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CBT/WG Water Sharing Report
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CBT/WG Water Sharing Report
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Last modified
10/19/2011 11:57:12 AM
Creation date
9/30/2006 9:01:40 PM
Metadata
Fields
Template:
Water Conservation
Project Type
Ag/Muni Grant
Applicant
Northern Colorado Water Conservancy District
Project Name
Ag Options
Title
Interruptible Supply Contracts for Water-Sharing Between the Colorado Big Thompson and Windy Gap Projects
Date
1/1/1996
County
Larimer
Water Conservation - Doc Type
Final Report
Document Relationships
NCWCD Ag Options Program Applic
(Attachment)
Path:
\Water Conservation\Backfile
NCWCD Ag Options Program Award Letter
(Attachment)
Path:
\Water Conservation\Backfile
NCWCD Ag Options Program Prog Report
(Attachment)
Path:
\Water Conservation\Backfile
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<br />There are certain advantages to this procedure. It serves the goal of uniformity, <br />and thus avoids the danger that parties would feel they had received less beneficial terms <br />than other parties entering into similar contracts. The burden on potential buyers and <br />sellers would be reduced because the District would take on the task of drawing up <br />contract terms; once those terms were developed, potential buyers and sellers would have <br />only to decide if they were acceptable. Those who accepted the standard arrangement <br />would then determine the price to be paid. District consideration and approval of <br />contracts would be simplified. <br /> <br />However, this approach would place a heavy burden on the District board and <br />staff in developing the contract terms. It would be difficult if not impossible for the <br />District to anticipate and address, through a standard agreement developed in advance, <br />the various situations which might be presented by individual contracting parties. For the <br />sake of uniformity, the District could be forced to impose arbitrary terms as to some <br />provisions, even where a degree of variation might be acceptable and could better meet <br />the needs of the parties. <br /> <br />Another difficulty with formulating a standard agreement in advance is <br />determining who should be given a voice in representing the interests of buyers and <br />sellers as contract terms are developed by the District. Drawing up a standard contract <br />based on general comment rather than on the positions of parties actually interested in <br />contracting would tend to skew the resulting terms. Similarly, allowing parties who <br />currently have no direct stake in the contracts the same degree of influence in developing <br />contract terms as those who would be more immediately bound by them could impose <br />unfair burdens on the latter group. <br /> <br />Also, as new buyers and sellers become interested in interruptible agreements in <br />the future, the form contract would likely come to be seen as outdated or otherwise <br />unsatisfactory and would have to be revised. This would impose an additional burden on <br />the District and would undermine the goal of uniformity in contract provisions which is <br />one of the primary advantages of this approach. <br /> <br />District acting as intermediary to control negotiation process <br /> <br />Under this scenario, prospective buyers and sellers would negotiate terms with the <br />District acting as intermediary. All buyers would act jointly, as would all sellers, and all <br />resulting contracts would contain the same terms. Like the first approach, this method <br />would achieve uniformity in contract terms, avoiding a situation of some parties feeling <br />they had received a less advantageous deal than others, and simplifying the process of <br />review and approval of contracts by the District's board of directors. <br /> <br />Another advantage is that the District retains some control over the contracting <br />process. District board and, staff members will be aware of what is occurring in regard to <br />negotiations and contracts involving C-BT water. The District will be able to ensure that <br />all contract terms meet with its approval rather than limiting its role to certain <br />fundamental requirements with which all agreements must comply. <br /> <br />18 <br />
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