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<br />Page Ten <br /> <br />replacing wells, the cost of supplying energy for pumping, and the cost of <br /> <br />conveyance and distribution. An in-depth economic analysis of long-term <br /> <br />groundwater use is a prerequisite for sound management decisions on <br /> <br />groundwater's value as a supply source. <br /> <br />The task group, in its review, has received some cost figures from three local <br /> <br />existing groundwater suppliers. The user rates range from $1.10 to $1.30 per <br /> <br />1,000 gallons. These rates, however, do appear to benefit from potentiometric <br /> <br />head and do not appear to be geared to the additional wells which will be <br /> <br />needed as production decreases. This leads the task group to believe that the <br /> <br />actual cost of groundwater is indeed a central issue requiring a great deal <br /> <br />more study. <br /> <br />v. Legal and Administrative Considerations <br /> <br />Senate Bill 213 [C.R.S. 1973 Sec. 37-90-137(4)) is the controlling legislation <br /> <br />dealing with the extraction of nontributary groundwater in the bedrock <br /> <br />aquifers of the Denver Basin. It permits removal of a maximum of one percent <br /> <br />of the water under property controlled by the landowner each year, based on a <br /> <br />100-year minimum life for the bedrock aquifer being tapped. A well permit <br />from the State Engineer is required. <br /> <br />Surface ownership or consent of the owner is required as a prerequisite to <br /> <br />obtaining the water. This requirement can present difficulties in areas where <br />