BOARD01395

• Board Meeting Date: 5/24/2004
• Description: CF Section - New Loans - Guenzi Farms - Groundwater Recharge Project
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

TO:

Colorado Water Conservation Board Members

Bruce Johnson, P.E. (Q~~ 0-
Mike Serlet, P.E., Chief V
Water Supply Planning an inance Section

Dan McAuliffe
Deputy Director

Russell George
Executive Director

FROM:

Rod Kuharich
CWCB Director

DATE: May 14, 2004

SUBJECT: Agenda Item 21a, May 24-27,2004 Board Meeting
Water Supply Planning and Finance Section - New Loans
Guenzi Farms - Groundwater Recharge Project

Introduction

Ken, Dave and John Guenzi (Guenzis) are applying for a $331,425 loan from the Severance Tax Trust
Fund Perpetual Base Account, to purchase an existing well augmentation recharge project and to
construct additional groundwater recharge facilities. The estimated total cost of the project is
$368,250. Please see the attached project summary and map.

Backaround

Ken, Dave and John Guenzi are family members who own and operate a large group of farms in
Logan County in northeastern Colorado. The Guenzi farms consist of approximately 2600 acres of
sprinkler and flood irrigated farm ground. Some of the ground is irrigated with direct flow water and
some has reservoir water. All of the ground is also irrigated with 31 tributary groundwater wells,
with the majority of the land relying solely on the wells. The water is typically used to irrigate corn,
alfalfa, beans, and wheat. Of the 31 wells 25 are operational at this time, with 4 discontinued in
order to reduce depletions and 2 being used as augmentation wells. The Guenzi wells are
currently augmented under the Logan Well Users (LWU) plan of operation. The service area of
the Guenzi farms covers numerous sections of ground from Merino to Sterling, located on the north
side of the South Platte River.

With their wells, the Guenzis own what is considered a very junior water right. There are numerous
downstream ditches, a reservoir, as well as the Interstate Compact with Nebraska, which all have
senior water rights to the Guenzi wells. Having wells for irrigation requires that the depletions from
the pumping of the Guenzi wells be replaced during times when there is a "call" on the river by a
senior downstream water right. Logan Well Users, Inc. (LWU) has successfully been used for the
past 2 years to cover the depletions on these wells. The Guenzis have been very dependent on
LWU to cover their depletions at a cost of about $45,000 per year. The wells produce

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning