PROJ01815

• Contract/PO #: FS0054FX
• Contractor Name: Pagosa Springs Pipeline Company
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Approval Letter

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Colorado Water Conservation Board
Department of Natural Resources

721 Stare Centennial Building
1313 Shennan Street
Denver. Colorado 80203
Phone [phone]
fAJ( [phone]

STATE OF COLORADO

.

Roy Romer
Governor

MEMORANDUM

James S. Lochhead
Executive DiIcctor. DNR

Daries C. l.ile. P .E.
Direaor. CWCB

(Updated January 30, 1996)

TO: Colorado Water Conservation Board Members

FROM: John Van Sciver

DATE: January 22, 1996

SUBJECT: Agenda Item 8a., January 24-25, 1996, Board Meeting--
The Pagosa Springs Pipeline Co.
Final Approval of a -Small Project Construction Fund Loan in amount of
$60,000 to construct a new raw water pipeline for Geothermal Water.

BACKGROUND

The Pagosa Springs Pipeline Co. (owned primarily by the Town of Pagosa springs, The Pagosa
Resort Company, and Giordano Inc.), submitted an application for funding to construct a new
raw water geothermal pipeline. The Company requested a loan in the amount of $60,000 (100%
of the estimated total pipeline construction cost, but less than 25 % of the total project cost).

The CWCB approved the loan November 7, 1995, but requested further information on the
collateral.

The updated Board memo from the November meeting is attached, as well as the November 21,
1995 letter sent to the Company by Bill Stanton.

DISCUSSION

(a) General
Since the November Board meeting, By-laws, Stipulations and Articles of Incorporation of the
Pipeline Company have been revised and are now close to being fInalized. The Company
shareholders are cooperating, and consist of 3 of the 5 entities that have been involved in a
lawsuit for the last 10 years, over the use of geothermal water.

A draft FeasibilitY Study has been completed by Jay Harrington of the Town of Pagosa Springs.
Excerpts of the study are attached.