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<br />003345 <br /> <br />Regional Forester <br /> <br />3 <br /> <br />DETAILED COrlNENTS ON HATER VALUES <br /> <br />1. Hater Values from RPA procedures. RPA (HO) generated water values <br />for the Region. The process is documented in "1985 RPA - Water Benefit Values <br />end Procedures," dated August IS, 1983. <br /> <br />RPA Values developed for new water or increased water yield followed this <br />procedure: <br /> <br />"This value was developed using the marginal value of irrigation <br />water which is applicable to the west, and the adjusted marginal <br />value for M+I water for the east or a weighted cowbination of the <br />two." <br /> <br />Values for M+I water for forest-related surface water, ~s reported by RPA, <br />show lJyoming at $302/AF, Coloraoo at $199/Af, and South Dakota at $205/Af. <br />The Regional ~.eighted average is $205/Af (See page 15 of the 1985 RPA Water <br />Benefit Values paper). <br /> <br />In the RPA I~ater Benefits paper, increased water yield for irrigation in <br />Region 2 is given a value of $45.S0/AF (valued in January 1982 dollars, pages <br />3 and 6, RPA paper). By agreement with the Department of Agriculture, the <br />value of irrigation water is used and 100 percent of the value is assignEd to <br />the forest Service for each extra acre feet. The references used included <br />material dated from 1960 through 1982. <br /> <br />2. ReCEnt Irrigation Water Values, Arkansas River Basin Study. Using <br />the same structure and assumptions as in the RPA determination, the Region's <br />values can be updated using the analysiS provided bi a recently completed <br />study of eastern Colorado irrigation systems. Detailed analysis of several <br />Arkansas River Basin systems provides a somewhat higher marginal value of <br />irrigation water of S55.50/Af as valued in 1980 dollars. <br /> <br />The $55.50/Af water value was obtained from optimization modeling on 32 <br />irrigation canal systems in the Arkansas River Basin. Approximately 313,000 <br />acres of irrigated lands were represented with cropping patterns ranging fro~1 <br />hay and pasture (3 percent) to alfalfa and feed grains (92 perCEnt) to vege- <br />tables and grchards (S percont). Thus, the $55.50/Af value should be repre- <br />sentative of much of western agriculture that favors alfalfa and feed grains. <br /> <br />Exhibit 1 briefly sunmarizes the information available from the optimization <br />models. used in the 1982.Arkarosas River Basin Study~~ ~ ..~~ . <br /> <br />3. Water values from Dr. David White's ~rocedures. Dr. White's <br />procedures involved the following steps and adJustments: <br />1. Preliminary estimate of water value for: <br />(a) agricultural use (using related CPI values), and <br />(b) municipal and industrial use (using related CPI values). <br />The CPI adjustments are slightly different. <br />2. Adjustment for evaporation loss. <br />3. ftdjustment for re-use and return flow. <br />4. Adjustr:~nt for proportional use between agriculture and M+I <br /> <br />uses. t, l~ <br /> <br />.. <br />