PROPOSED PLATTE RIVER RECOVERY IMPLEMENTATION PROGRAM
APPENDIX B
CONTRIBUTIONS OF THE STATES
AND OF THE DEPARTMENT OF THE INTERIOR
DURING THE FIRST INCREMENT
When the Program is initiated, the activities undertaken during the term of the Cooperative Agreement will be fully credited to the appropriate state or the federal government as contributions to the Program. During the first increment, DOI and the states will make the following additional contributions to the Program:
I. FIRST THREE YEARS (PROGRAM START UP)
A. Contributions
1. Project Operations. As soon as possible, Wyoming shall complete the Pathfinder Modification Project (Appendix A, Tab 2A) and Colorado shall complete the Tamarack Project (Appendix A, Tab 3A). Operation shall begin immediately after project completion. Central and NPPD will continue operation of the Environmental Account for Storage Reservoirs on the Platte River System in Nebraska (Appendix A, Tab 1A). All parties agree that these three projects will provide the Program with average annual reductions in shortages in target flows of approximately 70,000 acre feet. That water has significant economic value to the Program that can be quantified and supported in a number of ways. It can be established by comparing it to the projected costs of acquiring other Program water (estimated at $500/acre feet) or to the market value of the water being made available by these three projects if it were to be marketed. Another potential way to establish the value is to estimate the economic impacts these projects will have on the Project operators. Those economic impacts include: (1) out-of-pocket costs; (2) O&M costs directly attributable to their operation; and (3) revenue losses and replacement power purchases also directly attributable to their operation. Recognizing that each method for quantifying the economic value has merit, DOI and the states agree that the states should receive credit for the water being provided by the three projects, and that for the combined terms of the Cooperative Agreement and the first Program increment, that credit should be in the amounts shown in Table 1.
2. Cash. Cash and cash equivalent contributions totaling $3.325M will be provided by the states in this three-year period to be used for habitat acquisition and development, water conservation/supply, monitoring or other Program activities approved by the Governance Committee. Such contributions will be provided by the states with payments divided as shown in the attached Table 1. It is understood that state legislative approval may be necessary to secure some or all of these cash contributions. Nebraska will make no cash or cash equivalent contributions in this time period or in the remainder of the first program increment because of the up-front contribution of Cottonwood Ranch and cash during the term of the Cooperative Agreement.
3. Institutional Protections of Water/Future Water Development. The states will complete any activities required and begun during the term of the Cooperative Agreement which were not already completed, and will implement institutional protections defined under the Program.
B. Federal Contributions
The federal government will continue to provide $2.5M per year for Program purposes. It is understood that Congressional approval is necessary to secure these funds. The states will work with DOI to achieve the necessary Congressional approvals. However, if the federal contributions are not approved or are reduced, state contributions to the Program may also be suspended or reduced proportionately.
II. YEAR 4 THROUGH END OF FIRST PROGRAM INCREMENT
A. State Contributions
1. Project Operations. The Tamarack Project, Pathfinder Modification Project, and Environmental Account Program will continue to be operated. The value of the water provided to the Program is as described in Paragraph I.A.1 and as shown on Table 1 attached.
2. Cash. The states will contribute a total of $9.975M cash and cash equivalents to the Program in the remaining part of the first Program increment for expenditures as approved by Governance Committee. Such contributions will be provided by the states with payments divided as shown in the attached Table 1. It is understood that state legislative approval may be necessary to secure some or all of these cash contributions.
3. Institutional Protections of Water/Future Water Development. The states will complete any activities required and begun during the Program start-up (years 1 - 3) which were not already completed, and will continue to implement institutional protections defined under the Program.
B. Federal Contribution
The federal government will continue to provide $2.5M per year for Program purposes. It is understood that Congressional approval is necessary to secure these funds. The states will continue to work with DOI to achieve the necessary Congressional approvals. However, if the federal contributions are not approved, state payments to the Program may also be suspended or reduced proportionately.
TABLE 1
Program Contributions, Cooperative Agreement Through First Program Increment
(values in millions of 1997 dollars)
CASH AND CASH EQUIVALENTS(1)
States'
CO WY NE Total Federal Total
Term of Cooperative Agreement (2)
(3 years anticipated)
Conservation Study 0.3 0.3 0.3 0.9 0.0 0.9
Habitat (Cash Equiv.) 0.0 0.0 5.3 5.3 0.0 5.3
Other Cash 0.6 0.3 0.4 1.3 7.5 8.8
Total 0.9 0.6 6.0 7.5 7.5 15.0
First Program Increment/Years 1-3
Cash and Cash Equiv. 2.475 0.85 0.0 3.325 7.5 10.825
First Program Increment/Years 4 to End
Cash and Cash Equiv. 7.425 2.55 0.0 9.975 22.5 32.475
TOTALS OF CASH AND CASH EQUIVALENTS DURING THE COOPERATIVE AGREEMENT AND THE FIRST PROGRAM INCREMENT
10.8 4.0 6.0 20.8 37.5 58.3
CONTRIBUTED VALUE OF WATER PROJECTS DURING THE COOPERATIVE AGREEMENT AND THE FIRST PROGRAM INCREMENT
4.2 3.5 9.0 16.7 0.0 16.7
PROGRAM TOTALS THROUGH THE FIRST INCREMENT
15.0 7.5 15.0 37.5 37.5 75.0
PROPOSED PLATTE RIVER RECOVERY
IMPLEMENTATION PROGRAM
APPENDIX B
CONTRIBUTIONS OF THE STATES
AND OF THE DEPARTMENT OF THE INTERIOR
DURING THE FIRST INCREMENT
1. Individual signatories may propose to the Governance Committee that certain interim measures undertaken prior to the execution of the Cooperative Agreement may be credited to their cash or cash equivalent contributions.
2. Contributions made during the term of the Cooperative Agreement will be credited to the appropriate parties at the inception of the first Program increment.
For further information about the Partnership,
contact any Governance Committee member.For comments and questions about this website, please email Buck Feist or call 406-247-7607