WSP07452

• File Number: 8276.500
• Description: Glenwood-Dotsero Springs Unit - Salinity Control Projects
• State: CO
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 12/1/1985
• Title: Preliminary Assessment of the Salt Tolerant Emergent Plant ‎(STEP)‎ Process for the Beneficial Use and Disposal of Saline Water
• Water Supply Pro - Doc Type: Report/Study

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acres of 1 to 3% slope exist within Mesa County, excluding
concentrated agricultural areas, Several sites appear attractive
near Palisade, Colorado, although they require further investigation.

Commercial Value

The value
that can
from the
resources

of
be
s.ale
made

the STEP process to investors is based upon cash flows
expected from operating a pollution control facility,
of product, and from a share in the lease rights to the
abailable to other businesses because of the process.

Future cash inflows from the production and sale of STEP crops were
forecast utilizing a Monte Carlo approach, discounting the unit value
of STEP crops by 25% below the historical average price of Alfalfa
hay in Colorado. The most probable result of the simulated revenue
analysis was that 1,276 acres of STEP production pond area would be
utilized to yield 10,208 tons of feed-grade hay at a price of
$53.66(ton for annual gross revenues of $547,930. According to 1985
Colorado Agricultural Statistics, 2,387,000 tons of Alfalfa hay were
produced in the State in 1984; 19.4% of that was produced in the
Southwest District of the State that includes Mesa and Garfield
counties, The STEP production ponds would thus need to capture about
2.2% of the Southwest Colorado market.

The most probable result of the simulated earnings-before-tax
analysis was that about $160,000 would be earned from the first year
crop and $174,500 from subsequent crops, the difference caused by
decreased costs in planting in the out-years.

In addition, the contract for operating the facility for the public
should yield around $106,000 per year. Carbon dioxide and space

TABLE 3: EFFECT OF STEP PROCESS PERFORMANCE ON COST
EFFECTIVENESS (1985 $ PER TON OF SALT REMOVED)

Performance Variable

Best Case

Reference Case

Worst Case

Evapotranspiration
Rate (in/day)

0.52*

0.258 0.18
55.31 57.53
42,91 45,13
40,000 80,000
55.31 55.65
42.91 43,25
180 126
55.31 56.54
42.91 44.14

Mack Site, ($ per ton)
Palisade Site, ($ per ton)

51.93
39.53

Salinity, (mg/l TDS)

28,000

Mack Site, ($ per ton)
Palisade Site, ($ per ton)

55.02
42.62

Growth Season, days/year

360

Mack Site, ($ per ton)
Palisade Site, ($ per ton)

52.84
40.44

* Reported as high as 1.5 in/day

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