South Platte - FarmersRes&IrrCo_SP FRICO_Summary_July2008

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Alternative Agricultural Water Transfer Methods -Grant and Loan Program Project Summary Sheet Applicant: Farmers Reservoir and Irrigation Company (FRICO) Water Activity Name: Alternative Water Transfers in the South Platte Basin using the FRICO system Amount Requested: $225,000 Matching Funds: Yes ($25,000 Cash; plus $50,000 of in-kind legal analysis) Drainage Basin: S. Platte River Water Source: S. Platte River Project Summary: The project will evaluate the potential effectiveness of a variety of alternatives including rotational fallowing, interruptible supply agreements, lease back agreements, and changes in cropping patterns designed to free up consumptive use for purposes of transfer to M&I users. In addition, an innovative "shared" water bank concept shall be tested to optimize the physical, economic, and administrative structure needed to capture, store, and wheel water to purchasers in the Denver Metro area. Previous attempts at water banking in Colorado have failed due, in part, to inadequate attention being paid to the particular institutional, physical, and social constraints existing in Colorado. Despite this, there are numerous examples of successful water banking efforts throughout the Southwest. The "shared" water bank concept being explored here would utilize existing FRICO infrastructure and recharge capabilities to capture and store, in wet years, otherwise unused agricultural and M&I consumptive use. The resulting augmentation credits would then be available to be used by agriculture and M&I users. The bank will be managed and administered by FRICO. Contrary to previous water bank efforts, the shared water bank concept being explored here will allow for both intra and inter year banking opportunities. The potential for such an opportunity exists due to FRICO's unique infrastructure and recharge capabilities, as well as existence of a wealth of information about the FRICO system. Engineering studies currently underway to identify consumptive use, recharge capabilities, and the timing of return flows will provide much needed technical information not typically available. The applicants foresee several benefits accruing to both agricultural and M&I users. Because this arrangement centers on utilizing underground storage to capture unused M&I supplies in wet years, M&I users will be given the opportunity to firm existing supplies without additional investments in infrastructure and without having to transfer additional supplies from current agricultural users. In exchange for facilitating the storage of otherwise