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<br />Economic Analysis <br /> <br />If the project is not completed the annual production of lands in the 700-acre service area would <br />be reduced. The average net yield per acre with water is estimated at $60, compared to a net <br />yield of $25 as dry land. This results in an annual loss of $35/acre x 700 acres = $24,000. This <br />loss will continue each year until the diversion is repaired or replaced (an additional cost of <br />$75,000.) A major benefit of the project is avoiding the annual economic loss associated with <br />the lack of irrigation water within the service area. <br /> <br />Social and Physical Impacts <br /> <br />The project will have no significant social impacts, since it will assure the continued operation of <br />an existing irrigation system. The project will have minor physical impacts, once construction is <br />complete. The new diversion on the Bravo Ditch will be small, and the pipeline will be buried. <br /> <br />Conclusions <br /> <br />1. The Peoples Ditch Company is an incorporated entity. The Company must be registered in <br />the State of Colorado in order to enter into a contract with the CWCB for the purpose of <br />obtaining a Construction Fund loan. <br /> <br />2. Rights-of-Way easements are adequate for the construction of this project. <br /> <br />3. The project would provide for the continued delivery of irrigation water to share holders. <br /> <br />4. The total estimated cost of the project is $75,000 and will be financed by a grant from the <br />NRCS for engineering services, by a $27,000 NRCS-EQIP grant, and by a $43,000 CWCB <br />loan for construction. <br /> <br />5. The Peoples Ditch Company is eligible for a CWCB Small Project Loan because the loan <br />amount is less than $100,000, and because the project is necessary to avoid undue <br />hardship on the borrower. Requiring the PDC to apply through the standard CWCB loan <br />process would delay the project one-year, and jeopardize the Company's ability to deliver <br />water to its shareholders. <br /> <br />6. The Peoples Ditch Company will need to obtain a change in point of diversion for their ditch. <br /> <br />Opinion of Feasibility <br /> <br />The project appears to be technically and financially feasible. <br /> <br />Peoples Ditch Company <br />Diversion and Pipeline Feasibility Study <br />July 2000 <br /> <br />Page 11 of 11 <br />