Letter from Southwestern Water Conservation District

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Jennifer Gimbel (MOA Request) June 30, 2011 7ge 3 Dolores Project(McPhee Reservoir) •44 The Fairview Pumping Plant on the Dolores Project has been listed as a candidate for "Replacement Addition and Extraordinary Maintenance Project"under the MOA. The request is for replacement of Variable Speed Drives and Pump Motor Rebuilds at the plant. A 2009 engineering evaluation identified 3 variable speed drive pumps that were at the end of their life cycle and should be replaced when possible. The pumps and motors will need to be rebuilt and or rehabilitated as a part of the project as well to avoid stress on the motors. Failure of these drives or pumps result in a disruption of irrigation water deliveries,leading to losses by the project participants and to higher District Costs.The total rehabilitation/replacement project for this site is approximately$1.35 million,but the Dolores Water Conservancy District is able to contribute 20%of the total Cost. Amount of Request: $1.08 million ❖ A request is also being made for the addition of low head hydro facilities in the Towaoc Highline Canal. A feasibility study was completed in June of 2011 that determined that the canal system includes three elevation drops that are well suited and feasible for the low head hydropower plants. The Dolores Water Conservancy District is willing to commit$1.2 million in funding for the initial development on one of the sites,but an additional amount of$400,000 from the Basin Fund coupled with green power rates will result in positive revenue flows that can be used to offset other replacements or maintenance on the Dolores Project. The District already operates two existing hydro power plants owned by BOR. Amount of Request: $400,000 Participating Projects(not-constructedi San Miguel Project (San Miguel River) • The San Miguel Project was added as a participating project in 1968,but due to funding challenges and environmental concerns has not been constructed. The SWCD was a proponent of the project,and the water rights are currently held and maintained by the San Miguel Water Conservancy District. Although it is believed that the project as originally configured would be cost prohibitive,these water rights and associated funds could be used for smaller projects throughout the basin. One project and IPP that has been identified is the construction of the Marie Scott Reservoir to provide supplemental irrigation and municipal supplies in the"Gurley System". Also due to the CWCB initiating an In-stream Flow appropriation on the lower end of the San Miguel River a number of applications for conditional water rights were made in San Miguel and Montrose counties. The SWCD believes that use of these hydro revenue dollars were intended to be used for construction of a project in the San Miguel,and that after the water rights are evaluated and decreed,this basin should become a priority for the use of the funds associated with the MOA. A study done by Boyle Engineering and funded by CWCB in 1989 estimated the cost Marie Scott Reservoir at about$17 million with a capacity of 25,000 af. A scaled down version of 12,000 af capacity had an estimated cost of$10.5 million. Based on today's costs,and the increase in land values, it is estimated these costs would now be in the$25 million to$30 million range. "Rough Estimate"Marie Scott Reservoir. $25 million to$30 million