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<br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br />www.cwcb.state.co.us <br /> <br /> <br />MEMORANDUM <br />(Updated June 7, 2004) <br /> <br />Bill Owens <br />Governor <br /> <br />FROM: <br /> <br />Colorado Water Conservation Board Members <br /> <br />Bruce Johnson, P.E. ~G~. '/ r <br />Mike Serlet, P.E., Chief J <br />Water Supply Planning a Finance Section <br /> <br />Russell George <br />Executive Director <br /> <br />TO: <br /> <br />Rod Kuharich <br />CWCB Director <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />DATE: <br /> <br />May 14, 2004 <br /> <br />SUBJECT: Agenda Item 21b, May 24-27,2004 Board Meeting <br />Water Supply Planning and Finance Section - New Loans <br />3T Cattle Company - Water Rights Purchase for Groundwater <br />Augmentation <br /> <br />Introduction <br /> <br />The 3T Cattle Company (3TCC) is applying for a $247,500 loan from the Severance Tax Trust Fund <br />Perpetual Base Account, to purchase surface water rights to use for well augmentation. The estimated <br />total cost of the project is $275,000. Please see the attached project summary and map. <br /> <br />Backaround <br /> <br />3T Cattle Company, Inc. (3TCC) owns a cattle feedlot operation in Morgan County about 6 miles <br />southwest of Fort Morgan. The feedlot is located in Sec. 23, T3N, R58W, lying primarily south of <br />the Bijou Canal, and occupies approximately 90 acres of land. In addition, 3TCC owns and leases <br />80 acres of adjacent flood irrigated farm land. The feedlot facility and related equipment are <br />currently leased to Beeftown, LLC who operates the lot on a 5-year lease (approx. 3 years <br />remaining.) The operation feeds varying numbers of cattle throughout the year but has a maximum <br />lot capacity of 10,000 head. In recent years it has been operating below capacity, generally <br />averaging about one-half capacity, but numbers vary throughout the year. The feedlot is current on <br />Morgan County regulations, being "grandfathered" from needing a Special Use Permit unless they <br />propose any major expansions. Also, because of the size, the feedlot is regulated by the Colorado <br />Department of Public Health and Environment as a CAFO (Concentrated Animal Feeding <br />Operation), and is current on all State regulatory requirements. <br /> <br />The water for the feedlot is supplied by one tributary groundwater well (#4-15098F). The well is a <br />junior well and is currently augmented under the Groundwater Appropriators of the South Platte <br />(GASP) plan of operation. However, GASP will cease to cover the augmentation needs of this well <br />on August 22, 2004. The depletions from pumping of the well must be replaced during times <br />when there is a "call" on the river by a senior downstream water right. There are numerous <br /> <br />Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation and Drought Planning <br />