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\ STUDIES District Enters Second Phase of Interruptible Supply Contracts Study As Colorado's cities grow, agricul- tural water rights are often target- ed as a source of supply for urban needs. The specter of agricuhurallands which have been dried up to provide water for thirsty cities is troublesome, not only to Colorado's farmers and rural communities which survive in large part because of agricullure, but [0 many urban Coloradans who realize the significant contribution of agricultur~ to the econo- my. Lreasure the green vistas and open space provided by farm and ranch lands, and enjoy the benefits of the relatively cheap food produced on those lands. A vital and heallhy agricul- LUfal sector is important to all of the state's residents. Innovative water supply approaches such as inter- ruptible supply contracts can help preserve thaI vitality. These arrangements can provide for the sharing of water through agreements for occasional raLher than pemlanent transfer of water supplies. Under an interruptible suppl y contracl. [he seller retains ownership of {he waler and contin- ues to use it in all bUl the driest years. The buyer takes delivery of the water when it's needed 10 address tempo- rary water shOll'ges, typically during drought periods. The Northern Colorado Water Conser- vancy District (District) is entering the second phase of an 18-month study to explore the feasibility of interruptible supply contracts for integrating water supplies between the Colorado-Big Thompson (C-BT) and Windy Gap (W0) Projects. The study is being conducted by Ellen Pinnes, a \Vater Policy Consultant from Santa Fe. New Mexico. Pinnes is conducting the study under Dislricl direc- tion with money received from a 1993 gram from the Colorado \Vater Conserva- (jon Board's Office of Water Conserva- tion. Windy Gap shareholders include the 8 cities of Boulder. Broomfield. Estes Park, Greeley, Longmon!' and Loveland, the Central Weld County Water District, Left Hand Water District, Platte River Power Authority, and Superior Metropolitan District No. I. The Windy Gap Project derives its supply from independent W3Ier rights but uses C-BT facilities to convey the water from the West Slope to the East Slope of the Rocky Mountains. Integrated operations of the two pro- jects allow WG users to borrow water from the C-BT Project so long as there is no injury to C-BT allouees. To protect C-BT alloUees, WG shareholders must have a back- up water supply that the District can call on if need. ed to ensure C-BT deliveries when WG shareholders borrow water. One alternalive for this backup supply is interruptible sup- ply contracts wilh C-BT allollees. Based on hydrology studies. the Dis- Irict anticipates that the water would aclU- ally be used by WG shareholders unde, Ihese contracts only during a severe drought, expected to occur, on average. once in 100 years. Waler made available to WG shareholders under interruptible supply contracts will stay in the District's service area for local use. ."_.~ , 4 Cities could obtain drought insurance under program. How Interruptible Supply Agreements Work Under an interruptible supply agree- ment. the buyer obtains a COf1(ract righl to take delivery of Ihe seller's water under specified conditions. When those condi- tions occur, the seller is notified and the water is delivered to the buyer instead of the seller for that year. The seller makes \valer available for lnlI1sfer under the COIl- ".. ,:,.Oof",o.;"'l Agricultural waler could be made avail. able to dties under drought conditions. tract either by reducing operations (either by fallowing land or changing cropping pallerns for that year) or by using other sources of water. In return for transferring waler to the buyer. the seller receives a payment as compensation for expenses incurred and for the profit foregone by not being able to use the water that year. The seller incurs no economic loss by allowing the buyer to use the waler, and the buyer is able to beller cope with drought shortages. As Pinnes explains. interruptible supply contracts can benefit all parties. "The seller, typically an agricultural user, retains ownership of the water rights and can continue farming operations. When the buyer needs the water temporarily to cope with water shonages, Ihe owner of the water right is fully compensated. Cities have access to water supplies need- ed in times of shonage without having to buy permanent water rights. Rural com- munities also benefit. Keeping water in agricultural use means famling will not be destroyed by wholesale permanent transfers of water to urban use." The District began actively sharing infomlation and soliciting input from C-BT and WG allottees at its Fall Waler Users Meeting held in late October 1994. At the meeting, Pinnes conducted both an informational overview and an open forum for water users and other interested parties. Pinnes notes thaI "the open meet- ing was very consln!ctive. The comments and questions offered by those allending will be helpful as the study progresses. This kind of input is essential to develop- ing a workable program, and I hope that many morC people will come to future meetings to give us the benefil of their thoughts on the program." The District will conlinue 10 interact WArERNEWS/WINTER 1995