From The Pueblo Chieftain (Chris Woodka):
Woodmoor may be buying as much as 1,500 shares on the Holbrook, if the rumors pan out, at a cost of about $2,000 per acre that would be dried up. That’s about half of what farmers who have contracted to sell on the High Line would get if Woodmoor carries through with its contracts. Holbrook’s rights are junior to a large portion of those on the High Line. “It’s a slap in the face to sell water at that price,” said board member Paul Casper. “Our water is worth more than that.” So far, Woodmoor has announced only its intentions to buy 937 shares, but still is talking to some shareholders. It also wants to buy shares on the High Line Canal and Excelsior Ditch, and reservoir sites on the Excelsior in eastern Pueblo County as part of a plan to move water up the Arkansas River, Fountain and Monument creeks to northern El Paso County. The way Woodmoor has gone about lining up sellers is an irritation to the board. A broker began talking to farmers along the ditch about two years ago, but no one really knew who he represented. “Turned out it was Woodmoor,” Hansen said. “They’re mysterious about how they do it.”
The problem with evaluating Woodmoor’s offer, when an offer is finally made, rests in the setup of the Holbrook Canal. While many canals deliver water to laterals for distribution to farms, Holbrook owns all the laterals and delivers water to each headgate. While its rights are relatively junior, its storage in a pair of reservoirs with up to 15,000 acre-feet of storage available allows farmers to irrigate throughout the growing season in all but the driest years. Taking 10 percent of the water out of the ditch could throw things out of balance. “Our main goal is keeping our system whole and protecting our shareholders,” Hansen said. “The bylaws say you can’t take water out of shared ditches, so it depends on where the water is taken from.”[…]
At times, the use of water has been moved from one location to another on the ditch, which required hearings to make sure no one’s ability to irrigate was harmed. A similar hearing would be required for Woodmoor, if it is successful in its bid to buy shares on the canal. The board would require Woodmoor to pay for the engineering and its legal expenses as well.
More Arkansas Basin coverage here. More Woodmoor coverage here.