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<br />1810 <br />providing substitute supplies of water, by the development of new sources of water, <br /> <br />or by any other appropriate means. <br /> <br />While the reference to "pooling" has not been further defined in case law, it arguably encompasses <br />water banking, The special statutory procedures for administration of augmentation plans in C.R.S, <br />37-92-501.5 also provide the flexibility to establish a water bank, The state and division engineers <br />shaIl <br />"exercise the broadest latitude possible in the administration of waters under their <br />jurisdiction to encourage and develop augmentation plans and voluntary exchanges <br />of water and may make such rules and regulations and shaIl take such other <br />reasonable action as may be necessary to aIlow continuance of existing uses and to <br />assure maximum beneficial utilization of the waters of the state." <br /> <br />If the FLCC did not choose to operate the water bank, there may be authorization for political <br />subdivisions to do so under C.R.S. 37-83-106. The Colorado Supreme Court has emphasized the <br />policy of maximum beneficial use and of the optimum use of water resources, Relying on C.R.S, <br />37-92-501(2) (e), the court has asserted that the State Engineer should encourage optimum use of <br />water rights and make rules in support thereof,s Water banking is also consistent with the theory <br />of maximum utilization of water resources reflected in the Constitution and the Water Right <br />Determination and Administration Act of 1969, <br /> <br />Water Bank Potential <br /> <br />The water bank alternative has several advantages over other alternatives, from the viewpoint of the <br />Fort Lyon Canal Company shareholders, The water bank is clearly the best of the six alternatives <br />presented in Chapter 6 when considering the long-term economic and social weIl being of the Lower <br />Arkansas VaIley. The advantages of the water bank include the foIlowing: <br /> <br />· Participation in the water bank is voluntary, and only wiIIing shareholders wiIl lease <br />some or all of their water; <br /> <br />· Shareholders can readily obtain funds from leases of their water, whereas sales of a <br />minority of ditch company shares often involve difficulties, delays and significant legal <br />costs; <br /> <br />. The financial returns to the shareholders will be greater than their returns from <br />irrigated agriculture, since they set the price when offering water for lease. Using the <br />experience of leasing Fort Lyon land and water for tenant use, leases of FLCC water <br />are expected to be offered at about $60/af C.U,/year in normal water years, Water <br /> <br />5 A1amosa-LaJara Water User.; Protection Ass'n v, Gould, 674 P.2d 914, 935 (Colo, 1983), In making such <br />rules, economic factors and environmental factors maybe relevant factors. Water banking is designed to accommodate <br />economic concerns. <br /> <br />7-5 <br />