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Colorado Springs Utilities Pilot Project Proposal <br />November 16, 2018 <br />Page 2 <br /> <br />agricultural dry-up. This concept has received support from the CWCB, the IBCC, the Basin <br />Roundtables, the Colorado Legislature, and Governor Hickenlooper. Applicants are pleased to have <br />the opportunity to submit this proposal for a pilot project under HB 13-1248. <br />I. Notice Requirements (Criteria and Guidelines §§ II.A, & F) <br />Applicants request that the CWCB post this CS-U Pilot Project Proposal on its website upon <br />receipt pursuant to Section II.A of the Criteria and Guidelines. Additionally, pursuant to C.R.S. § 37- <br />60-115(8)(e)(II) and Section II.F of the Criteria and Guidelines, Applicants have provided written <br />notice and a copy of this CS-U Pilot Project Proposal and all accompanying materials by first class mail <br />or electronic mail to all parties that have subscribed to the substitute water supply plan notification list <br />for Water Division 2. Proof of such notice is attached hereto. <br />II. Description of the Pilot Project (Criteria and Guidelines §§ II.F.1.a-f) <br />A. Generally <br />The CS-U Pilot Project will fallow parcels of land rotationally or intermittently and provide the <br />transferable consumptive use water without permanent dry-up for municipal use, thereby encouraging <br />farmers to continue farming and remain active members of their communities. The CS-U Pilot Project <br />was developed by the Applicants to demonstrate the viability of the fallowing-leasing concept on a <br />larger scale, and to provide water to CS-U for drought recovery without the need for permanent dry-up <br />of irrigated agriculture. The CS -U Pilot Project will build on the lessons learned from the Catlin Pilot <br />Project and demonstrate the scalability and cost savings of a larger fallowing -leasing project that <br />includes shares in multiple ditch companies. <br />Super Ditch is a Colorado corporation formed in 2008 for the benefit of the farmers in the <br />Lower Arkansas Valley below Pueblo Reservoir and above the Kansas state line. The Super Ditch in <br />partnership with Lower Ark was created as a farmer-owned company to manage the operations of the <br />water enterprise, including the Catlin Pilot Project and the proposed CS-U Pilot Project. <br />The CS-U Pilot Project seeks to use water available to shareholders of Catlin, Fort Lyon, and <br />High Line as the source of up to 5,000 acre-feet annually of transferable consumptive use water that <br />will be made available to CS -U for temporary use in its municipal water systems through the rotational <br />fallowing of sufficient acreage to generate such water. CS-U will take delivery of water made available <br />through the CS -U Pilot Project through operation of physical or contract exchanges/trades. <br />CS-U has contracted for at least 1,000 acre-feet of water annually in three out of the ten years <br />of this Pilot Project. Fallowing-Leasing Project Agreement by and between the Lower Arkansas <br />Valley Super Ditch Company and the City of Colorado Springs, Acting by and through its Enterprise, <br />Colorado Springs Utilities (August 20, 2018) (“CS-U Contract”), attached as Exhibit A. CS -U has the <br />option to request up to 5,000 acre-feet of water annually in three out of ten years. Given the nature of <br />the contract between Super Ditch and CS-U, no land will be fallowed for more t han three out of ten <br />years in compliance with the Criteria and Guidelines, § II.C.