“I have been proud to work for years to ensure the [support for] the Arkansas Valley Conduit” — Sen. Mark Udall

July 25, 2014
Arkansas Valley Conduit Comanche North route via Reclamation

Arkansas Valley Conduit Comanche North route via Reclamation

From The Pueblo Chieftain (Chris Woodka):

A draft federal energy and water funding bill includes an additional $90 million for projects such as the Arkansas Valley Conduit, U.S. Sens. Michael Bennet and Mark Udall, both Democrats, said Thursday. The Senate appropriations committee approved the bill, which contains a provision supported by both senators that explicitly makes data collection and design work eligible for funding through these accounts. It will help ensure the Arkansas Valley Conduit is eligible for these funds and sends a clear signal to the Bureau of Reclamation that the conduit is a priority project.

The board of the Southeastern Colorado Water Conservancy District, conduit sponsor, was dismayed earlier this year when it learned only $500,000 was budgeted for the conduit next year. It is hoping to get at least $3 million for continuing data and design tasks that will lead to construction of the $400 million conduit.

The conduit is the final piece of the Fryingpan-Arkansas Project, authorized in 1962. When complete, the 130-mile pipeline will provide clean drinking water to 50,000 people in 40 communities east of Pueblo.

“For more than five decades, folks in Southeastern Colorado have been waiting for the federal government to fulfill its promise to build the Arkansas Valley Conduit.

That’s far too long for these communities to wait for a reliable source of clean drinking water,” Bennet said.

“I have been proud to work for years to ensure the federal government supports the Arkansas Valley Conduit. This funding brings the people of Southeastern Colorado one step closer to having a clean, safe and reliable source of water,” Udall said.

More Arkansas Valley Conduit funding here and here.


Southeastern Colorado Water Conservancy District board meeting recap

June 20, 2014
Arkansas Valley Conduit Comanche North route via Reclamation

Arkansas Valley Conduit Comanche North route via Reclamation

From The Pueblo Chieftain (Chris Woodka):

New wrinkles in the federal budget process have improved chances for funding of the Arkansas Valley Conduit.

Appropriations bills in the U.S. House and Senate have increased funding for the Bureau of Reclamation, with emphasis on capital projects that are in the design phase.

While that does not provide an increase for the conduit’s $500,000 funding level next year, it could mean a shift in funding to the conduit by Reclamation, lobbyist Christine Arbogast told the Southeastern Colorado Water Conservancy District Thursday.

“We have incredible support from those in Congress who represent the area to be served by the conduit,” Arbogast told the board. “They are fighting for the funding of it. Clearly, it is unprecedented, the levels they are going to for this.”

She was referring to U.S. Sens. Michael Bennet and Mark Udall, both Democrats, and U.S. Reps. Cory Gardner and Scott Tipton, both Republicans.

For instance, during meetings in Washington, D.C., last week, the senators met with top Department of Interior and Office of Management and Budget officials to make the case for more funding for the conduit.

The $400 million Arkansas Valley Conduit would have a main line of 130 miles from Pueblo Dam to Lamar, serving 50,000 people in 40 communities.

Federal money for the project would be repaid through Fryingpan-Arkansas Project excess storage contracts and user fees.

More Arkansas Valley Conduit coverage here.


Northwest Pipe Co. is major supplier for the Southern Delivery System #ColoradoRiver

May 23, 2014
Southern Delivery System construction celebration August 19, 2011 via The Pueblo Chieftain

Southern Delivery System construction celebration August 19, 2011 via The Pueblo Chieftain

From The Denver Post (Aldo Svaldi):

Orders at the Northwest Pipe Co. plant in Denver were drying up in 2010 when bid requests started coming for a massive water project linking the Pueblo Reservoir and Colorado Springs called the Southern Delivery System.

“The start of the SDS project couldn’t have come at a better time,” Northwest’s vice president of sales Eric Stokes said.

At a cost of $841 million, the water project is the largest the region has seen in decades. Starting in 2016, it will pipe water held in the Pueblo Reservoir to consumers in Colorado Springs, Pueblo West, Security and Fountain.

“This is our water security for many years to come, 50 years into the future,” said John Fredell, program director of the water services division for SDS.

Northwest Pipe’s Denver plant won almost all the contracts to supply 50 miles of steel pipe, and the company celebrated the completion of the last piece Thursday afternoon. Northwest produced 7,000 pieces of the pipeline, each averaging 50 feet in length and 66 inches in diameter. The orders allowed Northwest’s employment in Denver to grow from 116 full-time workers to more than 231 at the peak of manufacturing.

Of about $500 million spent so far on the project, $359 million has gone to 333 Colorado businesses, including more than 75 based in metro Denver, Fredell said.

Northwest Pipe alone received about $110 million, including $23 million spent on payroll. Given that the next closest competitor was in California, Stokes said Northwest had a distinct advantage.

“Proximity was part of it,” Fredell said.

Back in 1997, Northwest Pipe, which is based in Vancouver, Wash., acquired Thompson Pipe & Steel Co., a manufacturer with Denver roots going back to the late 1800s. For decades, Thompson built pipes in the Curtis Park area that continue to help move water across much of the state. Thompson moved its plant to a 45-acre facility at 6030 Washington St., where workers continued to convert steel coil arriving by rail car into water pipes shipped out on trucks.

Once formed, the pipes are pumped full of water and pressure-tested to ensure there are no leaks. They are moved into a cavernous ⅛ – mile-long warehouse where they are rotated rapidly while concrete is poured inside to make a lining designed to last for decades. In a third building, the pipes are primed, painted and prepared for shipping.

“It is nice to know you have finished on time,” said Jason Cheng, a welder from Westminster who joined Northwest in October to work on the SDS order.

Cheng and other workers lined up to sign the last piece of pipe, undeterred as the rain poured down Thursday afternoon. Their signatures, in white ink, quickly smeared down the bright-blue pipe.

“We want the water on the inside of the pipe, not the outside,” one person commented.

From the Denver Business Journal (Cathy Proctor):

Northwest Pipe, (Nasdaq: NWPX) is based in Vancouver, Washington. Its Denver manufacturing plant had a $110 million contract to build the project’s 50 miles of pipeline to carry the water. It was the biggest contract for materials under the project.

Northwest Pipe started making its 50-foot sections of pipe for the project, each section 66 inches in diameter, in 2011.
And the last pieces are now coming off the manufacturing line and awaiting a truck for transport to the project site.

“This is one of the largest programs that we’ve seen,” said John Moore, manager of Northwest Pipe’s manufacturing plant at 6030 N. Washington St. in north Denver.

During peak production, as many as 25 trucks a day left Northwest Pipe’s manufacturing facility.
Being in Denver meant trucking costs were less and Northwest Pipe could submit a more competitive bid for the project, Moore said.

And the project meant jobs for Northwest Pipe, which ramped up to 231 people during peak production, from a low of 116 people prior to work on the project, said John Moore, the plant manager. The company currently has 131 people on staff.
Northwest Pipe, which supplies pipes to carry water and waste water, has delivered pipes to other big water providers, including Denver Water and Aurora.

More Southern Delivery System coverage here.


CWCB: Does the draft #COWaterPlan rely too much on unproven alternative ag transfers?

May 23, 2014
Colorado Water Plan website screen shot November 1, 2013

Colorado Water Plan website screen shot November 1, 2013

From The Pueblo Chieftain (Chris Woodka):

A state water plan may be putting too much weight on alternative transfer programs that seek to temporarily provide water to cities from farm lands. While the goal of such programs is to reduce the possibility of permanent dry-up of agriculture, there is little evidence to prove they would work, said Patricia Wells, a member of the Colorado Water Conservation Board, meeting in Pueblo this week.

“Has any transfer method actually happened with rotational fallowing?” Wells, general counsel for Denver Water, asked during Wednesday’s CWCB meeting at the Pueblo Convention Center.

The board was reviewing draft chapters of the state water plan being developed by CWCB staff. Other topics included conservation, water quality and project permitting.

“This chapter paints a rosy picture of alternative transfers,” Wells added. “This doesn’t mean alternative transfer methods can’t be done, but they haven’t been done.”

The Arkansas Valley Super Ditch formed in 2008, but has had difficulty launching pilot programs because drought reduced water availability, permit complications and farmer participation.

In 2013, the Legislature passed HB1130, which set up a framework for long-term lease arrangements, and HB1248, which allowed for 10 pilot programs that have not materialized.

Super Ditch attempted to run a pilot program under HB1248 with the town of Fowler this year, but plans fell through.

This year, a proposal to create a flex marketing water right failed because opponents said it amounted to legalizing speculation.

In 2004-05, Aurora and the Rocky Ford High Line Canal engineered a temporary transfer program that was successful, although it raised questions of moving water from one river basin to another.

Since then, the state has spent millions of dollars on grants to study alternative transfer methods, but large metro providers are reluctant to enter long-term deals without more certainty.

“Unless we find some way to do this, there are barriers,” Wells said.

Board member John McClow, a Gunnison attorney, questioned CWCB staff for using language from the Interbasin Compact Committee’s report rather than taking a fresh approach.

Travis Smith, a board member of both the CWCB and IBCC, responded that the IBCC reached agreement on using alternative transfers several years ago, and thought that should be reflected in the state water plan.

Meanwhile the Arkansas Valley Conduit was also a topic at yesterday’s CWCB meeting in Pueblo. Here’s a report from Chris Woodka writing for The Pueblo Chieftain:

The state showed more support for the Arkansas Valley Conduit Thursday, pledging cooperation in helping to obtain federal funding for the $400 million project.

“This is the last piece of the Fryingpan-Arkansas Project,” said Jim Broderick, executive director of the Southeastern Colorado Water Conservancy District. “It’s been a long wait for something that was promised 50 years ago.”

Broderick gave an update of the conduit to the Colorado Water Conservation Board, which met Thursday at the Pueblo Convention Center.

Contract negotiations will begin later this year for the conduit and two associated federal contracts to provide a master storage lease in Lake Pueblo and a cross-connection between south and north outlets on Pueblo Dam.

More Colorado Water Plan coverage here. More Arkansas Valley Conduit coverage here. More CWCB coverage here.


The Southern Delivery System has been a long time coming

May 12, 2014
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

Here’s part one of an in-depth look at the Southern Delivery System from John Hazlehurst writing for the Colorado Springs Business Journal. Click through and read the whole article. Here’s an excerpt:

Contending that the denial [of Homestake II] had been arbitrary and capricious, the two cities [Aurora and Colorado Springs] appealed the decision to the courts. In a comprehensive description of the city’s water system and possible future sources of supply given to City Council in 1991, CSU managers said that “extensive litigation is expected to continue.”

Denied by the Colorado Court of Appeals and the Colorado Supreme Court, the cities appealed to the U.S. Supreme Court, which declined to hear the case.

City officials were stunned. They couldn’t believe that a coalition of Western Slope “enviros” and ski towns had prevented them from developing water to which the city had an undisputed right. They had believed the Environmental Protection Agency’s 1990 decision to scuttle Denver’s proposed Two Forks Dam near Deckers on the South Platte River was an outlier, not a sign of things to come…

Slow to recognize that mountain communities now had the power to kill their water development plans, Utilities officials looked at another alternative. Instead of taking water directly from the wilderness area, the city proposed to build a dam on the mainstem of the Arkansas at Elephant Rock, a few miles upstream of Buena Vista.

A grassroots rebellion against the project was soon evident, as hand-lettered signs appeared along U.S. Highway 24, which parallels the Arkansas. The signs carried a simple message: “Don’t Let Colorado Springs Dam this River!”

It soon became clear that Chaffee County commissioners would not issue a construction permit for any such project, dooming it before the first planning documents were created…

If trans-mountain diversions or dams on the Arkansas were no longer feasible, that left a single alternative for developing the city’s water rights. CSU would have to let its water flow down to Pueblo Reservoir, construct a diversion structure on the dam, and pump it uphill to Colorado Springs.

It would be, water managers believed, the easiest project to build and permit.

“It was just a pipeline,” said CSU water resources manager Gary Bostrom, who has worked 35 years for Utilities. “What could go wrong?”[...]

“We didn’t really understand the importance of partnering with and involving the public in decision-making,” said [Gary Bostrom], “until the Southern Water Project.”[...]

The plan for the Southern Delivery System was presented to City Council in 1992. Among the material submitted to councilmembers was a comprehensive description of the city’s existing water system. Water managers made sure Council was aware of the importance of the task before them.

“The massive scope of this project,” CSU staff noted, “requires a very long lead time to allow for complexities of numerous permitting processes, land acquisition, litigation, design, financing and construction.”

Of all the variables, CSU managers and elected officials gave the least weight to those that may have been the most significant…

“We weren’t worried about hydrology,” said Bostrom. “The years between 1980 and 2000 were some of the wettest years on record. The water was there for the taking. Shortages on the Colorado weren’t part of the discussion.

“We knew about the Colorado River Water Compact of 1922 (which allocated Colorado River water between Mexico and the upper and lower basin states), but it wasn’t something we worried about.”

Then as now, 70 percent of the city’s water supply came from the Colorado River. SDS would tap the city’s rights on the Arkansas, diversifying the portfolio.

“We have to plan for growth,” said Bostrom. “That’s what history tells us. We know that it will be expensive, but the cost of not building a system well in advance of need would be much greater. People complained about the cost of the Blue River (trans-mountain diversion) project in the 1950s, but we wouldn’t have a city without it — we wouldn’t have the Air Force Academy.”

But even as the project moved slowly forward, the comfortable assumptions of a wet, prosperous future began to unravel.

“Exactly 15 years ago today (April 29, 1999),” said Bostrom, “we were in the middle of a flood — remember? We didn’t know it, but that was the day the drought began.”

More Southern Delivery System coverage here and here.


The Southern Delivery System is on time and under budget, according to @CSUtilities

April 29, 2014
The new north outlet works at Pueblo Dam -- Photo/MWH Global

The new north outlet works at Pueblo Dam — Photo/MWH Global

From the Colorado Springs Business Journal (Marija B. Vader):

Wayne Vanderschuere, general manager of the Colorado Springs Utilities water services division, said the Southern Delivery System will be completed on schedule and $150 million under the original budgeted amount.

More Southern Delivery System coverage here and here.


Southern Delivery System: Colorado Springs Utilities has spent $26.6 M on land-related expenses

April 19, 2014
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

Colorado Springs has spent $26.6 million to acquire land for its $984 million Southern Delivery System. Most of the money was spent in El Paso County, although properties in Pueblo West and on Walker Ranches were purchased either permanently or for temporary easements.

Pipeline easements totaled $961,681 for 388 acres in Pueblo County, compared with $2.5 million for 486 acres in El Paso County.

Another $1 million was paid to buy homes in Pueblo West.

The big money was paid for other features of the project in El Paso County, a total of about $22 million.

“It would be misleading to simply do the math on the values above and conclude that more was paid for land in El Paso County than Pueblo County,” said Janet Rummel, spokesman for Colorado Springs Utilities, in an e-mail responding to a request from The Pueblo Chieftain.

Permanent easement prices ranged from 50-90 percent of fee value, while temporary easements are valued at 10 percent per year, varying from one to four years.

“The fee value of land depends primarily on location, but also is subject to size, shape, development entitlement and improvements, if any,” Rummel explained.

“Within the raw water pipeline alignments for SDS, fee values for easements and facilities ranged from $1,389 per acre to almost $20,000 per acre,” Rummel said. “Pueblo West properties were generally valued in the range between $10,900 to $13,000 per acre.”

At the high end of that scale were 6 homes on about 10 acres in Pueblo West purchased for $1.044 million.

But even below that scale were 103 acres, two-thirds in permanent easements, on Walker Ranches, which could be purchased for $82,900, or about $804 per acre. Utilities also paid Walker $600,000 to relocate cattle during construction, as required by Pueblo County’s 1041 permit.

Gary Walker will contest the amount of the easement payment in court this November, one of four cases still in dispute.

Walker also has raised complaints, most recently during a county public hearing, about erosion along the pipeline route. The bulk of the money, however, has gone for the treatment plant, pump station and reservoir sites in El Paso County.

Utilities paid $259,519 for 43 acres for the Bradley Pump Station; $2.4 million for 124 acres at the treatment plant and $19.3 million for a future reservoir site on Upper Williams Creek.

At the reservoir site, T-Cross Ranches, owned by the Norris family, received $9,500 per acre for 791 acres ($7.5 million), while the state land board received $10,500 per acre for 1,128 acres ($11.8 million).

SDS is a pipeline project that will deliver up to 96 million gallons of water daily from Lake Pueblo to Colorado Springs, Fountain, Security and Pueblo West.

The figures do not include money Utilities paid to purchase homes in Jimmy Camp Creek at a reservoir site that later was abandoned.


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