PROJC01737 ‎(3)‎

• Contract/PO #: C153768
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Approval Letter

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213

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The principal balance in the escrow account prior to any withdrawals for these proposed
acquisitions was $1,087,400. Subtracting this amount from the total in Table 1 indicates ~et new
lending of$2,213,971 for these two purchases.

LA WMA has submitted two reports in connection with this application: (1) a letter report of
March 11, 1997 from LAWMA's engineering consultant, Helton & Williamsen (Subject:
LA WMA Loan Request) and (2) a Report on the Estimated Fair Market Value of 3,569 Shares
of Stock in the Highland Irrigation Company, Bent County, Colorado by William A. Paddock
and Bill Milenski dated March 28, 1997. The analyses which follow are based primarily on
information from these two reports. As of the date of this memorandum, the final feasibility
report to be prepared by Helton & Williamsen had not been received by the CWCB staff.

TECHNICAL FEASffiILITY

It appears that these particular water rights would provide a reliable new supply of water and
would function very well in LAWMA's overall augmentation program on the Arkansas. The
Helton & Williamsen letter report estimates average annual consumptive use yields of 4,640 acre-
feet and 262 acre-feet respectively for the HigWand and Fort Bent shares.

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The fact that LA WMA will be acquiring something in the neighborhood of 94 percent of the
Highland shares is especially noteworthy since it will allow for virtually unhindered operation of
the water rights for augmentation purposes. Both the Highland and the Fort Bent have senior
water rights decrees and long records of diversion.

With existing water rights which yield about 11,800 acre-feet per year and the new acquisitions,
LA WMA would have the ability to offset approximately 16,700 acre-feet per year of depletions
on an average annual basis in comparison with a possible replacement requirement of 18,000 acre-
re&. '

SUMMARY OF WATER RIGHTS ACOUISITIONS

Table 2 summarizes the completed and proposed LAWMA water rights acquisitions which have
been financed or are proposed to be financed by Construction Fund loans. The table gives the
average annual consumptive use yield as estimated by Helton & Williamsen, the amounts actually
loaned for the X- Y and Manvel acquisitions, the requested loans for the Highland and Fort Bent
rights and the cost per acre-foot of consumptive use for all four. The last line in the table gives
total amounts and the overall average cost per acre-foot.

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