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<br />,. <br /> <br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br />www.cwcb.state.co.us <br /> <br /> <br />MEMORANDUM <br />(Updated August 4, 2003) <br /> <br />Bill Owens <br />Governor <br /> <br />FROM: <br /> <br />Colorado Water Conservation Board Members <br /> <br />Bruce Johnson, P.E. ~.S- <br />Mike Serlet, P.E., Chief ~d <br />Water Supply Planning a~na'nce Section <br /> <br />Greg E. Walcher <br />Executive Director <br /> <br />TO: <br /> <br />Rod Kuharich <br />CWCB Director <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />DATE: July 16, 2003 <br /> <br />SUBJECT: Agenda Item 21f, July 28-29, 2003 Board Meeting <br />Water Supply Planning and Finance Section..... New Loans <br />Town of New Castle- Colorado River Raw Water Transmission System <br /> <br />(Note: Revisions to the July 16, 2003 loan memo are shown in Italics) <br /> <br />Introduction <br /> <br />The Town of New Castle, acting by and through its Utility Fund (water and sewer enterprise fund), is <br />applying fora $700,000 Small Project Loan from the Construction Fund to construct a new diversion <br />structure and pump station on the Colorado River, and a raw water pipeline to the Town's existing <br />water treatment facility. The estimated total cost of the project is $1,006,900. Please see the attached <br />project summary and map. ' <br /> <br />Backaround <br /> <br />Currently the Town's sole source of water supply is a diversion structure on East Elk Creek, <br />approximately 3 miles north of the town center. The water right is for 2.67 cfs with an appropriation <br />date of 1889. In average water years this water right is able to support current and projected <br />demands. In dry years such as 2002, however, low creek flows call into question the reliability of this <br />source, as administration of water rights downstream of the Town's point of diversion threaten to "dry <br />up" the Town's water supply. <br /> <br />On August 16, 2002, the State Engineer's Office (SEC) placed an administrative call on Main Elk <br />Creek and requested that the Town close their head-gate on East Elk Creek. The Ware and Hinds <br />Ditch placed the water rights call due to insufficient flow on Main Elk Creek downstream of the <br />confluence with East Elk Creek. The ditch has multiple water rights senior to the Town and is an <br />important irrigation ditch for several downstream users. Subsequent agreements between the Town, <br />the SEC, and the downstream senior water rights allowed the Town to temporarily continue diverting. <br />Also, a downstream water right held by cwes requires a minimum in-stream flow to be maintained <br /> <br />Flood Protection · Water Supply Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation and Drought Planning <br /> <br />