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LOAN FEASIBILITY STUDY <br />2.0 BACKGROUND <br />2.1.1 Purpose <br />There are many water users within the Huerfano River basin that are at risk of being curtailed <br />under the prior appropriation system due to their uses being out -of- priority to senior calling <br />water rights, including existing plans for augmentation that have failed or are failing. These uses <br />include domestic, commercial, school, and agricultural uses that will be eventually curtailed by <br />the Division of Water Resources if an adequate plan for augmentation is not developed for the <br />basin. See the July 18, 2013 letter from Steve Witte, Division Engineer, located in Appendix A <br />concerning the need for the regional augmentation plan and curtailment of existing water users if <br />the plan is not developed. <br />The Huerfano County Water Conservancy District (HCWCD) intends to use the Camp Ranch <br />Water Rights, described in Appendix B, as the source of augmentation water to replace out -of- <br />priority depletions in a Huerfano River basin wide regional plan for augmentation and exchange <br />for the benefit of Huerfano County and its citizens. The intended plan for augmentation will <br />involve a change of water rights of the Camp Ranch Water Rights from their existing agricultural <br />use to a variety of new beneficial uses, including domestic, municipal, commercial, industrial, <br />school, recreational, and for continued irrigation use. The historical consumptive use of the <br />Camp Ranch Water Rights will be quantified and that consumptive use will be measured, <br />accounted for, and returned to the stream at an augmentation station, recharge facility, or <br />augmentation well pipeline. From these points, part of the historical consumptive use directly <br />returning or accruing to the stream will be credited to the stream for the benefit of senior calling <br />water rights to replace out -of- priority uses occurring within the historical irrigation season. <br />Portions of the historical consumptive use from the Camp Ranch will also be exchanged <br />upstream into the Red Wing Augmentation Pond for later release back to the stream. The release <br />of historical consumptive use credits from storage to the Huerfano River will be used to meet <br />out -of- priority depletions accruing during the non - irrigation season, such as lagged well <br />depletions, and also to replace delayed return flow obligations to the river associated with Camp <br />Ranch Water Rights. These obligations for replacement of out -of- priority depletions and <br />delayed return flows may also be met by placement of consumptive use water and return flows <br />into a recharge facility on the Camp Ranch during the irrigation season and the later accrual of <br />that water to the stream through the alluvial aquifer during the non - irrigation season. <br />The timing of depletions from the District's required augmentation plan customers will be <br />determined as instantaneous for direct stream depletions (i.e., headgate diversions) or as lagged <br />depletions to the river with the use of use of depletion zones based on distances from the stream. <br />Lagged well depletions for customers within each depletion zone will be determined following <br />standard engineering practices for well depletions. <br />The amount of depletions will be determined through use of a standardized and presumptive <br />depletion schedule for the beneficial uses under the regional plan. In this manner, the depletions <br />