BOARD00052 ‎(2)‎

• Board Meeting Date: 11/13/2006
• Description: CF Section - Consent Agenda - Revisions to Existing Loans - Orphan Wells of Wiggins, LLC - Recharge/Well Augmentation Project
• Board Meetings - Doc Type: Memo

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The plan involved the construction of 1 r~charge well, 1 augmentation well, 5 miles of 24-inch
PVC pipeline, and 23 recharge sites, at an estimated total cost of$I,153,000. The plan was
reviewed and approved for a construction loan by the Colorado Water Conservation Board at .
their November 2003 Board Meeting

Brent Nation of Nation Engineering, Fort Morgan, Colorado completed the feasibility for the
project in October of2003. The feasibility report indicated a total cost of the project of$I,153,000,
which is summarized below:

Items

On!. Est.

1. Recharge Well
2. Augmentation Well
3. 24-inch PVC Pipeline
4. 23 recharge site - Construction
5. Planning, Design, and Easement Acquisition

$70,000
$70,000
$528,000
$230,000
$255,000

Total:

$1,153,000

The OWW have completed 95% of the items indicated above and are currently working on the last
remaining recharge pond, referred to as the North Side River Diversion and Recharge Project. The
remaining $95,205 in original loan funds will be utilized to complete this work. The OWW has
been successful in replacing past and present depletions to the river since the dissolution of GASP,
in conjunction with obtaining an approved Substitute Water Supply Plan by the State Engineer.
They will be presenting their augmentation/recharge plan for approval at Water Court in March of
2007.

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In an effort to strengthen their overall plan, the OWW purchased 4 private rights of Riverside
Reservoir and Land Company Decreed water storage in Riverside Reservoir, at the GASP Auction
held in February of 2006. These 4 private rights added 64 acre-feet of senior surface water to the
OWW's augmentation/recharge plan. The OWW purchased the 4 private rights at a cost of
$144,000, which was financed on a short term basis with Bank of Choice, in Greeley, Colorado. In
addition to these rights, the OWW is also pursuing the purchase of the additional senior water rights
at an estimated cost of $56,000 prior to their March 2007 court date, to further strengthen their
position.

These senior water rights purchases were not part of OWW's original recharge/augmentation
submittal to the CWCB or the $200,000 to purchase them. The proposed loan increase of$202,000
($200,000 for senior water rights purchase and $2,000 for 1 % loan service fee) is to cover the cost
of these water purchases.

DISCUSSION
Due to the purchase of senior water rights not programmed in the original cost estimate and
unforeseen variations in cost for specific items during construction, the overall cost of the project
has increased by approximately 19% or $200,000. Staff has inspected the improvements in the
field and has reviewed the cost of the purchased water rights and water rights to be purchased by the
owner and finds the additional expenses to be justifiable, based on the value of water in the South .
Platte Basin.

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