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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Final PSOP Implementation Committee Report
Southeastern Colorado Water Activity Enterprise
103 '-1 April 19, 2001

Section 7 - Participation

7.1 MOA's to Participate in Re-operations

Entities that choose to participate in re-operations storage in Fry-Ark Project facilities will be
asked to commit to the project by signing a Memorandum of Agreement (MOA) with the
Enterprise. The MOA will ask participants to commit to a share of the costs (proportionate to
their share of the proposed re-operations space) to secure authority for the re-operation of the
project, referred to as the Implementation Phase of the PSOP. Such costs will include legal
costs, legislative/lobbying work to secure authority to contract, engineering, and NEP A
work, and staff time. MOAs are to be executed no later than June 1,2001.

Those entities that decide later that they need a re-operations contract shall be obligated to
pay their proportionate share of implementation costs. When an entity requests a re-
operations contract, the original implementation costs shall be recalculated to each
participant based on the new percentages. The new participant shall then reimburse those
already in the plan for the cost of implementing re-operations authority, including interest
charges based on the average T -Bill rate for the intervening years.

7.2 MOA's to Confirm Participation in Enlargement Project

Entities that choose to participate in the project to enlarge Fry-Ark Project facilities will be
asked to commit to the implementation phase of the enlargement projects by signing a
Memorandum of Agreement (MOA) with the Enterprise. The MOA will ask participants to
commit to a share of the costs (proportionate to their share of the proposed enlargement) to
secure authority for the enlargement project, referred to as the Implementation Phase of the
PSOP. Such costs will include legislative/lobbying work to secure authority for a fcderal-
level feasibility study, the feasibility study for Pueblo and Turquoise Reservoirs, the NEPA
compliance process including any environmental impact statemcnts, securing legislative
authority for the enlargement of Project facilities, and legal and staff-time costs incurred by
the Enterprise to facilitate the implementation of the enlargement elements of the PSOP.
These MOA's are to be executed no later than October 1,2001.

A separate agreement/contract will need to be executed to affirm participation in the actual
construction project that will include a commitment to pay for a proportionate share of the
construction costs. A draft agreement for commitment to financial participation (allotment
contracts) will be sent to all eligible entities in the District following congressional
authorization for the enlargement project and appropriate negotiations with Reclamation and
NEPA compliance-following the PSOP Implementation Phase, about 2006.

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99061 FinJI PSOPRepon