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<br />I <br />I <br />I <br />,I <br />I <br />I <br />I <br />I <br />I <br /> <br />DRAFT 8/24/92, Page 15 <br /> <br />Over the years, the Denver Water Department has been acquiring agricultural water <br />rights in and around the metro area as such rights become available. In some cases, the Water <br />Department has been willing to accept water rights acquired by suburban districts and <br />developers in exchange for taps. In addition, the Water Department has been willing to <br />accommodate the delivery through the Denver system of agricultural water acquired by others. <br />These acquisitions have averaged about 3,000 acre feet per year and proposals for transactions <br />of this type have increased during the last few years. <br /> <br />In a more recent example, the City of Thornton in 1986 purchased approximately 21,000 <br />acres of farmland and associated agricultural water rights in Northern Colorado to the east of <br />Fort Collins. Thornton's overall plan is to initially transfer only the consumable portion of <br />these rights. Eventually Thornton plans to replace the historical return flows associated with <br />these rights with its municipal wastewater, thereby increasing its transfers to the full diversion <br />amount. Thornton is now in water court attempting to quantify the amount of transferable <br />yield from these rights. The Northern Colorado Water Conservancy District is actively <br />opposing Thornton's application, consistent with its overall policy of preserving the region's <br />base water supply. Specific disputed issues include the amount of transferable consumptive use <br />associated with Thornton's rights, potential injuries to other water users and water quality <br />issues. Thornton is also investigating alternative facilities for transporting this water south to <br />its service area. <br /> <br />Purchase and dry-up of agricultural lands usually generates strong opposition from local <br />communities due to impacts on local farm-based economies, tax bases and rural life styles. <br />However, this method of water acquisition continues to be seen by many cities as one of the <br />most cost-effective and manageable ways to increase their water supplies. <br /> <br />I <br /> <br />Issues to be Addressed <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />The overall problems associated with the purchase of agricultural water rights and the <br />permanent dry-up of agricultural land are the local socioeconomic impacts related to such <br />transfers, the lack of any systematic approach of comprehensive framework for their evalJation <br />and implementation, and the legal and institutional barriers that inhibit a market approach to <br />water rights: <br /> <br />1. In the purchase and transfer agricultural water rights, not only are other water <br />rights potentially affected, but impacts to local farm-based communities and <br />economies can occur as well. Given the large economic difference in the value of <br />water for municipal versus agricultural use, there should be sufficient ability to <br />address such local impacts. Incorporating such concerns into a more comprehensive <br />approach to agricultural-municipal water transfers would reduce the political <br />momentum for basin-of-origin protection legislation. <br /> <br />2. The current piecemeal approach to agricultural water acquisitions can heighten the <br />degree of impacts to local farm-based communities and economies, results in <br />arbitrary dry-up of agricultural lands without sufficient regard to their productivity, <br />leads to relatively costly and inefficient water court change proceedings and may <br />result in duplicative delivery facilities. From a public policy prospective, it would <br />make more sense to approach agricultural water rights acquisition from a more <br />planned and comprehensive perspective. <br /> <br />3. Certain Colorado water laws inhibit the market transfer of water rights. A good <br />example of this type of law is the statute banning the sale of project water by a <br />conservancy district outside of its boundaries. (This restriction has been relaxed <br />