Pure Cycle focused on Ark Valley operations for now: Plan for a pipeline to take water out of the valley modified in favor of rotational fallowing studies.

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Dec 24, 2008 (The Pueblo Chieftain - McClatchy-Tribune Information Services via COMTEX) -- PCYL | Quote | Chart | News | PowerRating -- A glitch in the development of the Lowry Range in Arapahoe County has little to do with a water provider's plans for the Arkansas Valley.

Pure Cycle Corp. of Thornton, which has a long-term agreement with the State Land Board to provide water to the Lowry Range, has sufficient water rights in the South Platte River basin to provide water to the first stage of development in the area east of Aurora.

The withdrawal of Lend Lease, an Australian company that had a contract for the development, will not affect Pure Cycle's commitment to provide water for the area, said Mark Harding, Pure Cycle president.

"We continue to work with the State Land Board and with Lend Lease to find the right balance of water," Harding said. "But there are a lot of other issues with jurisdiction, development and transportation that also have to be worked out." Pure Cycle already has 30,000 acre-feet of drought-proof groundwater, 5,000 acre-feet of surface rights and 25,000 acre-feet of storage rights in the South Platte basin, and Lend Lease required only about 1,000 acre-feet in its plans to develop two sections of the 24,000-acre Lowry Range. That amounts to a $70 million investment over 20 years, Harding said.

Pure Cycle also bought out High Plains A&M holdings on the Fort Lyon Canal in 2006, announcing plans for a pipeline at the time. Since then, however, Pure Cycle has modified its immediate plans in an effort to work with agricultural, municipal and industrial interests in the Arkansas Valley as well.

"I'm a strong advocate of rotational fallowing and finding a better way to do agricultural-to-municipal transfers," Harding said. "I'm eager to keep looking for the best balance. If a rotational fallowing program is good for the valley, it doesn't matter if the customer is in or out of the valley."

That being said, the customers for Pure Cycle's Fort Lyon water -- if there are any -- are confined to within the Arkansas River basin for now.

Pure Cycle estimates the yield from the 18,000 acres it owns along the Fort Lyon Canal to be 60,000 acre-feet per year. The holdings make Pure Cycle the largest private water owner and in a way the largest farming operation in the Arkansas Valley.

So, it's significant that Harding also signed up as a charter member of the Super Ditch when it incorporated in May.

"To me, if the Super Ditch diversifies agriculture, it's a winner," Harding said.

"We have to see if the mechanism works and then determine where to put it to use."

Meanwhile, Pure Cycle continues to lease its holdings to farmers in an arrangement that is favorable to tenants, Harding said.

"Are we looking to get every dollar? No. We are building relationships with those farms," Harding said.

In the long-term, Harding would like to keep the farms in operation while maximizing profits from rotational fallowing. To that end, Pure Cycle is conducting its own studies of the varieties of crops, timing of crops and the condition of land that is fallowed to improve agriculture's chances, Harding said.

The work is similar to state-funded efforts through the Colorado Water Conservation Board or Colorado State University. However, Harding hasn't asked for a dime and promises to share his information.

"We have tons of data sets. We're getting hard data on crops," Harding said. "We're putting our own money into the studies."

The data will be shared "with anyone who will listen to us," Harding said.

There are no plans for leases of water off the land in 2009. The Super Ditch has not announced any contracts and continues to develop under legal and academic guidance coordinated by the Lower Arkansas Valley Water Conservancy District. Most importantly, there is no practical way for water to be moved out of the valley.

"Next year and for the foreseeable future we'll still be farming," Harding said.

When asked why valley interests should trust a private water developer with well-developed interests in another basin, Harding was candid, saying his actions would find a balance between making a profit and not damaging other operations on the Arkansas River.

"We hope to be judged by our actions, and to build upon a plan for rotational fallowing," Harding said. "Yes, we are a water provider, but we are absolutely transparent in everything we do."

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