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<br />; tiEL-MONT CONSULTANTS, INC. <br /> <br />ENGINEERING ~ SURVEYING <br />542 Main 51. . P.O. Box 486. Montrose. CO. 81402. (970) 249-2251 . Fax (970) 249-2342 <br /> <br />October 19, 1998 <br /> <br />Jack Yates, Administrator <br />Town of Palisade <br />P.O. Box 128 <br />Palisade, CO 81526-0128 <br /> <br />RE: Cottonwood Creek Water Pipeline <br />DM P-844 <br /> <br />-. <br /> <br />Dear Jack: <br /> <br />This proposal addresses the necessary permitting and design work required to replace the Town's <br />Cottonwood Creek Water Pipeline. Much of the background data for our proposal has been <br />obtained from prior reports by Westwater Engineering (Feasibility Report on Replacement of <br />Cottonwood Creek Pipeline, November 1997), Hydrosphere Resources Consultants (palisade <br />Watershed Yield and Operations Model, September 1997) and High Country Hydro (Report on <br />Hydroelectric Reconnaissance Study, September 1986). We have separated this work effort into <br />what we believe to be the most logical elements. <br /> <br />HYDROELECTRIC POWER GENERATION <br />We understand the Town would like to revisit the possibility of generating power from the <br />available pressure present in the Cottonwood Creek pipeline. It is assumed that the Town would <br />like any hydroelectric considerations made at this time in the design of the Cottonwood Creek <br />pipeline, however, it does not intended to hold up the pipeline project. If generation is <br />determined to be desirable, funding and detailed design will follow. Please let us know if this is <br />not your intention. <br /> <br />On the basis of the 1986 report by High Country Hydro, the payback on the investment for this <br />equipment would be 5 years, which would be very attractive. A major assumption involved the <br />pipeline being able to handle between 300 to 600 psi. After visiting by phone with Rick <br />McKay, it was concluded that the proposal did not proceed 12 years ago because it was <br />determined that the pipeline would also need to be replaced to handle the high pressures required <br />to run the turbines. Now that a new pipeline is planned, it makes sense to reconsider hydropower <br />generation. <br /> <br />We clearly need to address hydropower generation prior to proceeding too far with final design <br />of the pipeline. To accomplish this, we will retain R&M Constructors of Montrose as a <br />hydropower technical resource to assist Del-Mont in evaluating alternatives. R&M has built <br />many small hydro plants and retains an electrical engineer experienced in hydro design. <br />