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<br />AGUA - Water Rights Purchase/Recharge Project
<br />September 22-24, 2003
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<br />Agenda Ilem 5c
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<br />leases about 92-95% of its replacement water. Lease agreements are negotiated on an annual .
<br />basis, and therefore are subject to the terms and conditions imposed by the lessors. Due to
<br />uncertainty of availability and prices of leased water) AGUA has begun purchasing water rights for
<br />use in its augmentation plans. AGUA's goal is to acquire 50 to 60 percent of its total
<br />augmentation replacement water need during the (lext 20 to 25 years, and to continue to lease
<br />the remainder. In March 1998, with the help of a CWCS loan authorized in September 1997,
<br />AGUA purchased 1007 shares of the EIC from Mr. Dick Evans, AGUA President at that time.
<br />To further its goai of owning water, AGUA is currently requesting a loan for the purchase of an
<br />additional 785 EIC shares, offered by Mr. Dick E:vans at $1,100 per share or a total cost of
<br />$863,500. In May 2003, the AGUA Soard of Dir~ctors, absent Mr. Evans, current President,
<br />took action to pursue a CWCS loan to fund the purchase of the shares. With the additional .
<br />shares of EIC, AGUA would own an average of about 12-15% of its annual replacement needs.
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<br />AGUA has two existing loans with the ewcs, as summarized below:
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<br />Loan No. Date of Principal Terms iCurrent Annual Future
<br /> Contract iSalance Payment Payment
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<br />C153800 10/23/97 $ 25,000 4%-10yrs !$8,690.04 $3,082.27
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<br />C153808 2/24/98 $ 590,590 3% - 40 yrs :$600,872.67 $25,550.33 (1) $30,697.88 (2)
<br />Totals $ 615,590 ;$609,562.71
<br />(1) Deferred for 4 years (2002 through 2005) .
<br />(2) New payment beginning 2006 through 2036
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<br />In July 2002, CWCB granted AGUA a 4-year deferment on Loan No. C153808 to help it defray
<br />approximately $100,000 to $150,000 in legal and engineering fees related to obtaining a decree
<br />changing the use of the water rights represented by!the purchased 1007 EIC shares, as well as to
<br />help AGUA with the financial impact of the drought. If the CWCS aooroves this loan reouest. AGUA
<br />will aoree to increase fees. and to foreDo the remainino two vears of the deferment. If the Board
<br />rescinds the deferral, the revised annual payment fori the term of the loan would be $27,984. AGUA
<br />will add the 785-shares to its application for change!of water rights, at minimal cost. In December
<br />2002, AGUA obtained a $100,000 Agricultural Emergency Drought 9rant from CWCB under S.B.
<br />02S-001 to help cover the costs of purchasing augm:entation water. Disbursement of the funds by
<br />CWCB is in process. ;
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<br />Proiect Need - AGUA annually submits an Arkans~s River Replacement Plan (Plan) to the State
<br />Engineer's Office on March 1st of each year. Thi~ Plan covers the upcoming water year (April
<br />through March of the following year) and is approvecj provided that AGUA demonstrates sources of
<br />adequate replacement water. The Plan presents a imonthly schedule of replacement credits to be
<br />provided by each source to augment depletions. AGUA's recent history of total ordered pumping
<br />and wellhead depletions are shown below (including MAGUA, Booth, etc.) Because of the drought,
<br />2002 and 2003 were not typical years. With redu~ed availability of replacement sources, AGUA
<br />was unable to provide enough replacement water to support the total amount of pumping ordered by
<br />members. For example, of the 12,815 acre-feet of replacement water AGUA anticipated receiving
<br />from Pueblo, SECWCD and Cherokee, they received only 5,769 acre-feet, necessitating plan .
<br />amendments. . AGUA's March 1, 2002 Plan sub(nittal (before amendments reflecting lack of
<br />replacement water) can be considered typical of its ayerage annual operation.
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