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) .I Annual purchases of consumable water from Pueblo, Colorado Springs, Public Service Company and others. Annual purchases of Article II Account Water from ditch companies in Water District 67. Acquisition of a "base supply" of replacement water to cover years of average pumping and the acquisition of "dry-year" rights and contracts to cover the additional water necessary during years of high pumping. Adoption of a dues structure that discourages higher amounts of pumping by increasing the cost of replacement water for increasing blocks of pumping. Adoption of an organizational structure which would limit pumping based on prorata interests in the organization and would allow the marketplace to redistribute the pumping. Encouraging the removal of sole-source lands from irrigation through more favorable dues arrangements for the revegetation of such irrigated lands. Combinations of the above and other options that become apparent during the study. Task 4 - Assessinq the desirabilitv of usinq an account in John Martin Reservoir to assist LAWMA in makinq its replacement deliveries. LAWMA presently owns and controls tl1e use of Article II Accounts for the Stubbs, Manvel, and X-V Graham, but new sources of water can not be delivered into these - - . . accounts without the approval of the Arkansas River Compact Administration. An account that is not as limiting would be more beneficial to LAWMA. Water could be purchased and stored in years of average or low levels of purnping and released in years of high levels of pumping. In March 1997, the Compact Administration adopted the resolution which established an account in John Martin Reservoir, referred to as the "Offset Account". This account may be used by Colorado entities to regulate water supplies used for replacement of depletions with respect to Usable State line flow. The work in this task will identify and evaluate the ways in which the Offset Account would be helpful to LAWMA and the possible methods of operating this type of account. Issues to be addressed will include the evaporation that might be expected to occur over a series of years with such an account and possible sources of water for allocation to Kansas in payment for using the account. Task 5 - Completinq further economic analyses. The costs of acquiring additional replacement water and implementing various replacement options will be evaluated in this task. In addition, the impact on LAWMA's dues structure for additional acquisitions and possible reductions in pumping as the result of increases in dues will be evaluated. Page 3