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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <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 2 <br /> <br />In addition to all of these efforts, there have been several major entrepreneurial efforts to <br />develop and market new water supplies to front range cities including those advanced by <br />American Water Development, Inc. (San Luis Valley/Baca Project), Colorado Water Supply <br />Co. (Arkansas River/Fort Lyon transfer), Natural Resources Energy Co. (Gunnison <br />RiverlUnion Park Project), PureCycle Corp. (Rangeview groundwater project) and the Third <br />Creek Corp. (South Platte/BaIT Lake Plan). To date none of these proposals have been proven <br />to be sufficiently viable to be accepted in the marketplace, but they illustrate a perception that a <br />vacuum exists in water supply development and that one result is an opportunity for profit. <br /> <br />B. The Prospects for the Future <br /> <br />The Metropolitan Denver Water Supply Environmental Impact Statement (Army Corps <br />of Engineers 1988), includes an exhaustive review of the existing water supplies and projected <br />needs through the year 2035 of approximately 50 Metro area water suppliers. This analysis <br />concluded that without conservation or development of new supplies, water supply shortfalls <br />can be expected to occur for some communities almost immediately and for the metro area as a <br />whole within the next decade. At this time it is impossible to predict the magnitude or the <br />timing of shortfalls for the entire metro area because of uncertainties regarding the sharing of <br />supplies, drought conditions, population growth rates, and economic development. <br /> <br />The Metropolitan Denver Water Supply EIS also determined that the total water supply <br />available to the metro area is not available to all of the water suppliers within that area because <br />of physical and institutional constraints. Integration of existing water supply systems should <br />address concerns that have prevented such integration in the past. <br /> <br />The effort on the part of metro area water suppliers to pursue the Two Forks project was <br />a first step toward more cooperative water supply planning, but the consequences of events in <br />recent years surrounding the Two Forks veto are that the cooperative process appears to be <br />fragile if not broken. At this time, the Denver Water Department is focusing its efforts on <br />meeting the needs of its existing service area. While Denver is recognized as a key player in <br />water supply planning because of its unique technical capabilities and physical plant, the <br />Denver Water Board is not likely to assume responsibility for a leadership role in planning for <br />areas outside of its existing service area. <br /> <br />There is little doubt that the metropolitan area will somehow achieve the development of <br />additional water supply, with or without cooperative planning and development. However, <br />with cooperation there is an enhanced opportunity to achieve the following advantages: <br /> <br />I. more timely implementation of the most cost effective water supply sources; <br /> <br />2. greater opportunities for near-term sharing of existing supplies pending development <br />of new supplies; <br /> <br />3. reduction of the external adverse effects of transferring existing agricultural supplies <br />to urban use; <br /> <br />4. greater assurance of the compatibility of future water development and management <br />activities with public support for enhancing environmental quality and recreational <br />resources; <br /> <br />5. increased likelihood that future projects are acceptable under state and federal <br />regulatory requirements. <br />