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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />721 Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone, (303) 866.3441 <br />FAX: 13031 866.4474 <br /> <br />STATE OF COLORADO <br /> <br />- <br /> <br />Bill Owens <br />Governor <br /> <br />Greg E. Walcher <br />Executive Director, DNR <br /> <br />February 5, 1999 <br /> <br />Peter H. Evans <br />Acting Director, ewes <br /> <br />Mr. James W. Sutton, Secretary-Treasurer <br />Pine River Canal Company <br />1720 CR 329 <br />Ignacio, CO 81137 <br /> <br />Dear Jim, <br /> <br />I am pleased to infonn you that the Colorado Water Conservation Board (CWCB), at their January <br />1999 meeting in Denver, unanimously decided to recommend your application for a loan from the <br />CWCB Construction Fund to the General Asiiembly for approval. Your loan request will be <br />included in the Board's annual Water Project Construction Bill. We understand the loan will be <br />used to complete the Tunnel Hill Project on the Pine River Canal. <br /> <br />The Board recommended a loan from the Constnlction Fund in a maximum amount of $243,700, or <br />75-percent of the total project cost, whichever is less. The financing tenns for this loan shall be at <br />an annual percentage rate of 3.5-percent for a duration of 20-years. Eligible costs include, but are <br />not limited to, engineering design and construction. Collateral for the loan shall be a security <br />interest in the stream of income derived from assessments, and a certificate of deposit in the amount <br />of one annual loan payment, and the project itself. <br /> <br />The Board recommended your loan with the following conditions: <br /> <br />a. The feasibility studv must be approved. Staff has reviewed the feasibility study report <br />prepared by Mr. Gary Jennings of the NRCS, and received January 4, 1999. John Van <br />Sciver will update the report, with your assistance, so that it is in compliance with the <br />"Guidelines for Financial Assistance from the CWCB Construction Fund." <br /> <br />b. An approved contract must be in place before funds can be advanced. Jan Illian will <br />contact you and your attorney concerning our contracting procedure, and will provide <br />you a draft resolution to be adopted by your stockholders at the February 6, 1999 annual <br />meeting. We understand you plan to use the funds as soon as they become available on <br />or about July 1, 1999 after the Governor has signed the Bill. To meet this deadline we <br />will assign your project a high priority. <br />