Rachel Zancanella.pptx

10/17/15 Why has it been a pain? —  Steep learning curve —  Struggle to make practices of this industry conform to By Steve Witte Timeline —  2000 Amendment 20 passes with 54% of the vote our customary paradigm Maps —  Medical Marijuana-­‐ Patients may possess 2 oz and grow six plants —  2009 U.S. Attorney General says DOJ will take no action against MMJ dispensaries in compliance with State law. —  MMJ Cardholders go from 4800 in 2008 to 108,000 by 2012 —  2010 HB10-­‐1284 passes legalizing full-­‐scale dispensaries, marijuana cultivation operations and edible manufacturing. —  Creates Marijuana Enforcement Division —  2012 Amendment 64 passes legalizing recreational marijuana —  Facilities already licensed for MMJ can apply for recreational license. —  2014-­‐January 1, First licensed recreational dispensaries open to existing MMJ licensees. —  2014-­‐July 1, Any resident can apply for a recreational license. —  2014-­‐October 1, Vertical integration for recreational is eliminated. (No longer have to sell what you grow) Maps Maps 1 10/17/15 Fun Facts —  Profit Potential: —  $574,000,000 in sales of legally grown Colorado marijuana in the first 10 months of 2014. —  204 Licensed cultivation facilities in Division 2 —  $36,575,239 in Sales and Excise Taxes —  $7,436,701 in Licenses and Fees —  Actual numbers from one MMJ facility — 
Harvesting 20-­‐70 plants per day = 2.5 oz (dry)/plant — 
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= 50 to 175 dry oz/day selling at $125/oz =$6,250 to $21,875 per day x 365 days = $2,281,250 to $7,984,375/yr Just how much water is required? —  Actual numbers from one MMJ facility (4,751 plants) —  Facility = 20,000 sf t0tal = 16,000 sf of plant space = 0.36 acres — 
Metered water use =0.96 af/yr = 2.65 af/ac —  (100% consumptive) What is the proper “type of use”? —  This isn’t just another kind of row crop! Gold Rush Fever —  USBR’s position paper initially drove prospective growers to us —  No time to develop a plan for augmentation!! Just how much water is required? —  I’m pretty certain that far less water was required to produce $ ½ B in MJ sales than it took to generate equal amount of revenue from corn production! —  Our information is somewhat anecdotal —  Actual numbers from one MMJ facility —  1 acre requires 2.65 af consumptive use of water (includes all uses) and can produce $6,000,000 gross revenue per year —  In contrast approx. numbers for corn —  1 acre requires 2.2 af consumptive use of water and can produce $768 in sales per year Water Uses —  Irrigation: Clone Stage — 
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Self contained greenhouse foam core ¼ inch of water in the bottom of the tray size: —  base = 2 x 2 x 2 height < 8” tall * Does not count towards plant number limits 2 10/17/15 Water Uses Water Uses —  Irrigation: —  Vegetative State: ~3 inch pots ~ 6 inch pots ~ 12 inch pots Lights on 24 hours a day, plants grow as much as possible Water Uses —  Irrigation: —  Flowering State: —  Commercial: Water and Sanitation Lights on 12 hours a day, plants bud out Water Uses —  Industrial? Temperature Control (Cooling pads) Humidity Control (Intermittent cycles of manufactured fog) BioControl (Pesticides) Reconstituted nemotodes applied in water slurry Western Flower Thrip being eaten by Nemotodes Usually “Ime of use” is an issue —  Industrial Agriculture knows no growing season Is use of water in a grow facility a “beneficial use”? —  In Division 5 this question has been raised, given the federal prohibition; and our statutory definition: —  “Beneficial use” means the use of that amount of water that is reasonable and appropriate under reasonably efficient practices to accomplish without waste the purpose for which the appropriation is lawfully made. 3 10/17/15 Growers, like
water, typic
ally seek the path of le
ast resistanc
e —  Municipal providers have become the preferred source —  Prices that growers are willing to pay have helped ease many fears associated with risk —  E.g., one municipal provider has 800 af of raw water available for lease at $1,000/ af with a 10 af minimum AdministraIve Challenges —  No Statutory Process of Review —  Subdivisions must be referred by Counties for Comments on Water Supply Adequacy — 
Reach out individually to counties and municipalities to establish relationship and become reviewing member of applications. —  Domestic wells used in part or in whole as water source —  Caregivers —  75 to 99 plants personally plus 5 patients —  Employees living on site —  “1 acre lawns and gardens” —  Haul Water —  Legality of Sources are often suspect — 
Fully consumable, extra territorial, locally approved, non-­‐federal —  Diversion Records —  Field Staff —  Two man team for inspections due to security The End 4