Colorado Agriculture Preservation Association         

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CAPA Annual Meeting will be scheduled within the next month

(additional information coming soon)

 

Kansas Spent $17 Million Meant For Water Lawsuit Against Colo.

Kansas lawmakers accidentally spent $17 million set aside to finance litigation aimed at forcing Colorado and Nebraska to abide by water compacts, state officials said Monday.  The embarrassing miscue committed in 2007 set off alarm bells in the Senate Ways and Means Committee, with some senators insisting upon reform in the method of writing appropriations bills and others demanding better tracking of money earmarked for specific purposes.

"I would suggest we need to take a look at our accounting procedures," said Sen. Laura Kelly, D-Topeka.
Kansas' successful lawsuit against Colorado over violations of the Arkansas River Compact resulted in a U.S. Supreme Court decree requiring Colorado to reduce its groundwater pumping and to pay Kansas about $34 million in damages and interest. The payment allowed establishment of a fund in Kansas to continue legal work on water issues with border states.

"So, we took Colorado's money and blew it?" asked Sen. Janis Lee, D-Kensington.

Sen. Jay Emler, a Louisburg Republican and chairman of the Senate budget committee, said the original intent was to place the litigation funding in an account beyond the grasp of legislators. A House-Senate conference committee inadvertently slid the whole $17 million into an appropriations bill at the end of the session.

"When we have a lockbox, we also have a key," Emler said.

The money was spent on general state government expenses. The Legislature voted and Gov. Kathleen Sebelius signed the bill cleaning out the water litigation fund. The oversight wasn't revealed to legislators until the attorney general's office requested financing for legal work on water issues for 2010 and 2011.

Michael Leitch, deputy attorney general, said $680,000 was requested for this year and $1 million for next year. Without the supplemental appropriations, he said, the attorney general's office could run out of money while engaged in two disputes with Colorado over the Supreme Court's decree.Sen. Mark Taddiken, R-Clifton, said replacing the money with general tax revenue would be difficult. The state's deficit in the current fiscal year is unknown but rising. The projected deficit in the upcoming fiscal year could exceed $400 million.
"This is a huge issue for me," Taddiken said. "Is there a way to rewrite budget bills so people know what's really going on?

"Meanwhile, the Senate committee received an update on activity tied to a legal settlement among tobacco manufacturing companies, Kansas and 45 other states. Tobacco companies are contesting payments made to Kansas in 2003, 2004 and 2005 based on a claim Kansas didn't adequately enforce provisions of the agreement.

"There are many potential outcomes to this litigation," said Patrick Broxterman, an assistant attorney general. "which include everything from losing no money to losing the full $167 million Kansas received for the years."
http://www.thedenverchannel.com/news/22409523/detail.html

Locals behind state water legislation      
Written by By Marianne Goodland   
Thursday, 28 January 2010
 The 2010 General Assembly is now in the second week of its 120-day session. During the next four months, legislators will tackle issues such as ground water boundaries, vehicle registration and illegal diversion of surface water.
The first water bill of the 2010 session got its first hearing last Thursday, January 21. The Senate Agriculture and Natural Resources Committee voted 6-1 to approve SB 10-52, which would make it clear that a final permit for ground water wells in a designated basin is final.

It is on the Senate calendar for further debate in the Senate this week. SB 52 is sponsored by Sen. Greg Brophy, R-Wray and Rep. Kathleen Curry, I-Gunnison.
 Brophy said this week that SB 52 is designed to provide assurance for people who own large capacity ground water wells that those wells cannot be pulled out of the designated basin area.

Under SB 52, the Ground Water Commission, which manages the eight designated basins along the eastern plains and the Front Range, could revise the basin’s boundaries to remove previously-included areas only if the area does not include wells that have had final permits issued.
Brophy said that in 40 years since the boundaries were designated, no one has challenged either the maps or the engineering. Without changes in the law, “the risk is a [surface] water user would sue and pull your well out and shut it down.” If SB 52 is signed into law, “you will know the wells are safe, and the banks who lend you money for the wells will know they are safe,” Brophy said.

Michael Shimmin, a Boulder water rights attorney who represents water management districts within one of the basin areas and the ground water commission, testified Thursday that there are more than 7,000 high capacity wells in the eight basins. They provide irrigation for agricultural uses and serve industrial or municipal uses. Ground water is the only water source available and there is no meaningful connection to surface water, Shimmin said.

The need for SB 52 is based on whether the decision to create these designated basins was ever final. Shimmin said that in 2006 the Colorado Supreme Court interpreted state law to say that they were never final — the commission could always come back and either add to or subtract from the boundaries. That case, Gallegos v. Colorado Ground Water Commission, is currently awaiting a final outcome in court. The bill exempts any lawsuit that was in place as of January 1, 2010 and would exempt the Gallegos case, according to Shimmin.

 A second lawsuit on the issue, involving the Republican River in Yuma County, was brought by surface water users. That case was settled out of court last year when the Yuma County Water Authority spent $20 million to buy the surface water rights.

Robin Wiley, a Yuma County farmer and chair of the Yuma County Water Authority, said a small group of surface water owners petitioned the commission to redraw the boundaries and curtail high capacity wells that were within 20 miles of the North Fork of the Republican River. This would have affected more than 1,300 wells, Wiley said. The Yuma County Water Authority asked voters for approval to buy the surface water rights; voters approved the settlement and that stopped the litigation. But without changes in the law, “the potential is still out there,” Wiley said.

 P. Andrew Jones, a Boulder water rights attorney who represented the well owners in the Gallegos lawsuit, said senior surface water rights owners have a right to certainty regarding the permits, but so do the ground water well users.  “You need to protect what’s already been established,” he told the committee.
Several businesses that serve agricultural users also testified to the need for the bill. Terry Hall, general manager of Y-W Electric Association of Akron, testified irrigation takes up the largest part of the utility’s system load, representing 55 percent of its revenue and 80 percent of its peak load.  “It’s crucial to the financial viability of Y-W to continue to serve irrigation wells,” he said. Shutting down the wells would result in a 35 to 40 percent rate hike for the rest of the electric consumers.
Craig Soehner, senior vice president of Wray State Bank, said they rely on the value of irrigated land.

“We have lent money on that irrigated land,” Soehner said. “...without certainty that those permits will stay in existence, Wray State Bank and other financial institutions would have to reduce lending in that area.” 
The majority of those testifying Thursday were ground water well owners, but a few surface water rights holders spoke against the bill. Mark Lengel of Burlington, whose family has held those water rights for more than 100 years, said the bill would take away protection for his senior water rights. “I won’t have any recourse if the bill passes,” he said.
Michael Bohnen of Bethune testified that his family’s surface water rights on the Republican River date back to 1904 and likened the bill to eminent domain.
“Well users can pump the river dry,” he said. “Every well in the basin affects the flow of the river.” However, when questioned by Sen. Bruce Whitehead, D-Hesperus, both said they or their families did not object when the original boundaries were drawn back in the 1960s and 1970s.

Steve Sims, former water counsel for the attorney general and now with Brownstein, Hyatt & Farber, testified that senior water rights in the basin are not based on flowing streams and there would be no quantifiable injury to those surface water rights holders.

SB 52 also provides strong language on the intent of the legislature regarding challenges to ground water well permits. The bill says that after a certain amount of time has passed, any request to pull out a well for which a permit has been issued should be considered a “collateral attack” on the original designation of the basin. However, the bill does not specify how long that time should be.

 

Martha Pagel Selected to Arbitrate Compact Compliance Pipeline Issue
 
Due to delays in Colorado, Kansas and Nebraska choosing an arbitrator and additional delays by Nebraska insisting in an in-person interview with potential arbitrators before they could agree on an arbitrator, Peter Ampe of the Colorado Attorney General’s Office, invoked section VII.C.2 of the Final Settlement Stipulation and requested CDR Associates of Boulder, Colorado, to select the arbitrator.  They have done so.
 
Three CDR staff members reviewed the resumes, two that have worked on Republican River issues, and one independent reviewer.  All concurred with a recommendation that Martha Pagel should be the arbitrator for Republican River Compact issues.  Her experience with groundwater, as former Director of the Oregon Water Resources Department and background as a lawyer and making decisions on technical groundwater issues qualify her for the position.

Click here to view her Biography

 

Bonny Reservoir Information from the Bureau of Reclamation

Governor wants Republican Basin compliance plan done by December      

By Nate Jenkins
Associated Press Writer

KEARNEY (AP) —A new plan to keep Nebraska in compliance with the Republican River compact is on the fast track.
On Monday, Gov. Dave Heineman told natural resources district officials, including those from the Republican River basin, that he wants the plan to be completed by early December.
One of the options being considered is an irrigation shutdown in parts of Nebraska’s part of the basin during dry years.
Heineman didn’t mention that option when speaking to water officials gathered at a meeting of the resources districts’ association Monday. But, he said, “Everything’s on the table.’’
Heineman reached out to the water officials, some of whom have been upset over his administration’s support for such a shutdown during dry years. The governor said he was “very, very confident that well-meaning and commonsense Nebraskans’’ can reach agreement on a compliance plan.
Water use from the Republican River is governed by a 2003 decree from the U.S. Supreme Court, which approved a settlement—among Kansas, Nebraska and Colorado—of a lawsuit filed by Kansas in 1998.
Officials are looking for another compliance plan after an arbitrator’s decision this summer.
In July, Colorado-based arbitrator Karl Dreher said Nebraska owed Kansas $10,000 for overusing river water in 2005 and 2006—a fraction of the $9 million Kansas demanded—but that Nebraska’s plan for future compliance with the compact was insufficient. Dreher didn’t suggest a solution.
State water officials told hundreds of Nebraska farmers earlier this month that an irrigation shutdown during so-called water-short years—defined as years when Harlan County Lake, near the Kansas border, is less than about one-third full—would be a last resort in a compliance plan that could have several other options.
They include pumping groundwater into the river to bolster flows, and buying surface water—basically paying farmers not to use the water that is mainly stored in reservoirs—so that it flows down the river and can go to Kansas instead of being spread on farmers’ fields.
Some managers of Republican River resources districts are expressing mild support for an irrigation-shutdown option, saying it could be less painful, and more financially feasible, than other options.
“If a little regulation would be required to be in compliance, it would be hard to justify’’ other actions such as spending tens of millions of dollars on a pipeline to send water to the river, said Jasper Fanning, manager of the Upper Republican Natural Resources District.
“You have to have regulations on the table so you know what you’re comparing them to,’’ he said.
Boards of the area’s natural resources districts will have to vote on a compliance plan that may include the irrigation-shutdown option.
Officials say they haven’t yet determined which areas might be off-limits to irrigation during water-short years. Early estimates provided to The Associated Press last month showed that more than 330,000 acres could be affected.
Officials have said water-short years occur 25 percent to 33 percent of the time. Barring an extreme drought, there probably won’t be another one for least two years, because Harlan County Lake is full.
Fanning comments on issue
Editor’s Note: In visiting with Fanning this week on the context of his statement, he noted that if only a handful of wells would need to be shut down to stay in compliance, that could be more effective than spending millions on other compliance projects.
However, until that number is known, things remain up in the air, he added.
As to the governor’s December deadline, Fanning said crafting a plan that works for the district and basin is more important than adopting a plan for the sake of a deadline.
He said he’s seen a preliminary map of the possible shut-down areas. It appears the Department of Natural Resources has squeezed down the area known as the quick response area.
Rather than regulate an area, he said the state is modelling actual wells to determine the most benefit in the case of a shut down.
He said every basin district will take a big hit and some irrigators will take an unbearable hit under the proposal.
He said it’s key the districts find some type of funding mechanism to enact other alternatives.

 

Colorado Division of Water Resources New Services

The Colorado Division of Water Resources (CDWR) has a number of new services available. Users can now obtain well permit information online, as well as retrieve information on water diversion records. These are both ‘big steps’ for the Division and ones they hope the public will utilize. To obtain information on either of these and/or other CDWR data, visit their website at www.water.state.co.us.

 

Republican River Compact: Timeline for arbitration in dispute between Colorado, Kansas and Nebraska

Written by Tony Rayl   
 September 18, 2009

The time frame shows Wednesday, September 16, as the last date for the states to meet and agree on an arbitrator (or arbitrators). Dick Wolfe, state engineer for Colorado, reported late last week that an arbitrator had not been selected yet, meaning the states likely will take it to the deadline. While the arbitration is classified as “fast track” it still will be more than five months before an arbitrator issues a decision, which, on the time frame supplied by Wolfe, is March 1, 2010. The fall and early winter will be the “discovery period,” such as submitting bries and responses to those briefs on legal issues, as well as disclosing experts, witness lists, expert reports and exhibits. The trial itself is set for February 1-5, 2010. A location has not been set yet. However, in his notice to his counterparts in Kansas (David Barfield) and Nebraska (Brian Dunnigan) that Colorado was invoking arbitration in regards to the pipeline issue, Wolfe again reiterated his desire to keep working with the other states to reach a mutually acceptable resolution.

 

Republican River Compact Administration Meeting Report

Lincoln, NE August 11-12, 2009

Pipeline-

Colorado proposed a 4,000 ac/ft minimum annual delivery to the RRCA, Nebraska voted no because they are concerned about the users on and below the Haigler/Pioneer Ditch, they have salinity problems and shallow wells.  They asked CO to run the pipeline to the Pioneer ditch.  Kansas voted no because of the South Fork issue and went so far as to suggest that CO should run the pipeline all the way down to the South Fork.  Stan Murphy commented in pubic comment that in CO 4,000 wells are paying a per acre fee of $14.50 and he asked the states of KS & NE to put in writing exactly why they are opposing CO’s pipeline so the people of the basin can see it first hand.  He also said he was sick of the political “tap dance” and said we are making a good faith effort to come into compliance and they are not allowing us to do so.  After speaking with Coryell and Ampe after the meeting Ampe said that CO would be filing for Fast Track Non-binding Arbitration within the month.      

Bonny Resolution

CO did present the Bonny accounting resolution in the engineering meeting on Tuesday, however it was not brought up in the annual meeting. 

KS claimed they did not have enough time to evaluate the proposal (received the Friday before)  and didn’t want to be expected to vote on it during the annual meeting the following day.  NE spent plenty of time evaluating it and acknowledged that there was a problem with the accounting on Bonny but felt the accounting changes that CO made would make the model even more inaccurate even though it lowered the amount of water that all three states had to provide.  NE’s William (NE’s smartest guy on the RR Compact) disagreed publicly with his own engineer.   The next day at the Annual Meeting CO did not bring the Bonny Resolution. 

NE’s Proposal on fines-

Handouts were not made available to the public but the basis of their proposal was if a state was found out of compliance and forced to pay a fine for a year that once they pay that fine their debt for said year would be credited back so it did not damage future years in the five year rolling average system.  CO found this concept interesting but voted no at the time because they needed more time to evaluate the formulas used to create the credit back.  KS questioned if it was even a matter for the RRCA to be considering as no where in the compact mentions any type of compensation or fines and also voted no. 

Other-

KS said they appreciate CO’s efforts to come into compliance however they urged CO to take “firm action” to ensure compliance. 

Conservation Study-

No overall comprehensive results have been developed yet.  They are expecting to have the full report completed by June 1, 2010.  The study looked into two factors: reservoirs and terraces.  The study was expected to cost $1 million but since they were unable to get terrace information from NRCS it ran over budget and it is though it will end up costing $1.2 million. 

It is believed that there is a total of 716 reserviors basin wide.  The study took an in depth look at 32 reservoirs.  There are 14 different levels of seepage and plant uses 93% of seepage from reservoirs is “deep seepage”

There is roughly 2.3 million acres of terraces in the basin.  The study closely monitored 5 terraces.  15% of land in the basin is terraced.  90% of water caught in terraces is used by ET.  The higher clay content of the soil means the higher ET loss due to decreased ability of deep peculation. 

 

Stream flow

Ground Water Recharge

ET

Before

488

848

64

After Terraces

244

974

282

After T & R

183

1031

296

Water loss per mile of river travel in a flood event:

1970’s study estimated a 2% loss

August 2008 7% loss

October ? 2008 3.5% loss

 

Arbitration Analysis from Water Claim

The arbitrator made 12 recommendations based on the 53 conclusions and 159 findings that he reached. The ruling leaves many important issues unresolved.

The arbitrator ruled that Nebraska cannot shift all of the evaporation losses to Kansas as it has tried to do. As a result, the Kansas estimates on how much Nebraska has been over are more correct than Nebraska's. The arbitrator rejected Nebraska's suggested solution to one of the the demonstrated errors in the Model. However, he did recommend that the technical committee carefully review the problem and suggest a correction. He rejected most of the Nebraska suggestions regarding measurement points with the exception that he did accept the idea that the measurement point on the North Fork of the Republican be moved to the Nebraska/Colorado border. That will make it more difficult for Nebraska to comply in the future as Nebraska will have to stop the water Colorado dumps at the State line from disappearing before it reaches the next stream gage.

The ruling rejected the dollar amounts suggested by all States as being unsupported. So the ruling suggests a nominal award from Nebraska to Kansas of $10,000 (ten thousand dollars) until Kansas "proves" an actual amount in damages.

The ruling rejects the Kansas suggestion that all wells within 2.5 miles of either side of the stream be shut off as being more than necessary due to the reduced pumping Nebraska has already imposed on irrigation. However, he rejects Nebraska's position that the current Integrated Management Plans are adequate and recommends that additional reductions in allocations be made and that Nebraska should secure long term access to surface water rights. No specifics are given. The ruling says that Kansas has the right to seek injunctive relief should Nebraska fail to stay within the allocations and that Nebraska may be sanctioned such that it is incentivized to comply. However, no details are provided as to what that relief might be or what the sanctions might be. Additionally, the arbitrator has recommended that no River Master be appointed.

The arbitrator left a lot of things open for others to decide. He has deferred many of the specifics. No dollar amounts are given. He agrees that there are technical problems found in the Model but leaves it to the States to resolve. He has rejected both parties proposed solutions but has not said what the solution should be. He does suggest that the IMPs are ineffective in keeping Nebraska in compliance because of the time it takes for the IMPs to have any effect. He says Nebraska needs to find better ways to stay in compliance but leaves it up to the State as to how to do that. He says that if Nebraska fails that Kansas can force compliance but also leaves it open as to what it can specifically do. In the short term there are few financial costs. However, Kansas is given the opportunity to prove actual costs which the arbitrator says may result in millions of dollars.

Link to full ruling: 

http://www.waterclaim.org/legal/finalarbitration.pdf

 

Water being released from Bonny PDF Print E-mail
Written by Tony Rayl   
Friday, 26 June 2009
       A release of water from Bonny Reservoir that began June 17 continued until 5 p.m. on Sunday, June 28.
       Healthy rainfall in the area led to State Engineer Dick Wolfe to order a maximum release of inflow water.
     According to information from Wolfe, the reason for requesting this final level is to recognize there will be a continued net increase in reservoir storage once the release is stopped, for at least the next several days.
      It is estimated that the net increase in storage will be approximately 15 to 20 acre feet per day once the release is stopped. During the release, outflow far exceeded inflow, meaning the reservoir continued to drop during the release.
      The released water flowed down the South Fork of the Republican River, through northwest Kansas and into Nebraska, where the water flow is measured by a gauge in Benkelman.
      Kansas has been making the case that Colorado has not been meeting its sub-basin requirement along the South Fork sub-basin. It is one of the sticking points in Colorado seeking approval for its proposed compact compliance pipeline from the Republican River Compact Administration. Kansas argues Colorado cannot make up for its shortage on the South Fork by sending it into the North Fork via the pipeline.
      Plus, Nebraska is arguing it does not want to have to convey that water past its users and reservoirs into Kansas, when it should arrive on the South Fork.
       The last special meeting of the RRCA, which is comprised of representatives from all three states, was in May. That meeting was continued in hopes of the three states reaching a settlement so the pipeline would be approved. However, it never has been reconvened, and the annual RRCA meeting is August 11-12 in Lincoln, Nebraska.

 

RRWCD closes on pipeline water PDF Print E-mail
Written by Tony Rayl   
Friday, 26 June 2009
    The Republican River Water Conservation District Water Activity Enterprise completed the purchase of ground water rights for the Compact Compliance Pipeline on Friday, June 19, using funds provided from the Colorado Water Conservation Board's construction loan fund.
    The ground water rights will be leased back to the sellers until the water is needed for delivery through the pipeline.
    Although the Republican River Compact Administration has not yet approved a plan for augmentation and accounting procedures for the pipeline project, the RRWCD Board of Directors concluded that completing the purchase was prudent in light of the State of Colorado's current budget situation.
    The State of Colorado is currently in negotiations with the states of Kansas and Nebraska on terms and conditions for approval of deliveries of water to the North Fork of the Republican River to assist the State of Colorado with compact compliance.
    The RRWCD Board expects Colorado to propose a revised resolution to approve terms and conditions for the pipeline project at the annual RRCA meeting in Lincoln, Nebraska, on August 11-12.
    If the Kansas and Nebraska members do not approve the revised resolution, the State of Colorado is expected to seek arbitration under the provisions of the Final Settlement Stipulation between the states.
    Even with the delay in obtaining RRCA approval, construction of the pipeline could begin in 2010 with deliveries beginning in 2011.

 

RRWCD did close on the Cure water on Friday June 19, 2009.  More information to follow soon.

 

 

Pipeline talks continue; RRWCD to close on groundwater
 

 

 
Written by Tony Rayl   
Thursday, 18 June 2009
    The closing on the $49.1 million purchase of the groundwater rights by the Republican River Water Conservation District from the Cure family is tentatively set for the end of this week.
    The groundwater, representing about 50 wells, will be used for the proposed compact compliance pipeline, if Colorado can get approval from Kansas and Nebraska through the Republican River Compact Administration (RRCA).
    Meanwhile, State Engineer Dick Wolfe has stated the continuation of the Special RRCA Meeting that began in May has not been scheduled yet as the three states are continuing settlement negotiations in regards to Colorado's proposed compact compliance pipeline.
    Wolfe, in an e-mail to the Pioneer, reported the hope is to set the date soon. However, he added Colorado did not want to set the continuation until the state knows it has a deal with Nebraska and Kansas, or that it is determined the states definitely are at an impasse. At that point, a final vote would be needed to initiate the arbitration process.
    Last month the Republican River Water Conservation District Board of Directors voted to move forward with the $49.1 million purchase of the groundwater rights for the pipeline. The board had previously held the stance it would not move forward until the RRCA approved the pipeline. To date, Kansas and Nebraska have withheld approval until its concerns with the pipeline plan are satisfactorily addressed.
    However, concerns have arisen that the $60 million loan from the Colorado Water Conservation Board could be taken away in the near future as the State of Colorado grapples with a severe budgetary crisis. The loan initially was supposed to be available until some time in 2010. Those concerns led to the RRWCD board changing its stance and moving forward with the groundwater purchase.
Kansas' intentions
    In response to questions raised in the Pioneer recently, Wolfe wrote that Kansas has made its intentions and demands very clear, and that the specific details were made public some time ago.
    He stated Kansas wants Colorado and Nebraska to comply with the compact. In the case of the South Fork sub-basin issue, Wolfe stated Kansas wants water — not money.
    Kansas wants its allocation protected on the South Fork and does not want delivery on the North Fork. Wolfe added that Nebraska also does not want Kansas' delivery on the North Fork, in regards to the South Fork, because it would have to convey it downstream past its users and reservoirs.
    Plus, Wolfe noted, delivery on the North Fork of what should be going down the South Fork, does not provide water on the South Fork upstream of Benkelman, Nebraska, in an area where Kansas says surface and well users will be impacted.
    That portion of the South Fork through southwest Kansas is considered upstream of Kansas, and any use by Kansas residents is supposed to be credited to Colorado's compliance efforts. The water from the South Fork still goes into Nebraska and travels downstream before dropping back into Kansas, where it is factored into Kansas receiving its fair share of water as outlined in the Republican River Compact.
    David Robbins, an attorney for the RRWCD, has made the case in past meetings that Colorado's responsibility in the compact is to deliver water to Nebraska, not Kansas.

Photo's of Tree Removal on the North Fork of the Republican

 

 

RRWCD moves on $49.1 million water purchase      
 
Thursday, 28 May 2009
    On Monday, May 18, the Republican River Water Conservation District Board of Directors voted to authorize closing on the $49.1 million purchase and sale of the groundwater rights for the Republican River Compact Compliance Pipeline.
    The decision came even though the Republican River Compact Administration has not yet approved the augmentation plan and accounting procedures for the pipeline project.
    After questioning Deputy State Engineer Mike Sullivan at length and taking comments from the public, the RRWCD Board of Directors voted to authorize the closing because of concern that the $60 million loan funds from the Colorado Water Conservation Board may not be available in the future due to the state's current budget situation.
    The board recognized that Colorado is exceeding its statewide Compact allocations and that the pipeline project is needed to avoid an action by Nebraska or Kansas for an injunction against Colorado to halt well pumping in the district until Colorado is in compliance with its compact allocations.
    The RRWCD Board also recognized that Kansas believes that Colorado is impairing Kansas' ability to use its South Fork sub-basin allocation within the South Fork sub-basin. The RRWCD Board has requested assurances from the State of Colorado that if the board goes forward with the pipeline project, Colorado will drain Bonny Reservoir or take other actions equivalent to draining Bonny Reservoir if Kansas is correct regarding its interpretation of the Final Settlement Stipulation between the states.
    Although the State of Colorado has not provided the assurances sought by the board, the board concluded that the only feasible way to comply with Kansas' view of the sub-basin non-impairment requirement in the South Fork sub-basin is to drain Bonny Reservoir.
    The State of Colorado is continuing negotiations with Nebraska and Kansas in an effort to get the Republican River Compact Administration's approval of the augmentation plan and accounting procedures for the pipeline project. If the negotiations are not successful, the State of Colorado will pursue the dispute resolution process established in the Final Settlement Stipulation, which includes non-binding arbitration of disputes.
  

A picture named republicanriverbasin.jpg

Here’s a recap of the special board meeting held on Monday for the Republican River Water Conservation District, from Tony Rayl writing for the Yuma Pioneer. From the article:

Mike Sullivan, who was promoted to deputy state engineer last October, was in attendance at the special meeting, held at the Church of the Nazarene. He told the board the state has revamped a settlement agreement that is hopefully agreeable to all three states. Colorado’s leaders are having a private meeting with counterparts from Kansas and Nebraska today, May 21. He said Colorado will see if the other two states will accept what’s being offered. It possibly will be decided then when to continue the Republican River Compact Administration meeting that was continued from April 28, when Kansas and Nebraska representatives both stated they would continue to vote against the compact compliance pipeline due to issues the states cannot agree on. Sullivan said he feels good about a settlement eventually being reached, because Kansas and Nebraska cannot be unreasonable in their opposition to Colorado’s plans for coming into compliance with the Republican River Compact. A sticking point in Kansas approving the pipeline is the claim Colorado does not pass the “sub-basin” test on the South Fork of the Republican, and that a pipeline sending water into the North Fork will not satisfy the South Fork issue…

The RRWCD has taken the stance it will not move forward with the pipeline if the South Fork still remains a problem. Plus, there is the fact irrigated farmers along the South Fork are paying the same assessment fee as everyone else to pay for the pipeline, but could end up having their wells curtailed because of the sub-basin issue. If the wells in the South Fork sub-basin are shut down, which account for approximately one-half of Colorado’s wells in the Republican River Basin, that means the remaining well users will have to take on an even greater burden of paying for the pipeline project…

District engineer Jim Slattery said Monday draining Bonny is the only way to come into compliance on the South Fork — if Kansas is right in its assertion that the South Fork shortfall cannot be made up by the North Fork pipeline. Even, it would take years before Colorado would be in compliance on the South Fork. Sullivan said draining Bonny would help with the sub-basin test, but not on overall compliance. Board member Jack Dowell of Yuma told Sullivan that the state could recoup the revenue it loses from Bonny from other sources in the state, but that the farmers and communities in the region would be left high and dry with no chance to recoup losses if the wells are shut down so Bonny can remain open. Sullivan noted loans and grants have been used for work done at Bonny, and the state needs to make sure it does not hinder future efforts to receive federal funds before closing down Bonny…

Board President Dennis Coryell expressed frustrations that the RRWCD’s pipeline project has been delayed by nearly one year now because of the South Fork issue. Meanwhile, all irrigators are paying the new $14.50 per acre assessment fee for a pipeline that is not being built. He also noted the people in the basin are not getting much information from the state regarding the pipeline negotiations. He urged the state be as transparent as possible in the process so the locals can be informed…

Other discussion included options besides draining Bonny Reservoir. Sullivan said the only other is the “nuclear” option — shutting down all wells. (It has been shown even doing that would not get Colorado into compliance.) Reopening the compact also was brought up. Sullivan said doing so would mean it would have to be open to all parties, meaning even more entities could step in asking for a portion of the water. RRWCD legal counsel David Robbins said Colorado getting more water out of a renegotiated compact would mean convincing Kansas and Nebraska to give up water. He said Colorado would run the fundamental risk of ending up with even less water because the upstream states already are using all they are entitled to, and could very well seek more water out of a new compact…

Coryell noted that in an ag-driven economy, issues at Bonny Reservoir do not speak loudly. “It is not going to be a pretty thing if the South Fork wells are curtailed in order to keep open a facility that has seen its better days,” he said.

Bonny Reservoir: Test release of 900 acre-feet

May 22, 2009

A picture named bonnyreservoir.jpgFrom the Yuma Pioneer (Tony Rayl):

[State Engineer Dick] Wolfe ordered the release on May 4, and then ordered it stopped on May 11. About 900 acre feet was released during that time into the South Fork of the Republican River. The board was told at its regular meeting in April that there was an extra 3,992 acre feet of storage in Bonny. Therefore, many were left scratching their heads last week when the release was stopped while there was 3,000 acre feet left to drain. “We wanted to see what kind of response we got out of that (initial release),” Wolfe said. He explained the state did not want to release all the extra water only to find out it was not reaching the gage at Benkelman. It turns out that it was. In fact, approximately 50 percent of the released water was reaching Benkleman, which Wolfe said was very good…

Wolfe said it takes about two weeks to fully measure the impact the release is having a the gage. He said his office will meet with the Bureau of Reclamation on June 3 to evaluate the May 4-11 release and then decide when and if to release more of the “out of priority” water in Bonny…

He said the state could, conceivably, be in compliance with the Republican River Compact if the water released from Bonny keeps getting to Benkelman. However, he said there are a lot of factors to consider, noting that if Colorado experiences a wet year, the extra storage in Bonny would not be needed, and a lot of people would be questioning why the water was released. As for the RRWCD’s call to drain Bonny, Wolfe said “There are a lot of issues on the table to decide what to do long-term with Bonny.”

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Kansas and Nebraska formally rejected Colorado’s plans for a compact compliance pipeline, Tuesday morning, but it appears there is hope the states are getting closer to resolving their various issues. That is due to the fact that, instead of Colorado immediately calling for arbitration after Tuesday’s vote, State Engineer Dick Wolfe called for a continuation of the special meeting to a yet-determined date in two to three weeks. Kansas and Nebraska each agreed to the continuation. Tuesday’s telephone gathering was an official meeting of the Republican River Compact Administration (RRCA). Wolfe is Colorado’s commissioner on the RRCA. His counterparts in Kansas and Nebraska, David Barfield and Brian Dunningan, respectively, are the other commissioners…

In the end, it came down to the three state engineers. Dunningan of Nebraska said the state supports Colorado’s efforts to receive approval. However, Nebraska still has issues with protecting the surface water users along the Haigler Canal, and limiting the volume of water delivered by the pipeline as Nebraska then is responsible for sending on the water to Kansas, and there will be evaporation in the process. Barfield recognized Colorado’s “significant” efforts to get into compliance. However, significant concerns remain for Kansas, particularly in regards to sub-basin compliance along the South Fork of the Republican River. “For this reason, Kansas will be voting ‘No’,” Barfield said. He added, though, that Kansas believes the states can continue to find a resolution for the pipeline plan…

Wolfe said Colorado recognizes there are issues still not resolved, but Colorado was ready to entertain a motion to approve the pipeline. Barfield approved the motion, then he and Dunningan voted against, while Wolfe voted in favor. Wolfe then requested the meeting be continued for two to three weeks, with the states continuing negotiations in the interim. Kansas and Nebraska agreed to the continuation. The specific date will be announced at a later date, after the parties involved can coordinate when all three will be available.

 

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No significant progress, in regards to getting Kansas and Nebraska to approve the [compliance pipeline] project, has been made in the past few months, it was reported during the Republican River Water Conservation District Board of Directors regular quarterly meeting, last Thursday, April 9, in Yuma. A teleconference with Kansas and Nebraska is set for Tuesday, April 28, for a special RRCA meeting. Colorado will ask for approval for the proposed compact compliance pipeline. If Kansas and Nebraska reject it, as expected, Colorado will move to the arbitration stage.

If not approved, the next step would be arbitration. The system is set up so it is “non-binding” arbitration, meaning the states do not have to adhere to the ruling. It is a step taken, though, in an effort to resolve the issue without going to the U.S. Supreme Court. Colorado, though, is willing to take the pipeline to binding arbitration, meaning the arbitrator’s decision carries weight. “We have offered binding arbitration but Kansas has rejected it, at least initially,” [Alexandra Davis, the assistant director for water for the Department of Natural Resources] said. “We were willing to go to binding arbitration.”[...]

The Republican River Water Conservation District continues to lay the groundwork for the pipeline, while waiting for RRCA approval. Engineer Jim Slattery told the board last Thursday that work continues on easements, an application for a permit from the Corps of Engineers has been submitted, and the district also is dealing with a minor issue with the Colorado Ground Water Commission in regards to “co-mingling” wells. Slattery told the board he has been told bidding among contractors is still competitive due to a slowdown in projects, but it might not last much longer.

The district itself is not moving too far ahead until issues are resolved between the three states. The RRWCD is taking the stance that it developed the pipeline project on the assumption that delivering water to the North Fork would bring Colorado into compliance with the pipeline. However, Kansas asserts Colorado is not in compliance in the South Fork sub-basin, and the pipeline to the North Fork will not address that. Therefore, the district definitely wants that issue resolved, and approval from the RRCA, before building the pipeline. The RRWCD also has requested assurances from state officials that Colroado will drain Bonny Reservoir, or take other actions equivalent to draining Bonny, if Kansas is found to be correct in its interpretation of the South Fork issue.

Also, the Sandhills Groundwater Management District, where the wells for the pipeline are located, has stated it will not hold a hearing on the RRWCD’s request to export water from the management district until the RRCA has approved the augmentation plan.

A $60,000 million, 2-percent interest loan from the Colorado Water Conservation Board was approved by the Colorado Legislature last year, to the RRWCD for the pipeline. The RRWCD does not want to take the risk of borrowing that money until it is certain the pipeline is a go for all parties. Technically, the RRWCD has two years from the date of the loan contract to borrow and complete the project, according to legal representation. The CWCB staff has told the RRWCD it could obtain further time if necessary. However, in light of the budget crisis, the district would like to get going before the end of the year.

More coverage of the meeting from the Yuma Pioneer (Tony Rayl):

The water level at Bonny Reservoir continues to be an issue with the Republican River Water Conservation District. Dave Keeler, the state’s water commissioner for the Republican River Basin, gave a Bonny update to the RRWCD Board during its regular quarterly meeting, last Thursday in Yuma. He said measurements show that currently there is an extra 3,992 acre feet of storage in Bonny, which is considered “out of priority” water. As to when that water will be released, Keeler referred to State Engineer Dick Wolfe. Among the main considerations in releasing the water is the ability to maximize the amount released getting to the gage in Benkleman, Nebraska. It sounds like there will not be a release until the fall. However, there is a live stream flow in the South Fork of the Republican River reaching the Benkelman gage, and there is little irrigation right now. Board Member Eugene Bauerle said the district should consider asking the state to make a release now, since conditions are good for the water getting to the gage.

More Coyote Gulch coverage here and here.

From the Houston Chronicle: “The U.S. Geological Survey says in a report issued Tuesday that by 2007, the aquifer has dropped a foot on average in Nebraska since the early 1950s…The aquifer supplies about 30 percent of the nation’s groundwater used for irrigation. And the USGS says the aquifer provides drinking water to more than 80 percent of the people who live above it.”

From the McCook Daily Gazette:

…it’s easy to forget just how big, and important, the aquifer is, and to take it for granted. Covering 174,000 square miles under Nebraska, Kansas, Colorado, New Mexico, Oklahoma, South Dakota, Texas and Wyoming, The High Plains Aquifer is the primary source of drinking water for most of us and provides the life-giving liquid that makes one fourth of the United States agricultural production possible. Although extensive irrigation has caused the aquifer to decline, some of the same technology that made irrigation possible, such as the highly efficient systems produced by Valmont right here in McCook, is making the most efficient use of the valuable resource of water.

A complete copy of the report is available at http://pubs.usgs.gov/sir/2009/5019/ and an abbreviated version is at http://pubs.usgs.gov/fs/2009/3005/

More coverage from the Omaha World-Herald:

The total amount of drainable water in the aquifer in 2007 was about 2.9 billion acre-feet, a decline of about 270 million acre-feet since before development, the U.S. Geological Survey said in a report Tuesday…The High Plains aquifer, also popularly known as the Ogallala Aquifer, is a nationally important water resource that likes under some 174,000 square miles in parts of eight western states—Colorado, Kansas, Nebraska, New Mexico, Oklahoma, South Dakota, Texas and Wyoming.

 

 

 

Pipeline talks reach an impasse      
Written by Tony Rayl   
Thursday, 08 January 2009
A crowd of about 60 packed the meeting room at the Yuma Ambulance Service building for a report from state leaders on the negotiations for the proposed compact compliance pipeline, Tuesday morning. (Pioneer) The veil of secrecy shrouding Colorado's negotiations with Kansas and Nebraska on the proposed compact compliance pipeline has been lifted.  Revealed is the fact the three states remain at odds on three issues.
Also made clear is that Monday, January 26, is an important day.
Leaders from all three states will meet that day, via telephone, with Colorado asking for a decision on the proposed pipeline by the Republican River Compact Administration. If the answer is “yes,” then it will be time to get busy on the pipeline.  However, Colorado's leaders fully expect a “No” answer. In that case, Colorado then will invoke a call for “fast track arbitration” that must be completed in six months. If the arbitration works out in Colorado's favor, but Kansas and Nebraska still balk at approving the pipeline project (the arbitration is non-binding), then the state will take the issue to the United States   Supreme Court.
There is no guarantee the Supreme Court would hear the case, and even if it did, it could be quite a while before it appears on the court's docket.
That is the situation as it was laid out by Alex Davis of the Colorado Department of Natural Resources, State Engineer Dick Wolf, and Peter Ampe with the Colorado Attorney General's Office, during a public meeting held Tuesday morning in the Yuma Ambulance Service building. Approximately 60 people attended the meeting, which was announced less than one week earlier.
Colorado, Kansas and Nebraska have been discussing the pipeline project since early last year. Davis said Kansas insisted the conversations remain confidential so the states could talk openly and frankly, exploring all ideas and options without worry of public backlash.
However, Davis said it became apparent to the Colorado delegation in recent weeks that it was time to go public so it could get some feedback. Kansas and Nebraska agreed one week ago to lift the confidentiality agreement.
4 issues, 3 insurmountable
Davis said four major issues have come to the forefront during the discussions.
One is rather easy to resolve. Kansas stated it did not want Colorado to use the pipeline — which would be located at the east end of Yuma County and discharge directly into the North Fork of the Republican River at the Colorado-Nebraska state line — to, for example, pump 40,000 acre feet into the river over the course of four months and then state they are in compact compliance for five years.
 That was never the intention of the Republican River Water Conservation District, the entity doing the pipeline, which plans on pumping the amount needed each year to meet Colorado's obligations to the Republican River Compact. Therefore, Colorado is going to come up with some kind of agreement on pipeline usage that satisfies Kansas, and also gives Colorado some leeway for overage credit if it pumps a bit too much during a wet year.No big deal.
However, there are three other issues that Davis said are “insurmountable.”
One has to do with a credit involving water above Swanson Reservoir in Nebraska. The states could not come to an agreement on how to handle that credit.
Another issue is Nebraska wanting assurances the Haigler Canal would not be shorted. Davis said research showed it actually is a Colorado water right that is administered in Nebraska. She said Colorado offered to make sure water is in the canal, only if it runs dry because of reasons beyond the Nebraska users' control. Davis said Colorado was not going to supply water if the canal went low because the Nebraska users were not utilizing it correctly. The offer was rebuffed.
The third insurmountable issue is the one most are aware of — Kansas' argument that Colorado needs to meet compliance in each sub-basin, the North Fork, South Fork and Arikaree River, rather than basinwide compliance. In other words, Kansas has taken the stance Colorado cannot use the pipeline to the North Fork to make up for shortages on the South Fork and Arikaree. Colorado's interpretation of the final settlement reached between the three states early this decade, is that it allows Colorado to meet compliance basinwide, not in each sub-basin.
Davis said Colorado wants to let the courts decide that issue, but Kansas has insisted on tying its approval of the pipeline to Colorado agreeing to the sub-basin test.
Davis said Colorado has to litigate that issue, so it became apparent recently that the state was not going to be able to cut a deal for the pipeline.
An advisory committee, representing local entities involved in the compact issue, told the Colorado delegation that the three “insurmountable” issues really have nothing to do with the pipeline and augmentation plans, but rather with problems the states have with the computer model used for compact compliance and the accounting methods used.
However, Colorado cannot push the pipeline issue to arbitration until the Republican River Compact Administration — the RRCA, whose purpose is to administer the compact, is comprised of one member each from the states of Colorado, Kansas and Nebraska — formally rejects the proposal.
 Thus, Colorado's plan to ask for formal acceptance on January 26, after which, if it is denied, the state will immediately begin the fast track arbitration process.
Wells safe during process
State Engineer Dick Wolfe stressed during Tuesday morning's presentation that the state will not take any curtailment action on irrigation wells while working out the pipeline presentation.
In fact, he and Davis both said Colorado will look at all possible options to get into compact compliance without mandating the forced shutdown of wells. Wolfe said the state is looking into more conservation measures, CREP and EQIP continue to pay for wells taken out of production, measurement rules are going into effect this year, and the fate of Bonny Reservoir is still on the table.
Harris Sherman, the executive director of the Department of Natural Resources, is formulating a letter that will go out to irrigators assuring them the state will do all it can before ever resorting to well curtailment.
The mention of Bonny opened the door for more discussion on that issue.
Funding for pipeline
 Delays on the RRCA approving the pipeline has left the RRWCD hanging for the time being on the estimated $71 million pipeline project — $50 million for well purchases and $21 million to construct the approximately 12-mile pipeline.
RRWCD representatives said Tuesday morning they are maintaining close communications with the sellers, whose wells will be used for the pipeline, to ensure the purchase will go through as planned when everything finally is in place.
The RRWCD also has a $60 million loan from the Colorado Water Conservation Board for the project. The loan was approved by the Colorado Legislature last spring. RRWCD leaders were going to confirm it, but it is believed the loan is on the table for one year and that the RRWCD could ask for an extension of up to two years. However, assessment fees increasing from $5.50 per irrigated acre to $14.50 — to pay for the pipeline debt over 20 years — will be paid by irrigators on this year's tax bill, even though the pipeline is in a holding pattern for the moment.
 

Arbitrators Preliminary Ruling

The Arbitrator on the Republican River dispute between Kansas and Nebraska and Colorado has issued a preliminary set of decisions.

Summary of the rulings provided by Water Claim:

  • Decision 1 permits Nebraska to challenge one of the major flaws in the Model.
  • Decision 2 will increase the amount of water Nebraska will have to account for.
  • Decision 3 is good for Nebraska and Colorado short term but will have a major negative effect for Nebraska and Colorado in the future and will make surface water purchases less helpful. Evaporation off of Harlan is about 40,000 acre feet a year. The arbitrator says that when Nebraska uses no surface water that Kansas is charged all evaporative losses. But the arbitrator feels that is not proper and should be changed so that Nebraska is charged some evaporation even if it doesn’t use surface water. By extension this will apply to Bonny Reservoir in Colorado as well.
  • Decision 4 will in theory reduce the damages Nebraska owes to Kansas as the damages will be limited to what Kansas actually is hurt by not how much Nebraska benefited.
  • Decision 5 means that the Court can consider the Kansas proposed remedy.
  • Decision 6 means that damages will be decided after more information is collected but the Kansas suggested method will not be used.\

See full copy of preliminary decision Click here


Arbitrator rules for Nebraska on key compact issues      
Written by By Russ Pankonin, Imperial Republican   
Wednesday, 31 December 2008
    Talk about a Christmas gift!
    That’s what irrigators in the Republican River Basin got with the preliminary decisions from the arbitrator on compact disputes between Nebraska and Kansas.
    In preliminary rulings by arbitrator Karl J. Dreher, Nebraska and its irrigators got two key rulings in their favor.
    The two rulings addressed damages due Kansas by Nebraska’s non-compliance with the compact in 2005 and 2006, and the accounting methods used to determine compliance.
    Attorney General Jon Bruning, who released the findings late Monday, said the ruling on damages due Kansas represents the most important decision by the arbitrator.
    Kansas wanted damages based on the gain Nebraska got from it alleged overuse of water. Estimates as high as $75 million has been tossed out by Kansas.
    What Dreher ruled is that Kansas is limited only to actual damages it suffered.
    He said the 2003 compact settlement, like the 1943 compact itself, is a contract between the two states. As a result, damage awards are limited to actual damage suffered by Kansas.
    Bruning said Kansas was putting forth a theory of unjust enrichment to Nebraska by having water that, in Kansas’ opinion, should have been sent to them.
    “Our contention the whole time  is that Kansas had enough water to grow a crop,” Bruning said.
    Any excess water they didn’t use would have just flowed downstream to New Orleans, Bruning said.
    Bruning said actual damages versus unjust enrichment is what the state believes to be fair.
    “We’ve asked Kansas for their actual damages for some time and they’ve never responded,” Bruning said. “The reason for that is because they’re going to be significantly smaller in terms of dollars than unjust enrichment would have been.”
    To receive damages for water-short years 2006 and the preceding year of 2005, Kansas will have to show actual damages, the arbitrator said.
    Dave Cookson, chief deputy attorney general, said the damages the state may face for those two years will be much less.
    Estimates in the $5-10 million range have been previously discussed.
    Cookson said he hopes the decisions will bring Kansas back to the discussion table and “we can work something out.”

Arbitration is non-binding
    While this can be considered a victory for the state and its irrigators in the Republican Basin, it still remains just one win in a long battle.
    The compact settlement specified that if Nebraska, Kansas or Colorado had disputes, they must first bring them before the compact administration.
    If the disputes are not resolved to all states’ satisfaction, any state can call for non-binding arbitration.
    Kansas filed the official notice for arbitration on October, 2008. Nebraska then added issues that it felt needed to be addressed by arbitration.
    The arbitrator’s decision is non-binding upon the three states, which means any state can file suit with the U.S. Supreme Court over the disputes.
    Cookson didn’t speculate whether Kansas would seek further remedy in the Supreme Court.
    While the arbitration is non-binding, Cookson felt the rulings in Nebraska’s favor should carry some significant weight if Kansas decides to pursue the matter at a higher level.
    However, he said there’s still no way to tell how a special master for the Supreme Court would rule.

Ruling on accounting dispute
    Bruning said Dreher’s ruling allowing the compact accounting methods to be corrected if errors are found is another key win for the state.
    The Department of Natural Resources has indicated they have found flaws in the computer groundwater models used to determine compliance.
    WaterClaim founder Steve Smith of Imperial has long contended the models used by the states to be inaccurate and that changes need to be made.
    Dreher said the compact can’t be adequately enforced without accurate accounting. As a result, he said any errors found are open for resolution by the compact members.
    Dreher found in favor of both states on several issues, clarifying such things as accounting for reservoir evaporation and proposed remedies.
    Two of the disputed issues dealt with evaporation in Harlan County Dam and non-federal dams below Harlan.
    Dreher said that even when Nebraska Bostwick Irrigation District sells their water to the state instead of taking delivery, the state must share in the evaporation loss.
    He also said the evaporation loss in dams below Harlan must be shared by both states in figuring compliance.
    In a letter from Kansas in December, 2007, they issued a list of demands that Nebraska comply to. These included shutting down all irrigation wells within 2.5 miles of any stream or tributary as well as wells drilled after 2000.
    While Dreher said these proposed remedies by Kansas can be part of the arbitration process, he said Kansas can’t mandate those remedies.
    He said further hearings on Nebraska’s alleged compact violations and proposed methods for future compliance could be held.
    After those hearings, only then would the arbitrator recommend actions necessary for future compliance.
    A full PDF version of the preliminary decisions by Dreher is available at http://www.imperialrepublican.com.


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