Jan 24, 2011 7:46 AM by Bea Karnes

Southern Delivery talks continue with feds

COLORADO SPRINGS (AP) - Colorado Springs Utilities says negotiations continue with the U.S. Bureau of Reclamation on contracts for the Southern Delivery System pipeline, despite a lack of face-to-face meetings since August.

Officials characterize the lack of key contracts for the 62-mile, $1 billion pipeline that would move water from Pueblo Reservoir to Colorado Springs by 2016 as a matter of working out "lawyerly language."

The Gazette of Colorado Springs reports key sticking points continue to be water storage and its costs, as well as a termination provision that allows the contract to be canceled should funding dry up.

In July, the municipal utility said the bureau's proposed $75 an acre-foot to store and convey water in the reservoir would add $200 million to the costs.



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