C153808 Feasibility Study - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I Chapter VII - Recommendations Regarding Purchase of Potential Replacement Source As shown on Table VI-5, the average annual cost per acre-foot for replacement water of the six alternatives ranged from $1,183 for Excelsior Ditch water to $3,848 for Fountain Mutual Irrigation Company water. The Fountain Creek water sources (FMIC, Lock, Liston and Love, and Robinson Ditches) were considerably more expensive in terms of cost per acre-foot of consumptive use water than the Arkansas River source (Excelsior Ditch). A check of other recent Arkansas River water rights transactions was made to determine how the Excelsior Ditch water rights price compared to the others on the Arkansas River. We understand that Twin Lakes Company shares were recently purchased for $9,500 per share and that the average annual consumptive use yield of a Twin Lakes share is 0.9 acre-feet, resulting in a cost per acre-foot of Twin Lakes water being $10,560. We also understand that Colorado Canal and Lake Meredith paired shares have been-selling in the range of $2,200 to $2,400. The average annual consumptive use yield of a Colorado Canal/Lake Meredith paired share has been 0.53 acre-feet. Thus, the cost per acre-foot of Colorado Canal/Lake Meredith water is in the range of $4,150 per acre-foot to $4,530 per acre-foot. The Twin Lakes and Colorado Canal/Lake Meredith costs are considerably higher than the price per acre-foot of Excelsior Ditch water. Thus, based on the fact that: 1) the Excelsior Ditch has the cheapest cost per acre-foot of the six analyzed alternatives, 2) the Excelsior Ditch shares are priced considerably lower than other main stem Arkansas River water rights, and 3) the largest well depletions from AGUA members occur on the main stem of the Arkansas River below Pueblo Reservoir where the Excelsior Ditch is located, the acquisition of the 1,007 Excelsior Ditch shares is the recommended replacement source alternative. -42-