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<br />. . <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />OFFSET ACCOUNT & CREDITING STIPULATION OVERVIEW <br />[this is a quick summary and not a precise legal interpretation] <br /> <br />1. Offset Account at JMR approved by ARCA resolution 3/11/97 and Corps of Engineers signature <br />on 3/17/97. Purpose is to offset depletions to stateline flows from post-Compact well pumping by <br />either delivering water from the account contemporaneously to the Stateline or to Kansas ownership <br />in JMR. Up to 1,500 AF of water may be used to offset depletions to JMR inflows that may be <br />caused by upstream well pumping. Kansas can call for water when it prefers. Determination of <br />credits against well depletions are determined pursuant to a separate stipulation described below. <br />a. Separate from other accounts created by 1980 Operating Plan, administered by Colorado State <br />Engineer for well users. <br />b. Maximum size 20,000 AF. <br />c. Storage charge to Kansas: prepay 500 AF for the 1st 10,000 AF of storage by April 1 each <br />year, and 5% on any additional volumes as they are subsequently stored. <br />d. Types of water that can be stored: any water, but only the consumable portion is available for <br />offsetting depletions, return flows can be stored and released to maintain historical patterns. <br />e. During flood operations spills after existing JMR Section III accounts for alternate place of <br />storage held by upstream diverters: Ft. Lyon Canal Co., Amity Mutual, and Las Animas <br />Consolidated Canal Co. Spills prior to all District 67 accounts at JMR. <br />f. Evaporation is prorated on the basis of volume with all other accounts and pools in the <br />Reservoir. Initially evaporation is charged to Colorado, but after depletions have occurred than <br />Kansas pays evaporation on water they choose to leave in account. <br />g. Transit losses on deliveries to Stateline must be made up by additional account releases. <br />h. Colorado must make monthly and annual accounting to Kansas and account may be <br />discontinued by either State effective on March 31 by giving notice prior to Feb. I of any year. <br /> <br />2. Stipulation approved by Special Master on April 4, 1997 controls method for determining credits <br />Colorado receives against post-Compact well pumping for water delivered to and released from the <br />offset account. <br />a. Only fully consurnmable water [non-native or historical consumptive use] can be used to <br />offset well depletions. Determination of consurnmability to be made by Colorado SEO, subject <br />to review and challenge by Kansas, burden on Colorado to prove. <br />b. Stateline deliveries made on Kansas demand subject to transit losses from JMR to Stateline, <br />and Colorado only receives credit for volume actually released and reaching Stateline. Over <br />deliveries are credited against future depletions. <br /> <br />C\SRMILLER\BOARDMEM\OFFSETOI.MEM <br />May4,1998 <br />