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Water & Its Relationship to the Economies of Headwaters Counties

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Water & Its Relationship to the Economies of Headwaters Counties WATER AND ITS RELATIONSHIP TO THE ECONOMIES OF THE HEADWATERS COUNTIES PREPARED FOR: THE NORTHWEST COLORADO COUNCIL OF GOVERNMENTS FOUNDATION, INC. PREPARED BY: COLEY/FORREST, INC. DECEMBER 2011 990 S. ADAMS WAY . DENVER, COLORADO 80209 . [email protected] WWW.COLEYFORREST.COM . OFFICE: 303-778-1020 . CELL: 303-918-0788 December 1, 2011 Ms. Pamela S. Caskie Executive Director Northwest Colorado Council of Governments Foundation, Inc. P. O. Box 2308 Silverthorne, Colorado 80498-2308 Dear Ms. Caskie: Attached is our report: WATER AND ITS RELATIONSHIP TO SIX HEADWATERS COUNTIES IN COLORADO It has been a pleasure preparing this assignment for your use. We have benefited not only from the extensive volume of previously prepared work regarding water supply and demand but also many individuals from each of the headwaters counties who have generously given of their time to provide supporting insight and guidance. Respectfully, Coley/Forrest, Inc. Jean Coley Townsend President TABLE OF CONTENTS 1.0 INTRODUCTION, PURPOSE AND SUMMARY ................................................................................................ 1 1.1 Purpose......................................................................................................................................................................... 1 1.2 Report Outline ........................................................................................................................................................... 1 1.3 Summary of Findings & Conclusions ................................................................................................................ 2 1.3.1 Headwaters Counties and Water Supply ....................................................................................................... 3 1.3.2 Availability of West Slope Water.................................................................................................................... 5 1.3.3 Currently Compromised or Threatened Environmental Conditions ....................................................... 6 1.3.4 Transmountain Diversion Projects ................................................................................................................ 7 1.3.5 Economic Development Relationships: Headwaters Counties and the State ....................................... 8 1.3.6 Economies of the Headwaters Counties ...................................................................................................... 9 1.3.7 Water, Streamflow and the Headwaters County Economies .................................................................. 12 1.3.8 State Policy Considerations ........................................................................................................................... 12 1.3.9 Problem-Solving Practices and Moving Forward ...................................................................................... 13 1.4 Context ....................................................................................................................................................................... 14 2.0 ECONOMIES OF THE HEADWATERS COUNTIES ...................................................................................... 16 2.1 Overview .................................................................................................................................................................... 16 2.2 Tourism ..................................................................................................................................................................... 17 2.2.1 Tourism – An Economic Development Priority....................................................................................... 17 2.2.2 The Economic Contribution of Tourism in the Headwaters Counties ................................................. 18 2.2.3 Components of Tourism in the Headwaters Counties ............................................................................. 20 2.3 Agriculture ................................................................................................................................................................ 28 2.3.1. Statewide and Local Priority ......................................................................................................................... 28 2.3.2 Agricultural Land Ownership in the Headwaters Counties ..................................................................... 29 2.3.3 Historical Trends in Agricultural Land ....................................................................................................... 30 2.3.4 The Importance of Agriculture in the Headwaters Counties .................................................................. 33 2.3.5 Crop and Livestock Market Values.............................................................................................................. 33 2.3.6 Agricultural Employment .............................................................................................................................. 34 2.3.7 Competing Demands for West Slope Agricultural Land ......................................................................... 35 2.4 Mineral Resource Development ........................................................................................................................ 35 3.0 WATER AND THE ECONOMIES OF HEADWATERS COUNTIES ............................................................ 38 3.1 Overview .................................................................................................................................................................... 38 3.2 Water and the Headwaters Counties ................................................................................................................ 38 3.3 Transmountain Water Diversions ..................................................................................................................... 44 3.3.1 Transmountain Water Diversion Projects ................................................................................................ 44 3.3.2 Changes in Streamflow ................................................................................................................................ 45 3.3.3 Historic Impacts / Compromised Conditions ......................................................................................... 46 3.3.4 Future Transmountain Water Diversion Projects ................................................................................... 47 3.4 Water & Tourism .................................................................................................................................................... 49 3.4.1 The Relationship of Water and Tourism in the Headwaters Counties .................................................. 49 3.4.2 Visitor Activities and Water .......................................................................................................................... 49 3.5 Water and Agriculture ........................................................................................................................................... 54 3.5.1 Irrigated Land ................................................................................................................................................ 54 3.5.2 Transmountain Water Diversion Projects – Agricultural to Municipal Purposes ............................. 56 3.5.3 Transmountain Diversion Impacts on Ranch Irrigation ........................................................................ 57 3.5.4 Streamflow and Crop Production .............................................................................................................. 57 3.5.5 Residential Land Development and Irrigation Practices ........................................................................ 58 3.6 Water and Mineral Resource Development ................................................................................................... 58 3.7 Water and Land Development ........................................................................................................................... 60 3.8 Water and Sanitation Districts ........................................................................................................................... 61 4.0 WATER POLICIES & PROBLEM-SOLVING SUCCESSES ............................................................................ 62 4.1 Water Policies of the Six Headwaters Counties............................................................................................ 62 4.2 West Slope / East Slope Problem-Solving Successes ................................................................................. 64 APPENDIX OF TABLES AND MAPS .......................................................................................................................... 68 BIBLIOGRAPHY OF RESOURCES REVIEWED ...................................................................................................... 78 ENDNOTES...................................................................................................................................................................... 83 1.0 INTRODUCTION, PURPOSE AND SUMMARY 1.1 PURPOSE There has been focused attention on the adverse economic consequences of purchasing Eastern Plains agricultural water rights and transferring them to municipal use, leaving the agricultural land without water. The inferences are that this choice may be more adverse to Colorado’s economic development
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