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<br />Feasibility Study <br />Surface Creek Ditch and Reservoir Company <br /> <br />Dam Rehabilitation <br /> <br />Introduction <br /> <br />The Surface Creek Ditch and Reservoir Company (SCD&RC) is applying for a $265,000 <br />loan from the Colorado Water Conservation Board for permanent financing to rebuild the <br />dam at the Hotel Twin Reservoir. The estimated total cost ofthe project is $363,500. <br /> <br />Proiect Sponsor <br /> <br />The SCD & RC is a Colorado mutual ditch company and non-profit corporation <br />registered in the State of Colorado, in good standing. The Company was incorporated in <br />1886. There are 255 shareholders holding 810 shares of stock. The SCD & RC exists in <br />perpetuity and sets annual assessments that are assigned to the stockholders according to <br />the number of shares they own. It also holds the power to refuse to deliver water to <br />shareholders who fail to pay their assessments, and the power to offer shares for sale to <br />pay for unpaid assessments. The Board of Directors has the authority to incur debt as <br />they deem necessary to carry out the purposes of the company. <br /> <br />Proiect Service Area and Facilities <br /> <br />SCD & RC operates a system of 18 reservoirs on Grand Mesa in Delta County providing <br />agricultural irrigation water to 2384 acres. The service area encompasses an area of <br />about 6000 acres in and around Cedaredge, and water is used primarily for agricultural <br />purposes, with a small amount of municipal ownership (6%). SCD & RC pays <br />assessments to Grand Mesa Water Users (GMWU) based on the amount of water run. <br /> <br />Hotel Twin Dam is a Class 1 Dam with a capacity of 549 acre-ft and a 35 acre surface <br />area. The dam height is 21.0 feet with a crest length of255 feet. In July 1995 the <br />classification of the dam changed from Class 2 to Class 1 because of the potential for <br />significant property damage and loss of life. The dam has a history of seepage problems <br />dating back to the e<;rrly 1990's and several temporary repairs have been undertaken. In <br />1995 repairs were completed to re-line the outlet pipe and extend the service spillway <br />pipe. In September 2000, with the installation of a temporary drain system, the State <br />Engineer's Office (SEO) issued an order restricting the maximum level to 5' below the <br />spillway crest. In May 2001, inspection by the SEO identified signs of structural <br />weakness, principally due to excessive uncontrolled seepage. Following the end of the <br />2001 irrigation season, SCD & RC initiated geo-technical investigations on the dam, and <br />in October 2001 portions ofthe downstream embankment were excavated to remove <br />unsuitable material and investigate seepage areas. In January 2002, as a result of removal <br />of the entire downstream shell of the embankment, the SEO issued a zero storage <br />restriction until all repairs are completed. <br /> <br />4 <br />