WSP11447

• File Number: 8542
• Description: Conejos Division - Platoro
• State: CO
• Basin: Rio Grande
• Water Division: 3
• Date: 12/2/1987
• Title: Agenda Item 11 - December 10-11 1987 - Board Meeting -- Purchase of Platoro Reservoir
• Water Supply Pro - Doc Type: Board Memo

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COLORADO WATER CONSERVATION BOARD
Department of Natural Resources
721 State Centennial Building
1313 Sherman Street
Denver, Colorado 80203
Phone, [phone]

STATE OF COLORADO
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ROY ROMER, GOVERNOR

MEMORANDUM

TO:

Members, CWCB
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Dav'ild -'Walker

J. William McDonald
Director
David W. Walker
Deputy Director

FROM:

DATE: December 2, 1987

SUBJECT: Agenda Item II, December 10-11, 1987, Board Meetingh
Purchase of Platoro Reservoir

Backqround

You will recall that SB 15(87) authorized the board to loan
and grant a total of $500,000 to the Conejos Water Conservancy
District for the purchase of Platoro Reservoir from the Bureau
of Reclamation.

Negotiations to accomplish the purchase are being pursued,
and the district intends to request Congressional approval for
a sale. Therefore, the district requests that the board
approve the terms and conditions of a contract to authorize a
loan and grant to accomplish the purchase.

Discussion

The proposed contract (copy attached) raises a number of
issues and conditions for consideration by the board.

One condition required by statute is a certification by the
State Engineer "that an operating agreement satisfactory to him
for the state's use of the reservoir for compact purposes has
been agreed upon." An agreement is being negotiated but has
not been agreed to. The contract cannot be executed until the
agreement is reached (item A-3) and certified (item C-l.a).

Satisfactory repayment of the loan under the conditions
suggested and expectations described by the district involves
some risk. While the district anticipates sale of about half
of the available supply within the district, the remainder must
be sold elsewhere. Several potential customers have been
identified and negotiations have been initiated, but firm
commitments are not at hand.

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