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<br />." <br /> <br />3441 <br /> <br />In December 1991, Colorado Water Supply Company (CWS), submitted an offer to <br />shareholders of the FLCC for the purchase of their shares. CWS desired to purchase at least a <br />ontrolling 51 % interest in the company. The plan was to sell the water to cities on the Front <br />Range of Colorado. The offer attracted the attention of the Governor and the CWCB who <br />requested that a study of the effects of such a transfer be conducted. The study was authorized <br />by the Colorado General Assembly in 1992. Although the offer failed and was withdrawn in mid- <br />1992, the study continued. <br /> <br />The purpose of this paper is to summarize the findings of a study of alternatives to <br />permanent transfer of Fort Lyon water out of the Lower Arkansas Valley. This multi-disciplinary <br />study was conducted in 1993 by Gronning Engineering Company of Denver for the CWCR <br /> <br />OBJECTIVES OF THE MULTI-DISCIPLINARY STUDY <br /> <br />The first objective of the study was to understand and characterize the Fort Lyon Canal <br />Company system, together with such surrounding area as may be affected by transfer of water out <br />of the system. This was accomplished by an identification of issues, description and analysis of <br />historical water transfers in the region, and developing knowledge of the forces underlying the <br />motivation to buy and sell water. The FLCC physical system and socioeconomic characteristics <br />of the study area were described with a significant amount of data. The second objective, <br />following from the first, was to identify and analyze alternatives to a large-scale permanent <br />transfer of water out of the valley. The alternatives are combinations of strategies, management <br />tools and applications of resources which appear to provide overall net benefit to the Fort Lyon <br />system and the region. Estimates were made of the impacts that implementation of the <br />alternatives would have on the FLCC and the study area. It is hoped that an alternative which <br />presents the most net return to the shareholders of the Fort Lyon and the area population will <br />receive serious consideration by the shareholders of the FLCC. <br /> <br />THE ARKANSAS RIVER BASIN AND THE STUDY AREA <br /> <br />The basin and study area are illustrated in Figure 1, showing the 25,600 square miles <br />which are tributary to the Arkansas River in Colorado. Geologically, the aquifer of the lower <br />valley rests in a U-shaped trough, cut into cretaceous shale and limestone bedrock. Climate in <br />the Arkansas River Basin has a high degree of areal, daily, seasonal and annual variability. <br />Precipitation in the study area ranges from 11 to 15 inches. The five counties represented in <br />Figure 1 comprise the economic region which is under direct influence of production and <br />associated spending distribution of the FLCC system; population was 43,183 in 1990, about 1.3 <br />percent of the state's population. The study area contains about 6.7 percent of the state's land <br />area, producing 8 percent of the state's total annual income from field crops or about $93 million. <br />Income from livestock is even more significant; annual livestock sales in La Junta alone exceed <br />$103 million. The citizens of the Lower Arkansas River Valley have a rich heritage of <br />development and productivity for the past 150 years. <br /> <br />The Fort Lyon system controls 211,600 of 838,000 af or one-quarter of all diverted water <br />between Pueblo and the Kansas state line. It irrigates more than one-third of all land along the <br />mains tern of the Arkansas River below Pueblo. Land under the Fort Lyon Canal produces $23 <br />million annually, or 24 percent, of the total field crop income in the study area. <br />