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<br />. <br /> <br />. <br /> <br />. <br /> <br />. 1140 <br />Rlver nave sold as follows: Consolidated Canal sold 10,000 acre <br />feet in 1984 for $2,200 per acre feet; Rocky Ford Ditch sold 4,640 <br />acre feet in 1984 for $2,938 per acre feet. If the proponents of <br />Two Forks develops their project, and the price is $1.2 Billion as <br />some predict as a minimum, the price per acre foot of annually <br />produce water would be $12,000 per acre foot. The present price in <br />the Denver area, stretching on south to Monument Hill, is <br />approximately $6,000 per acre foot. <br /> <br />The marketing plan would be to develop this water with the <br />pipeline along the Front Range and offer this water to the <br />subdivisions and suburbs of Pueblo, Colorado Springs and Denver. <br />Since the going rate is approximately $6,000 per acre foot, any <br />suburb that would want to buy this annually produced water would <br />have to pay this amount for each acre foot that they would want to <br />purchase, plus they would purchase the water at a wholesale price. <br />We have shown that the wholesale price presently is $.4735 per 1,000 <br />gallons of untreated water, and $1.24 per 1,000 gallons of treated <br />water in the Denver area. This $6,000 would of course be a safe <br />margin above the cost of the Amity, an original cost of <br />approximately $1,800 per acre foot. <br /> <br />This approach would match up closely with the type of program <br />that Aurora has for their water development. Aurora purchased the <br />Rocky Ford Ditch and the Colorado Canal. They transfer up the river <br />into Pueblo Reservoir, Twin Lakes and Turquoise, and then bring it <br />across on their aqueduct. After developing the water, they charge <br />$5,830 for each tap that they sell, and these tap fees pay for the <br />original purchase of the water, as well as development and treatment <br />costs. They then charge their people $1.43 per 1,000 gallons to <br />maintain the system, plus a monthly service of $2.83. <br /> <br />A development plan of this type could probably be drafted as a <br />5 Year program. The first two years would be used to purchase water <br />and get the transfers effected up the river. During this time the <br />purchaser would realize some income from the lease-back of the water <br />to the farmers, This lease-back would probably be in the <br />neighborhood of $25 to $30 per share on $3,000 worth of investment. <br />The third and fourth, and perhaps fifth year, could be used to <br />construct the pipeline, the treatment and storage facilities, and <br />then begin the marketing of the water to the different cities. <br />Water may be able to be leased to the city of Denver, or some of the <br />suburbs which purchase water from Denver, for a lease of <br />approximately the same price that Denver would wholesale treated <br />water to the cities or towns at this time. Leasing water to the <br />suburbs on a short term basis, or on a year to year basis, would be <br />much different than agreeing to furnish water to a new subdivision <br />on a long term basis. Agreeing to furnish it on a long term basis <br />would of course take the $6,000 investment fee from the municipality <br />or development. <br /> <br />It is our opinion that if water were developed of this <br />magnitude, it would probably delay Two Forks another 10 or 15 years, <br />at which time Two Forks would be needed in addition to what water <br />the Amity could produce, as well as other rights along the Arkansas <br />River. <br /> <br />-7- <br />