2015-01-12_REVISION - M1985112 (7)

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Mr. Jared Dains, E.I. Page 3 of 6 Loloff SWSP February 3, 2014 Platte River Power Authority Lease A lease of 9.9 acre-feet of PRPA's water stored in Fossil Creek Reservoir(WDID 0303774)will be used to make replacements from January through March and November, December 2014 according to the schedule in the attached Table 1. PRPA has an "Agreement for the Reuse of Water for Energy Generation", dated August 10, 1978,with the City of Fort Collins("Fort Coffins") and Water Supply and Storage Company("WSSC")that provides PRPA with the right to receive reusable water delivered by Fort Collins. PRPA, Fort Collins, and WSSC also obtained approval of a plan for augmentation including reuse of water in Division 1 Water Court Case no. W-9332-78. In case no. W-9332-78, the Court found that 4,200 acre-feet or more per year will be available from Fort Collins to the PRPA to be used primarily for cooling purposes in connection with its Rawhide Energy Facility. Pursuant to the decree, if PRPA does not require the water for its own purposes, PRPA, Fort Collins, or other water users may utilize the water for any other beneficial purpose including augmentation. In addition, PRPA has entered into an Agreement with the North Poudre Irrigation Company("North Poudre")dated November 15, 1979, which grants PRPA the right to store surplus water(beyond the needs of the Rawhide Energy Facility) in Fossil Creek Reservoir and lease such water to other users who can use it. The releases are made to the Cache La Poudre River approximately 30.3 miles upstream of the estimated point of depletion from the Loloff Pit. A transit loss of 7.58% (or 0.25% per mile) is assessed to all releases, resulting in 9.15 acre-feet of water available for replacement purposes. Graham Ditch Company The Applicant has also obtained a lease from the Graham Ditch Company for 13.4 acre- feet of replacement water from the Graham Seepage &Drainage Canal(WDID 0301321)water right. This water right was decreed in case no.W-7818 as developed water, not tributary to the South Platte River to be used for irrigation or domestic purposes. The court found that 2,800 acre- feet of water was developed by the construction, development, and operation of the Graham Seepage& Drainage Canal; however, historically only 1,330 acre-feet were consumptively used, with 1,470 acre-feet discharged as waste water to the Cache la Poudre River and its tributaries. The current lease for the Graham Seepage& Drainage Canal water, executed on October 22, 2013 is for the months of April 2014 through October 2014 and a copy is attached to this letter. The fully consumable portion of the water delivered is determined by multiplying measured deliveries by 47.5%. The lease amounts are for fully consumable water,therefore actual deliveries will include additional water to account for the 47.5%factor. Deliveries to the Cache La Poudre are measured at a flume(Graham Seep Ditch Return,WDID 0302906)located approximately 380 feet from the mouth of the ditch.The Graham Seep Ditch deliveries are made approximately 4.3 river miles upstream of the estimated point of depletion of the Loloff Pit, therefore a 1.08%(or 0.25%per mile)transit loss is assessed resulting in 13.26 acre-feet of water available for replacement purposes. On October 29, 2013, the SEO received a comment letter on behalf of the Greeley Irrigation Company("GIC")stating that the nontributary determination and actual historical consumptive use of the Graham Ditch water is subject to scrutiny per the applicant's efforts to change the use of the water to include augmentation purposes. For this year's SWSP request, the SEO is administratively approving the change of water right for augmentation purposes. However, due to questions regarding the nontributary nature of the water and the need for a change of water right from irrigation and domestic to augmentation,the SEO will not approve such a change in future SWSPs unless the