BOARD00220

• Board Meeting Date: 9/22/2003
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

The Lower Arkansas Water Management Association (LA WMi\), is seeking a new loan for $2,225,000 for the
purchase of Y:. of the Keesee Ditch water rights, for use as replacbment water source to offset depletions from well
pumping. The Keesee Ditch is located on the mainstem of the A!rkansas River approximately five miles
downstream of John Martin Reservoir. The Keesee Ditch shares a common diversion dam with the Fort Bent .
Canal, and diverts from the south bank of the Arkansas River. All of the Keesee water rights are decreed for
irrigation of 1,400 acres. LA WMA has the opportunity to purchase the Keesee water rights, a very senior water
right, that will strengthen the reliability of their water rights portfolio. LA WMA's available replacement water
sources are estimated to yield 15,923 acre-feet on an average am/ual basis, with a minimum of 6,151 acre-feet.
With the addition of Y:. of the Keesee rights, LA WMA's available replacement water sources will increase to
16,680 acre-feet on an average annual basis, with a minimum ofi8,038 acre-feet, an increase of 4.7% and 30.7%
respectively. Acquisition of one-half of the Keesee water rights is also needed because those rights can be stored in
the Offset Account and would assist LA WMA with placing a cU$hion of replacement water in storage in John
Martin Reservoir to assist it with making its required replacements during a series of dry years.

14 Town of Coal Creek- Water Rights Purchase
Authorization: Construction Fund
Water Source: Arkansas River Basin
Terms of Loan: $67,500 @ 3.75% for 30 yrs.

County; Fremont
Project'Yield: nla
Project;Type: Water Purchase

The Town of Coal Creek is located 2 miles south of the City oflflorence. The Town provides water service to its
residents through a master metering arrangement with the City of Florence Regional Water System. Coal Creek
provides raw water to Florence and Florence treats the water and returns is to the Town of Coal Creek for use.
Coal Creek's existing water rights, dated 1884 have been out of priority give the current drought conditions. ill
order to mitigate this situation the Town is in the process of purchasing 100 shares from the Union Ditch Company,
which equates to approximately 125 acre-feet of which 34 acre-~eet is allowable for consumptive use. Total cost
of the water purchase is approximately $75,000.

IS. Town ofKremmling - Raw Water Suotllv System
Authorization: Construction Fund County: Grand
Water Source: Colorado River Project Yield: 400 acre-feet
Terms of Loan: $1,000,000 @4.25% for 30-years ProjectType: Raw Water Supply

.

This $1,616,320 project involves the construction of a raw wate~ supply pipeline from the Colorado River to the
Jones No.2 Reservoir. The pipeline project will allow the Towh of Kremmling to access their conditional 3 cfs
flow right out of the Colorado River, which will be stored at Jon!ls No.2 Reservoir and used to augment the towns
current water supply. The project involves the construction of ~2,000 feet of pipe, low and high lift pump stations,
and low and high lift forcemains. The project will be designed 4uring the spring of2003 with construction to
follow in the fall of 2003.

16. Central Colorado Water Conservancv District - Water Rights Purchase and Gravel Pit Const.
Authorization: Construction Fund County: Adams, Weld, Morgan
Water Source: South Platte Project:Yield: 22,260 acre-feet
Term~ of Loan: $15,000,000 @2.75% for 30-years Project:Type: Water Supply/Augmentation

,
The CCWCD, located in Adams, Weld, and Morgan Counties h*s a service area of 300 square miles. The
Subdistrict has 650 members with 966 junior wells and has oper~ted an augmentation plan for these member since
1973. On December 17, 2001, the Colorado Supreme Court issljed a judgment that changed the manner of
operation for substitute supply plans in Colorado. The ruling sta,ted that the State Engineer did not have the legal
authority to approve substitute supply plans. The Court also sta~ed that substitute supply plans, such as the one
operated by CCWCD would either have to file for a decree in Water Court or follow new Rules and Regulations to
be issued by the State Engineer. This ruling has required CCW~D to acquire more senior water rights as well as
build additional storage to augment out-of-priority diversions. CCWCD is in the process of acquiring additional .
senior water rights. Additional storage facilities will be designed in 2003 and constructed in 2003, 2004 and 2005.