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._ � <br />installation of toe drains and the expansion of the downstream stability berms have been performed <br />over the years to maintain the reserevoirs. In Mav. 1997, a sinkhole appeared near the reservoir <br />outlet. The reservoir stora�e has been restricted to "zero" storage since the appearance of the <br />sinkhole thus reducing t�vield of the facilities. <br />6. For existing facilities indicate: (A) the number of shareholders 46 , or <br />(B) the number of customers served <br />Part B. - Description of the Project <br />1. Name of the project or facility: Gray Lake #3 <br />2. What is the purpose of this loan application? Check one. <br />New Project <br />X Rehabilitation or replacement of existing faciliry <br />Enlargement of existing facility <br />_ Emergency Repair <br />Other (describe) : <br />3. If the project is for rehabilitation of an existin� reservoir, is the reservoir currently under a <br />storage restriction order from the State Engineer? YES X NO <br />4. General location of the project. (Please include county, and approximate distance and direction <br />from nearest town, as well as legal description, if known): <br />Larimer Counry Colorado• 3 miles east and 2 miles north of Fort Collins, Colorado <br />T8N R 68 W• Timnath Ouad <br />5. Please provide a brief narrative description of the proposed project including purpose, need, <br />facilities, types of water uses to be served and service area. (Attach separate sheet, if <br />needed.): <br />Rehabilitate the dam outlet works and spillwav. All water in this svstem is utilized for <br />a�ricultural purposes The service area consists of approximately 3200 acres of land which <br />lies directiv south and east of the reservoir. The stora�e loss reduces the company's yield <br />which reduces the irrigation water provided to the service area. <br />Will the acquisition of additional water rights be necessary? <br />YES NO X If "YES", please explain: <br />-2- <br />