HYDRO25423

• Permit No: M1977342
• IBM Index Class Name: Hydrology
• Doc Date: 8/3/2005
• Doc Name: water rights
• From: helton and williamsen pc
• To: dmg
• Media Type: D
• Archive: No

HELTON & WILLIAMSEN, P.C.
CONSULTING ENGINEERS IN WATER RESOURCES
384 INVERNESS PARKWAY, SUITE 144
ENGLEWOOD, COLORADO. 80112-5822
PHONE [phone] -
,_ FAX [phone] ... ,
August 2 2005
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~G 0 3 2005
~Uieision of FPiirasa. ;
Mr. Allen C. Sorenson /
Division of Minerals and Geology
1313 Sherman Street, Room 215
Denver, Colorado 80203
Subject: Henderson Mill Water Right/s -Keyser Ditch
Dear Mr. Sorenson:
An adjustment to the historical consumptive use attributable to the Keyser Ditch was
presented by W.W. Wheeler and Associates, Inc., in a letter report dated July 21, 2005. The
Keyser Ditch water rights are included in the October 15, 2002 DEED OF TRUST between
Climax Molybdenum Company and the Public Trustee of Grand County in trust for the benefit of
the State of Colorado, Mined Land Reclamation Board to secure the financial warranty for
Climax's projects. The adjustment was justified because it was found that instead of owning the
entire water right, Climax owns 4.0 cfs out of.5:t).cfs.(80 percent) of the water right decreed to
the Keyser Ditch with an August ~10, 1897 "appropriation date in Givil Action No. 183 by the
Grand County District Court on August 3, 1911. The remaining 1.0 cfs was reserved for use at
the U.S. Forest Service's guard station. It is understood that Climax owns the entire water right
decreed to the Keyser Ditch Enlargement and Extension for 2.25 cfs with an appropriation date
of June 28, 1913.
The historical consumptive use was adjusted downward to an average of 67 acre-feet
annually. This amount is 5 acre-feet less than the amount presented in the September 2002
report by W.W. Wheeler and Associates. The downward adjustment is due primarily to reducing
the irrigated acreage from 52 acres to 50 acres which was based on inspection and
measurement of aerial photos. Secondly, the diversions by the Keyser Ditch were decreased by
20 percent in order to account for the Forest Service's use.
I conclude from review of the available information and discussions with S. Maley, W.W.
Wheeler and Associates, that the downward adjustment of historical consumptive use to an
average of 67 acre-feet annually for Climax's interests in the Keyser Ditch is reasonable and
justified. This small change of 5 acre-feet represents a reduction of the yield of the portfolio of
water rights attributable to the Skylark Ranch water rights by 0.5 percent. That reduction of yield
probably does not warrant a revision to the monetary value of the water rights because of the
range in unit value of water rights.