Laserfiche WebLink
Mr. Mike Gibson <br /> December 14, 2006 <br /> Page 6 <br /> of historical consumptive use and the net cost after deducting the land value was $4,000 per <br /> acre-foot. (Contact: Ivan Walter) <br /> Cameron Ditch. In 2004, UAWCD purchased water rights in the Cameron Ditch which diverts <br /> from the South Arkansas River. The estimated yield is 230 acre-feet of historical consumptive <br /> use The cost was $2,600 per acre-foot of historical consumptive use (Contact Ivan Walter) <br /> Pleasant Valley Ditch. In 2005, Penrose Water District purchased water rights for and land under <br /> the Pleasant Valley Ditch which diverts from the Arkansas River. The estimated yield is 375 acre- <br /> feet of historical consumptive use The value of the water rights was not separately identified in <br /> the transaction, but was estimated to be between $3,000 and $3,500 per acre-foot. (Contact: <br /> Steven Jeffers) <br /> The above-described transactions are summarized below: <br /> Summary of Water Rights Transactions in the Arkansas River Basin <br /> Water Rights/Buyer Year Price($facrefoot) • <br /> Thompson Ditch/UAWCD 1995 3,000 <br /> George, Howard &Spring Ditches/Cripple Creek 1995 2,500 <br /> Spurlin-Shaw&Hayden Ranches/Aurora 1998 2,500 <br /> Rocky Ford Ditch/Aurora 1999 3,000 <br /> McPherson Ditch/Poncha Springs 2001 3,570 <br /> Tenassee Ditch/Salida 2004 4,000 <br /> Cameron Ditch/UAWCD 2004 2,600 <br /> Pleasant Valley Ditch/UAWCD 2005 3,250 <br /> Discussion. The Arkansas River basin water rights described above are relatively senior and <br /> have reliable sources of water. In most cases, the dry-year yield equals or exceeds the average <br /> yield due to their seniority and to larger irrigation requirements in dry years. The use of the water <br /> rights will be changed to augmentation and replacement of depletions caused by municipal, <br /> domestic, commercial, industrial and other water uses. But first the buyer has to change the use <br /> of the water right in Water Court which will impose or has imposed terms and conditions on the <br /> future use of the water rights. Such terms have included maintenance of historical return flows in <br /> time and amount, monthly and annual volumetric limits, monumented dry-up, re-vegetation and <br /> other terms considered necessary to protect other water users. Some of these changes have <br /> induced substantial costs. None of these additional costs were considered in the values described <br /> above. <br /> The values of the Arkansas River water rights have increased over the 11 years of these <br /> reported sales. Comparing the two transactions in 1995 (average value of$2,750 per acre-foot) <br /> with the three transactions in 2004 and 2005 (average value of approximately $3,283 per acre- <br /> foot), the rate of increase was 2.0 percent per year The Consumer Price Index (All Urban <br /> Consumers Denver-Boulder-Greeley) change over this same period averaged 2.6 percent <br /> annually. <br /> Comparison of Values. The value of the South Fork Ranches transaction, $2,750 per acre-foot, <br /> falls in the range of values for the transactions in the Arkansas River basin described above, <br /> $2,500-$4,000. If we escalate the value of the South Fork Ranches transaction by 2 percent per <br /> year, the value in 2006 would be $2,918 per acre-foot. This adjusted value, $2,918 per acre-foot, <br /> is less than the average of the three most recent Arkansas River transactions, $3,283 per acre- <br />