CT2015-164 Anderson Land Appraisal 01/05/2012

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IMain File No 11-22061 Page#71 Zoning Description & Water Article FileNo.11-2206 Borrower Two Rivers Water Company Property Address 39327 Harbour Rd City Avondale County Pueblo State CO Zip Code 81022 Client Two Rivers Water Company Two Rivers Moves On Water Cases By CHRIS WOODKA I cwoodka @chieftain.com I Posted:Thursday,January 5,201212:00 am Water court applications to move water up the Huerfano River and to change the use of water in Huerfano County were filed in late December by the Two Rivers Water Co. Two Rivers,founded by Denver entrepreneur John McKowen and managed by Colorado Springs real estate broker Gary Barber,plans to bring irrigated farmland back into production in Southern Pueblo and Huerfano counties.It has a plan to restore Cucharas and Orlando reservoirs,but needs to exchange rights on the Huerfano River to initially fill them. The company also wants to be able to offer water for domestic use in Huerfano County,where some developments and communities have run into groundwater replacement issues as they have grown. We have been talking to the Huerfano Conservancy District,but we don't have any agreement yet,"Barber said. Two Rivers has entered a five-year lease agreement with the Pueblo Board of Water Works in order to purchase 500 acre-feet of water annually beginning in April.The company will seek a substitute water supply plan from the state Division of Water Resources until it can obtain a court decree. The application for an exchange right would allow Two Rivers to capture flood flows in Cucharas Reservoir,while making releases to the Arkansas River to cover depletions. "About 20,000 acre-feet of water passed through Cucharas Reservoir last year,"Barber said. Two Rivers'plans call for creating about 38,000 acre-feet of storage in Cucharas and Orlando reservoirs.The company owns about 4,700 acres of land in ditch systems fed by the reservoirs,including the Huerfano-Cucharas Ditch.This year,about one-third of that will be planted as the company ramps up to full production,Barber said. In a separate change-of-use application in water court,Two Rivers wants to dry up about 150 irrigated acres on the Robert Rice Ditch,but would change the use of the water only so it could be used in Huerfano County.Two Rivers purchased the ditch,which has a water right dating back to 1867,making it fairly senior. Under the purchase agreement,as much as 130 acre-feet could be made available to serve future developments in Huerfano County.The water also could be used to augment existing wells in communities such as Gardner,Barber said. "It's not speculation,since we do have an agreement with the seller,but we did not file for the augmentation of any specific wells,"Barber said. Source: www.chieftain.com Form TADD—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE