ALP 13

Mr. Tim Feehan
September 4, 2009
Page 2
' Developing a "Compact Compliance" scenario with the State to determine costs to the
State if a portion of the ALP water is retained /purchased for Compact compliance purposes
Upon completion of this phase, Brown and Caldwell will deliver a technical memorandum
summarizing results of the cost analysis. Comments on the technical memorandum will be
incorporated into the final draft of the report.
The results and findings from this task will be used in the next task, "Demand Survey," to
determine potential sales of water to water suppliers.
Demand Survey
Currently, two water providers in the area, La Plata- Archuleta Water District and La Plata West
Water Authority have expressed interest in purchasing the State's ALP project water. In
addition to these two water providers, Brown and Caldwell will compile information identifying
all municipal and industrial water providers in the ALP area as defined by the State.
Information sources to be reviewed will include water demand forecasts and other appropriate
data and information including:
' Studies completed for State Water Supply Initiative (SWSI);
' Studies completed for Animas -La Plata Basin Round Table;
' ALP Environmental Impact Statement (EIS);
• Inter -Basin Coordinating Commission (IBCC) documents;
' La Plata and Archuleta County Growth Studies;
• Local water provider use, growth, projects, and financial data; and
• Information from Rege Leach, Division 7 Engineer.
A present and future demand analysis will be compiled using this information to develop the
most likely list of water providers willing to purchase the State's water. This information will be
summarized in both tabular and map formats, along with a listing of local providers.
Once water providers are identified, Brown and Caldwell will interview each one via telephone
to determine their interest and capability in purchasing a portion of the State's allocation. The
interview will include determining:
• The range in quantity of water the provider would be interested in purchasing in acre -feet
per year;
• Water provider's willingness to take the State's chair on the Association Board;
• The level of interest and the provider's ability to participate in the operation of the
Association;
' The range of cost per AF the provider would be willing to pay;
• When the water supplier would want to begin receiving its water;
• Whether the water provider would consider leasing water from the local tribes;
• Who the water provider would prefer to buy water from if they were in the market (i.e.,
State, ALPWCD, City of Durango); and
• Whether the water provider would approve of letting the State's ALP allocation revert to the
tribes and then purchasing or leasing this water from the tribes in the future.
M: \FY2009WLP Water Marketing StudyWLP letter proposal 09- 04- 09.doc