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<br />e <br /> <br />e <br /> <br />e <br /> <br />.~ <br />, ;;. <br /> <br />STATE OF COLORADO <br /> <br />. <br /> <br />Colorado \l\/ater Conservation Board <br /> <br />Department of Natural Resources <br /> <br />721 Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br /> <br />Roy Romer <br />Governor <br /> <br />MEMORANDUM <br /> <br />J~mes s. Lochhe~d <br />Execulive Director, DNR <br /> <br />D~ries C. Lile, PE. <br />Direclor, (WeB <br /> <br />TO: <br />FROM: <br /> <br />Colorado Water co~vation Board Members <br /> <br />Bill Green, p.E.13 <br />Project Planning and Construction <br /> <br />DA TE: <br />SUBJElCT: <br /> <br />March 3, 1998 <br /> <br />Added Agenda Item 23a., March 10-11, 1998 Board Meeting - Water <br />Project Construction Loan Program - Amended Authorizations - <br />Ea~le Park Reservoir Co. - Amendment to Existin~ Authorization <br /> <br />Introduction <br />The Board will be asked to approve an amendment to HB 98-1189, this year's legislation, <br />to revise a portion of the authorization for the Eagle Park Reservoir loan in last year's <br />legislation. <br /> <br />Back2round <br />A total of $8.0 million in financing was authorized in SB 96-153 and in SB 97-008 <br />to the Eagle Park Reservoir Company for the acquisition of Eagle Park Reservoir from <br />Climax Molybdenum Company. The Eagle Park Reservoir Company is currently <br />negotiating a purchase agreement with Climax Molybdenum and hopes to conclude those <br />negotiations in the next three or four months. <br /> <br />Discussion <br />SB 97-008 authorized up to $4.0 million of the Eagle Park financing from the Perpetual <br />Base Account of the Severance Tax Trust Fund. (The rest of the financing will come from <br />the Construction Fund.) The problem is that the wording in SB 97-008 also ties the <br />Severance Tax financing to the fiscal year which ends on June 30, 1998. <br /> <br />While the Eagle Park Reservoir Company is hopeful that it will have concluded an <br />agreement with Climax Molybdenum by that time, there are a number of conditions in the <br />purchase agreement which could result in a closing date after June 30th. In short, we may <br />not be able to meet a June 30, 1998 deadline for disbursing the money and may risk <br />losing the $4.0 million in funding unless the wording in SB 97-008 is changed. <br /> <br />A copy of a letter from Mike Browning of Porzak Browning & Johnson, the attorneys for <br />the Eagle Park Reservoir Company, requesting the amendment is attached, <br /> <br />Recommendation <br />Staff recommends that Section 16. of SB 97-008 be amended to read as follows: <br /> <br />Section 16. Appropriation. In addition to any other appropriation, there is <br />ht::reby appropriated, out of any moneys in the severance tax trust fund perpetual <br />base account pursuant to section 30-29-109 (1) (a) (I), Colorado Revised Statutes, to <br />the department of natural resources, for allocation to the water conservation board, <br />