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<br />6.0 MARKET CONSIDERATIONS <br /> <br />The timing and amount of demand for District water supplies in either Wolford Mountain s'eservoir or <br />Ruedi Reservoir will be infiuenced by the amount of water demancs, and will also be greaILY affected by <br />market conditions. Several market considerations are discussed below. <br /> <br />6.1 LENGTH OF WATER SUPPLY CONTRACT <br /> <br />The length of water supply contracts is an important consideration. Most municipal and industrial water <br />users desire long-term water supply contracts. Without a long-term contract, water users cannot be <br />certain that reliable future water supplies will be available. Long-term contracts are not available from <br />Bureau of Reclamation facilities. For example, Ruedi Reservoir contracts are limited to 25 years. These <br />contracts may also be interrupted prior to this term. <br /> <br />If the River District provides long-term contract availability for Wolford Mountain Reservoir supplies, an <br />increased demand will occur. The amount of current demands for Wolford Mountain water may be limited <br />at this time; however, if long-term contracts are available, there may be more immediate demand for <br />Wolford Mountain Reservoir water than is anticipated. <br /> <br />6.2 AVAILABILITY OF OTHER WATER SUPPLIES <br /> <br />The availability of competing water supplies will also affect the market for Wolford Mountain Reservoir <br />water and for contracted River District water in Ruedi Reservoir. If concerns regarding the long-term <br />reliability of Green Mountain Reservoir and Ruedi Reservoir water persist, demand for Wolford Mountain <br />supplies will increase. <br /> <br />Conversely, if reliable supplies are available from these facilities, or if additional reservoir supplies become <br />available in the area, the demand may be reduced for Wolford Mountain Reservoir water, or for the water <br />available from the District's pending Ruedi Reservoir request. <br /> <br />6.3 PRICE OF WATER <br /> <br />The price of contract watet will also influence water demand. The lower the price of water, the greater the <br />demand will be. If Wolford Mountain supplies are significantly more expensive than Green Mountain or <br />Ruedi contract water, the demand may be reduced. However, we believe that price may not be one of the <br />more important market factors. For example, many users may be wiiling to pay a certain amount more for <br />contract water if long-term contracts are available. <br /> <br />23 <br />