BOARD00191

• Board Meeting Date: 3/21/2002
• Description: WSP Section - Agricultural Water Policy Discussion
• Board Meetings - Doc Type: Memo

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DRAFT

Fred Anderson - like Ray stated - first thing is to quit dinking around and poking at
each other. We have one state, we need to exist on 40% (7) of the virgin snowpack, but
we have to work together. My concern is there is no simple solution, it will take a lot of
work to preserve the property values and enhance the Ag possibilities,

Break,

Harold Miskel - lets get started again. Now we have Doug Kemper.

Doug Kemper - Thank you, I'm with the city of Aurora. I want to talk to you about the
Rocky Ford Ditch and Aurora's efforts with this Ditch, I'll be covering a few key points,
the history of Aurora's involvement in the Rocky Ford Area, and our history of
mitigation with water transfers. Re-vegetation of the land as part of the cooperative
effort, Studying re-vegetation of land in the Arkansas Valley, what type of grass, how
deep to plant and weed control. The court decrees required re-vegetation of the lands
being retired from agriculture. The Colorado Canal and Rocky Ford decrees were
different. The Colorado Canal irrigates Crowley County lands, The City of Colorado
Springs has acquired about Y20f those water rights, Aurora owns about Yo of the
remaining ditch. The re-vegetation demand caused the study to be done. Re-vegetation
was completed in early 1990, Also, mitigation was required in the Rocky Ford Ditch
purchase. We had a panel study the needs, and Aurora moved water based on the
percentage of land that had been re-vegetated. Acquired water rights from the Resource
Investment Group. Only recently got the last of their fields approved by the panel, took
about 10 years to re-vegetate it all. Land is taxed at one rate when its irrigated and
another when its dryland, the payments would cease when the is dried, Aurora is making
the payments to the County to offset lost revenues. Aurora is making sure the land will
not be a source of dust or blowing soil and remains committed to the re-vegetation effort
for 20 years, Remaining shareholders have asked if Aurora is interested in the rest ofthe
shares, they have filed to change the use from Ag to municipal (yield is about 5100 ac ft).
One AF serves a family of 5 people for one year. 2,860 acres were historically irrigated.
We intend to re-vegetate to the same standards as the earlier parcel. We have had an
office down there for about 14 years. Local labor and talent are employed, and the staff
consists of about 5 people, Aurora is also part of the second transfer, quite a lot of media
coverage. Aurora began negotiations last April with SECWCD and Otero County,
Subsequently, Aurora contracted for "if and when" storage in Pueblo Reservoir, and have
had contracts since 1986, Pueblo Reservoir is Part of Fry Ark Project. - contracts are for
surplus water storage in Pueblo Reservoir. Cost is about $24\af for about 3,000 AF
currently, Some later transfers concerned the SEWCD whether or not BaR had authority
to contract for transferred water, Questions on water quality, salinity. Aurora is
participating in a water quality monitoring program, and also provides water for the water
bank, 750 afper year for 5 years. Aurora makes payments to SECWCD for use of Fry
Ark facilities, In order for Aurora to have long-term storage contracts (25 years) they
need approval from US Congress to make it clear that BaR has authority to contract with
Aurora. Rep. Hefley has introduced HR 1714, he is working on revisions, and hopefully
will hold hearings in February or March. Provides that local entities can use Fry-Ark
Facilities. Could also allow enlargement of Pueblo Reservoir. Negotiations have been

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