Two Rivers plans to lease 500 acre-feet of water to the Arkansas Ground Users Association #codrought

From The Pueblo Chieftain (Chris Woodka):

Some well owners in the Arkansas Valley will benefit from a lease from Two Rivers Water and Farming Co. The company, which is buying farms and creating water storage in Pueblo and Huerfano counties, is subleasing 500 acre-feet of water, which it obtained in a five-year deal with the Pueblo Board of Water Works, to the Arkansas Groundwater Users Association.

Two Rivers will plant an additional 200 acres of vegetables on its Bessemer Ditch farming operation, company CEO John McKowen said in a press release. Two Rivers uses AGUA to augment wells it owns.

Two Rivers leases the water for about $210 per acre-foot from the Pueblo water board under an agreement made in 2011. McKowen said the water is being provided at cost, and Two Rivers will not use the full amount on its ground. The water will be part of AGUA’s replacement water to make up for depletions from well pumping. AGUA members along the Arkansas River will be able to pump at 30 percent of normal rates. Along Fountain Creek, the pumping rate will be 40 percent to 45 percent.

“The water made available to AGUA through our 2013 lease with Two Rivers will be invaluable in helping to blunt the effects of the ongoing drought. It will keep farms in production that otherwise would have been dried up,” said Scott Lorenz, manager of AGUA.

“Two Rivers’ commitment to agriculture is clear, and we look forward to a positive, productive relationship with them for years to come.”

Water for well augmentation plans have been hard to find this year. While the Pueblo Board of Water Works is fulfilling multiyear contracts, such as the one with Two Rivers, it is not planning to lease water on the spot market, a major source of supply for the well groups.
Last week, the Colorado Water Protective and Development Association, another well owners association, told its members that it has no water this year.

AGUA provides augmentation for about 250 farm wells, while CWPDA serves about 500 farms.

The Pueblo Board of Water Works ponies up $50,000 for wildfire mitigation near Twin Lakes #codrought

From The Pueblo Chieftain (Chris Woodka):

Forest fires can have devastating consequences to watersheds cities depend on, so the U.S. Forest Service is reaching out to municipal water providers to take measures to thin forests.

The Pueblo Board of Water Works Tuesday voted to pay the Forest Service $50,000 to thin about 81 acres near Twin Lakes. The Forest Service provides the expertise and manpower to do the work. The water board will join other water providers throughout the West to reduce the impact of fires.

Last summer, large fires near Fort Collins and Colorado Springs burned thousands of acres, raising the specter that those cities will face the same challenges Denver and Aurora have had from the 2002 Hayman Fire.

“A movement is under way for the Forest Service to go into watersheds that are vital to municipal water supply to thin the forests and reduce the impact of fires,” said Alan Ward, water resources manager for the water board.

Colorado Springs and Aurora already have paid the Forest Service to clear other large areas near the Mount Elbert Forebay, located just north of Twin Lakes. Twin Lakes is a vital transfer point for the Homestake Project which the two cities jointly operate. Pueblo also stores water in Twin Lakes, as well as Clear Creek Reservoir and Turquoise Lake in the same general area.

“There are lots of areas in our watershed that are at extreme risk,” Ward said.

The water board and Forest Service are studying the possibility for future agreements in the watersheds of transmountain ditches in the Tennessee Creek area, he added.

Meanwhile climate change is expected to exacerbate the wildfire problem. Here’s a report from Bobby Magill writing for the Fort Collins Coloradodoan. Here’s an excerpt:

Colorado’s future under the influence of climate change will be significantly warmer and drier than recent years, and the impacts will affect the regions’ water, forests, wildfires, ecosystems and ability to grow crops. That’s the conclusion of the draft of the federal government’s National Climate Assessment, which was released for public comment on Monday by the U.S. Global Change Research Program.

The water content of Colorado’s snowpack and the timing of the spring runoff are changing, which could pose major challenges for the state’s water supplies and farmers, said Reagan Waskom, director of the Colorado Water Institute at Colorado State University and co-author of the portion of the assessment addressing Colorado and the Southwest. The Southwest, including Colorado, will see significantly declining snowpack, increasing numbers of wildfires directly affecting communities, and threats to public health caused by spiking summer temperatures and disruptions in electricity and water supply, according to the assessment’s regional outlook.

Mounting evidence suggests that temperature increases caused by people are responsible for killing trees throughout the region, increasing the number of wildfires and sparking bark beetle outbreaks.

“Increased warming will increase wildfires and wildfire impacts,” Waskom said. “The models project more fire and greater risk.”[..]

The only good news to be found in the climate assessment is that Colorado’s growing season may get longer as the temperatures warm, Waskom said.

Pueblo: The PBOWW is eyeing a water rate increase of 2.75% in their new budget

From The Pueblo Chieftain (Chris Woodka):

While you were dumping all that water on the lawn last summer, you were keeping your water rates down. The Pueblo Board of Water Works got a detailed look at the proposed 2013 budget Tuesday, with no major surprises in the picture. A public hearing will be Nov. 20.

This year’s dry, hot weather meant a lower-than-expected increase in next year’s water rates — a 2.75 percent increase.
Why? Metered sales were projected to bring in $22 million, but all the extra watering meant an additional $800,000 in projected revenue. “Any time we have a situation where expenditures are lower or revenue higher, our customers get a benefit,” said Seth Clayton, director of administrative services and finance.

The water board also will see revenue of $7.6 million — in a $32.3 million budget — from water leases next year, including $5.2 million to power companies. While spot leases are not expected, the water board has several long-term contracts that provide additional revenues.

Expenditures are expected to be relatively flat, as opposed to this year’s steep hike in electric rates. Electricity purchases amount to about $3.4 million. A 1.49 percent salary increase is included, along with a 1.25 percent hike in health insurance and 5 percent drop in dental insurance.

An end to the drought could hurt next year’s revenues, which are based on consumption of 8.35 billion gallons for residential use. Outside lawn watering is the biggest variable for revenues, Clayton said. “Our customers are using their water wisely,” he said. “If we see a normal year, we will not see the consumption we have this year.”

More Pueblo Board of Water Works coverage here and here.

Pueblo Board of Water Works staff water rate increase request totals 2.75%

From The Pueblo Chieftain (Chris Woodka):

A relatively modest 2.75 percent increase in water rates is envisioned in the 2013 budget for the Pueblo Board of Water Works. The increase would be the lowest since 2004, and would keep Pueblo’s rates the lowest among large Front Range water providers.

It would mean an increase of less than $1 per month for the average residential customer.

A $32.3 million budget is being proposed by staff. The water board will hear details about the budget at a workshop on Nov. 6. A public hearing on the budget is scheduled at 2 p.m. Nov. 20 at the water board offices, 319 W. Fourth St.

The budget continues last year’s timeout for revenues into the water development fund — which uses one-time revenue sources such as long-term leases to fund water planning activities — until 2015.

Spending increases in 2013 are expected in legal costs, maintenance and chemicals. Utility costs are expected to remain relatively flat.

Among the largest costs for specific projects are $1.15 million for main expansion and improvement and $940,000 for continued conversion to automatic meter reading.

More Pueblo Board of Water Works coverage here and here.

The Cherokee Metropolitan District scores a 600 acre-feet water lease from the Pueblo Board of Water Works

From The Pueblo Chieftain (Chris Woodka):

The Pueblo Board of Water Works Tuesday approved a two­year lease of water to the Cherokee Metropolitan District in Colorado Springs.

The district is located just north of the Colorado Springs airport and serves about 18,000 people, said Sean Chambers, general manager of the district.

“When we were formed, Colorado Springs did not think it would extend services,” Chambers said. “Now, we are an island within the city.”

The district formed in 1957, and went through a series of reorganizations, consolidations and expansions until 1995. It lost water court cases that have reduced its ability to pump from the Upper Black Squirrel Creek and Chico Creek aquifers.

The district will lease 600 acre­feet of water (almost 200 million gallons) yearly from Pueblo in 2013 and 2014 at a rate $366.25 per acre­foot or $219,750 per year. Any rate increases for Pueblo water would increase the payment by the same percentage. The amount is within Pueblo’s projected surplus, but in an emergency the delivery could be canceled “This is just a bridge for us,” Chambers said. “We would not be relying on short­term leases such as this for a water supply.”

Cherokee is drilling wells and building a pipeline in northern El Paso County to deliver 1,000 acre­feet annually to meet its long­term needs, Chambers said.

The district has implemented conservation measures, which include outdoor watering no more than three times per week, and sometimes has banned outdoor watering altogether.

Cherokee has an agreement with Colorado Springs to deliver water to its system. The water would be exchanged from Pueblo’s accounts into the Colorado Springs system at Twin Lakes for delivery, said Terry Book, executive director of the Pueblo water board.

More coverage from Chris Woodka writing for The Pueblo Chieftain:

The Pueblo Board of Water Works is investigating an idea to create wetlands banks at its Tennessee Creek Ranches property north of Leadville in Lake County.

The water board Tuesday approved a contract of up to $25,000 with Johnson Environmental Consulting to look at the concept of mitigating wetlands in order to offset impacts from projects elsewhere.

The idea is to replace wetland areas destroyed by activities such as highway projects or reservoir construction by creating permanent areas to “bank” wetlands, said Executive Director Terry Book.

“I like the intent,” said board member Tom Autobee, in making a motion to approve the contract.

The Pueblo Water Board has looked at building a reservoir on the Tennessee Creek site since 1950, but those plans hit a snag in the late 1990s when fens — ancient marshy areas — were located on the site.

More coverage from Chris Woodka writing for The Pueblo Chieftain. From the article:

Former ponds west of Pueblo once owned by Valco are now incorporated into Lake Pueblo State Park.
Keeping water in them has become the responsibility of the Pueblo Board of Water Works, and a pending water court case will allow more efficient use of old ditch rights to meet that need.

The water board acquired the Hamp-Bell Ditch water rights from Valco in 2004. The ditch diverted a relatively small amount of water, accruing more credits in the irrigation season than at other times of year.

To balance the credits year-round, the water board will apply for storage rights.

“Currently, the board replaces the nonirrigation season depletions from its other water supplies and the excess Hamp-Bell

Ditch water from the irrigation season often goes unused,” said Alan Ward, water resources manager, in a memo.
The complex historic use issues surrounding the ditch — which has 1870, 1878 and 1880 water rights — were settled in Valco’s 2003 court case, making the new case fairly straightforward, Ward added.

“We should get a net gain of water to store,” added Executive Director Terry Book.

The water board unanimously approved to enter a water court application to complete the plan.

More Arkansas River Basin coverage here and here.

Drought news: This year’s drought could dry up irrigation water leases next season

From The Pueblo Chieftain (Chris Woodka):

“We’re still in good shape in terms of having a reserve, but we’ll probably have to throttle back onetime leases next year,” said Alan Ward, water resources manager for the [Pueblo Board of Water Works]. “We may lease very little water or none at all on the spot market next year.”

The water board leases have been an important source of water for farmers on the Bessemer Ditch and for well augmentation groups this year. This year the water board was able to lease 14,000 acre-feet — the equivalent of half the metered water supply for Pueblo.

The situation shouldn’t affect the board’s long-term leases to Aurora, Xcel’s Comanche power plant and other businesses.

More Pueblo Board of Water Works coverage here and here.

Alan Hamel ends his run with the Pueblo Board of Water Works

From The Pueblo Chieftain (Chris Woodka):

The Pueblo Board of Water Works Tuesday voted to rename its headquarters the Alan C. Hamel Administration Building at 319 W. Fourth St. Hamel, the executive director since 1982, officially ended his 52-year career the same day at the water board…

Far from speechless, Hamel then proceeded to talk about his career at the water board, giving credit to the employees who worked for him and the board. He also praised present and past boards for allowing him to serve outside roles in state government and professional groups. “The board has been farsighted in letting us look on the outside to form partnerships,” Hamel said.

A reception recognizing Hamel’s career is scheduled from 1 to 4 p.m. Aug. 29 at the Olde Towne Carriage House at the Riverwalk, 102 S. Victoria Ave.

More Pueblo Board of Water Works coverage here and here.

50th anniversary celebration of the Fryingpan-Arkansas Project Saturday at Lake Pueblo

The project got its start with a visit to Pueblo from President Kennedy back in 1962. Here’s the first installment from Chris Woodka writing for The Pueblo Chieftain. Click through and read the whole article, Woodka is a terrific writer. Here’s an excerpt:

But on that day [August 17, 1962], work began to address the problem. Kennedy came to Pueblo to celebrate the signing of the Fryingpan-Arkansas Act the previous day. Local water leaders will celebrate the 50th anniversary of the Fry-Ark Project Saturday at Lake Pueblo…

The Twin Lakes Tunnel was constructed by the Colorado Canal Co. during the Great Depression, while the old Carlton railroad tunnel was used by the High Line Canal Co. to bring in water. In addition, Colorado Springs and Aurora were already building the Homestake Project, which would be intertwined with the Fry-Ark Project as both were built.

But the government project, a scaled-down version of an earlier, larger plan to bring water from the Gunnison River basin, represented a larger cooperative effort between farmers and municipal leaders in nine counties.

Since the first water was brought over in 1972, about 2.1 million acre-feet of water has been brought into the Arkansas River basin for irrigation and municipal use. The project also generates electric power at the Mount Elbert Power Plant.

Woodka details some of the early water history along the Arkansas River mainstem in this report running in today’s Chieftain. Here’s an excerpt:

The Water Development Association of Southeastern Colorado was incorporated in 1946. Pueblo business leaders worked with valley water interests to investigate a Gunnison-Arkansas Project. By 1953, the project was scaled back to the Fryingpan-Arkansas Project, and the first hearings began in Congress.

During the congressional hearings in subsequent years, the project evolved from one primarily serving agriculture to one that included municipal, hydroelectric power, flood control and recreation as well.

The Southeastern Colorado Water Conservancy District formed in 1958.

The U.S. House passed the Fry-Ark Act on June 13, 1962; the U.S. Senate, Aug. 6, 1962. President John F. Kennedy signed it into law on Aug. 16, 1962.

Here’s a short look at Jay Winner, current general manager of the Lower Arkansas Water Conservancy District, from Chris Woodka Writing for The Pueblo Chieftain. From the article:

Back in the 1960s, his father Ralph Winner was the construction superintendent for Ruedi Reservoir, the first part of the Fry-Ark Project to be constructed and his family lived on the job site. His father came back in the late 1970s to supervise construction of one of the last parts of the collection system to be built, the Carter-Norman siphon. The siphon draws water across a steep canyon.

For three summers, Winner, then a college student, worked on the latter project. “It was the most fun I ever had,” he laughed. “I got to play with dynamite.”

From The Pueblo Chieftain (Chris Woodka):

A retired outfitter, [Reed Dils] is now a Southeastern Colorado Water Conservancy District board member and a former representative from the Arkansas River basin on the Colorado Water Conservation Board. “Initially, the flows got worse,” Dils said. “They (the Southeastern district and the Bureau of Reclamation) had chosen to run water in the winter…

“It became apparent to everyone there was another way to run the river,” Dils said. “Why the Fry-Ark act was passed, recreation mainly meant flatwater recreation. Over time, they learned there are other types of recreation.”

Here’s the release from Reclamation (Kara Lamb):

Reclamation and the Southeastern Colorado Water Conservancy District invite the public to celebrate the Fryingpan-Arkansas Project’s 50th Anniversary at Lake Pueblo State Park on Sat., Aug. 18. The event is located at Lake Pueblo State Park Visitor’s Center from 9 a.m.to 2 p.m.

Reclamation, the District and Colorado State Parks and Wildlife are offering free pontoon boat tours around Pueblo Reservoir and free tours of the fish hatchery located below Pueblo Dam. There will also be historical displays and several guest speakers.

Signed into law by President John F. Kennedy in 1962, the Fryingpan-Arkansas Project is a multipurpose trans-basin water diversion and delivery project serving southeastern Colorado.

The Fryingpan-Arkansas Project provides:

- Water for more than 720,000 people
- Irrigation for 265,000 acres
- The largest hydro-electric power plant in the state
- World renowned recreation opportunities from the Fryingpan River to the Arkansas River.

For more information the 50th Anniversary Celebration – and to see a teaser of the upcoming film! – visit our website at www.usbr.gov/gp/ecao.

More Fryingpan-Arkansas Project coverage here and here.

Meanwhile, Alan Hamel is retiring from the Pueblo Board of Water Works this month:

From The Pueblo Chieftain (Chris Woodka):

“Little did I know how important the Fryingpan-Arkansas Project would be as I was watching the president’s car traveling down Abriendo Avenue that day,” Hamel said. “Look at all that it has done for our basin and what it will do in the future.”

Hamel became executive director of the water board in 1982, and was president of the Southeastern Colorado Water Conservancy District, the local agency that oversees the Fry-Ark Project, from 2002-04. He is currently serving on the Colorado Water Conservation Board.

More Pueblo Board of Water Works coverage here.

‘A water tour also can sharpen your math skills’ — Chris Woodka

Check out Chris Woodka’s recount of his recent tour with the Pueblo Board of Water Works. The article is running as part of The Pueblo Chieftain’s excellent Colorado Water 2012 series Written in Water. Here’s an excerpt:

In my roughly 25 years of covering water issues, I have been on several water tours, which are routinely sponsored by water providers in the summer months because you can drive to the sites where water development means the most at a time when those sites do not happen to be covered in several feet of snow…

But last week, I joined the Pueblo Board of Water Works mountain tour as a guest. I was happy to just ride the bus, chipping in with a question now and then, but fully participating in the tour. I’d never done this.

I didn’t take a single note, and this column will be all that I’m going to write about the tour.

2012 Colorado November Election: The Pueblo Board of Water Works is considering opposing Initiatives 3 and 45

From The Pueblo Chieftain (Chris Woodka):

Initiative 45 would change Section 6 or Article XVI to require return flows from any water used in the state to be returned to streams “unimpaired,” which could create restrictive water quality standards, said Paul Fanning, the water board’s legislative liaison.

Both initiatives also give every citizen of the state standing in any judicial proceedings. Currently, water rights holders are allowed to enter water court cases to defend their own rights. “If they prevail, there would be an unprecedented amount of litigation,” said Fanning, who attended the Water Congress workshop.

The water board directed staff to prepare a resolution opposing the initiatives for a later meeting. “I think these would be a disaster for our state, and to the future use of water whether it’s for municipal, agricultural or industrial use,” Hamel said.

More 2012 Colorado November Election coverage here.

‘Oil shale development would involve intensive use of water’ — Alan Hamel

From The Pueblo Chieftain (Chris Woodka):

“We have to protect the water we have, as well as provide water for endangered species,” said Alan Hamel, executive director of the Pueblo Board of Water Works and a member of the Colorado Water Conservation Board. “Oil shale development would involve intensive use of water, particularly for use in power generation.” Last month, the Pueblo water board and other members of the Front Range Water Council weighed in on the Bureau of Reclamation’s environmental impact statement for oil shale and tar sands…

The Front Range Water Council includes the major organizations that import water from the Colorado River: Denver Water, the Northern and Southeastern Colorado water conservancy districts, Aurora Water, Colorado Springs Utilities, Twin Lakes Reservoir and Canal Co. and the Pueblo water board. Collectively, they provide water to 4 million people, 82 percent of the population in Colorado.

More Front Range Water Council coverage here and here.

Arkansas River Basin Water Forum: Alan Hamel receives the Bob Appel Friend of the River Award

Alan Hamel was honored for his 50+ years serving the rate payers of Pueblo Board of Water Works. Here’s a report from Chris Woodka writing for The Pueblo Chieftain. From the article:

The Arkansas River Basin Water Forum gave Hamel the Bob Appel Friend of the Arkansas award Thursday at the culmination of a two-day event at Colorado Mountain College. “I’m humbled,” Hamel said. “I’ve been blessed to work in the field of water.”

Hamel is retiring in August as executive director of the Pueblo Board of Water Works, and in an April 22 Pueblo Chieftain opinion piece he tried to get people excited about tap water for the Water 2012 celebration.
Must have worked.

Actually, his accomplishments in water circles have gone far beyond the water board’s mission to provide safe, reliable drinking water for Pueblo. Hamel currently serves on the Colorado Water Conservation Board and is the governor’s appointee to the Arkansas Basin Roundtable. He also has represented the Arkansas River basin on other state water panels, including the Colorado Water Resources and Power Development Authority and the Interbasin Compact Committee.

More Arkansas River basin coverage here.

The Pueblo Board of Water Works approves plan to share costs with the City of Pueblo to provide looking water for Lake Minnequa

From The Pueblo Chieftain (Chris Woodka):

“This is definitely a way to make it an amenity and not a liability,” said Tom Autobee, a water board member who made a motion to pursue the plan. It passed 5-0. The 3.7-mile pipeline would connect the St. Charles reservoirs with Lake Minnequa in order to keep fresh water flowing into Minnequa. It would be gravity-fed and would cost about $1 million in materials. The project could start as soon as this summer. Right now, Lake Minnequa fills only with stormwater. Drought for the past two years has created low levels in the lake that have killed fish and created odors for the Bessemer neighborhoods surrounding the lake.

The Lower Arkansas Valley Water Conservancy District has agreed to flow some of its water through Lake Minnequa and the water board would provide some additional water to account for evaporation or for flow-through, under a separate agreement…

The city would repay the water board through stormwater fees over three years, through a reduction in the amount remitted by the water board. The water board collects stormwater fees for the city on its monthly bills.

More Pueblo Board of Water Works coverage here and here.

The Pueblo Board of Water Works is still actively trying to score shares on the Bessemer Ditch

From The Pueblo Chieftain (Chris Woodka):

Since 2009, the Pueblo water board has spent $59 million to purchase 5,541 shares, roughly 28 percent, of the Bessemer Ditch. The water board bought farms in 2010-11, but needed funds to pay for electric rate hikes in 2012. The board also wanted to hold the line on water rates “We still have an interest in purchasing shares and I’m sure there is interest in selling,” Hamel said. “But we did not budget any money to buy shares this year.”

The water board anticipates spending another $1 million for a change case in Division 2 Water Court, which most likely would be filed in 2013. The change would allow water to be moved from the ditch into the city’s water system. Contracts for the sales allow the water to remain in use on farms for the next 20 years. The change case will cover only those farms purchased by the water board, and will not apply to other water users along the ditch, Hamel said.

More Arkansas River basin coverage here.

Two Rivers Water Company has inked a purchase contract for a farm on the Bessemer Ditch

Here’s the release from Two Rivers Water Company via PR Newswire:

Two Rivers Water Company announced today it has entered into an agreement to acquire the operating assets of Dionisio Produce & Farms, LLC, including 150 acres of high yield irrigated farmland and 150 shares in the Bessemer Mutual Ditch Company, a senior water right on the main stem of the Arkansas River. Dionisio Produce & Farms has been producing vegetable crops in Pueblo County, Colorado since the 1930s.

Two Rivers will also lease approximately 170 additional acres of farmland and purchase farm equipment, essentially merging the former operations of Dionisio Produce & Farms into Two Rivers’ farming subsidiary. Russ Dionisio, the third generation owner/operator, will join Two Rivers and continue to manage the farming operations on the acquired and leased land. Two Rivers intends to operate the acquired assets under the Dionisio name, one of the most respected growers under the Bessemer Ditch with well-established produce marketing relationships.

John McKowen, Two Rivers’ CEO, commented, “Acquiring Dionisio Produce & Farms is an important strategic transaction for our company for several reasons. First, Dionisio is a trusted grower of fruits and vegetables for human consumption, which are a higher value agricultural category that compliments the Company’s existing livestock fodder crops. Second, this acquisition brings membership in the Bessemer Ditch, which takes its water by direct diversion from the Arkansas River. Finally, Russ Dionisio’s experience, reputation and proven skill in growing and marketing high value crops add substantially to our farming knowhow.”

The acquisition, which is subject to on-going due diligence, is expected to close by July 31, 2012. Two Rivers has advanced $400,000 into escrow to support Dionisio farming operations during the current growing season. The financial terms of the transaction were not disclosed, but the Company expects to arrange bank financing for a portion of the acquisition.

Russ Dionisio said, “I am proud of the Dionisio farming tradition in the Arkansas River Valley and pleased to join Two Rivers to help carry on our business. By joining Two Rivers, I will be able to concentrate on farming, the part of the business I love, and rely on the Company’s skilled business managers to handle the finance, insurance and compliance aspects of our integrated enterprise. Two Rivers has demonstrated the skill, capacity and perseverance to redevelop both farmland and water infrastructure to support productive agriculture in Huerfano and Pueblo Counties. I am eager to integrate Dionisio into this dynamic organization.”

As noted, the acquisition includes shares in the Bessemer Mutual Ditch Company. The Company’s President, Gary Barber, noted, “The productive integration of fertile land and reliable water under the Bessemer Ditch is a model the Company is trying to emulate as we build out our farm and water assets on the Huerfano and Cucharas Rivers system. When we finish refurbishing our upstream reservoirs and integrate a drought-proof groundwater component to our system, we expect to replicate the level of water reliability of the Bessemer Ditch that has sustained the Dionisios for more than 60 years, through all hydrological and weather cycles. By integrating the Dionisio business into our own, Two Rivers will gain not only a new source of farm revenue but also experience in growing and marketing the higher value crops that are the long-term future of our Company. This acquisition supports both our existing and our planned water rights and infrastructure, allowing us to manage our resources in conjunction with the Bessemer system.”

More coverage from Chris Woodka writing for The Pueblo Chieftain. From the article:

A water development company that plans to restore agricultural ground in Pueblo and Huerfano counties is purchasing a farm on the Bessemer Ditch…

The acquisition will be added to the 4,700 acres Two Rivers already owns in southeastern Pueblo County and Huerfano County. The company has purchased nearly all of the Huerfano-Cucharas ditch, Cucharas Reservoir and the Orlando Reservoir system. The Bessemer Ditch water rights will allow the company to add fruits and vegetable crops to the forage crops it is growing on the other acreage, McKowen said. It also gives the company a direct water right on the Arkansas River, part of the long-term strategy for finding water to fill Cucharas Reservoir…

The purchase of Bessemer shares is the latest in transfers that are changing the nature of the Bessemer Ditch. For years, the ditch was a collection of relatively small farming operations. Pueblo County’s largest ditch flows through Pueblo and irrigates about 20,000 acres, mostly east of Pueblo. It receives its water directly from Pueblo Dam. The Pueblo water board has purchased about 28 percent of water rights on the ditch since 2009 for $10,150 a share, and continues to make purchases. All of its contracts include allowing the farmers to use the water for irrigation for 20 years. The St. Charles Mesa Water District has purchased about 10 percent of the Bessemer Ditch over the years for domestic water service on the St. Charles Mesa.

More Bessemer Ditch coverage here and here.

Pueblo: The city’s raw water supplies are sufficient to cover anticipated growth

From The Pueblo Chieftain (Chris Woodka):

Pueblo’s advantage is that it has not grown into its existing supply, unlike many other Front Range communities. While storage is the key to ongoing statewide strategies, few new projects have been built since the completion of Lake Pueblo in the 1970s. The Preferred Storage Options Plan, which would look at enlarging Lake Pueblo, is 14 years old and “still at Step 1,” [Executive Director Alan Hamel] said. The water board bought 28 percent Bessemer Ditch in 2009 as a way to reduce dependence on Colorado River water, but half of Pueblo’s supply still comes from the Western Slope. It will be at least 10 years before the Bessemer shares are converted to municipal use in water court, Hamel said. At the same time, Pueblo water customers have voluntarily cut their use 17 percent and the water board is looking at other strategies for conservation…

The water board is pricing water service rates to new large users at the true cost of providing water — $16,200 per acre-foot. As it has developed the policy, staff members have worked behind the scenes with city staff and met with the Pueblo Economic Development Corp. to make sure the rates don’t scare off companies that could bring jobs to Pueblo, Hamel said.

More Pueblo Board of Water Works coverage here.

Colorado Springs Utilities’ Steve Berry: ‘In looking at the numbers in this executive summary, it does not appear that many of our comments were considered’

Last week, the day before the Statewide Roundtable Summit, Western Resource Advocates, et. al., released a report titled, “Meeting Future Water Needs in the Arkansas Basin.” Colorado Springs and Pueblo are taking a hard look at the report, according to this article from Chris Woodka writing for The Pueblo Chieftain. Here’s an excerpt:

There may be a question whether water providers accept the figures used in the reports. “Colorado Springs Utilities was asked to peer review the draft version, and made extensive and substantial comments on it. In looking at the numbers in this executive summary, it does not appear that many of our comments were considered, and many of our suggested changes or corrections were not made,” said Steve Berry, spokesman for Utilities. The largest amounts of water, and presumably the largest conservation and reuse savings, come from Colorado Springs.

The Pueblo Board of Water Works is also reviewing the final report for accuracy, said Alan Ward, water resources manager…

The environmental groups say a combination of projects already on the books — conservation, reuse and temporary ag-urban transfers — could provide as much as 140,000 acre-feet, more than enough to meet the needs. Those numbers are being examined by urban water planners, who say the savings might not be attainable. “In general, we were unable to verify or recreate most of the numbers cited in their report, and their estimates for conservation and reuse are significantly greater than what our water conservation experts have calculated as realistic,” Berry said…

When asked how conservation savings would be applied to new supplies, a practice cities find risky, Jorge Figueroa, water policy analyst for Western Resource Advocates, said they could be put into “savings accounts” for future use. When asked where the water would be stored, he cited the T-Cross reservoir site on Williams Creek in El Paso County that is part of the Southern Delivery System plan…

Drew Peternell, director of Trout Unlimited’s Colorado Water Project, said the group supports [the Southern Delivery System]. Because the project already is under way, the groups look at SDS as a key way to fill the gap. The report also supports programs like Super Ditch as ways to temporarily transfer agricultural water to cities without permanently drying up farmland.

Meanwhile, here’s a look at a report from the Northwest Council of Governments, “Water and Its Relationship to the Economies of the Headwaters Counties,” from Bob Berwyn writing for the Summit County Citizens Voice. From the article:

The report, released in January at a Denver water conference, takes a fresh look at the critical importance to the economy of water in West Slope rivers, and why Colorado leaders may want to take careful thought before making future transmountain diversion policy decisions. Visit the NWCCOG website for the full 95-page report.

“This report makes an important contribution to the on-going dialogue about adverse economic impacts associated with losing water by focusing attention on Eagle, Grand, Gunnison, Pitkin, Routt and Summit counties,” said Jean Coley Townsend, the author of the report. “This has never been done before. The report provides an important counterbalance to earlier studies that show economic impacts of losing water from the Eastern Plains.”

Balancing the supply and demand of water could be the State’s most pressing issue. The report does not take issue with Front Range municipal or Eastern Plains agricultural water users — all parties have important and worthy concerns and points of view — but is meant as a thorough review of water as an economic driver of headwaters economic development.

The report provides a balance to the existing solid body of work that measures the potential economic effects of less water on the Front Range and the Eastern Plains and the loss of agriculture in those parts of the state.

“If we … are going to solve our Statewide water supply shortage challenges there must first be statewide mutual respect and true understanding of each other’s water supply challenges,” said Zach Margolis, Town of Silverthorne Utility Manager. “The report is a remarkable compilation of the West Slope’s water obligations and limitations as well as the statewide economic value of water in the headwater counties of Colorado.”

More transmountain/transbasin diversions coverage here.

The Pueblo Board of Water Works board approves over $1 million in water sales this season

From The Pueblo Chieftain (Chris Woodka):

The board agreed to sell nearly 14,000 acre-feet of water to eight water users in one-year lease agreements for surplus water. The sales do not affect water rights. The board also gets about $6.8 million for 21,000 acre-feet of water in long-term leases.

Rates ranged from $67.55-$150 per acre-foot, with an average of $74 per acre-foot. Most of the water is going to irrigated agriculture. Rates are about 60 percent higher than recent years because of dry weather and high prices for agricultural commodities, said Alan Ward, water resources manager. Three well augmentation groups in the Arkansas Valley will purchase 7,250 acre-feet for about $556,000, while the Bessemer Ditch will buy 6,000 acre-feet for $405,000. There were bids for 53,696 acre-feet of water.

Meanwhile, the board named the new director to take over for Alan Hamel who is retiring. Here’s a report from Chris Woodka writing for The Pueblo Chieftain. From the article:

Terry Book, 60, will take the helm of the Pueblo Board of Water Works in August, the latest step in a 33-year career that has lasted longer than he first imagined…The training period starts May 23, and Book will become executive director Aug. 30…

When Hamel became executive director in 1982, he offered Book a job as a division manager. Book stayed on, rising to his present job as deputy executive director…

“I appreciate the opportunity and the confidence the board has shown in me,” Book said. “Alan has been a mentor to me, and he has set a high standard I will try to live up to.”

More Pueblo Board of Water Works coverage here and here.

Drought news: The Pueblo Board of Water Works is forecasting $1,033,382 from one-year water sales this season

From The Pueblo Chieftain (Chris Woodka):

For years, the Pueblo Board of Water Works has been the primary supplier of water sold on the spot market in the Arkansas River basin, making projections early in the year and sometimes amending them as conditions change. On Tuesday, the water board will consider a staff recommendation to sell, through one-year leases, nearly 14,000 acre-feet of water for about $1 million.

What’s unusual is that the average price for an acre-foot of water jumped more than 60 percent this year to more than $70. For the past five years, it was in the $40 to $50 range. The minimum bid increased to $67.55 from $35 last year. “It’s interesting what can happen in a sealed-bid process,” said Alan Ward, water resources manager for the water board.

Click through for the cool chart of past water sale history and the details about many of the bidders.

More coverage from Chris Woodka writing for The Pueblo Chieftain. From the article:

Well groups last month complained that the Lower Arkansas Valley Water Conservancy District was competing for augmentation water and potentially driving the price up on the spot market. This week, the Lower Ark district released a report that predicts at least 50,000 acre-feet of water will be needed to augment wells, surface-fed sprinklers and the Arkansas Valley Conduit by the year 2050. The report indicated water prices probably will increase anyway as the resource becomes more scarce.

On Wednesday, the Lower Ark board met with three large well augmentation groups to look at ways they could help each other, rather than fight over a shrinking water supply. “The worst thing is to realize we are all in the same boat and the boat is sinking,” said Scott Lorenz, manager of the Arkansas Groundwater Users Association. “The Lower Ark is in the same boat we’re in. We want to work with you to create a win-win situation.”

Two other well groups, the Colorado Water Protective and Development Association and the Lower Arkansas Water Management Association, also sent representatives to the meeting.

The three well groups provide replacement water for 117,000 acres of farm ground under 1996 state rules adopted to satisfy requirements of a U.S. Supreme Court decision in the Kansas v. Colorado case. The groups use various strategies involving water rights they own, water leases or purchase of water on the spot market…

About 240,000 acres of ground are typically irrigated each year in the Lower Ark Valley, according to reports from the Division of Water Resources. “The number of sprinklers (under the surface rules) grew 12 percent last year,” said Jay Winner, manager of the Lower Ark District. “How are we going to get water for the next generation?”[...]

The well groups are looking at a state-line credit of 44,000 acre-feet that has built up over the last 10 years. Next year, the state will look at lowering a presumptive depletion factor that could reduce the amount of replacement water that is needed.

The Lower Ark board Wednesday learned of a $105,000 state grant to look at the amount of water that leaks from ponds used to feed sprinklers. The savings in water, if accepted by the state, would reduce the amount of water that irrigators are required to repay.

The studies also could be useful to determining recharge rates, which could benefit well owners as well as the fledgling Arkansas Valley Super Ditch…

“We have to work together. We need storage. Water is wasted every day and is moving toward Kansas,” said John Sliman, an AGUA member who has plans to build reservoirs on the Excelsior Ditch. “Finding an answer 20 years from today is too late.”

More Arkansas River basin coverage here.

The Arkansas Valley Super Ditch engineering report forecasts the need for an additional 50,000 acre-feet in the valley by 2050

From The Pueblo Chieftain (Chris Woodka):

The conclusion is reached in an engineering report by Heath Kuntz prepared as part of the Super Ditch exchange case filed by the Lower Arkansas Valley Water Conservancy District in 2010.

The exchanges involve up to 58,000 acre-feet of water, 30,000 acres of ground, 82 exchange sites and seven ditch companies. So far, there has been no filing for a change of use of the water. Without a water leasing program like Super Ditch in place, there is the potential to permanently sell more farm water and take away flexibility to use the best farmland to grow crops, said Jay Winner, general manager of the Lower Ark district.

“Without the Super Ditch, I can see the day when the Ark Valley turns the clock back to the 1950s and we’re reduced to furrow irrigation,” Winner said. “In fact, I think the demand for water might be even higher than this report indicates.”

With the advent of surface-irrigation improvement rules in 2009, more replacement water will be needed as more systems in the valley are converted…

Well plans administered by three major groups now use about 24,500 acre-feet of leased water, and the engineering report projects that would increase to 30,500 acre-feet of water by 2050. In addition, the Arkansas Valley Conduit is expected to be constructed in the next decade, and its water demands will include 3,100 acre-feet from new sources to serve about 40 communities east of Pueblo. “The total projected demands associated with these operations are approximately 53,300 acre-feet per year in 2050,” Kuntz said in the report…

At its January meeting, the Lower Ark board heard from well associations that its lease of water from the Pueblo Board of Water Works, to help surface irrigators fill replacement needs, is raising the price others have to pay for augmentation water. The Pueblo water board typically sells water to bidders each year when the water is available. The price has been creeping up, as witnessed by the Fort Lyon Canal’s bid of $40 per acre-foot — twice its typical offer — in 2011. But the well groups argue that the $200 per acre-foot in the Lower Ark’s five-year contract takes water out of the pool available to them.

More Arkansas River basin coverage here.

Pueblo Dam: The proposal for a hydroelectric generation facility at the north outlet works is moving through the bureaucracy

From The Pueblo Chieftain (Chris Woodka):

The Bureau of Reclamation in December accepted a lease of power privilege proposal by the Southeastern Colorado Water Conservancy District, Colorado Springs and the Pueblo Board of Water Works. “This is a big deal that will give us broader options for power in the Arkansas River basin,” said Jim Broderick, executive director of the Southeastern District.

The next step is for the partners to sign an agreement and gain approval from Reclamation for its plan to build hydropower at Pueblo Dam. The generation facilities would be built in the next 10 years, Broderick said. The cost estimates and timeline for the agreement are slated to be discussed by the Southeastern board in February.

More hydroelectric coverage here and here.

Alan Hamel is retiring from the Pueblo Board of Water Works after more than 51 years

From The Pueblo Chieftain (Chris Woodka):

Hamel plans to announce his retirement as executive director today, and will step down from the job at the end of August…

“I turn 70 in March,” Hamel said Wednesday. “It will be a good time for me to step down and allow (wife) Mary Kay and I to spend more time together.”

Hamel, who was recognized by the Colorado Water Congress with its top award in 2010, will continue as a member of the Colorado Water Conservation Board, as an advisory member with the Southeastern Colorado Water Conservancy District, as a director of the Colorado Foundation for Water Education and as state appointee to the Arkansas Basin Roundtable.

More Pueblo Board of Water Works coverage here and here.

The Pueblo Board of Water Works hopes to finalize policy for large water users at their February meeting

From The Pueblo Chieftain (Chris Woodka):

The revised policy would charge large water users $16,200 per acre-foot for water use above 520 acre-feet annually either for potable or raw water. The charge up to the first 520 acre-feet is $1,233 per acre-foot. The difference in the rates reflects the cost of acquiring and developing new water determined in a study that was done about five years ago. The previous rate was based on a study from the 1980s, said Terry Book, deputy executive director. The new policy would also give the water board the opportunity to waive part of the fees, based on the economic benefits such as jobs that new customers would bring to the community. The water board now routinely approves a moratorium on fees for new industries, and board members had concerns about whether there would be flexibility in applying the new rates…

While the Pueblo water board has acquired additional water through the purchase of Bessemer Ditch shares, those are set aside for long-range growth. A new, extreme demand could require additional purchases of water rights either by the new customer or the water board…

The city of Pueblo, Evraz Pueblo and the Colorado Mental Health Institute at Pueblo are the largest users on the city water system.

Here’s a look at Black Hills Energy’s water use from Christopher Burke writing for The Pueblo Chieftain. From the article:

When water is removed from a natural stream system, such as the Arkansas River, it is either returned to that source in the same quantity in which it was removed, or it is not. The former is known as non-consumptive use and typically includes things such as hydroelectric power production and cooling water for steam power plants. Our W.N. Clark Plant and Pueblo 5 and 6 plants are of this type and use river water only for once-through cooling before returning the same water back to the Arkansas River. The latter is known as consumptive use and includes water that has been evaporated such that it is not available for immediate reuse. The new Pueblo Generation Facilities operate this way and will consume, on average, a total of 400 gallons per minute, according to 2012 estimates. Additionally, these facilities minimize any potential burden they might otherwise place on the municipal water treatment system through the use of zero-discharge technologies, which process all wastewater on site without discharging it back to the municipal sewage system for reprocessing…

As a matter of contingency, Black Hills Energy has alternative access to a contracted water supply. If water were to become scarce due to drought, we have the capability, both operationally and technologically, to use air-cooling technology originally pioneered by Black Hills Energy’s sister company, Black Hills Power, in Gillette, Wyo. Such technology reduces or eliminates the need for large-volume cooling water in exchange for slightly diminished plant efficiency performance. The new location of the Pueblo Generation Facilities, away from the Arkansas River Basin and flood plain, also mitigates any potential risks to our operations in the event of flooding

Finally, the board finished 2011 in a strong financial position. Here’s a report from Chris Woodka writing for The Pueblo Chieftain. Here’s an excerpt:

The Pueblo Board of Water Works finished 2011 with $1.39 million more in revenues than were projected in the budget…

Most of the increase in revenue, more than $1 million, came because of increased sales to water customers trying to keep lawns green through a hot, dry summer. Consumption totalled 8.8 billion gallons in 2011, about 7 percent above the five-year average. Customers paid $21.6 million for the water, about 69 percent of total revenues of $31.2 million…

Sales of water on the spot market also exceeded expectations, generating $1.6 million, more than twice the amount projected. The water board also made $144,000 more on miscellaneous revenues, primarily the sale of scrap.

More Pueblo Board of Water Works coverage here.

Woodmoor Water and Sanitation withdraws water court change case, cites purchase of JV Ranch as reason

From The Pueblo Chieftain (Chris Woodka):

Woodmoor completed its purchase of the JV Ranch near Fountain in late November, and its board last week voted to pull a water court case that sought to deliver water by exchange from three ditch systems east of Pueblo. Woodmoor also has terminated all of the contracts on the Holbrook, High Line and Excelsior ditch systems…

The water court application had been moving toward trial after the Pueblo Board of Water Works refused to settle the case. The Pueblo water board objected to the plan partly because it could involve the removal of water from Pueblo County to another basin. Woodmoor straddles the Arkansas and South Platte basins…

The Lower Arkansas Valley Water Conservancy District also opposed the move, and took steps to help a farmer buy one of the farms Woodmoor was seeking on the High Line Canal, putting it in a conservation easement to ensure continued farming. “We ensured the water will run to the end of the High Line Canal forever,” said Jay Winner, general manager of the Lower Ark district…

After dropping its plans for Lower Ark water, Woodmoor opted to purchase the 3,500-acre JV Ranch, which has water rights of 2,500-3,500 acre-feet of water as well as a 70-acre reservoir. The purchase price will be $25 million to $35 million, depending on the historic average amount of water determined when a water rights change case is filed.

More Woodmoor Water and Sanitation District coverage here and here.

The Southeastern Colorado Water Conservancy District board approves a $17.2 million budget for 2012

From The Pueblo Chieftain (Chris Woodka):

The major portion of the budget, $11.8 million, goes to repay federal costs of constructing the Fry-Ark Project, which includes the Fountain pipeline. Another $270,000 is revenue from state and federal grants.

The operating budget for the district is $5.1 million, with about 60 percent in the general fund, and 40 percent in the enterprise fund.

Of the $3 million district fund, $1.36 million goes toward personnel.

The budget also includes a capital expenditure of $850,000 as the district’s share for purchase of the Red Top Ranch near Lake Granby. That cost will total $1.7 million over two years. The ranch purchase is part of a plan by Front Range water users, including Aurora, Colorado Springs, Denver, Pueblo and the Northern Colorado Water Conservancy District, to provide flows for endangered fish species in the Colorado River. Participation in the program is a condition for importing Fry-Ark water each year.

The major project in the $2.1 million enterprise fund will be the Arkansas Valley Conduit. The U.S. Bureau of Reclamation is preparing an environmental impact statement for the conduit.

More Southeastern Colorado Water Conservancy District coverage here.