State Land Board OKs 30-year ground lease for Swatch Creek augmentation well
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Summary
The Colorado State Board of Land Commissioners unanimously approved a 30-year ground lease with the Rio Grande Water Conservation District to allow construction of an augmentation well on a Swatch Creek trust parcel, aiming to protect senior water rights while isolating groundwater liability from the school trust.
Justin Berry, the State Land Board's water program manager, asked commissioners on Dec. 11 to approve a 30-year ground lease that would allow the Rio Grande Water Conservation District and its subdistricts to construct an augmentation well on a State Trust parcel along Swatch Creek in the San Luis Valley.
Berry told the board the proposed lease would double the parcel's annual revenue from about $2,200 to $2,500 by leveraging existing ditch diversions and easements, while keeping the groundwater rights and related depletion obligations with the district rather than the trust. "This lease generates new reliable revenue for the school trust. It monetizes existing encumbrances," Berry said during his presentation.
The board packet describes the site as frequently dry but hydraulically suitable for an augmentation well because of multiple upstream diversions and senior water rights; the district plans to use confined-aquifer groundwater through augmentation wells to replace depletions and protect senior surface rights. Berry emphasized to commissioners that this is a ground lease for a water structure, not a water-rights conveyance: "I want to note and be perfectly clear that this isn't a water lease. It's a ground lease for a water structure."
Staff recommended approval because the ground lease permits the district to meet augmentation responsibilities while protecting the trust from long-term liability tied to groundwater ownership and operation. The proposed term is 30 years with a 30-year renewal option, a length staff said is common for water providers and the reason the board needed to act rather than staff.
After a brief period for public comment (none were raised), Commissioner Froeb moved to approve the proposed board order on Swatch Creek; the motion was seconded and passed on a roll call, recorded as a 5-0 unanimous vote.
Next steps: staff will finalize the board order and proceed under the terms presented to the commissioners. Any future changes to the boarding order or lease terms would be reflected in future board materials or brought back to the board for action.