WSP01337

• File Number: 8051
• Description: Area of Origin
• Basin: Statewide
• Date: 10/1/1985
• Title: Addressing the Area of Origin Problem - A Research Report Prepared for the Colorado Water Resource Research Institute
• Water Supply Pro - Doc Type: Report/Study

DRAFT

Nor is it clear that compensatory storage will always be the

form of compensation most useful to the area of origin. perhaps

schools, highways, or hospitals would be of greater benefit,

given the hydrologic situation and other needs. Even if storage

is determined to be the most useful form of compensation, there

is the issue of timing of construction of that storage. Clearly,

it should be sized and timed in accordance with the needs of the

area of origin. One official, mistaking inefficiency for

foresight, stated, "We built Green Mountain Reservoir 45 years

.ago, and now we .need it."

The above observations on the appropriate forms of compensa~

tion also have some implications for the appropriate institutions

to negotiate for and manage the resources gained from compensa-

tion. If negotiations over losses are to represent all of the

unprotected losing parties identified above and if the uses of

these compensatory resources are to be determined in the interest

of all losing parties and not just water users, the implication

is that a governmental unit of general jurisdiction should

control negotiations and manage the use of the resultant compen-

satory resources.

D. General Compensation Guidelines

To summarize the conclusions from our economic analysis of

area of origin compensation, we state the following guidelines:

. I. Compensation paid should equal the present value of net

incomes and public amenities lost in the area of origin, less

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