PUB00048

• Year: 1992
• Title: Systems Integration as a Water Supply Source for the Denver Metropolitan Area
• CWCB Section: Water Conservation & Drought Planning
• Author: Hydrosphere Resource Consultants
• Description: Overview of water supply alternatives and suggestion for process to address future water supply needs of the Denver Metro Area
• Publications - Doc Type: Historical

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DRAFT 8/24/92, Page 16

somewhat by the recent passage of legislation allowing conservancy districts to
lease water outside their boundaries for periods of up to 100 years.)

4. The Northern Colorado Water Conservancy District opposes the sale of any "base
water supply" to areas outside the District based upon concerns about maintaining
adequate supplies to meet the long term needs within the District.

5. The perceived impacts to local farm-based communities associated with many of the
historical and currently proposed transfers have resulted in increased legislative
momentum to restrict market transfers of water rights.

2. Interruptible Supply Agreements

As an alternative to permanent dry-up of agricultural lands and transfer of water rights,
agreements could be fashioned between cities and farmers allowing for municipal use of
agricultural water rights only during specified dry years. This concept is not project or
location-specific, but is an alternative mode of transferring water from agricultural to
municipal uses. It could be implemented in conjunction with any particular agricultural region
and associated delivery facilities.

Under this arrangement, title to agricultural water rights and lands would remain with
farmers but cities would acquire contractual rights to call for the farmers' water during agreed
upon drought conditions, possibly based on snowpack and municipal storage volumes. Such a
determination would be made early enough in the spring season of each year to give the
farmers adequate notice for planting operations.

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In exchange for these contractual rights, cities would compensate farmers. Such
compensation could be in the form of an initial payment, annual payments, payments only
during drought years when cites use farmers' water, or a combination these options. A portion
of this compensation could go toward a comprehensive economic development program aimed
at affected local farm-based economies.

The frequency of interruption of agricultural supply would be based on the reliability
goals of the cities and the amount of additional water supply needed. Most cities currently
plan their water supply systems to fully withstand relatively infrequent and severe droughts,
and have therefore have considerable excess supplies available in most years. Generally
speaking, interruptible supply arrangements would therefore be invoked only during infrequent
and relatively severe droughts.

This concept have a major advantage over conventional purchase and permanent land
dry-up: it would act as a source of financial support and stability to rural fram-based regions
and would tend to preserve irrigated agriculture.

Issues To Be Addressed

The concept of interruptible supply contracts as a municipal water supply source is
relatively new. While this concept has some issues in common with conventional purchase and
dry-up, the main issues have to do with the structuring, planning and invoking of such
arrangements :

1. Implementing interruptible supply agreements in an efficient and nondisruptive
manner will require that municipalities begin planning for drought events on a much