I 
110TH CONGRESS 
1ST SESSION H. R. 2277 
To authorize the Secretary of the Interior to conduct a feasibility study 
relating to long-term water needs for the area served by the Fryingpan- 
Arkansas Project, Colorado, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 10, 2007 
Mr. LAMBORN (for himself and Mr. TANCREDO) introduced the following bill; 
which was referred to the Committee on Natural Resources 
A BILL 
To authorize the Secretary of the Interior to conduct a 
feasibility study relating to long-term water needs for 
the area served by the Fryingpan-Arkansas Project, Col-
orado, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. PURPOSES. 
The purposes of this Act are as follows: 
(1) To authorize the Secretary of the Interior 
(hereinafter referred to as ‘‘the Secretary’’) to con-
duct a feasibility study relating to present and fu-
ture water supply and related storage requirements 
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of the area served by the Fryingpan-Arkansas 
Project, Colorado. 
(2) To amend the Act of August 16, 1962, to 
authorize the Secretary to enter into contracts for 
the use of excess storage and conveyance capacity of 
the Fryingpan-Arkansas Project, Colorado, for non-
project water for municipal, water banking, and 
other beneficial purposes. 
SEC. 2. FEASIBILITY STUDY. 
(a) AUTHORIZED.—Pursuant to Federal reclamation 
law (the Act of June 7, 1902, and all Acts amendatory 
thereof or supplementary thereto), the Secretary, through 
the Bureau of Reclamation, is authorized to conduct a fea-
sibility study to determine the most feasible method of 
meeting the present and future water supply and related 
storage requirements within the area served by the 
Fryingpan-Arkansas Project, including the potential en-
largement of Fryingpan-Arkansas facilities. In conducting 
such study, the Secretary shall take into consideration the 
following: 
(1) The Preferred Storage Options Plan Report 
published September 21, 2000, by the Southeastern 
Colorado Water and Storage Needs Assessment En-
terprise and Final PSOP Implementation Committee 
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Report, dated April 19, 2001 (hereinafter referred to 
as the ‘‘PSOP Reports’’). 
(2) The intergovernmental agreement dated 
May 27, 2004, among the City of Pueblo, the City 
of Aurora, the Southeastern Colorado Water Conser-
vancy District, the City of Fountain, the City of Col-
orado Springs, and the Board of Water Works of 
Pueblo, Colorado. 
(3) The need to ensure compliance with the Ar-
kansas River Compact as executed by the States of 
Colorado and Kansas on December 14, 1948. 
(b) FUNDING.—Before funds are expended for the 
study authorized by this section, the Southeastern Colo-
rado Water Activity Enterprise shall first agree to partici-
pate in the feasibility study and to fund, at a minimum, 
50 percent of the costs of such study. The Southeastern 
Colorado Water Activity Enterprise’s share of the costs 
may be provided partly or wholly in the form of services 
directly related to the conduct of the study, as determined 
by the Secretary. Costs incurred prior to the enactment 
of this Act to develop the PSOP Reports may be credited 
toward the Enterprise’s share of the costs of the feasibility 
study, as determined by the Secretary. 
(c) STUDY TO BE SUBMITTED.—The Secretary shall 
submit the feasibility study authorized by this section to 
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the President and the President Pro Tempore of the Sen-
ate and the Speaker of the House of Representatives. 
(d) FURTHER AUTHORIZATION REQUIRED FOR CER-
TAIN EXPENDITURES.—No funds shall be expended for 
the construction of enlargements, or any other alternative 
identified in the feasibility study authorized by this section 
for which authority does not currently exist, without fur-
ther authorization by Congress. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $4,000,000 to conduct the 
feasibility study authorized by this section. 
SEC. 3. SECRETARY AUTHORIZED TO ENTER INTO CON-
TRACTS FOR THE USE OF EXCESS STORAGE 
AND 
CONVEYANCE 
CAPACITY 
OF 
THE 
FRYINGPAN-ARKANSAS 
PROJECT, 
COLO-
RADO. 
The Act of August 16, 1962 (76 Stat. 389 et seq., 
as amended), is amended by adding at the end the fol-
lowing new sections: 
‘‘SEC. 8. (a)(1) Except as provided in section 9, and 
subject to the provisions of this Act and all other applica-
ble Federal statutes, the Secretary is authorized to enter 
into contracts with any entity, private or public, including 
those operating or participating in a water bank estab-
lished pursuant to Colorado law (hereinafter referred to 
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as an ‘entity’), for the use of excess capacity in the 
Fryingpan-Arkansas Project for the purpose of diverting, 
storing, impounding, pumping, exchanging, or conveying 
nonproject water for irrigation, domestic, municipal and 
industrial, or any other beneficial purpose. 
‘‘(2) In entering into such contracts, the Secretary 
shall take into consideration the following: 
‘‘(A) The preferred Storage Options Plan Re-
port published September 21, 2000, by the South-
eastern Colorado Water and Storage Needs Assess-
ment Enterprise and Final PSOP Implementation 
Committee Report dated April 19, 2001 (hereinafter 
referred to as the ‘PSOP Reports’). 
‘‘(B) The intergovernmental agreement dated 
May 27, 2004, among the City of Pueblo, the City 
of Aurora, the Southeastern Colorado Water Conser-
vancy District, the City of Fountain, the City of Col-
orado Springs, and the Board of Water Works of 
Pueblo, Colorado. 
‘‘(C) The need to ensure compliance with the 
Arkansas River Compact as executed by the States 
of Colorado and Kansas on December 14, 1948. 
‘‘(b) The Secretary is authorized to enter into con-
tracts pursuant to this section the extent that such con-
tracts shall not impair or otherwise interfere with— 
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‘‘(1) the Fryingpan-Arkansas Project’s author-
ized purposes; 
‘‘(2) the ability of those with prior Fryingpan- 
Arkansas Project contracts to meet such contractual 
obligations to the Secretary as existed at the time of 
the execution of a contract pursuant to the authority 
of this section; 
‘‘(3) such contractual obligations as the Sec-
retary has to Fryingpan-Arkansas Project contrac-
tors at the time of the execution of a contract under 
the authority of this title; 
‘‘(4) the storage allocations and limitations pur-
suant to Contract No. 5–07–70–W0086, as amend-
ed, renewed or superseded, between the South-
eastern Colorado Water Conservancy District and 
the United States, and the allocation principles 
adopted by the Southeastern Colorado Water Con-
servancy District on November 29, 1979, and con-
firmed by the District Court of Pueblo County in 
Civil Action No. 40487 by decree dated December 
18, 1979, including any subsequent modifications 
made by the District that are confirmed by the Dis-
trict Court; 
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‘‘(5) the yield of the Fryingpan-Arkansas 
Project from its West Slope and East Slope water 
rights; or 
‘‘(6) the ability of individuals or entities located 
within the natural basin of the Arkansas River with-
in Colorado to enter into contracts for the use of ex-
cess water storage and conveyance capacity pursuant 
to section 8 of this Act or any other authority under 
Reclamation law. 
‘‘(c) To the extent such contracts are with an entity 
that does not have an allocation of Project carry over stor-
age space pursuant to the allocation principles adopted by 
the Southeastern Colorado Water Conservancy District on 
November 29, 1979, and confirmed by the District Court 
of Pueblo County in Civil Action No. 40487 by decree 
dated December 18, 1979, including any subsequent modi-
fications made by the District that are confirmed by the 
District Court (‘nonqualified’ entities); the contracts shall 
not impair or otherwise interfere with the ability of quali-
fied entities located within the natural basin of the Arkan-
sas River within Colorado to enter into contracts for the 
use of excess water storage and conveyance capacity pur-
suant to this section 6. 
‘‘(d) Except as provided in section 9, before entering 
into such a contract with an individual or entity that will 
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use water stored or conveyed under such contact outside 
of the natural basin of the Arkansas River within Colo-
rado, the Secretary shall provide the Southeastern Colo-
rado Water Conservancy District a first right of refusal, 
exercisable within 90 days, to enter into contracts for the 
use of excess water storage and conveyance capacity made 
available to the individual or entity that shall use water 
stored or conveyed under such contract outside of the nat-
ural basin of the Arkansas River within Colorado. In no 
event shall the Southeastern Colorado Water Conservancy 
District enter into a subcontract with an individual or en-
tity that shall use water stored or conveyed under such 
contract outside of the natural basin of the Arkansas 
River. 
‘‘(e) Nothing in sections 8 through 12 of this Act 
shall— 
‘‘(1) increase diversions of Project water from 
the natural basin of the Colorado River; 
‘‘(2) increase diversions of nonproject water 
from the natural basin of the Colorado River within 
Colorado into another river basin for delivery or 
storage, except as provided in section 12; 
‘‘(3) affect the interpretation or implementation 
of any law related to any other water project author-
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ized before the date of the enactment of this section; 
or 
‘‘(4) affect in any way contracts, or the renewal 
of contracts, entered into pursuant to authority 
other than this section, including, but not limited to, 
the following: 
‘‘(A) Contract Nos. 00XX6C0049 and 
009D6C0048 between the Board of Water 
Works of Pueblo, Colorado, and the United 
States. 
‘‘(B) 
The 
renewal 
of 
Contact 
Nos. 
00XX6C0049 and 009D60048; Contract No. 
6–07–70–W0090 (formerly Agreement No. 14– 
06–700–6019) between the Cities of Aurora 
and Colorado Springs and the United States. 
‘‘(C) Contract No. 7–07–7010056 between 
Twin Lakes Reservoir and Canal Company and 
the United States. 
‘‘(D) Contract No. 9–07–70–W0099 be-
tween the United States and High Line Canal 
Company. 
‘‘(E) Contract No. 039E6C0117 between 
Board of Water Works of Pueblo and the 
United States. 
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‘‘(f) Subject to the provisions of subsection (b), the 
Secretary may enter into contracts authorized by this sec-
tion upon such terms and conditions as the Secretary may 
determine to be just and equitable. The term of any such 
contract shall be for such period, not to exceed 40 years, 
as the Secretary deems appropriate. Upon expiration, such 
contracts may be renewed upon such terms and conditions 
as may be mutually agreeable to the Secretary and the 
contractor for the use of excess capacity. 
‘‘(g) The Secretary shall establish such charges, sub-
ject to this section, for the use of excess capacity as the 
Secretary deems appropriate. Such charges shall consist 
of the following components: 
‘‘(1) One component shall reflect either— 
‘‘(A) construction costs based on either the 
original cost, the estimated current costs, or 
other appropriate measure of costs, including 
interest as provided in paragraph (3), of con-
structing the Fryingpan-Arkansas Project fa-
cilities involved; or 
‘‘(B) another appropriate rate, such as a 
market rate. 
‘‘(2) A second, separate component shall reflect 
an appropriate charge for operating, maintaining, 
and replacing these same facilities. 
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‘‘(3) Except in the case of a market based rate, 
when excess capacity in Fryingpan-Arkansas Project 
facilities will be used to divert, store, impound, 
pump, or convey nonproject water for municipal and 
industrial purposes, an interest component using the 
rate determined by the Secretary in accordance with 
the Water Supply Act of 1958 (43 U.S.C. 390b). 
‘‘(h) All charges established pursuant to this section 
shall be just and equitable as to the rates paid by those 
entities that receive project water from the Fryingpan-Ar-
kansas Project facilities. The project contractor rate shall 
be the baseline from which adjustments can be made based 
on the particular circumstances involved in the contract. 
‘‘(i) Prior to the execution of any contracts under this 
section, the Secretary shall execute an agreement with the 
Southeastern Colorado Water Activity Enterprise to pro-
vide guidelines for the terms to be contained in the con-
tracts executed pursuant to this section. Such guidelines 
shall appropriately address impacts associated with water 
operations under the contracts, surcharges established by 
the Enterprise, reimbursement of costs incurred, and 
water quality monitoring, as identified by the South-
eastern Colorado Water Activity Enterprise and the Sec-
retary. 
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‘‘(j) Any contract executed under this section shall 
contain a provision pursuant to which the contracting enti-
ty agrees to cooperate in a voluntary flow management 
program designed to maintain a target minimum flow of 
100 cfs just below Pueblo Dam. 
‘‘SEC. 9. (a) The Secretary of the Interior may enter 
into new and renewal contracts with the City of Aurora, 
Colorado, or an enterprise of the City, for a term not to 
exceed 40 years, for use of storage or carrying capacity 
excess of the requirements of the Fryingpan-Arkansas 
Project, Colorado, for the purpose of impounding, storage, 
and carriage of nonproject water for domestic, municipal, 
industrial and other beneficial purposes. Such contracts 
shall be— 
‘‘(1) limited to the storage and carriage of wa-
ters appropriated from the Arkansas River held by 
the City of Aurora, Colorado, or an enterprise of the 
City that— 
‘‘(A) are decreed water rights and owned 
by the City of Aurora, Colorado, or an enter-
prise of the City as of December 7, 2001; 
‘‘(B) are water rights described in a Colo-
rado Water Court water rights application 
pending as of December 7, 2001, or an amend-
ment or refiling does not increase the draft of 
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water from the Arkansas Basin that would have 
been available to the City of Aurora, Colorado, 
or an enterprise of the City under the original 
application; 
‘‘(C) result from water lease agreements 
existing as of December 7, 2001, including any 
renewal or replacement contact for no more 
than the existing amount of water; 
‘‘(D) result from interruptible supply 
agreements or water bank transactions author-
ized under Colorado law, and operating no more 
than five calendar years during any period of 
10 consecutive calendar years; or 
‘‘(E) is traded to, or exchanged with, the 
City of Aurora, Colorado, or an enterprise of 
the City for one of the items listed in subpara-
graphs (A) through (C) as long as such trade 
or exchange does not increase the draft of water 
from the Arkansas River Basin that would have 
been available to the City of Aurora, Colorado, 
or an enterprise of the City under subpara-
graphs (A) through (C); 
‘‘(2) are for water obtained by the City of Au-
rora, Colorado, or an enterprise of the City from the 
Colorado River consistent with section 12; 
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‘‘(3) contain a provision pursuant to which the 
City of Aurora agrees to cooperate in a voluntary 
flow management program designed to maintain a 
target minimum flow of 100 cfs just below Pueblo 
Dam; 
‘‘(4) include a provision whereby the City of 
Aurora, Colorado, or an enterprise of the City, 
agrees to participate in a long-term water quality 
monitoring and management program as outlined in 
the Implementation Committee Report, dated April 
19, 2001; and 
‘‘(5) take into consideration the need to ensure 
compliance with the Arkansas River Compact as exe-
cuted by the States of Colorado and Kansas on De-
cember 14, 1948. 
‘‘(b) Prior to the execution of any renewal contact 
with the City of Aurora, the Secretary of the Interior shall 
execute an Agreement with the Southeastern Colorado 
Water Activity Enterprise, which shall provide guidelines 
for the terms to be contained in a renewal contact exe-
cuted pursuant to this section. Such guidelines shall ap-
propriately address those impacts associated with water 
operations under the contracts, such as storage and con-
venience charges, surcharges established by the Enter-
prise, reimbursement of costs incurred, and water quality 
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monitoring, as identified by the Southeastern Colorado 
Enterprise and the Secretary. 
‘‘(c) Any contract executed under the authority of 
subsection (a) or (b) shall be in compliance with the provi-
sions of section 8(b). 
‘‘(d) The Secretary shall establish such charges under 
this section 9 in a manner consistent with the provisions 
of section 8(g) and (h). 
‘‘SEC. 10. (a) Except as provided under subsection 
(b), all revenue generated pursuant to contracts executed 
under sections 8 and 9 shall be credited as follows: 
‘‘(1) That portion of the charges established 
pursuant to section 8(g) and 9(d) which is attrib-
utable to the component which reflects interest shall 
be credited as a general credit to the Reclamation 
Fund. 
‘‘(2) That portion of the charges established 
pursuant to section 8(g)(2) and the comparable pro-
vision of 9(d) shall be credited against the appro-
priate project operation, maintenance, and replace-
ment costs. 
‘‘(3) All remaining revenues in excess of those 
in paragraphs (1) and (2) shall be credited as fol-
lows: 
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‘‘(A) If reimbursable Federal construction 
costs are outstanding for the Fryingpan-Arkan-
sas project at the time revenues are received, 
then all remaining revenues shall be covered 
into the Reclamation Fund and credited to the 
Fryingpan-Arkansas Project. All remaining rev-
enues shall be credited against such reimburs-
able costs in a manner the Secretary deems to 
be just and equitable as to the reimbursable 
purposes which are involved. The revenues so 
credited shall not be applied so as to reduce the 
amount of the current annual payments due the 
Secretary from the project contractors or any 
other parties responsible for paying outstanding 
reimbursable project construction costs unless 
and until the party’s current annual payment 
due exceeds the remaining reimbursable con-
struction costs payable by the party. 
‘‘(B) 
If 
no 
reimbursable 
Federal 
Fryingpan-Arkansas Project construction costs 
are outstanding at the time revenues are re-
ceived, then all remaining revenues shall be 
credited to a separate fund, established in the 
Treasury of the United States, to be known as 
the Fryingpan-Arkansas Project Fund, which 
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shall remain available, without appropriation, 
for new federally funded construction on the 
project, including, but not limited to, additions, 
rehabilitations and betterments, safety of dams 
modifications, and major capital replacements, 
applied against the Federal reimbursable costs, 
if any, of such new construction in such manner 
as the Secretary deems just and equitable as to 
the Federal reimbursable project purposes in-
volved. No expenditures may be made from the 
Fryingpan-Arkansas Project Fund without the 
express written consent of the Secretary and 
the Enterprise. 
‘‘(b) Payments generated pursuant to contract terms 
established under section 8(i) and the comparable provi-
sions of 9(b) shall be made directly by the contractors to 
the Southeastern Colorado Water Activity Enterprise. 
‘‘SEC. 11. (a) Nonproject water diverted, stored, im-
pounded, pumped, exchanged, or conveyed under a con-
tract entered into pursuant to section 8 or 9 shall be ex-
empt from any acreage limitation provisions of the Act 
of June 17, 1902 (32 Stat. 388), and Acts amendatory 
thereof and supplementary thereto including, but not lim-
ited to, the Warren Act of 1911, the Reclamation Reform 
Act of 1982 (96 Stat. 1263; 43 U.S.C. 390aa et seq.) and 
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from any farm unit size limitations established pursuant 
to section 4(c)(5) of the Act of August 11, 1939 (Chapter 
717; 16 U.S.C. 590z–2(c)(5)). 
‘‘(b) Notwithstanding subsection (a), if such non-
project water is commingled with project water in Rec-
lamation project facilities, and the resulting commingled 
supply is used to irrigate lands in a project contractor’s 
service area, then such commingled water shall bear the 
same acreage limitations or farm unit size limitations as 
the project water unless— 
‘‘(1) contract provisions are in effect which pro-
vide that project or nonproject water, or both, will 
be accounted for on a quantitative basis, that project 
water will not be delivered to ineligible land, and 
that appropriate charges, as determined by the Sec-
retary, will be paid for the project water; and 
‘‘(2) the charges for the use of the excess ca-
pacity include an appropriate interest component, as 
determined by the Secretary. 
‘‘SEC. 12. (a) Excess water storage capacity of the 
Fryingpan-Arkansas project to divert, store, impound, 
pump, or convey nonproject water made available under 
contracts executed pursuant to the provisions of sections 
8 and 9 shall not be used so as to increase diversion of 
nonproject water from the natural basin of the Colorado 
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River within Colorado into another river basin for delivery 
or storage unless— 
‘‘(1) the diversion is the subject of a decree en-
tered prior to the effective date of this section for 
which no new infrastructure or legal approvals are 
necessary to divert the water out of the natural 
basin; 
‘‘(2) the diversion is the subject of an agree-
ment in existence on the date of the enactment of 
this section, contemplating additional diversions di-
verted through or stored in the facilities authorized 
by this Act, between the beneficiary of such 
transbasin diversion and the water conservation dis-
trict, as defined under Colorado law, from within 
whose boundaries the waters are proposed for diver-
sion; 
‘‘(3) the diversion is the subject of an intergov-
ernmental agreement or other contractual arrange-
ment executed after the date of the enactment of 
this section, between the beneficiary of such 
transbasin diversion and the water conservation dis-
trict, as defined under Colorado law, from within 
whose boundaries the waters are proposed for diver-
sion; or 
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‘‘(4) the beneficiary of such transbasin diver-
sion provides compensatory storage or alternate 
water supply in an amount equal to the quantity di-
verted out of the basin for the benefit of the water 
conservation district, as defined under Colorado law, 
from within whose boundaries the waters are pro-
posed for diversion. 
‘‘(b) Prior to executing any agreement, or arrange-
ment or agreement for provision of compensatory storage 
or alternative water supply, that allows for increased di-
versions of nonproject water as described in subsection 
(a), the parties to such agreements or arrangements shall 
submit the agreement or arrangement to the Secretary, 
who, within 30 days, shall submit such agreement or ar-
rangement to the President Pro Tempore of the Senate 
and the Speaker of the House of Representatives for a 
period of not less than 60 days. 
‘‘(c) This section shall not be considered as precedent 
for any other congressionally authorized project.’’. 
Æ 
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