ALP Project Water Supply and Demand Study

Animas — La Plata Water Supply and Demand Study
In 00, the U.S. Congress amended the Ute Settlement Act and authorized the final configuration and cost
shai ng and financing of the A -LP. Funding of the A -LP Project was provided by the United States
Der axtment of Interior through the United States Bureau of Reclamation (USBR). The 2000 amendment to
the 986 Agreement discusses non -Tribal municipal and industrial water capital repayment obligations for the
A- Project. A -LP Project water allocations could be obtained upon payment in full of non -Tribal water
cap' Lal obligations prior to initiation of construction, based on the appropriated share of water. In such case,
the :e-paying partner would not be subject to interest accruing on the project during construction. For those
no Tribal parties who did not purchase water prior to initiation of construction, interest on the A -LP
Pro ct would accrue during construction.
1.; Water Supply and Demand Study Purpose
The State of Colorado (State) currently has an allocation of 10,460 AF of A -LP Project and is investigating
the otential for marketing this water to local water providers in southwestern Colorado. This includes
i ider tifying the quantity of water that water providers ' the vicinity would be interested in purchasing, how
mu (h these providers would be willing to purchase this water for, and when these parties would anticipate
nee g this water. This information can also be used to assist the State in determining how much water
frot the State's A -LP Project allocation could be used for Colorado River Compact compliance purposes.
To�ssist the State with this water supply and demand study, Brown and Caldwell was contracted by the
Co rado Water Conservation Board (CWCB) to complete the following tasks.
t Analysis
Bec ause construction of the A -LP Project has been mostly completed, an update of the capital and interest
dur ng construction (IDC) costs, which must be repaid for the State's allocation, was required. The USBR
exp tcts to transfer the A -LP Project from "construction" to "operations and maintenance" (O &M) status
son Letime in 2011. This change in status will be a formality which will stop the accrual of IDC. At that point,
ID will become a capitalized cost. In addition to updated capital costs, an analysis of estimated costs for
op rations, maintenance, and replacement (O, M, & R) were also developed. This information was used to
det rmine the price, or price range, at which the State can market water to local water providers. In addition,
the CWCB will use the preliminary information from the cost analysis to determine the feasibility of the State
of Colorado purchasing all of the remaining State A -LP Project water for Compact compliance purposes.
C CB will also use the preliminary cost analysis to review the feasibility of allowing the States water to revert
to Tribal ownership and then re- selling it to the State or local water providers at a later date.
Dilmand Survey
Ide atifying future demands for water is critical to the State's determination of how much water it should
p hale from the A -LP. Currently, two water providers in the area, La Plata - Archuleta Water District and
La lata West Water Authority have expressed interest in purchasing a portion of the State's A -LP Project
wa r. In addition to these two water providers, Brown and Caldwell has compiled information identifying
M I water providers in the A -LP Project area as defined by the State. Information sources to be reviewed
wil include water demand forecasts and other appropriate data and information including State -wide planning
dat i from the State Water Supply Initiative (SWSI) and basin round tables, County planning documents, and
loc tl planning documents.
A I resent and future demand analysis was compiled using this information to develop the most likely list of
wa er providers willing to purchase the State's A -LP Project water. This information was summarized in both
to ar and map formats, along with a listing of local providers.
1 -2
Ftat_a Ceo'x 11 st, ,y. 1 -1 1 :d.11 1 , ',,I,dy f I ',_Pu,F1.d;,c: