ALP 14

I
Background
Long Hollow Reservoir
Background and Project.Proposal
April 23, 2009
Animas- LaPlata Project authorized in 1956 as a multi - purpose project with a large reservoir and a
significant irrigation component involving lands in the La Plata River basin.
In 2000 federal legislation authorized an Animas -La Plata Project with a 120,000 ac -ft reservoir and no
irrigation component.
With the downsizing and removal of the irrigation component, the Authority's $42.4 million, held in a
cost - sharing escrow, was released. These funds were re- committed to: $7.2 million for the Animas -
La Plata Project (in exchange for the ALP WCD's 2,600 ac -ft of depletion), $15 million for water
resources development in the La Plata River basin and $20.2 million for water resources development
around the State through leveraged financing.
Since the La Plata River irrigation component was eliminated from the Animas -La Plata Project, the
Authority Board agreed to establish the $15 million escrow to assist those "existing and future non -
Indian interests" in the La Plata River basin that would have benefited from the irrigation features
contemplated under the original Animas -La Plata Project. The Long Hollow Reservoir appears to
meet this requirement.
Proposal Summary
The feasibility study was completed in April 2005. Since that time the La Plata Water Conservancy
District has been pursuing a Section 404 permit from the Army Corps of Engineers. This permit was
received in January 2009.
The project involves a 5,432 ac -ft reservoir on Long Hollow Creek, a tributary to the La Plata River.
Long Hollow Creek's confluence with the La Plata River is approximately four miles upstream of the
New Mexico state line.
- According to the submitted proposal, the primary project purpose is "to simplify and improve
administration of the La Plata River Compact for the State of Colorado_" The proposal also indicates
that the secondary project purpose is to "provide supplemental irrigation water to existing Colorado
water users within the La Plata Water Conservancy District."
- The project benefits include 300 ac -ft of stored water for compact compliance and an average 2,730
ac -ft for supplemental irrigation accomplished through an upstream exchange. The supplemental
water represents an additional 10 -14 days of irrigation.
- The project cost is estimated at $17,067,290 in 2009 dollars. Annual operation and maintenance
expenses are estimated at $54,600 or $20 per ac -ft. After construction, the monitoring costs will be
reduced resulting in the operation and maintenance costs dropping to $40,000.
- The District is requesting funding to continue engineering feasibility assessment and to complete
several environmental commitments that are required by the Section 404 permit.