Catlin Fallowing-Leasing Pilot Project Year Two Update

Leah Martinsson, Esq. Berg Hill Greenleaf Ruscitti LLP

Jack Goble, P.E.

Lower Arkansas Valley Water Conservancy District

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• Attempted use of SWSP approval for a lease-fallowing project in 2012

• Conditional approval with excessive terms and conditions

• Opposing parties sued SEO, Lower Ark District and Super Ditch

• Not able to operate because water was not available

• Lower Ark District & Super Ditch realized that an alternative administrative approval mechanism was needed

• Legislature recognized critical need to pursue leasing-fallowing as an alternative to permanent buy-and-dry and passed HB13-1248

• Broad support in both House and Senate

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Background

• CWCB pilot program to test fallowing-leasing as an alternative to permanent agricultural dry-up. • Municipal, Environmental, Recreational, Industrial, and Agricultural end uses

• Through December 31, 2018

• 10 projects of up to 10 years • Up to 3 per basin

• No transfers over the Continental Divide

• No transfers out of the Rio Grande basin

• Extent of fallow limited • 3 years in 10-year period

• no more than 30% for 10 consecutive years

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HB 13-1248

• Developed by CWCB in collaboration with SEO & broad-based technical committee

• Set forth application and approval process

• Adopt accepted methodologies, modeling, and accounting practices

• Includes standard terms and conditions for dry-up, accounting and recharge

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Criteria and Guidelines

Narrative proposal to CWCB for initial

selection

30-day comment period

CWCB consideration of

proposal

If selected, application with

technical analysis using LFT

60-day comment period

Within 30 days, joint conference

with commenting parties

Within 15 days, submit a joint

conference report

Within 30 days, State Engineer determination

CWCB action on application

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The Process

• Developed by SEO with technical committee input

• Streamline evaluation of HCU and return flows as part of lease-fallowing • Standardize inputs for calculating HCU

• Standardize method of calculating the timing of lagged return flows

• Conservative Assumptions in HCU analysis

• Intended to simplify analysis and lessen concerns over injury

• Results only applicable for pilot projects

• Do not create presumption or shift burden of proof

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Lease-Fallow Tool

Financial Information

2015: $204K

2016: $202K

Lease Payments 2015: $1030

2016: $1004

*includes option payment

Payment Per Acre:

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• Municipal Participants and Farmers pleased with project • All have continued full participation

• Encourage additional pilot projects in other basins

• Lower Ark District & Super Ditch pursuing other possible pilot projects • Colorado Springs, City of Fountain, Lake Isabel

• Extend and expand HB 13-1248 • Extend CWCB authority to approve pilot projects past 2018 • Allow for additional pilot projects in Arkansas River Basin

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Looking Ahead

Catlin Pilot Project

• Just completed year two of the ten year CWCB approval:

6 Catlin Canal farms totaling 902 acres and 1,047 shares

Fallow up to 30% of the land each year

Deliver up to 500 AF per year to municipalities

Municipalities: Fowler, Fountain and Security

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Details

• 2016:

• Acres: 238 fallow / 902 total (26% fallowed)

• Shares: 255 fallow / 1,047 total

• Shares associated with dry-up delivered to three locations:

• Schweizer Recharge Pond

• Hanagan Recharge Pond

• Timpas Creek Augmentation Station

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SCHWEIZER POND

TIMPAS CREEK AUG. STATION

HANAGAN POND

CROOKED ARROYO AUG.

STATION

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Delivery Types

- Delayed return flows - Pond evap & pond vegetation ET

Recharge pond

- Immediate return flows - C.U. water

Augmentation station

Recharge Ponds • Pond inflows measured and recorded every 15 minutes w/ stage

discharge recorders and transmitted with telemetry equipment

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• Pond stage measured and recorded every 15 minutes w/ radar level recorders and transmitted with telemetry equipment

Recharge Ponds

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• Monitor Catlin diversions and communicate w/ Catlin Superintendent

• Pilot Project deliveries are based on Catlin Canal diversions

• No trans-mountain diversions allowed in pilot project

Operations

Unexpected drop in diversions

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Operations • Monitor pond and aug. station deliveries to ensure adequate flow

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Operations • Maintain daily accounting and submit monthly to DWR

• Set river exchanges w/ DWR and monitor daily

• Transfer water to municipalities monthly

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FALLOWED WINTER WHEAT

Fallowed Ground

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FALLOWED WINTER WHEAT

IRRIGATED ALFALFA

FALLOWED CORN STALKS FROM FORMER IRRIGATED YEAR

Monthly Municipal Deliveries

2015: 409 ac-ft 2016: 406 ac-ft

Questions?