BOARD02641

• Board Meeting Date: 11/16/2004
• Description: CF Section - New Loans - The Well Augmentation Subdistrict of Central Colorado Water Conservancy District - Water Rights Purchase and Gravel Pit Storage
• Board Meetings - Doc Type: Memo

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Central Colorado WCD - Well Augmentation Subdistrict
November 16-17, 2004

Agenda Item 14d

. Proiect Description

1. No-action alternative.
2. Purchase water rights to cover a 300-day period of call.
3. Purchase water rights to cover a 365-day call.

Alternative No.1, No action alternative - This was unacceptable because it will result in the WAS
Subdistrict's current members (440 wells) being shut off when augmentation water supplies are
inadequate. It is estimated this could occur, on the average, 9 years out of 10. The economic
impact of this alternative would be devastating to local growers, communities, and the entire state.

Alternative No.2, Purchase Water Rights to cover a 30o-day period of call. - This action was
selected as it would result in existing member wells being curtailed or shut off approximately 2 out
of 10 years. It is estimated that $27.5 million will be needed to purchase water rights for this
scenario. In this situation the WAS Subdistrict will need to replace approximately 10,100 acre feet
of depletions. Approximately 5,100 acre-feet of gravel pit storage and 5,000 acre-feet of senior
water rights would need to be obtained.

. Alternative No.3, Purchase Water Rights to cover a 365-day period of call- This action was
not selected due to the extreme cost involved. The drought of the 1950's resulted in a call period of
approximately 600 days (nearly two years), and would require an expenditure of funds in excess of
$34 million to accumulate water for the current WAS Subdistrict members in that situation. Under
this scenario, the WAS Subdistrict would need to replace approximately 12,300 acre feet of
depletions. The accumulation of this amount of water (approximately 6,300 acre-feet of gravel pit
storage and 6,000 acre feet of senior water rights) would create a severe financial burden to be
placed on growers in the area, and would not be economical even during a good farm economy.

.

The selected alternative, Alternative No.2, Purchase Water Rights to cover a 300-day period
of call- The proposed project will provide a total of 8,066 acre feet of the needed 10,100 acre feet
(4,066 acre feet in water rights acquisitions and 4,000 acre feet in gravel pit storage.) Considering
they already own 153 acre feet, they will need to acquire the remaining 1,881 acre feet at a later
date, and lease that amount in the interim. Storage costs are primarily for the slurry wall lining of
gravel pits as well installation of pumping plants.

The total cost by specific proposed project is as follows:

1. Weldon Valley Ditch Rights
2. Rural & Godding Ditch Rights
3. Farmers Independent Ditch Rights
4. Lupton Meadows Ditch Rights
5. Shores Gravel Pit Storage (Longmont)
6. Heit Gravel Pit Storage

TOTAL

$ 5,100,000
3,100,000
2,000,000
2,000,000
8,000,000
2.000.000
$22,200,000

(3200 AF)
(800 AF)

.

The Subdistrict expects to acquire $10,000,000 of lined gravel pit storage within 6-12 months after
funds become available. Senior water rights would be purchased within 3-6 months after funds are
available. It is expected that all funds would be used within 12 months of availability. Appropriate
dry-up will be obtained from the areas historically irrigated with purchased shares of water. This is
an ongoing practice of Central to ensure that Court approval is obtained through change-of-use
cases, in order to change the use of the shares from irrigation to augmentation. Approximately
2000 acres will be subject to dry-up.

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