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Last modified
8/16/2009 2:47:17 PM
Creation date
10/4/2006 6:33:44 AM
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Board Meetings
Board Meeting Date
3/16/2004
Description
CF Section - FL Gill H20 LLC
Board Meetings - Doc Type
Memo
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<br />FL Gill H20 LLC <br />March 16-17, 2004 <br /> <br />Agenda Item 25d <br /> <br />I <br />1 <br /> <br />The FL Gill H20 LLC .. <br />The FGH LLC is a Colorado Limited Liability Company (C.R.S. 7-80-101 et seq.) formed in ,., <br />December 2003 and registered with the Colorado Secretary of State. The primary purpose of <br />the Company is to build and manage water recharge projects for augmentation of members <br />agricultural water needs. The Company has the power to enter into contracts to accomplish this <br />purpose, as well as the power to purchase water rights. <br /> <br />Water Riahts <br />The owners of the FGH LLC have 718 shares of Johnson and Edwards Ditch water (30.2 cfs), <br />and 40 shares of Lower Platte and Beaver Canal water (8,7 cfs), producing total average <br />diversions of 2,200 acre-feet from the South Platte River. They also own 15 shares of Morgan <br />Prewitt and 13 Private Rights of Riverside Reservoir water. <br /> <br />The 3 owners of the FGH LLC also have decrees on 4 wells used for irrigating a total of 910 <br />acres, These wells have been augmented through GASP in prior years. The FGH LLC diverts <br />approximately 1072 acre-feet of water per year through these 4 wells, for which the <br />consumptive use is 536 acre-feet. Total average annual diversions for the FGH LLC <br />shareholders are 3,272 acre-feet (2,200 acre-feet plus 1 ,072 acre-feet.) <br /> <br />The FGH LLC will also be able to utilize a portion of the 63 cfs augmentation water right filed by <br />the Johnson and Edwards Ditch, and would be allowed to divert approximately 300 acre-feet <br />per year. This would be used to help cover the depletions of the 4 junior wells, as well as <br />provide additional recharge credits that could be sold to well users outside the Johnson and <br />Edwards system. <br /> <br />Proiect Description <br />Three alternatives were analyzed in the feasibility study: <br /> <br />. <br /> <br />1) Don't build the project. Continue to rely solely upon GASP for augmentation. <br /> <br />2) Purchase a senior water right and use it for augmentation. <br /> <br />3) Construct a well augmentation project and purchase limited water rights to generate the <br />needed augmentation credits, <br /> <br />Alternative 1: "Don't build the project. Continue to rely solely upon GASP for augmentation" is <br />not a feasible altemative. GASP is no longer augmenting wells. This would result in an annual <br />loss of approximately 1 ,072 acre-feet. <br /> <br />Alternative 2: "Purchase a senior water right and use it for augmentation." The FGH LLC could <br />purchase shares of Prewitt Reservoir water for augmentation. Reservoir water is selling for <br />approximately $1,000 per acre-foot and it takes 2 acre-feet to cover one acre-foot of well <br />depletions, It would cost over $1 million to cover depletions of 536 acre-feet. <br /> <br />Alternative 3. "Construct a well augmentation project and purchase limited water rights to <br />generate the needed augmentation credits~ would use a recharge well and existing ditches and <br />laterals to fill recharge ponds during the winter months when there is generally not a call on the <br />river. Water from the ponds would return to the river by underground percolation during the <br />summer time while the FGH LLC has depletions that need to be offset with augmentation water. . <br />Water from an augmentation well could also be returned to the river more quickly by releasing it <br />directly to the South Platte during the most severe drought situation. The purchase of one share <br /> <br />2 <br />
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