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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 />I) Establish no augmentation plan and no agreement with downstream seniors. <br /> <br />If no augmentation plan and agreement with downstream seniors is accomplished, <br />Preisser wells 5, II, and 14 (9262-F, 9264-F, and 9265-F) would remain under a Water <br />Division 2 Engineer's Order not to pump, according to the amended Arkansas Rules. In <br />.addition, non settlement with downstreat1l seniors would mean protracted litigation and <br />the possibility of loss or curtailment of tl1e water rights associated with Preisser wells 12, <br />13, and 15 (9202-F, 9201-F, and 9266-F). <br /> <br />This situation would result in the loss of air or part of the value of a water right decreed <br />absolute for 1300 acre-feet per year (afty) for irrigation (subsequently decreased under <br />the settlement agreement to 550 afty), and 1925 afty decreed conditional for industrial, <br />commercial, and other uses. In effect, the land would no longer be irrigable as it <br />historically has been, nor would the owner be able to use the water for commercial or <br />industrial purposes. Simply the loss of the existing irrigated center pivot circle could <br />mean a monetary loss of as much as $120,000 to $130,000. Loss of all or part of the <br />:----------- ------- -- -- - -- - <br />Preisser water rights would be difficult to estimate, but could be in the range of <br />$1,000,000 or more. For these reasons, the first alternative is not considered feasible. <br /> <br />2) Establish an augmentation plan based on the purchase of Horse Creek water rights other than <br />those owned by Box Springs. <br /> <br />Other than the Box Springs rights, which are the senior surface rights in the Horse Creek <br /> <br /> <br />basin, there are no available rights in the basin of sufficient quantity and seniority to <br /> <br /> <br />establish a workable augmentation plan for Preisser. Because there are no other suitable <br /> <br /> <br />water rights, this alternative is not considered feasible. <br /> <br />HRS WATER CONSULTANTS, INC. <br /> <br />page 6 <br />