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out of the Ft. Lyon system have produced conflict among the shareholders over these and other matters. 3. Environmental; and ecosystems Shareholders have concerns about the welfare of adjacent lands and the associated environmental attributes. These concerns are essentially the same as those expressed on page 2-10, Regional Environmental. B. Relrional Issues Issues relevant to citizens of the five-county study area, including water users not directly associated with the company, are called third-Darty issues because these issues are not always directly addressed in the transfer transaction. While water rights holders have standing with the water court, some other third parties may not. Other water users bear the benefits or detriments of an increased or decreased water supply resulting from changed river regimen after a transfer. Water quantity and quality may affect farm yields and income, with widespread implications. The concept of mitigation, i.e. the off-setting or compensation, of the adverse impacts of water transfers raises additional issues such as who pays for mitigating these effects, who receives relief and who decides such questions. 1. Water supply; quantity, quality and distribution Water transfers always affect the supply to other water users on the stream. The removal of water from historically irrigated lands eventually affects return flows to the stream, and the water supply of downstream users. Because a lesser supply to downstream users may increase their need for other water originating further upstream users may also be adversely affected due to decreased return flows after a transfer. To supply high quality water to their users, the metropolitan areas prefer the waters from high mountain streams and reservoirs. When this source of water is limited, denied or of high cost, agricultural water may be purchased. Water is also exchanged from the lower Arkansas River upstream to headwaters areas. The water quality of the lower Arkansas River can deteriorate because this high quality water is used before mixing with the local return flows. An off-setting factor in the water quality issue is the reduction of irrigation practice, since irrigation also degrades water quality (Miles 1977). Water quality can also affect water quantity. For example, clear water scours ditches and causes increased seepage losses, while silty water seals ditches and allows greater water delivery to fields. Water users and others, whether agricultural, municipal, industrial or recreational, desire to protect the quantity, quality and timing of their water supplies. Effects on these users are increasingly being recognized by the courts. 2-8