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e STATE OFtOLORADO . ~ Colorado Water Conservation Board Department of Natural Resources 721 Centennial Building 131 3 Sherman Street Denver, Colorado 80203 Phone: (303) 866-3441 FAX: (303) 866-4474 Roy Romer Governor James S. Lochhead Executive Direclor, DNR Daries C. Lile, PE. Director, CWCB March 6, 1997 Ms. Amelia Whiting Moses, Wittemeyer, Harrison and Woodruff P.O. Box 1440 Boulder, CO 80302 Re: LA WMA Loan Request Dear Mely: From our recent telephone discussions, it is my understanding that the Lower Arkansas Water Management Association wishes to apply to the Colorado Water Conservation Board for funding in order to acquire additional water rights for its augmentation program on the Arkansas River and that LA WMA would like to present its additional funding request to the Board this month. It is also my understanding that the cost of the water rights to be acquired may be in the neighborhood of$3.0 million and that LA WMA will be requesting the release of the funds currently in the escrow account as well as approximately $2.0 million in a new loan or loans. As you know, the Board meeting is only two weeks from now and a request of this magnitude will require a significant amount of information in order for the CWCB staff to be able to prepare a recommendation to the Board. The analysis and discussion which we would present to the Board would include both the proposed water rights acquisition as well as the entire LA WMA augmentation program to date and the cumulative impact of the program. I understand that the firm of Helton & Williamsen will prepare all necessary feasibility analyses for the loan request. I am listing below the analyses which we believe are necessary in order for the CWCB staff to review the loan request and to make a recommendation to the Board. (This raises the question as to how these analyses will relate to the January 28, 1997 proposal submitted by Helton & Williamsen for an additional feasibility study. To the extent that these analyses result in a change in the scope of work in the January 28th proposal, we should discuss the changes with Helton & Williamsen in light of the $65,000 budget for the study.)