variable OM &R Fund established by
the Association is not adequate
FINAL ALP Repo rt_1_13_11_ ILL. Docx
VARIABLE OM &R COSTS
payment or cost estimates
developed and presented
muse of the uncertainty
)lying the need and
gnitude of pumping required.
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