Final Draft ALP Marketing Supply and Demand Study

Animas -La Plata Water Marketing Supply and Demand Study
Section 2
The most recent estimate of Fixed OM &R Costs, provided by Reclamation, was in March 2009. No
additional updates are anticipated until the computerized asset management/preventive maintenance
program is fully operational. The current estimate of annual Fixed OM &R Costs ranges from $610,000
at startup increasing to $680,000 when the Project is considered fully operational (2009 dollars). This
cost increase can be attributed to the additional OM &R of Project facilities once the Project is fully
utilized. The $610,000 per year includes OM &R costs for replacing evaporation and seepage losses at
Lake Nighthorse, which are estimated to be 2,700 AF annually. While the Association is currently
utilizing these estimates for planning purposes, it should be clearly understood that these are estimates
only and are subject to change as actual project operating experience is gained. Appendix B of this
report details OM &R costs.
Table 2-4. Estimated
Dollar d OM&R Costs for
Each A-LIP Association Member
Full Allocation
Minimum Allocation
State's Minimum Allocation
(10,460AF/YR)
(1,560AF/YR)
(1,560 AF/YR)°
Startup
Full Operation
Southern Ute Indian Tribe
.........
35.5
39.95
Ute Mountain Ute Tribe
35.5
39.95
La Plata Conservancy District
_._.__ ._..._.--- .._..__.._- _- ___._..� ......_. ............ _.._.. _....._
1.6
1.6
San Juan Water Commission
_ ._..__---- .... _ ....... .__..._... --...... .......... ..._ .......... .__ -.
8.7
8.7
Colorado Water Reservoir & Power Development Authority (A- LPWCD)
._ ............ ._..�_.____ _....._. _......_.�
5.7
5.7
Navajo Nation
2.5
2.5
State of Colorado
10.5
1.6
Section 2
The most recent estimate of Fixed OM &R Costs, provided by Reclamation, was in March 2009. No
additional updates are anticipated until the computerized asset management/preventive maintenance
program is fully operational. The current estimate of annual Fixed OM &R Costs ranges from $610,000
at startup increasing to $680,000 when the Project is considered fully operational (2009 dollars). This
cost increase can be attributed to the additional OM &R of Project facilities once the Project is fully
utilized. The $610,000 per year includes OM &R costs for replacing evaporation and seepage losses at
Lake Nighthorse, which are estimated to be 2,700 AF annually. While the Association is currently
utilizing these estimates for planning purposes, it should be clearly understood that these are estimates
only and are subject to change as actual project operating experience is gained. Appendix B of this
report details OM &R costs.
Table 2-4. Estimated
Dollar d OM&R Costs for
Each A-LIP Association Member
State's Full Allocation
State's Minimum Allocation
(10,460 AF/YR)
(1,560 AF/YR)°
Startup
Full Operation
Startup
Full Operation
($ /year)
($ /year)
($ /year)
($ /year)
Southern Ute Indian
216,550
241,400
243,695
271,660
Tribe
Ute Mountain Ute Tribe
�_�_.._._.___......._....�._.._
216,550
.__.._.__......_.___
241,400
243,695
-._ --
271,660
La Plata Conservancy
9,760
10,880
9,760
10,880
District
San Juan Water
53,070
59,160
53,070
59,160
Commission
Colorado Water
Reservoir & Power
34,770
38,760
34,770
38,760
Development Authority
Navajo Nation
__..__._....._......___ __.....-
15,250
......._..._........._ ... .
17,000
......... ........,
15,250
17,000
State of Colorado
64,050
71,400
9,760
10,880
Total Fixed OM &R
610,000
680,000
610,000
680,000
If Colorado acquires its entire statutory allocation of A -LP Project water (10,460 AF supply and 5,230 AF
depletion) it would pay 10.5 percent of the Fixed OM &R Costs, or $64,050 per year at startup. If
Colorado acquires only the minimum 1,560 AF of supply required to become a member of the
Association and the remaining water and the Fixed OM &R Costs revert to the Ute Tribes, as provided for
2 -7
FINAL ALP Repo ri_1_13_ 11_LL.Dorx