C153756 Approval Letter

• Contract/PO #: C153756
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

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STATE OF COLOPADO
Colorado Water Conservation Board
Department of Natural Resources
%
721 Centennial Building ,_`� I�
1313 Sherman Street %mt.,
Denver,Colorado 80203
Phone:[phone]
FAX:[phone] Roy Romer
Governoi
MEMORANDUM
James S.Lochhead
Executive Director,DNR
TO: Colorado Water Conservation Darien C.Lite, E.
�tiionn Board Members Director.CWCt3
FROM: Bill Green and Jan Illian�
Project Planning and Construct) Section
DATE: January 27, 1997
SUBJECT: Agenda Item 13., January 29-30, 1997, Board Meeting -- Water Project
Construction Loan Program — Lower Arkansas Water Management Association -
Feasibility Study Loan
INTRODUCTION
The Lower Arkansas Water Management Association (LAWMA) is applying to the CWCB for a Construction
Fund loan in the amount of $65,000 to conduct a feasibility study of obtaining additional water sources for its
augmentation program in the Arkansas River basin. The request is for 100%of the estimated cost of the study.
BACKGROUND
An initial feasibility study for LAWMA's augmentation program was submitted in July 1995 by Helton &
Williamsen. That study analyzed LAWMA's well pumping, pumping depletions, and replacement obligations and
provided the framework for an augmentation program. The CWCB staff concurred in the conclusions of the
1995 feasibility study and requested further refinement for some of the information in the study report. In
response, Helton & Wlliamsen submitted a Supplemental Feasibility Report in March 1996 which provided
additional detail on specific sources of augmentation water and expanded on certain other aspects of program
operation,water rights acquisition, and a detailed financial analysis.
Based on the results of the 1995 and 1996 studies, the Board approved a Construction Fund loan of $3.75
million in January 1996 for the purchase of the X-Y Ranch and water rights and for the purchase of shares in the
Manvel Canal and Irrigation Company. LAWMA used those rights, along with water from other sources, during
the 1996 irrigation season to operate under a replacement program approved by the State Engineer.
The 1996 replacement program calculated well depletions and replacement water requirements based on 1991-
1995 average pumping. Discussions with the State engineer indicate that LAWMA's replacement requirements
will be more stringent in the future and may include considerations of timing with respect to both Colorado
surface rights and Usable Stateline Flow and the delivery of additional water to the Stateline.
Discussion
Based on the discussions with the State Engineer, LAWMA has decided to proceed with an additional feasibility
study and the appraisal of certain water rights in order to:
• reevaluate LAWMA's replacement requirements under a more stringent operating program in the future,