PROJ00528 App Letter

• Contract/PO #: C150019
• Contractor Name: Pine River Canal Company
• Contract Type: Loan
• Water District: 31
• County: La Plata
• Bill Number: SB 99-173
• Loan Projects - Doc Type: Approval Letter

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Colorado Water Conservation Board
Department of Natural Resources
721 Centennial Building
1 31 3 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLOMDO

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MEMORANDUM
(Updated 1/29/99)

Bill Owens
Governor

TO:

Greg E. Walcher
Executive Director. DNR

Colorado Water Conservation Board Members

FROM:

Bill Stanton and John Van Sciver

Peter H. Evans
Acting Director, eWes

DATE:

January 14 1999

SUBJECT:

Agenda Item Be, January 27-28,1999 Board Meeting
Pine River Canal Company

Introduction
The Pine River Canal Company (PRCC) is applying to the Board for a loan of $243,700 to complete the
Tunnel Hill Project, located about 8 miles southeast of Ignacio. This project involves the construction of a
new section of canal approximately 150 feet west of the existing tunnel, laying 6-foot diameter reinforced
concrete pipe for a distance of approximately 700 feet, and bypassing the tunnel entirely. The estimated cost
of the project is $325,550. Please see the attached project summary and map.

Back!!round
The PRCC, located in La Plata and Archuleta Counties, operates the Pine River Canal for the benefit of the
shareholders by providing irrigation water through an existing diversion and canal system. Near the
midpoint of the system the canal passes through an unlined rock tunnel. The tunnel was built in 1904 and
received some repairs in the 1930s. Additional repairs have been necessary on an increasing frequency just
to keep the tunnel open. The current condition is unsafe. There are 6 cavities in the tunnel ceiling, each 3 to
4 feet wide and extending upward 20 to 30 feet. Total collapse of the tunnel ceiling could occur at any time.
If this were to occur, the PRCe would be unable to deliver water to 90% of its shareholders (average annual
diversions are 53,000 acre-feet.) The PRCC wants to abandon the tunnel and replace it with a pipeline
located 150 feet east.

Feasibility Studies
The PRCC has coordinated with the Natural Resources Conservation Service Durango office to complete
the feasibility study and to provide engineering design and construction inspection for the project. Mr. Gary
Jennings has drafted the feasibility study, which includes an assessment of alternatives available for
rehabilitation or replacement of the tunnel. The study will be in final form by the January CWCB meeting.

The Pine River Canal Companv ,.
The PRCC is a mutual ditch company and a non-profit corporation registered in the State of Colorado.
There are 215 shareholders and 13,752.25 shares of stock. The PRCC has the power to set annual
assessments to be paid by the shareholders, the power to cut off water deliveries to shareholders that fail
to pay their assessments, and the power to offer stock for sale to pay back assessments. The PRCC
delivers water to a J3,376.56-acre service area located in southeast La Plata County, and in southwest
Archuleta County.