3. Water Rights Inventory

Transcription

1 3. Water Rights Inventory 3.1 Current Water Rights Portfolio The City s water supply is derived from the Big Thompson River pursuant to water rights for the native supply and contracts for transmountain (or transbasin) water delivered to the Big Thompson River from the Colorado River basin through the facilities of the Colorado-Big Thompson (CBT) Project and the Windy Gap Project. Collectively, these rights and contracts makeup the water supply portfolio. In the 1880 s, the City began acquiring water rights to use water in the Big Thompson River. Some water rights were purchased outright or filed on the river by the City while others were dedicated to the City. Early transfers of the No. 1 priority on the Big Thompson River and domestic rights diverted at the Loveland pipeline form the base of the City s water rights. Early plats showing annexation into the City show dedication of water rights which were appurtenant to the land being annexed. In 1960, the City began formally requiring dedication of water rights prior to development. The City has historically accepted native ditch shares/inches, Colorado-Big Thompson Project water and C-I-L of water rights to satisfy raw water requirements for development. In 1990 and 1991 the City purchased 1,142 additional units of the CBT Project. The City was also one of the original Six Cities to invest in the Windy Gap Project. There are unique benefits and limitations for each type of water right. With most native water, availability is limited to the historic irrigation season, generally April through October, depending on the streamflow in the Big Thompson River. Although some native water has storage associated with it, this storage may enhance the yield for the users on the ditch but not the City s diversions at the water treatment plant. Consequently, when it accepted the water, the City also took on the responsibility to meet a year-round demand. CBT Project water is stored and can be delivered at any time throughout the year. C-I-L is flexible in that it is used by the City to develop or purchase water, at the City s discretion. Transferred native ditch rights are diverted directly from the Big Thompson River and consist of Early Transfers and domestic filings, 82CW202A ( 202A ) Transfers, Rist & Goss Transfers and Pending Transfers (2002CW392). Some of the water attributable to Loveland s CBT, 202A Transfers, and Pending Transfers are used for non-potable irrigation of many City-owned parks and golf courses if not diverted at Loveland s water treatment plant. Page 10

2 Table 3-1: Loveland s Water Supply Sources Water Source No. of Shares or Units Owned Transbasin Supplies Colorado Big Thompson (CBT) 10,548 units Windy Gap Project 40 units Eureka Ditch 180 Ac-ft Early Transfers Portion of No.1 Priority on Big Thompson River 3.44 cfs #2 Domestic 0.5 cfs #3 Domestic 2.5 cfs Big Thompson Ditch & Manuf. Co. 2 shares Reservoir Storage Green Ridge Glade Reservoir 6,785 Acre-feet of Storage 202 A Transfers & Subsequent Additions, and Rist and Goss Transfers(1) Big Thompson Ditch & Manuf. Co. 5.7 shares Barnes Ditch (2) inches Chubbuck Ditch (2) inches George Rist (Buckingham) Ditch 95.3 shares Louden Ditch 231 shares South Side Ditch 70.5 shares Farmer's Ditch (2)(3) 2.5 shares Rist and Goss (1974 Decree) Rist and Goss (1986 Decree) Pending Transfers(4) Barnes Ditch inches Big Thompson Ditch & Manuf. Co shares George Rist (Buckingham) Ditch shares Chubbuck Ditch (2) inches (1) Share figures rounded to nearest tenth (2) Historical diversions adjusted for contract/private rights (3) Leased shares (4) Pending transfers as of June 2005 Page 11

3 Table 3-2: Loveland s Ownership in Ditch Companies Loveland Total Units Owned Ditch Company Total Loveland % Total Ditch (1) Big Thompson Ditch & Manuf. Co % Barnes Ditch (2) % Chubbuck Ditch (2) % George Rist (Buckingham) Ditch % Louden Ditch % South Side Ditch % Farmer's Ditch (2)(3) % (1) Share figures rounded to nearest tenth (2) Historical diversions adjusted for contract/private rights (3) Leased shares Transbasin Water Transbasin water is water brought into a stream system from another unconnected source. In Loveland s case, water is brought in from the Colorado and Fraser River basins, and made available to Loveland in the Big Thompson River basin Colorado-Big Thompson Project Loveland s 10,548 units of CBT water account for the largest portion of Loveland s transbasin, or Western Slope, water supply. Yields from the CBT Project vary from year to year depending on available water supplies and the quota established annually by the Northern Colorado Water Conservancy District Board. Historically, CBT quotas have ranged between 50 percent, or one-half acre-foot per unit, and 100 percent or one full acre-foot per unit Windy Gap Project Loveland owns 40 units of Windy Gap water, collected from the Fraser River, a tributary to the Colorado River on the Western Slope. Windy Gap water does not currently provide a fully firmed water supply to the City. Loveland has only received significant supplies of Windy Gap Water in two years, 1988 and 2003, since the inception of the Project. In the future, Loveland will need Windy Gap water to meet increased water demand and to develop reusable effluent at the Wastewater Treatment Plant. Page 12

4 Eureka Ditch In 1941, the City acquired ownership of the Eureka Ditch, a high mountain ditch that had been used to deliver water from the western slope to the Big Thompson River through Rocky Mountain National Park. The City, the National Park Service, the United States Bureau of Reclamation, and the NCWCD negotiated an agreement under which the City abandoned the ditch in 1995 and the NCWCD provided the City with 180 acre-feet of firm yield from the CBT Project pre-quota supplies. This water was made available to Loveland starting in November Native Rights (Big Thompson River Basin) Early Transfers In the course of its development, Loveland has acquired shares in various irrigation companies that supply irrigation water in and around the Loveland area. These shares typically were associated with land parcels that were developed for residential, commercial or other uses. Loveland s early transfers of irrigation water rights included 3.44 cfs of the No. 1 Big Thompson River priority in the 1880 s and two shares (6.00 cfs) of the Big Thompson Ditch & Manufacturing Company in the late 1920 s. Loveland uses its early transfers first to meet potable demand. This water consists of direct flow diversions from the Big Thompson River and is not decreed to allow storage A Transfers and Rist & Goss Transfer Following the early transfers, the City continued to acquire ditch shares as it grew. Portions of these shares were used informally for a number of years until an application was filed in Case No. 82CW202(A) ( 202A ) in 1982 to transfer a large block of shares in several different companies to municipal use by the City. The 202A decree was entered by the Water Court on June 18, Since that time the City has made several additional irrigation water rights transfers under the terms and conditions of the 202A decree. These are collectively referred to as the 202A Transfers and include Loveland s share ownership in the Barnes Ditch, Big Thompson Ditch & Manufacturing Company, Buckingham (George Rist) Ditch, Chubbuck Ditch, Louden Ditch, and South Side Ditch. Loveland also transferred the water rights associated with the Rist and Goss Ditch in two separate proceedings. This water is available for delivery to the water treatment plant and meeting potable water demands Reservoir Storage The expansion of Green Ridge Glade Reservoir was completed in This reservoir has a storage capacity of 6,835 acre-feet and will be used primarily to firm native ditch water rights to provide water on a yearround basis and protect the City from drought or emergency conditions which may occur on the river. The SWE modeling shows that the Page 13

5 reservoir has limited reserve capacity for storing Windy Gap or CBT water, and in fact can firm up approximately 1,200 acre-feet of Windy Gap water Pending Transfers Loveland also owns additional native ditch shares which are pending transfer in Water Court. The firm annual yield of these shares has not yet been realized as they have not yet been used to meet potable demands. This water is currently used to meet non-potable demands including irrigation of City parks and golf courses Other Water Sources In addition to its native Big Thompson River water rights and transmountain supplies, Loveland can divert additional water by exchange or during free river conditions. These sources sometimes deliver substantial quantities of water, but are marginally reliable on a firm yield basis. 3.2 Future Water Rights Portfolio Loveland s future supplies will likely come from CBT Project units, Windy Gap Project units, transfers of native ditch shares, or future regional projects Colorado-Big Thompson Project Units are currently available to be acquired by the City via the City s raw water dedication policy or by purchase. It is estimated by NCWCD staff that approximately 60,000 units are still available for transfer or purchase from agricultural sources to a municipality or industry. In recent years, approximately 5,000 to 6,000 units per year were transferred or purchased by municipalities and industries Windy Gap Firming Project The City has been a participant of the Windy Gap Firming Project (WGFP) since its inception. The City owns 40 units (at an anticipated average yield of 100 acrefeet per unit) of the Windy Gap Project, all of which are available for firming in the WGFP. The WGFP is currently in the National Environmental Policy Act compliance phase of the project. Recent discussions with the staff of the Municipal Subdistrict of the NCWCD (MS-NCWCD) indicate that they expect the WGFP will have a reservoir on-line in The City was required by the MS-NCWCD to subscribe to a specific storage amount as part of the NEPA process. The City has committed to 6,000 acre-feet of storage in an East Slope reservoir. Currently the Preferred Alternative in the Windy Gap Firming Project is the Chimney Hollow site, west of Carter Lake. If the Chimney Hollow site is built, Loveland can expect an increase of the firm yield of the 40 Windy Gap units of approximately 2,500 acre-feet Page 14

6 3.2.3 Transfer of Native Ditch Shares The City may acquire additional shares in local irrigation companies. These estimates are shown in Table 3-3. It is not expected that the City will obtain 100 percent of any of the irrigation systems in the foreseeable future, as many shares permanently serve small acreages which have developed around the City. City staff has estimated about 2,540 acre-feet of firm yield, or 6,130 acre-feet of average yield, may be reasonably expected to become available from ditch share acquisitions for municipal use by Loveland as development continues in the future within the GMA. Firm yields (column 6) were calculated using values from Table 3 of the Raw Water Supply Yield Analysis Report by Spronk Water Engineers, Inc found in Appendix B. Firm yield is the maximum annual water demand that could be dependably supplied by the City for each water source as all of the City s sources are integrated. Average yields (column 5) were calculated using the City s current credit value, which is analogous to the average historical yield as calculated by Spronk Water Engineers. Table 3-3: Estimate of Native Ditch Water Available for Transfer to City Estimated water still available for transfer Sh./In. Current Yield Credit AF/sh SWE Report Unit Firm Yield AF/sh Avg. Yield Firm yield Ditch Big Thompson Ditch & Manuf. Co Barnes Ditch Chubbuck Ditch George Rist (Buckingham) Ditch Louden Ditch South Side Ditch Farmer's Ditch Greeley Loveland Irrigation Company Home Supply Ditch Total ,129 2,539 Page 15

7 3.3 Water Bank The City has operated the Loveland Water Bank ( Water Bank ) since the mid-1980 s, and deposits to the Water Bank have been the source of most of Loveland s water acquisitions during recent years. Operation of the Water Bank is described in the Water Bank Information Sheet, a copy of which is included in Appendix D. Developers or entities which seek water supply service from the City, are required to provide either water rights or C-I-L of water rights. Acceptable water rights at this time take the form of ditch company shares or CBT units. In exchange for depositing water or C-I-L in the Water Bank, the developer receives a credit that can be applied toward the water requirement for zoning or development anywhere the City serves treated water. The Water Bank provides persons the ability to deposit native ditch shares/inches/rights, deposit units of the CBT Project, or purchase C-I-L credits before they are needed for development. The Water Bank provides the City the opportunity to own the water rights prior to using them to serve the intended development projects, thus allowing the City to take the necessary steps to make the water useful for potable diversions at the City s water treatment plant, such as legal transfer or exchange in Water Court or make contractual arrangements for carriage of water for delivery to City facilities. These water sources and cash deposits, if accepted by the City, are represented as a credit in the Loveland Water Bank. These credits are used to satisfy water rights requirements of development in accordance with the Water Bank policies and water bank agreements signed by the depositor. The development credit given for Water Bank deposits is determined at the time the credit is applied to meet zoning or development requirements based on the conversion rate in effect at that time. For example, a deposit to the Water Bank in 1995 that is used to meet the water requirement for a development initiated in 2005 would be converted to water supply credit based on the conversion rate in effect in The conversion rate in 2005 may be higher or lower than the rate that was in effect when the water was deposited Credit for Native Ditch Shares Credit for native ditch shares refers to the number of acre-feet recognized by the City for specific shares based on a historic yield per share. This yield has been calculated using different methods. Originally, a dry-year scenario was used in which the three driest years for a given period of record were selected. The lowest year was thrown out and the second lowest and third lowest were averaged. Since 1969, credit for dedication of irrigation company shares has been based on average annual diversion by each irrigation company, including the City s diversions of its pro-rata ownership, over the past 20 years, with adjustments made for shrinkage and for any private rights carried through the ditch by contract. A summary of the current (2005) Water Bank credit allowed for various irrigation company shares and transmountain sources is shown in Appendix D. These were calculated using the historical diversions from 1982 to No updates have been made since September 2002, pending results from the SWE study and this report. Page 16

8 As a result of giving credit for average annual yield while needing to provide water during dry years, the Water Bank conversion policy has resulted in erosion of the City s water supply drought margin. In other words, by using an average yield, the City accepted responsibility to find additional water or reduce demand when the native water rights yield less than the average value, or generally about 1 out of every 2 years Native Raw Water Storage Fee Depositors of native water (i.e. ditch company shares), for native water deposited after July 20, 1995, are also required to pay a Native Raw Water Storage Fee ( Storage Fee ) when the water is converted for water supply credit. This fee recognizes that raw water storage is necessary to firm up native water sources. Ditch company shares yield water only during a typical May through October irrigation season. Storage is necessary to convert these sources to year-around supplies, as well as to increase dry year deliveries. A Native Raw Water storage fee will also apply at the time of use. The fee was established by City Council on June 20, 1995 (Ordinance No. 4096), and initially the fee was $400 per acre-foot of water applied toward a development. That amount was determined by determining that approximately half of the direct flow rights received should be stored, and using the value of other stored water (CBT, which at that time was $800 per unit). On March 4, 1997, (#R-12-97) the fee was increased to $475 per acre-foot but no decision was made to adjust it further to reflect changes in CBT market prices). That fee is subject to periodic review and adjustment by the City Council. The fee applies that is in effect at the time the credit is used Credit for CBT The City has accepted CBT units since the early 1960 s to meet the raw water requirements of the City. The CBT credit, or the amount of acre-feet per CBT unit as credited for development, has been set at different values over time. The first such credit on record was to be the average, not exceeding the last 20 years and is shown in City Ordinance No. 1053, passed in Since then, CBT credits have been 0.6 acre-foot per unit, 0.75 acre-foot per unit, and 1.0 acre-foot per unit. The historical credit granted for CBT units accepted by the City for development and the dates these values were instituted are included in Appendix A. The current CBT credit of acre-foot per unit is based on the long-term ( ) delivery history of CBT out of the project Credit for C-I-L The City of Loveland accepts C-I-L of water rights from developers in order to meet the raw water development requirements of the City and in exchange may provide the developer with certain credits in the City s Water Bank or apply the credit directly to a current development. Since the inception of the C-I-L fee, it has always been based on the market price of an acre-foot of Colorado Big Thompson water. The historical C-I-L fees and the dates they were instituted are included in Appendix A. Page 17

9 The Water Bank credit provided by the City for C-I-L of water rights is calculated based upon the per acre foot C-I-L fee. The number of acre-feet purchased does not change, regardless of changes in the City s C-I-L fee. The form of payment must be cash or certified funds. C-I-L fees have been used to produce yield for the city through purchases of water or developing projects which produce water. Previously, the City purchased CBT, paid for the Green Ridge Glade Reservoir expansion, set aside money for the payment of the City s obligation in the original Windy Gap Project and committed funds for the Windy Gap Firming Project. Possible future purchases might include CBT and upstream or downstream storage. The first such purchase of C-I-L credits where the credits were not immediately applied toward a development occurred on November 30, The most recent such transaction occurred on October 2, A detailed review of C-I-L credit purchases, transactions and current balances as of December 2004 are included in Appendix E. A list of updated balances as of November 2005, is also included in the appendix Summary of Existing Water Bank Balances Table 3-4 shows the existing balances in the Water Bank, as of June Original Units describes the water in terms of shares or inches, CBT Units, or cash credits which are acre-feet equivalents. Current Credit Values shows the City s current credit per share or inch, based on a 20-year running average, which is the City s current policy. The current Water Bank obligations are listed below using the current conversion rates (in effect since September 27, 2002) as well as ditch firm yield values from the SWE report. Page 18

10 Table 3-4: Total Ditch Share/Inches and Cash Credits obligation in acre-feet in Loveland Water Bank as of June 2005 Original Units(2) Average Yields in AF per inch/share (current credit) Current Credit Values (acre-feet) Firm Yields per SWE Report in AF per inch/share SWE Report (Dependable Yield) (acre-feet) Southside Louden Buckin gham Barnes Chubb uck BTD& M CBT Other AF Credits (1) C-I-L Credits Total , ,139 Notes: (1) Any water credit in the Water Bank not associated with native rights or Cash in Lieu credits (2) Original Units are the total number of units collected in the water bank from inception. Page 19