Pure Cycle monetizes its assets by selling wholesale water and wastewater services to local government and industrial entities. We currently have agreements in place to serve about 300 Single Family Equivalent (SFE) water connections and about 200 SFE wastewater connections, and have capacity to support 60,000 SFE connections (see Water Assets). Within the near future, we plan to finalize agreements that will increasingly monetize our valuable portfolio of water assets.
Currently, we operate in four general areas.
As a result of the 1997 “Rangeview Water Agreements,” Pure Cycle is obligated to design, construct, operate and maintain the water and wastewater systems for Rangeview Metropolitan District (the “District”), a quasi-municipal corporation and political subdivision of Colorado formed in 1986 for the purpose of providing water and wastewater service to the Lowry Range and other approved areas.
The Lowry Range is 27,000 acres (i.e., about 40 square miles) in size and is considered one of the largest contiguous parcels under single ownership next to a major metropolitan area in the United States. That’s important because under the “Rangeview Water Agreements” with the Land Board, which owns the land, the District has the exclusive rights to provide water and wastewater services to 24,000 acres of the Lowry Range.
As demand in the area increases, which will be determined by the Land Board’s tolerance for development of the Lowry Range, we will export less water and increasingly utilize our portfolio in a retail capacity. Until then, our System Interconnection and export infrastructure allows us to use this water in other regions with water and wastewater services demands in excess of their capacities.
The 1,100 acre mater planned community, Wild Pointe, located in arid-Elbert County requires service to over 260 residential and commercial lots. Pure Cycle entered an agreement with Elbert County to exclusively provide water to the master planned community by purchasing the water rights associated to the land.
Arapahoe County Fairgrounds
In 2005 we entered into an agreement with Arapahoe County to design, construct, operate and maintain a water system for, and provide water services to, the county for use at the Arapahoe County Fairgrounds (the “Fairgrounds”). We constructed and own a deep water well, the pipelines that transport water to the Fairgrounds and the 500,000-gallon water tank in the photo to the right.
In addition to providing water and wastewater services to governmental and industrial entities, Pure Cycle engages with landowners and municipalities as a consulting Operator in Responsible Charge (ORC) for various water related needs. We currently consult with the Town of Bennett, East Quincy Holdings and Watkins Square.