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<br />pagosa springs Pipeline Company <br />DRAFT FEASIBILITY STUDY <br />CWCB...January 8, 1996 <br /> <br />B. Description of the project sponsor, and the Project service <br />Area: <br /> <br />1. The pagosa springs pipeline Company is a Colorado <br />Nonprofit Corporation formed under the laws of the State of <br />Colorado and The Town of pagosa Springs is a Statutory Town. <br /> <br />2. The Town's existing geothermal system is a closed loop <br />heating utility servicing most of the major buildings in <br />downtown pagosa springs (16 customers). The geothermal water <br />(146 degrees) passes through a heat exchanger and heats fresh <br />water which is utilized for heating throughout Town. The <br />geothermal water is then discharged into the San, Juan River at <br />about 122 degrees which is sufficient for spa uses. <br /> <br />The Town has been involved in litigation for' over ten years <br />concerning the use and potential expansion of use of <br />geothermal water. The proposed pipeline would resolve this <br />litigation between most of the parties (not all) and would <br />establish a framework for the efficient utilization of the <br />geothermal water. <br /> <br />3. The service area for the pagosa Springs Pipeline would <br />consist of the Downtown Core Area south of the San Juan River. <br />(See attached map in Appendix 1). <br /> <br />4. The geothermal water demands of the Pipeline's Stockholders <br />are established by the company's by-laws. The distribution of <br />water has been determined through seven months of negotiations <br />between the members of the company. The pipeline is designed <br />to carry additional water if the need develops in the future. <br /> <br />5. The Town has 16 customers for its geothermal heating <br />system. The Spa Motel and the Spring Inn operate successful <br />spa and bathing facilities. <br /> <br />6. The Median Household Income for the Town of pagosa springs <br />(1990 census) is less than 80% of the statewide average. Two <br />of the pipeline shareholders operate commercial spas. <br /> <br />7. The Town's financial condition appears good at the present <br />time and the members of the pipeline company operate <br />successful commercial facilities. (see appendix 3). <br /> <br />The Pipeline Company is not in default on any of its current <br />obligations as it has no other financial obligations. <br /> <br />5 <br />