PROJ01770

• Contract/PO #: FS0057FX
• Contractor Name: Red Mesa Ward Reservoir and Ditch Company
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

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RED MESA RESERVOIR ENLARGEMENT
FEASlliILITY STUDY

SUMMARY OF FINDINGS

Red Mesa Ward (aka Mormon) Reservoir is owned by the Red Mesa Ward Reservoir and Ditch
Company and is located in southwestern Colorado on Hay Gulch in the LaPlata River drainage.
The existing reservoir is 1172 acre-feet in size. Due to low interest rates, relatively good hay
prices, the necessity for repairs to the existing dam, and the need for domestic and/or
augmentation water; the Company is investigating the possibility of enlarging the reservoir to
4070 acre-feet for which they have water rights.

The existing dam requires repairs to the outlet tower and enlargement of the spillway. Though the
State Engineer has not imposed a restriction on the reservoir because of these problems, the
Company is attempting to correct the problems before a crisis is imposed. As a minimum, the
Company will repair the existing dam and if possible will enlarge the reservoir.

The existing reservoir supplies supplemental water to about 1140 acres of land. The land receives
early season water from direct diversions from the LaPlata River, when the ditches are not in
priority share holders in the reservoir can call for water from the reservoir. The land has about a
60% average annual supply. About 640 acres is sprinkler irrigated, with additional sprinkler
systems installed each year. There are 1172 shares in the reservoir based on the 1172 acre-foot
capacity. Enlargement of the reservoir would provide about 2500 acre-feet of additional
irrigation storage, assuming that all of the water was used on the present 1140 acres the average
annual supply would increase to about 92%, essentially a full supply. The irrigation water would
be shorted in dry years.

In addition to providing irrigation water, the enlargement would include 330 acre-feet of domestic
water storage. The reservoir would be operated so that the domestic water always had a full
supply.

A daily operation study of the LaPlata River from 1975 to 1992 showed that there is sufficient
water available under the Company's 120 cfs diversion right from the LaPlata River and 4070
acre-feet of storage rights to use all or most of the enlarged capacity in 16 of the 18 year study
period.

Feasibility level 'cost estimates for the enlargement resulted in an estimated project cost of
$3,000,000. The CWCB will provide a construction loan for 75% of the cost, $2,250,000 at
4.1 % for 30 years. The Company will provide 25% of the construction cost and the annual debt
service through assessments to existing shares but primarily through sale of new irrigation and
domestic shares. The domestic water shares would be charged about 10 times the cost of
irrigation water.

In order to prepare the permits, designs and specifications, and sell the additional water;
construction is anticipated in 1997.

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