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NEED FOR PROJECT <br /> LaPlata County in general and the service area of the proposed Vallecito Water Company in <br /> particular has experienced significant growth in the past seven years. The County population is <br /> presently about 40,000 people and is expected to grow to at least 59,000 people in the next 20 years. <br /> The increased population is not distributed proportionately throughout the County but is more <br /> concentrated in the proposed service area due to better roads, more suitable topography for <br /> development, more available private land, and the availability of irrigation water. The western <br /> portion of the County (LaPlata River Basin) has limited surface and ground water supplies available <br /> for development, therefore the majority of future growth in LaPlata County can be expected to <br /> occur in the Company's proposed service area. <br /> The increased population in the proposed service area has resulted in greater demands being <br /> placed on ground water supplies. Growth in the eastern portion of the County has been in the <br /> 8% to 10% per year range for the past 4 or 5 years, most of which are using groundwater <br /> resources that have limited quantities or poor quality. Residents in some parts of the proposed <br /> service area report declining water tables, with some wells going dry. The homes in the VWC <br /> proposed service area generally receive water from wells drilled into aquifers occurring in many <br /> different geologic units, as well as terrace and alluvial deposits. The quantity and quality of the <br /> water produced by wells in the proposed service area varies greatly and as a result many rural <br /> residents are forced to "haul"their domestic water supply. <br /> In November 1996, the Company sent out a survey to approximately 8,800 property owners in <br /> the proposed service area to inform them of the formation of the VWC and to inquire about their <br /> specific water needs. Of the 360 responses, 324 addressed water problems. The survey <br /> tabulation showed 41 were hauling water (13%), 73 were experiencing water quantity problems <br /> (23%), 51 experienced water quality problems (16%), 31 did not yet have a water source (10%), <br /> and 128 had no problems (38%). <br /> Water Availability <br /> The eastern half of LaPlata County, primarily including the Pine and Florida River basins are <br /> water critical areas, which means that all of the water in the basins is used during certain periods <br /> which vary from 1 to 12 months. There is essentially no additional water in the basin to be <br /> utilized without a new reservoir or importing water, neither of these options are feasible. <br /> There are two sources of water for the rural system, Lemon Reservoir or Vallecito Reservoir. <br /> Lemon Dam is also a Bureau of Reclamation facility on the Florida River but does not have <br /> water right decrees nor a contract with the Federal Government that allows domestic water <br /> usage. The Vallecito Reservoir decree includes domestic usage as does the contract with the <br /> Federal Government (see the Water Rights section). Therefore, the only existing source of water <br /> for a rural water system is Vallecito Reservoir. <br /> 5 <br />