C153808 Feasibility Study

• Contract/PO #: C153808
• Contractor Name: Arkansas Groundwater Users Association
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Bill Number: ARA
• Loan Projects - Doc Type: Feasibility Study

I
I
I
I
I

I
I
I
I
I

I
I
I
I
I

I
I
I
I

Estimated average annual augmentation replacement credits, total costs, and cost per acre-foot of
replacement credit for each of the six water right purchase alternatives is summarized below:

Average Annual Estimated Cost Per
Consumptive Use Estimated Acre-Foot of
Ditch Yield (acre-feet) T ota/ Cost 1 Consumptive Use Yield
Fountain Mutua/Irrigation Company 124 $477,200 $3,848
(177 shares)
Lock Ditch (J4 interest) 1,070 $2,054,400 $1,920
Liston and Love Ditch (J4 interest) 795 $1,502,000 $1,889
Robinson Ditch (100% interest) 467 $946,800 $2,027
Excelsior Ditch (1,007 shares) 752 $889,300 $1,183
Keesee Ditch' (all or a portion) - - -

The Excelsior Ditch was the preferred water right purchase alternative because it has the lowest cost
per acre-foot of consumptive use yield of the six alternatives, and because it is located on the main
stem of the Arkansas River where most of AGUA's well depletions occur. AGUA is requesting a
loan of $650,000 from the Colorado Water Conservation Board (CWCB) to finance the purchase of
the 1,007 shares of the Excelsior Ditch. Annual repayments to the cweB on a $650,000 loan for a
40-year period at a three percent interest rate will be $28,121. AGUA would repay the loan by
increasing annual membership and well fees by a total of $20 per active well and $10 per inactive
well, and by increasing the water augmentation fee from $6.44 per acre-foot of well depletion to
$9.68 per acre-foot of well depletion. The acquisition reserve fee will be reduced from $3.00 per
acre-foot to $1.00 per acre-foot. The total cost of augmentation water with the purchase of the
Excelsior Ditch shares will increase from $9.44 per acre-foot ($6.44 + $3.00) to $10.68 per acre-
foot ($9.86 + $1.00), or a net increase of $1.24 per acre-foot.

Total cost includes purchase of shares, ann()al ditch assessments, construction costs associated with an
augmentation station, O&M costs associated with an augmentation station, lease of winter return flow
obligation water, and engineering and legal costs associated with changing the use of the water right
from irrigation use to augmentation use.

,

The Keesee Ditch was not considered in the analysis because its location on the Arkansas River is
below AGUA's well depletion locations anO could not be used as an augmentation source.

-iii-