The Crestone Eagle • January, 2022
Renewable Water Resources proposes selling SLV water to Douglas County—SLV opposition organizes
by Lisa Cyriacks
RWR’s proposal to Douglas County is, for an initial payment of $20 million, to build a pipeline that would bring 22,000 acre-feet of water from the San Luis Valley aquifer to the Front Range. If Douglas County agrees, the $20 million would come from ARPS stimulus money.
Struggling with water scarcity, changing climate, and aquifer depletion, San Luis Valley residents object to the proposal. A formidable group has organized around the belief that there is no water available to move outside the San Luis Valley.
Protect Our Water–San Luis Valley lists as members: 15 local water districts and entities; 22 cities and towns; 22 conservation and environmental groups; and two farm groups. On its website local governments in opposition to RWR’s proposal include the Rio Grande Water Conservation District and the Towns of Crestone and Saguache.
Despite their marketing assertions, RWR’s plan to export water from the San Luis Valley was not devised by locals nor will it benefit the entire valley.
RWR needs to find a customer like Douglas County to move its proposal forward. The plan relies on drawing water from the Upper Rio Grande Basin and exporting it to the Front Range. Without an identified end user for the exportation and sale of the water, RWR can’t file its plan in Colorado Water Court.
While the project has been in the works for some time, many questions remain unanswered.
RWR does not own municipal water rights, and RWR would need to buy wells and well rights before filing in court to convert irrigation water rights to municipal water rights.
Until recently, RWR executives asserted specifics about project locations, timetables, or costs were uncertain because they are focused on winning valley support and filing a legal case in Colorado’s water court, which could take three to five years to process. That case would help determine whether the San Luis Valley has enough water for RWR to legally export without hurting existing users.
In general, the proposal before Douglas County Commissioners reveals that RWR would build a wellfield northeast of Moffat. A pipeline would carry water north along state Highway 17, more than 1,000 feet up and over Poncha Pass to two access points along the South Platte River Basin, one at Antero Reservoir and another Elevenmile Reservoir, both in Park County.
In addition, a $50 million “community fund” would be developed under the RWR proposal to assist local communities with schools, broadband or food banks, senior services or job training. A separate pool of money, about $68 million, would pay farmers and ranchers who agree to sell their water rights, known in agriculture circles as “buy and dry.”
Those dollars will come from long-time private investors, according to Sean Duffy, a spokesman for RWR.
An agreement using stimulus money would give Douglas County access to needed water at less than half the typical rate of $40,000 to $50,000 per acre-foot, said RWR spokesman Sean Duffy.
“This is an opportunity to invest very low for a very high-quality water product,” Duffy said. “And those numbers are not going to stay put forever.” Drawing on the San Luis Valley supply, which RWR claims would not diminish groundwater there, “largely solves the need at a significant below-market rate,” he said.
Former Governor Bill Owens is part of the RWR partnership. Some Douglas County officials, Duffy said, have been receptive to a proposal that’s “been designed very, very intentionally by people who’ve been in Colorado for a long time and understand water, and why people get worked up about it, and rightfully so.”
Duffy also pointed out that both the water and economic status quo in the valley are not currently sustainable. Critics say the RWR project will only make the situation worse, while supporters argue it offers a more sustainable solution to the state’s water woes.
The San Luis Valley is described as one of the most arid regions in Colorado, receiving less than 9 inches of precipitation annually. In recent years snowfall on the Sangre de Cristos has been perceptibly less, resulting in reduced stream flows and reduced recharge of the two aquifers below the valley floor.
The shallow unconfined aquifer has been tapped with wells for crop irrigation for several generations and is over-appropriated. Below lies the confined aquifer which Renewable Water Resources believes holds a billion-acre foot of water.
That one-billion-acre foot estimate is highly disputed by local water managers, farmers and ranchers.
Since 2012 many farms and ranches in the valley have already made self-imposed cuts in irrigation to try and prevent further depletion of the shallow aquifer. A number of subdistricts have been formed as local farmers’ only way of buying more time to solve depletions to the aquifer in their own way. Each subdistrict has until 2031 to replenish water to a predetermined level. Failure to meet those targets could result in the State Engineer’s office shutting down wells until the aquifer reaches that target through unimpeded recharge with no groundwater pumping.
RWR’s proposal is offering very similar benefits to those proposed by Stockman’s Water in 1998, a project that ultimately failed.
Stockman’s Water proposed to export at least 100,000 acrefeet annually, mitigating any water losses by offering, in exchange, 25,000 to 50,000 acre-feet of senior water rights.
Gary Boyce, the manager/ owner of Stockman’s Water, also promised a $3 million trust fund to be administered by Saguache County, and environmental benefits—more riparian and wetland habitat. Renewable Water Resources offers the potential opportunity to add over 3,000 acres to the Baca Wildlife Refuge located off of County Road T.
Cleave Simpson has met with the Douglas County Commissioners. Using federal American Rescue Plan Act funds for the RWR proposal is a twist he didn’t see coming.
“I think it’s unconscionable to use those federal dollars to diminish one community in support of another community,” he said. In addition to representing the San Luis Valley in the Colorado Senate, Simpson is the general manager of the Rio Grande Water Conservation District, which is leading the opposition to the RWR plan.
Simpson reminds us that there is a long history of legal fights over water export claims in the San Luis Valley. The Rio Grande Water Conservancy District already had money set aside to challenge the RWR proposal after the court awarded valley residents legal fees from a previous failed export case involving a developer in the 1970s, called American Water Development Incorporated.
RGWCD plans to challenge RWR’s proposal in the Water Court. “We can’t see a path forward without injury or that would comply with rules and regulations as they exist today,” Simpson said.