PROJ00038

• Contract/PO #: C153468
• Contractor Name: Upper Yampa Water Conservancy District
• Water District: 0
• County: Routt
• Bill Number: XB 99-999
• Loan Projects - Doc Type: Contract Documents

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MEMORl\NDUM

COLORADO WATER CONSERVATION BOARD
J. William McDonald
Director

MEMoaANDUM

TO:

Nick Ioannides

Frank Akers ~~
Randy Seaho In(biS}'

FROM:

DATE:

November 5. 1986

SUBJECT:

Review of the "Water Rights Appraisal for the
Proposed Stagecoach Reservoir"

This draft water rights appraisal for Stagecoach Reservoir
was prepared for this agency by Bishop. Brogden & Rumph. Inc,
and received on November 3. 1986, The report does an excellent
jOb of explaining the various methods which can be used to
evaluate and appraise a water right, However. the report lacks
the necessary supporting documentation to lend credence to the
appraisal, The report concludes that. "the value of the
Stagecoach water rights at $2,2 million. or $66 per acre-foot
per year. is within the range of water right values in other
basins where the demand for water is higher", However. it does
not emphasize the fact that the owners can and are willing to
pay for the project even though they can only sell project
water for a maximum of $35 per acre-foot at present.

We would concur with the above analysis with the caveat
that $66 per acre-foot per year does not zeflect the current
market conditions in the Yampa aiver Basin at present, As
stated else where in the analysis the current market will bear
no more than approximately $35 per acre-foot per year until the
current economy shifts to promote more development. energy or
otherwise.

We would also note that the $2.2 million figure does
reflect some compensation for deferred payment until project
water is developed,

We would suggest that the following changes be made to the
report prior to its finalization.

2046E