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

Chapter I - Introduction

This report presents the results of a feasibility study that was completed for the Arkansas Groundwater

Users Association (AGUA) under a loan from the Colorado Water Conservation Board (CWCB). The

investigation focused on the feasibility of purchasing water rights for use as a permanent augmentation

water source in AGUA's Arkansas River Replacement Plan. AGUA has relied strictly upon leased

water from the Board of Water Works of Pueblo, Colorado, Southeastern Colorado Water Conservancy

District (SECWCD), Colorado Springs, and the Excelsior Ditch Company to replace its membership

well depletions. It is AGUA's goal to acquire, through purchasing water rights, 50 to 60 percent of its

augmentation replacement requirements in the ne)(t 25 to 30 years. It is also AGUA's goal to slowly

phase-in the acquisition of water rights so as to gradually increase the fees assessed to its members.

Six water right purchase alternatives were examined in this study. AGUA was approached by the
sellers of these water rights and has not actively searched to purchase other water rights for
augmentation. The six water right purchase alternatives investigated include:

, 77 shares of the Fountain Mutual Irrigation Company,
* interest in the Lock Ditch,
* interest in the Liston and Love Ditch,
, 00 percent interest in the Robinson Ditch,
, ,007 shares of the Excelsior Irrigating Company, and
All or a portion of the Keesee Ditch.

A preliminary screening of each of the water rights was conducted to: ') estimate average annual

replacement credits associated with the water right;;; 2) determine if the timing and location of the

replacement credits corresponds to the timing and location of augmentation requirements from

AGUA's well depletions; 3) determine preliminary purchase costs and other associated costs of using

the water rights for augmentation purposes; and 4) recommend purchase of a water right based on

reliability, cost and usefulness in AGUA's Arkansas River replacement plan.

A financial feasibility of the selected water right purchase alternative was conducted. The purchase of
the water right will be financed through a loan fron1 the CWCB. Repayment will be accomplished by
increasing annual fees to each AGUA well and increasing the augmentation water fee for each acre-
foot of well depletion generated by each well.

-,-