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Water Supply Reserve Account—Application Form Revised December 2011 2. For Applications that include a request for funds from the Statewide Account,describe how the water activity/project meets all applicable Evaluation Criteria. Tier 1: Promoting Collaboration/Cooperation and Meeting Water Management Goals and Identified Water Needs a. The water activity addresses multiple needs or issues, including consumptive and/or non-consumptive needs,or the needs and issues of multiple interests or multiple basins. Multiple Consumptive Needs/Benefits • Combined transit and gvaporative losses sustained under the current delivery regimen were 66%in 2012(data source-State Engineers Office and Colorado Canal Co). The Feedyard owns 3 Twin Lakes shares and 569 Colorado Canal shares. This means that the Feedyard was forced to lease or purchase from the spot market an additional 882 acre feet of year just to cover evaporative loss and still provide 500 acre feet of water to the feedyard. The Feedyard lost 954 acre feet of water in order to provide 500 acre feet of water to the feedyard. This pipeline project eliminates 850 acre feet of that loss,conserving and freeing up that water for M&I use by multiple basins. • The current water supply is not secure. Spot market purchases of water will be increasingly vulnerable to climate, population growth,and other factors outside the control of the feedyard. This project reduces the amount of water needed,and eliminates the necessity of spot market purchases for the foreseeable future. • The current water supply storage and delivery system is not secure. The majority of Lake Henry water rights are held by Front Range cities. The reservoir's water levels are controlled mainly by Front Range users,creating another area of increased vulnerability for the company. When less water is stored in Lake Henry,evaporation rates become greater. In the 2012 drought,the Feedyard was forced to install a floating pump in Lake Henry in order to get required water from the Lake. The proposed project replaces this delivery system. • With use of Feedyard-owned wells,augmentation water could be stored at higher elevation reservoirs,further reducing evaporative loss. • Water quality from project wells is of higher quality than water that is currently being used. The project conserves potable water by allowing the conversion of the feed mill to a non-treated water source. The Feedlot currently uses an average of about 500,000 gallon of treated,potable water per month from 96 Pipeline Company,mostly for their feed mill. With the clean well water supply and future conversions at the mill,well water will replace the potable water from 96 Pipeline. Assuming that this conversion could reduce the 96 Pipeline use by 400,000 gallon per month,approximately 14 ac/ft per year of potable M&I water would be saved. Table 1-7 of the AV Conduit Draft EIS shows that the 2010 96 Pipeline demand was 56 ac/ft. Page A.1-4 states that AVC deliveries to 96 Pipeline are estimated to be 27 ac/ft per year of Fry-Ark allocations. This savings,therefore,would reduce that required allocation by over 50 percent,freeing up this water supply for M&I use. Non-Consumptive Benefits The water activity addresses multiple non-consumptive environmental and recreational needs. • Riparian Habitat: Water will no longer be diverted at Boone. The diversion point moves downriver, improving wetlands,riparian and aquatic habitat along an estimated 36-mile reach of the Arkansas River. • Improved Air Quality: Some water savings will be used for much-needed dust abatement, improving air quality, human health and the aesthetics of the surrounding area. Multiple Interests • Installation of ten fire hydrants along the waterline provides an emergency water supply to fight farmstead and wild land fires from west of Crowley to east of Ordway. A 2008 wildfire in rural Crowley County killed two firefighters, destroyed 22 structures and damaged 11 others. Destroyed structures were valued at a total of 9