ARCA 2015 Annual Meeting Exhibits

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Background The Arkansas River Compact(Compact) of 1948 apportions the waters of the Arkansas River between Colorado and Kansas, while providing for the operation of John Martin Reservoir as a shared benefit between the two states. The compact is"not intended to impede or prevent future beneficial development... as well as the improved or prolonged functioning of existing works: Provided,that the waters of the Arkansas river... shall not be materially depleted in usable quantity or availability..."2 A primary tool agreed to annually for administering the Arkansas River Compact is the 1980 Operating Principles,which provide for storage accounts in John Martin Reservoir and the release of water from those accounts for Colorado and Kansas water users. Colorado and Kansas have litigated claims concerning Arkansas River water since the early 20th century, which led to the negotiation of the Compact. In 1995, Colorado was found to have depleted usable stateline flows in violation of the Compact through the expanded use of tributary groundwater. As a result,the Colorado State Engineer developed well administration rules to bring Colorado into compliance with the compact, and Colorado compensated Kansas for damage claims (approximately $34 million). Recently,the Colorado State Engineer developed irrigation efficiency rules, which require augmentation for any upgrades to water delivery systems, such as drip irrigation or sprinkler systems. The purpose of the rules are to preserve the historic return flows that comprise part of the historical water supply to Kansas available at the time of the compact. The Arkansas Basin will face several key concerns and challenges with respect to water management issues and needs over the next 40 years, which are identified as follows3: • Arkansas River Compact requirements, existing uses and water rights result in little to no water availability for junior water rights and new uses. All junior or new uses, and many irrigation efficiency improvements, require augmentation • Growth in the headwaters region will present challenges to securing augmentation water for new demands • Concerns over agricultural transfers and the impacts to rural economies are significant in the lower portion of the basin downstream of Pueblo Reservoir • Recreational in-channel diversions or water rights for recreation will have an impact on the development of augmentation plans for agricultural transfers. The Arkansas River has been called the most rafted river in the world, but those recreational flows could be threatened unless there is continued, thoughtful collaboration on water resources • Concerns over water quality and suitable drinking water exist in the lower basin • Possible federal listing of the Arkansas darter fish as a threatened or endangered species could affect water management in the basin • Replacement of existing municipal supplies,plus growth in urban areas will result in an increase in the demand for municipal water supplies 2 Arkansas River Decision Support System Feasibility Study, December 2011 Report a Colorado's Water Plan/Draft Chapter 3, 12/10/2014 5