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<br />pagosa Springs Pipeline Company <br />DRAFT FEASIBILITY STUDY <br />CWCB...January 8, 1996 <br /> <br />The Town derived $32,000 in annual income from heat sales in <br />1995 with expenses exceeding that amount. It is expected that <br />with the removal of some litigation issues, the Geothermal <br />Heating utility will break even in 1996. The Town has pledged <br />annually it's revenues from the lease of a portion of the <br />Geothermal "waste water" to the pipeline. This is to cover <br />the costs to the CWCB loan. The pipeline company also has the <br />ability to place assessments against it's members. <br /> <br />The Town's financial statements and audits are shown in <br />Appendix 3. <br /> <br />&0 <br />COLLATERAL: The Pipeline has the following collateral it can <br />offer for the loan, in this order of preference: <br /> <br />&- <br /> <br />a. A collateral interest in lease water revenues to be <br />authorized annually by the Town. <br /> <br />z <br /> <br />b. The project itself. <br />the Pipeline Company). <br /> <br />(The project will be owned by <br /> <br />c. The pipeline company has the ability to levy <br />assessments against it's stockholders. <br /> <br />8. The Town currently charges $.46 per therm for heat, the <br />future assessments of the pipeline company have yet to be <br />determined, assessments are not anticipated for the first <br />three years. <br /> <br />6 <br />