WSP05984

• File Number: 8149.911
• Description: Miscellaneous Small Projects and Project Studies - SE Needs Assessment and PSOP
• State: CO
• Basin: Arkansas
• Water Division: 2
• Date: 4/19/2001
• Author: PSOP Implementation
• Title: Final PSOP Implementation Committee Report Addendum to Preferred Storage Options Plans Report
• Water Supply Pro - Doc Type: Report/Study

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1 0 2 8 Final PSOP Implementation Committee Report
Southeastern Colorado Water Activity Enterprise
April 19, 2001

Reclamation that will include any and all requirements from Reclamation and limitations and
obligations as stated in Section 3.9.

3.6 Allotment Contracts

An allotment contract will entitle the contracting entity to firm storage in the enlarged space.
The exact amount will be based upon the entity's request for storage, the limitations as
documented in the federal,level feasibility study, and final federal authorization and NEPA-
based decisions.

Entities that need firm storage space should sign an MOA and declare their intent to
participate in the enlargement project to meet their storage needs. If entities choose not to
participate in the Implementation Phase of the enlargement project, they will still be eligible
to secure an allotment contract if they sign an agreement to participate in the construction
project, before congressional authorization of the Project, which is prior to commencement
of contract negotiations and the NEPA compliance process (estimated January I, 2004). A
certain date will be established for signing such an agreement. Entities that choose to
participate in this way will be required to reimburse a proportionate share of the original
implementation costs, including interest charges, to the Enterprise

Subject to a first-right-of-refusal option held by the Enterprise, the rights and obligations
under an allotment contract may be sold by the original contract-holder to another in-District
entity, but only when the subsequent use of the enlarged storage space serves in-District
needs. The terms of the Enterprise's purchase of allotment contracts will be negotiated.

3.7 Enterprise Water Management Storage (EWMS) Allotment
Contracts

EWMS is set aside for agricultural needs and temporary M&I needs as described in the
EWMS Section of the Report (Section 4). IfEWMS is greater than 7,500 acre-feet, there will
be a limited opportlmity for entities to secure an allotment contract from the Enterprise, after
the Project is constructed. Entities that choose to secure an allotment contract in the EWMS,
if such space is available, will be required to reimburse the Enterprise for the implementation
costs, capital costs for the construction of EWMS, pay the 15 percent mitigation costs, and
any appropriate interest charges, in proportion to their storage request. These funds will be
credited to the Enterprise's Water Activity Fund for Safety of Dams repayment and Project
O&M.

3.8 Use of Enlarged Storage Space

Enlarged space will not be used to store additional Fry-Ark Project Water. The first priority
for use of the additional storage space will be for the storage of water by entities that have
contracts for firm storage (allotment contracts), proportionate to their share of the enlarged

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