C153771 Feasibility Study

• Contract/PO #: C153771
• Contractor Name: Horse Creek Water Users Association
• Contract Type: Loan
• Water District: 17
• County: Crowley
• Bill Number: HCL
• 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

HORSE CREEK WATER USERS ASSOCIATION
PROPOSED LOAN
BY THE COLORADO WATER CONSERVATION BOARD

Executive Summary
Irrigation water users in the Horse Creek basin have organized the Horse Creek
Water Users Association (HCWUA) for the purpose of protecting their groundwater
irrigation supplies. These wells are junior to large direct flow and reservoir water rights
owned by the Box Springs Canal and Reservoir Company. The wells are also junior to
other surface water rights owned by the Smith Cattle Company and the Reid Cattle
Company.

The State Engineer has proposed rules and regulations for regulation of groundwater
use in the Arkansas River basin. including the Horse Creek basin, for the purpose of
preventing injury to senior surface water users. In an effort to settle litigation associated
with the proposed rules. Box Springs, HCWUA. and the State Engineer have negotiated a
proposed settlement agreement. The agreement will include a negotiated end to litigation,
protect senior surface water rights within the Horse Creek basin. and allow members of
HCWUA to pump their wells within historical levels of use without curtailment. Under the
proposed settlement. compensation will be paid to the owners of the senior surface water
rights. The key provision of the proposed settlement is the conveyance to HCWUA of 40
cfs of the most senior Box Springs water right. An augmentation plan will be developed.
for approval of the Water Court. that will utilize this water right as the source of
replacement water supply,

A proposed loan from the CWCB in the amount of $825,000 will be used for
acquisition of the senior Box Springs water right. for payment of compensation to the
owners of the Smith and Reid senior water rights, and for development of an augmentation
plan. It is proposed that repayment will be made over 40 years at two percent interest.
Collateral for the loan will include 40 cfs of the senior Box Springs water right.

1