I 
108TH CONGRESS 
2D SESSION 
H. R. 4691 
To authorize the Secretary of the Interior to engage in 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 
JUNE 24, 2004 
Mr. HEFLEY (for himself, Mr. BEAUPREZ, and Mr. TANCREDO) introduced 
the following bill; which was referred to the Committee on Resources 
A BILL 
To authorize the Secretary of the Interior to engage in 
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 en-
gage in a feasibility study relating to present and fu-
ture water supply and related storage requirements
of the area served by the Fryingpan-Arkansas 
Project, Colorado. 
(2) To amend the Act of August 16, 1962, as 
amended (76 Stat. 389 et seq.), to authorize the 
Secretary to enter into contracts for the use of ex-
cess 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 
Preferred Storage Options Plan Report published Sep-
tember 21, 2000, by the Southeastern Colorado Water and 
Storage Needs Assessment Enterprise and Final PSOP 
Implementation Committee Report dated April 19, 2001 
(hereinafter referred to as the ‘‘PSOP Reports’’), the
intergovernmental agreement dated May 27, 2004, among 
the City of Pueblo, the City of Aurora, the Southeastern 
Colorado Water Conservancy District, the City of Foun-
tain, the City of Colorado Springs, and the Board of 
Water Works of Pueblo, Colorado, and the need to ensure 
compliance with the Arkansas 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 such Enterprise’s share of the costs of the feasi-
bility study, as determined by the Secretary. 
(c) STUDY TO BE SUBMITTED.—The Secretary shall 
submit the feasibility study authorized by this section to 
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, including, but not 
limited to section 5, and all other applicable Federal stat-
utes, the Secretary is authorized to enter into contracts 
with any entity, private or public, including those oper-
ating or participating in a water bank established pursu-
ant to Colorado law (hereinafter referred to as an ‘‘enti-
ty’’), for the use of excess capacity in the Fryingpan-Ar-
kansas Project for the purpose of diverting, storing, im-
pounding, 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 Preferred Storage Op-
tions Plan Report published September 21, 2000, by the 
Southeastern Colorado Water and Storage Needs Assess-
ment Enterprise and Final PSOP Implementation Com-
mittee Report dated April 19, 2001 (hereinafter referred 
to as the ‘‘PSOP Reports’’), the intergovernmental agree-
ment 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 Colorado 
Springs, and the Board of Water Works of Pueblo, Colo-
rado, and the need to ensure compliance with the Arkan-
sas 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 provided that— 
‘‘(1) such contracts shall not impair or other-
wise interfere with— 
‘‘(A) the Fryingpan-Arkansas Project’s au-
thorized purposes;
‘‘(B) 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 con-
tract pursuant to the authority of this section; 
‘‘(C) such contractual obligations as the 
Secretary has to Fryingpan-Arkansas Project 
contractors at the time of the execution of a 
contract under the authority of this title; 
‘‘(D) the storage allocations and limita-
tions pursuant to Contract No. 5–07–70– 
W0086, as amended, renewed or superseded, 
between the Southeastern Colorado Water Con-
servancy District and the United States, and 
the allocation principles adopted by the South-
eastern 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 modifications made by 
the District that are confirmed by the District 
Court; 
‘‘(E) the yield of the Fryingpan-Arkansas 
Project from its West Slope and East Slope 
water rights; or
‘‘(F) the ability of individuals or entities 
located within the natural basin of the Arkan-
sas River within Colorado to enter into con-
tracts for the use of excess water storage and 
conveyance capacity pursuant to section 8 of 
this Act or any other authority under Reclama-
tion law. 
‘‘(2) To the extent such contracts are with an 
entity that does not have an allocation of Project 
carry over storage 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 Coun-
ty in Civil Action No. 40487 by decree dated Decem-
ber 18, 1979, including any subsequent modifica-
tions made by the District that are confirmed by the 
District Court (‘nonqualified’ entities); the contracts 
shall not impair or otherwise interfere with the abil-
ity of qualified entities located within the natural 
basin of the Arkansas River within Colorado to enter 
into contracts for the use of excess water storage and 
conveyance capacity pursuant to this section 8. Ex-
cept as provided in section 9, before entering into 
such a contract with an individual or entity that will 
use water stored or conveyed under such contact out-
side of the natural basin of the Arkansas River within 
Colorado, the Secretary shall provide the South-
eastern Colorado 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 will use water stored or conveyed under 
such contract outside of the natural basin of the Ar-
kansas River within Colorado. In no event shall the 
Southeastern Colorado Water Conservancy District 
enter into a subcontract with an individual or entity 
that will use water stored or conveyed under such 
contract outside of the natural basin of the Arkansas 
River. 
‘‘(3) Nothing in sections 8 through 12 of this 
Act shall— 
‘‘(A) increase diversions of Project water 
from the natural basin of the Colorado River; 
‘‘(B) 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 of this Act; 
‘‘(C) affect in any way contracts, or the re-
newal of contracts, entered into pursuant to au-
thority other than section 8 of this Act, includ-
ing, 
but 
not 
limited 
to, 
Contract 
Nos. 
00XX6C0049 and 009D6C0048 between the 
Board of Water Works of Pueblo, Colorado, 
and the United States, or the renewal of Con-
tact Nos. 00XX6C0049 and 009D60048; Con-
tract No. 6–07–70–W0090 (formerly Agree-
ment No. 14–06–700–6019) between the Cities 
of Aurora and Colorado Springs and the United 
States; Contract No. 7–07–7010056 between 
Twin Lakes Reservoir and Canal Company and 
the United States; Contract No. 9–07–70– 
W0099 between the United States and High 
Line Canal Company; and Contract No. 
039E6C0117 between Board of Water Works of 
Pueblo and the United States; or 
‘‘(D) affect the interpretation or implemen-
tation of existing law or legislation for any 
other congressionally authorized water project. 
‘‘(c) 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. 
‘‘(d) The Secretary shall establish such charges, sub-
ject to subsection (e), for the use of excess capacity as 
the Secretary deems appropriate. Such charges shall con-
sist 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 this 
subsection, of constructing the Fryingpan-Ar-
kansas Project facilities 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. 
‘‘(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). 
‘‘(e) 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. 
‘‘(f) 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. 
‘‘(g) 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.