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

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The total present worth cost per acre-foot of augmentation replacement credit for the Robinson Ditch is
$2,027 ($946,800/467 acre-feet).

E. Excelsior Ditch

Mr. Dick Evans has offered to sell 1,007 shares of the Excelsior Irrigating Company stock, which he
currently leases to AGUA, for $650,000. A discussion of the average annual diversions and
consumptive use credits associated with the leased Excelsior Ditch water was provided in Section A of
Chapter IV.

The average annual diversion of the Excelsior Ditch between March and November from 1908

through 1998 was 3,766 acre-feet. Mr. Evans' 1,007 Excelsior Ditch shares represent a 30.21 percent

interest in the company (1,007 shares/3,333 total shares). Thus, 1,007 Excelsior shares represent

1,138 acre-feet of headgate diversions. Using the 60.6 percent consumptive use credit that the State

Engineer has allowed for Excelsior Ditch augmentation replacement, the 1,007 shares would yield an

average annual consumptive use of 690 acre-feet. The average replacement credits available during

the irrigation season, alter a change of use to augmentation uses, are estimated to be 752 acre-feet per

year. Replacement credits exceed consumptive use because of lagged return flows. The difference

between the two values, 62 acre-feet, is the estimated winter return flow obligation. The replacement

credit would be utilized to offset a portion of the future April through August main stem Arkansas River

depletions below Pueblo Reservoir estimated at 2,964 acre-feet.

Purchase of the Excelsior Ditch would require AGUA to: 1) pay annual assessments of the Ditch

Company (1997 assessments were $4 per share), 2) change the use from irrigation to augmentation in

a Water Court proceeding, 3) share in the cost of recent capital improvements made to the ditch, and

4) lease water to replace winter return flow obligations.

An annual ditch assessment of $4 per share applied to 1,007 Excelsior Ditch shares would cost AGUA
$4,028. The ditch assessment cost converted to a present worth cost with a projected life of 40 years
and a three percent discount rate would be approximately $93,100.

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