Introduction

Welcome to Water Colorado. Please take advantage of the information provided in this website and the various links we have provided for you to understand everything there is to know about water in Colorado. Our goal at Water Colorado is to enlighten all those who live or visit Colorado on all the uses of water, our most precious resource. Water and how it's used influences every aspect of our lives. How we use water determines the quality of life we enjoy. The parks and soccer fields covered in Kentucky Blue Grass, growing corn verses dry land wheat, or rafting down the Poudre River with friends are the choices we make every day as consumers, buyers, sellers, and law makers of Colorado water.

All water in Colorado is a public resource with true ownership in the public domain. However, the use of the water has many of the attributes of private ownership of real property. One such attribute is that water is described as an incorporeal heredament which is an intangible right that may be inherited. Primary to the right to use and "own" water in Colorado in you must put the water to a beneficial use. The idea of "can and will" requirement for conditional water rights decrees requires the applicant to show that they can put the water to a beneficial use.

Colorado has codified much of its case law regarding water law. The legal framework mandated by Colorado's Constitution gives the foundation for statutory law enacted by the state legislators and common law which is the history of litigated cases. The states legislators adopted what is referred to as the Colorado Doctrine which has four basic principals setting the foundations for Colorado water law: 1) All surface and groundwater in Colorado is a public resource for the beneficial use by public agencies and private persons; 2) A water right is a right to use a portion of the public's water resources; 3) Water rights owners may build facilities on the lands of others to divert, extract, or move water from a stream or aquifer to its place of use; and 4) Water rights owners may use streams and aquifers for the transportation and storage of water. Under these principals water is distinguished between waters of the natural stream, which includes surface water and tributary groundwater, and deep groundwater, which includes designated groundwater, nontributay groundwater, and Denver Basin groundwater.

Colorado's prior appropriation system is a legal framework mandated by Colorado's Constitution referred to as the "priority doctrine" which regulates the use of surface and tributary groundwater. The prior appropriation system provides a legal procedure by which water users can obtain a court decree for their water right. Under this system senior water rights are the last to be cut off from their water supply during water shortages even when the water under a junior water right may have a more beneficial use. Colorado water law does not distinguish between beneficial uses except for general categories such as agriculture and domestic uses. This is referred to as the first in time/first in right doctrine. To secure a water right you must first appropriate the water. Appropriation occurs when a public agency, private person, or business puts unappropriated water to a beneficial use. See Beneficial Uses below for types of uses allowed by law. Only previously, unappropriated surface or tributary groundwater can be appropriated. The appropriator must not only put the water to beneficial use but must have a feasible plan to divert the water so it's under their control and apply it to the proposed beneficial use. Under the priority doctrine a person can get a direct flow rights which takes water directly from a stream to its place of use or for storage in a reservoir for later use. See Water Courts below.

This process of court approval is called adjudication and sets the priority date of the water right, its source of supply, amount, point of diversion, and type and place of use. Under the prior appropriation system you must demonstrate the water right applied for will not cause injury to existing water rights holders. The prior appropriation system and augmentation plans provide an orderly system for state officials to distribute water according to decreed water right priority dates.

The most important development in administration of water rights was the 1965 Colorado Ground Water Management Act ("1969 Act") which was passed to address court approval of water exchanges, changes of water rights, and augmentation plans. The 1969 Act allowed new uses of over appropriated steams and aquifers such as municipal, environmental, and recreational uses. The major purpose of the Act was to integrate the appropriation, use and administration of tributary ground water with the use of surface water in such a way as to maximize the beneficial use of all water in the state by protecting senior water rights and achieving maximum utilization. This was a codification of prior rulings such as in Colorado Springs v. Bender, 148 Colo. 458, 366 P.2d 552 (1961), senior well owners in the Widefield Aquifer, which is tributary to Fountain Creek, sued to enjoin well pumping by juniors from the same aquifer. The Court recognized the applicability that of the priority system, but overlaid it with a requirement that the senior operate reasonably efficient way, within the senior's "economic reach," that could allow the junior to operate as well. The 1969 Act established water divisions, Division Engineers to be appointed by the State Engineer, Water Judges, Water Referees, Water Court and Water Clerks.

The 1969 Act was codified in part by C.R.S. 37-90-137 which gives the State Engineer the authority to determine whether or not the exercise of the requested well permit will materially injure the vested rights of others. A recent addition to the 1967 Act through House Bill 1414 in 2002 and House Bill 1001 in 2003 provides the State Engineer with the authority to approve temporary plans for augmentation and changes in use for a limited period of time with final approval of the plan within five years (see sections 37-92-308, C.R.S. (2003)). The State Engineer has authority to approve temporary changes of water rights while applications for changes of water rights or augmentation plans are pending in the water courts.

The information provided on this website is not intended to provide legal advice. Colorado water law is always changing and is constantly revised as new technology and uses are created. For specific questions on legal issues and rights you should contact an attorney who specializes in water law.

back to top

Some Water Uses

1. One corn plant needs 54 gallons per season.
2. One milk cow needs 5,475 gallons per year.
3. One horse needs 3,650 gallons per year.
4. One hog needs 1,500 gallons per year.
5. One acre of sugar beets needs 651,702 gallons per season
6. One acre of alfalfa needs 488,776 gallons per season.
7. One human being in a municipality needs 54, 750 gallons per year. (But this includes average city uses including industrial, commercial, fire fighting, etc.)
8. One human being in the country needs 12,000 gallons per year.
   
   

Some Water Measurement Statistics

Cubic Foot per Second, also known as Second Foot or CFS:

The amount of water in cubic feet that will flow past a point in one second.

1. 1 CFS for 24 hours: equals 2 (1.983) Acre Feet
2. 1CFS for 12 hours: equals 1 (.991) Acre Feet
3. 1CFS for 1 hour: equals 1 Acre Inch
4. 1 CFS of flow: equals 448.8 gallons a minute.
5. One-Acre Ft. equals the amount of water necessary to cover one acre of land with water one foot deep.
6. An irrigation: Generally equals six inches of water on each acre. This will usually penetrate 4-6" deep
7. 38.4 Miners Inches equals 1CFS (in Colorado). In other western states, 1CFS equals 40-50 Miners Inches.
8. One Acre Foot of Water: equals 325,851 gallons
9. One Acre Foot of Water: equals 43,560 cubic feet
10. One Cubic Foot of Water: equals 7.48 gallons
    
    back to top
    
    

Evaluating and Appraising Irrigation Rights

The prices below do not reflect the current market, but the theories are timeless.

Prior to the formation of the Northern Colorado Water Conservancy District, the appraisal of an irrigation right for cash was difficult. Conservancy District Water can be sold and transferred from Boulder, Colorado to the Fort Morgan and Brush areas. Thus, countless condemnation lawsuits have been avoided as the population of northern Colorado more than tripled in size, by the purchase of Northern Colorado Conservancy District water to implement increased domestic demand.

Big "T" water is thus the common denominator in the appraisal of water rights for cash value. Its ease of transfer makes it the biggest bargain,

Likewise, water rights which can be used by municipalities or domestic water companies are more valuable than those which cannot be used. Irrigation water which has a point of diversion upstream from a municipality is always a target for purchase by a burgeoning municipality. If a particular irrigation company water right also has storage facilities, the demand for it will be greater.

In our appraisals for the purpose of resale of water rights on a speculative basis, we assign the present market value of Big "T" water at 100%. Then, if another water right is being sought by one or more municipalities, we analyze it as follows.

1. Does the irrigation right have a sufficiently early decree so as to deliver water through the entire irrigating season? (from May through the middle of September)

2. Does the water right have storage facilities so as to guarantee late supplemental water?

If the water right meets those two qualifications, we subtract 33% from the value of Big "T" water on current sales and assign that amount of money for each acre-foot of average delivery. The ease and wide range of possible delivery of Big '"T" water is well worth the 33% premium.

Let's set up a typical example. Larimer Count Ditch, which is owned and operated by Water Supply and Storage Company of Fort Collins, Colorado meets all the qualifications of a prime water right as demanded by municipalities and domestic water companies. Water Supply and Storage Company stock will deliver about 100 acre-feet of water for every share of stock. One unit of Big "T" will deliver 1 acre-foot of water. (However, it should be noted that Big "T" has delivered as low as .70 acre-feet of water per unit)

Thus, with Big "T" at its present value of $1,600.00 per unit, Water Supply and Storage Company stock would be worth $160,000.00 per share at a par with Big "T". Taking the formula of knocking off 33% in evaluating other irrigation water, we multiply $160,000.00 x .33 which equals $52,800.00. Subtract that from $180,000.00. $160,000.00 - $52,800.00 equals $107,200.00 for one share of Water Supply and Storage.

We would make a considerable wager that the price for one share of Tater Supply and Storage Company stock is near that figure on November 11, 1978.

At any rate, we have advised purchasers and participated in land deals using that formula of appraisal and have never made an unwise move.

What about water for irrigation purposes only?

The irrigation water value is tied to several factors First of all; if you want to grow grass or hay, you can get by on much less water than if you intend to grow beets or corn. If you wish to grow truck garden crops, you need more water than for any other agricultural use. If you have a heavy clay and loam soil, you need less water than if you have sandy soil. If you are going to pump your water from your ditch and sprinkle irrigate, you will need less water than if you ditch irrigate.

Some crops are expected to produce $200.00 per acre. Crops like onions, carrots and cabbage can produce several thousands of dollars per acre if the market is right. The value of your irrigation water to you will be in the exact proportion to the crops you expect and desire to raise.

You will note in perusing the data on each right that there is an average first day that water can be used and a last day for the use of water. Then, there will be a figure for the number of days water can be used during the irrigating season. Those are of prime importance. Also, there will be a standing in the list of priorities. That too can be of great significance. However, don't rely on the standing in the list of priorities too much. Companies with an adequate storage system are many times considerably better off than the companies with early decrees and no storage facilities.

Beware of water rights which have a last day for delivery during July or August. Sometimes, we assign a value of only 20% of the current price of Big "T" water because of the that the ditch or company cannot deliver any water during the hot mid-summer period.

Another thing to remember though is that the municipalities in northern Colorado are trying to accumulate water so as to be amply supplied for the next 50 years. Thus, many of the cities have water to lease at the present time. Big "T" water can be leased for from $5.50 to $10.00 per acre-foot. By leasing of Big 'T" water, one can be assured of getting along with a poor water right for a good number of years. At best though, the leasing solution is only temporary.

Always remember that the value of land in northern Colorado is directly related to the quality, and quantity of its water right.

back to top