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,. ,t 44 ..1'1 t The study team evaluated these alternatives and presented quantitative and qualitative effects on the sectors listed in Figure 2. It was concluded that internal transfers generated little overall benefit to the region compared with the cost expended to make the system more efficient. Additionally, transfers outside the valley in dry years, while benefiting participating shareholders, would have significant adverse effects on the region if implemented at high level of participation by the FLCC. Transfers in the valley, however, may increase the value of water in the region and spur economic development. PREFERRED ALTERNATIVE: LOCAL WATER BANK The above information was offered for review and comment to the public and the FLCC in the summer of 1993. The study team indicated that transfers to new uses in the valley through the use of a water bank may have merit. In September 1993, the CWCB directed the study team to develop the impletmentation plan for the alternative involving transfers to new uses in the valley, using a 5000 af water bank. A water bank is herein defined as an accumulation of Fort Lyon water shares acquired from shareholders through lease for distribution to users on the Lower Arkansas River on a seasonal, temporary transfer basis. The temporary users could be inside or outside the Fort Lyon system. A water bank alternative would have seven components: 1. Willing shareholders who lease their shares. 2. An agency or group to pay for the leased shares and rent the water, i.e., the "FLCC Water Bank." 3. Users, called "renters," who bid for the water. 4. Storage facilities to hold the water in an account. 5. Standards for and inspection of fallowed FLCC land. 6. A legal plan of administration to protect senior water rights. This involves a substitute water supply plan approved by the State Engineer, followed by a water court decree. 7. A set of rules defining which users can purchase the banked shares; computation methods for credits and debits to shares to determine delivered quantity (yield); quantification and administration of return flow obligations; rate structure to determine net revenue to the shareholder based upon conveyance, storage and administration costs; price to the renter based upon location of delivery; selection of and responsibilities of management; and other considerations. The proposed water bank should be formed as a non-profit enterprise, through enabling bylaws of Board of Directors of the Fort Lyon Canal Company, for the sole benefit of the FLCC shareholders. It should have its own budget, a manager and a management committee to set operating policy, and a set of agreements with the FLCC and others to operate facilities and carry out policy. A detailed implementation plan which includes proposed water management operations and financial analysis is presented at the conclusion of the study for the review and future use by the shareholders of the FLCC.