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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />losses, the impact on total consumptive use has been equal to roughly 500 acre-feet per <br />year. Because this water was historically diverted by Box Springs on a fairly reliable year- <br />round basis, this water could have provided a valuable source of supply for municipal and <br />industrial uses. <br /> <br />Sales of water rights in the Arkansas River basin upstream of John Martin Reservoir <br />have been influenced by an active market for municipal and industrial purposes. Numerous <br />sales of water rights in the nearby Colorado Canal/Lake Henry system have typically been <br />at least $2,000 per acre-foot of consumptive use. Sales or purchase offers for other ditch <br />systems in the region such as the Rocky Ford Canal and Fort Lyon Canal have also been <br />approximately $2,000 per acre-foot and as high as $3,000 per acre-foot, or more. In our <br />opinion, the unit value of $2,000 per acre-foot is applicable to the Box Springs water right. <br />The enhanced value of the Box Springs water right associated with its year-round diversion <br />history is offset by the potential cost for constructing several miles of pipeline to deliver <br />the water to areas of demand near Ordway. Therefore, the total value of the Box Springs <br />water right prior to the advent of well development was roughly $1,000,000 (500 acre- <br />feet x $2,000 = $1,000,000). <br /> <br />Method 2 - Value of Irrigation to Members of HCWUA. Irrigated farmland in the <br />Lincoln and Crowley County area has a typical unit value of at least $1,000 per acre. Dry <br />grazing land values are in the range of $100 to $ 250 per acre, with an average value of <br />about $200. To the extent that the HCWUA augmentation plan is permanently unavailable <br />to any water users, their economic loss will be equal to about $800 per acre. Based on <br />an estimated irrigated area of 4,510 acres within the HCWUA, the net value of the <br />irrigation water supply is equal to $3,600,000, inclusive of the improvements associated <br />with the irrigation water delivery systems. Preservation of the irrigation economy in the <br />Horse Creek basin may depend on settlement of disputes related to the State Engineer's <br />proposed Arkansas Rules and the Box Springs water right. Under this method of analysis, <br />the value of the Box Springs right for continued use by members of HCWUA is equal to <br />roughly $3,600,000. <br /> <br />7 <br />