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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />1'l"-,'l~5 <br />, ~. I . <br />,J____ <br /> <br />WATER RIGHTS EVALUATIONS <br /> <br />The values placed upon water rights vary with 1) the location of the current owner <br /> <br />or the right in relation to the location of its potential use; 2) the priority of the water right <br /> <br />and its yield which will be affected by the extent of other development on the same source <br /> <br />of supply junior to that date; 3) the legal and physical ease of transfer to a new use; and <br /> <br />4) the availability of alternative supplies for the new use. In arriving at a value of the <br /> <br />consolidated Three Forks Project water rights, an additional factor must be considered, i.e. <br /> <br />the water rights are conditional and do not represent a developed source. <br /> <br />There is little unsatisfied demand for water in the Little Snake River valley or in <br /> <br />the larger Yampa River valley of which the Little Snake River is tributary. As evidence <br /> <br />for this, the Wyoming Water Development Commission has not yet obtained firm <br /> <br />commitments for 20,000 acre-feet of water which would be available for industrial purposes <br /> <br />from its proposed Sandstone Reservoir. However, there are possibilities for future <br /> <br />demand and with an assured water supply, a demand will most likely develop..' The <br />~ <br />location of the Three Forks Project is such that the place of use of water from the <br /> <br />reservoir is limited to the local area without considerable expense in addition to the cost <br /> <br />of dam construction. The major demand centers at the present time are on the east slope <br /> <br />of the Continental Divide. Water from Three Forks can be pumped across the divide, but <br /> <br />at significant expense. Most of the purchases of water rights, which will be discussed later, <br /> <br />are on the east slope and more particularly along the Front Range near Fort Collins and <br /> <br />Denver. <br /> <br />8 <br />