From The Pueblo Chieftain (Chris Woodka):
Pueblo Water will lease more than 21,700 acre-feet of water this year for $530,000 under spot market contracts approved Tuesday by the Pueblo Board of Water Works.
The number, totaling more than 7 billion gallons, is the largest amount of water leased under oneyear contracts by the water board since 1999, but did not generate the most money. That’s because the average amount of the leases, about $24.40 per acre-foot, is less this year.
Last year, spot-market leases generated $1.5 million. Pueblo Water budgeted $750,000 this year, but should make up the revenue in other areas, said Seth Clayton, administrative services director. “The prices are much lower than we’ve seen in recent years. It’s just supply and demand,“ said Alan Ward, water resources manager. “It will allow us to empty our storage accounts and make room for more water.”
More water might be available later this year, said Ward, who was surprised that bids were submitted for about 42,000 acre-feet — double the amount leased.
Water for the leases will come from storage in Lake Pueblo, Clear Creek, Twin Lakes and Turquoise reservoirs.
The leases were in two categories, for 15,773 acre-feet of water taken before June 1 and 5,959 acre-feet used by the end of the year. They were awarded by sealed bids.
The highest amount paid was $200 per acre-foot by PuebloPlex, which will use 300 acre-feet to augment wells at the Pueblo Chemical Depot. The water will be taken both before and after The largest amount of water was taken by the Fort Lyon Canal, 15,000 acre-feet, in three separate bids of $10-$20 per acre-foot, totaling $225,000, all before June 1.
Other large amounts went to Bessemer Ditch, 5,000 acre-feet, and Arkansas Groundwater Users Association, 1,000 acre-feet. Other leases of between 20-60 acre-feet went to smaller users, mostly farmers.
Storage is very full throughout the Arkansas River basin because of heavy precipitation last year. Forecasts are calling for more of the same for the first half of 2016.
Pueblo Water has nearly 48,000 acre-feet of water in storage and snowpack is about 110 percent of average. That means there will be less space to store water when the snow starts melting, if the trend continues.
Pueblo uses about 28,000 acre-feet annually in its treated water system. In an average year, its water rights generate more than twice that amount. In dry years, the water is stored, and leases are more likely in wet years, or following wet years.