C150063 Feasibility Study

• Contract/PO #: C150063
• Contractor Name: Jackson Lake Reservoir & Irrigation Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: SB 94-29
• Loan Projects - Doc Type: Feasibility Study

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irrigated with this water supply. The gross value of the irrigated crops (1998 and
1 999) would be approximately $1,730,000, assuming the same overall crop distribution
as shown in Table 3. Net profit after all farm related expenses, including depreciation,
for the irrigated farmland would be $390,500 (1998 data" only). Also see Table 3 for
the determination of the gross value for 4,650 acres of irrigated crop land. For
comparison, 4,650 acres in dry land would produce $415,000, which is $1,315,000
less that the gross revenue derived from irrigated cropland (see Table 13). Net profit
after expenses for the dry land farm ground would be $27.400 (1998 data" only).
These values indicate an additional $53.02 in gross revenue and $14.64 in net revenue
per acre-foot of reservoir yield for the land under irrigation. The added productivity of
the land under irrigation appears to warrant the project expense of $2.33 per acre-foot.
Table 13 lists the dry land crops grown in Morgan County and the crop income for the
year 1998 and 1999, prorated to 17.000 and 4,650 acres. It is acknowledged that
Jackson Lake Reservoir water is a supplemental sUPAly, but in some years Jackson Lake
Reservoir water supplies will make a crop which would otherwise be totally lost, and in
many years shortage of water late in the irrigation season would certainly impact crop
yields.

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The above two valuation methods indicate that ths overall, cost of the project is
affordable in terms of the cost per acre-foot and incremental income derived from the
land when irrigated. Loss of Jackson Lake Reservoir water supplies would decrease the
revenue from the land substantially.

Institutional Considerations

A number of institutional hurdles and permitting issues may require addressing
prior to start of the project construction. The identified issues are discussed below.

State Engineer Design Review
The Design Review Section of the Office of the State Engineer is required to
review and approve the design of the slope repair project. The review focuses on the
adequacy and completeness of the technical design. This review can take up to six

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