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<br />MWSI Project <br />Interruptible Supply Framework Report - DRAFT <br /> <br />August 21, 1995 <br /> <br />2) the amounts of water transferred are sometimes in much larger blocks than before <br />(MacDonnell and Rice, 1994). In some cases, cities have had to look farther to meet <br />the demands of increased growth, With these changes has come an increase in the <br />level of controversy surrounding the transfers. The permanent dry-up of farmland <br />brings with it a host of issues including adverse effects on the local economy, society, <br />and the environment. Temporary transfers, on the other hand, can result in less <br />adverse impacts on the local area and, under the right conditions, may be seen as an <br />opponunity to the agricultural community, <br /> <br />Figure 1 has been developed to illustrate the relationship between various <br />voluntary temporary transfer arrangements and how interruptible supply arrangements <br />fit into this overall hierarchy. The first distinguishing factor is "who actually uses the <br />water, most of the time," Under purchase {leaseback agreements, the owner of the <br />water right is not the primary user of the water. The focus of this study, however, is <br />on arrangements where the owner of the water right uses the water most of the time - <br />the primary user of the water retains ownership, The next distinguishing factor is the <br />level of uncertainty involved in the agreement. Sometimes, arrangements are made <br />where the number of times the transfer will occur and when it will occur are known <br />(although the precise amount of water to be transferred may not be known at the time <br />the agreement is made - this depends on the actual amount of water available to the <br />water right owner), These arrangements are often made for the subsequent one or even <br />two year period, and are typically referred to as "short-term transfers." This type of <br />arrangement is in contrast to agreements where there is uncertainty with regards to the <br />number of times the transfer will be exercised and / or the year when the transfer(s) <br />will take place, The agreement may be made for transfers to occur for a specified <br />number of times. with some mechanism in place to determine exactly when the <br />transfers will occur (Quasi-Interruptible Supply Arrangements), The years that the <br />transfer will occur is not known at the onset of the contract. Or, the agreement may be <br />that transfers will happen on the occurrence of some "trigger" (e,g" precipitation <br />level, stream flow. snowpack, storage conditions), In this situation, both the number <br />of transfers and the timing of such transfers is unknown at the beginning of the <br />contract. These types of arrangements, known as "true interruptible supply <br />arrangements" and quasi-interruptible supply arrangements, are typically more long <br />term, The focus of this study are the arrangements which fall within the dashed box <br />displayed in Figure 1, <br /> <br />Note that there are various mechanisms through which temporary transfers may <br />occur. Agreements can be made by directly between parties2 or the transfer may be <br />facilitated through the use of a water bank - an intermediary which seeks to bring <br />together buyers and sellers. Interruptible supply arrangements can occur by either <br /> <br />2 Note that the seller may be an individual pany or an emity representing many individuals. <br /> <br />Hydrosphere Resource Consultants <br /> <br />6 <br />