BOARD00152 ‎(2)‎

• Board Meeting Date: 3/13/2007
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Loans - Lower Poudre Augmentation Company - Reservoir and Water Rights Purchase
• Board Meetings - Doc Type: Memo

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ST ATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Ritter, Jr.
Governor

TO:

Colorado Water Conservation Board Members

Bruce Johnson, P.E. ~~. '1;/
Mike Serlet, P.E., Chief ~ 0
Water Supply Planning and inance Section

Dan McAuliffe
Deputy Director

Harris D. Sherman
Executive Director

FROM:

Rod Kuharich
CWCB Director

DATE: March 2, 2007

SUBJECT: Agenda Item 16a, March 12-13,2007 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Lower Poudre Augmentation Company - Reservoir and Water Rights
Purchase

Introduction

The Lower Poudre Augmentation Company (LPAC) is applying for a $3,073,320 loan to acquire
the Timnath Flatiron Reservoir and to acquire 4.5 shares in the Boxelder Ditch Company for the
purpose of providing augmentation water for existing wells. The estimated total cost of the project
is $3,414,800. Please see the attached Project Data Sheet.

Backqround

The LPAC is a non-profit well augmentation company that was incorporated in 2004, by the
New Cache La Poudre Irrigating Company (Irrigating Company) and the Cache La Poudre
Reservoir Company (Reservoir Company), in order to separate the costs and the benefits
accrued for well augmentation projects. LPAC supplies well augmentation coverage for well
owners throughout the Irrigating Company service area in Larimer and Weld Counties, in order
to replace out-of-priority depletions caused by well pumping and usage. The well augmentation
was formerly covered by GASP (Groundwater Appropriators of the South Platte.) Well owners
are not LPAC members but "contract" for coverage through augmentation agreements with
LPAC. There are 88 wells owned by 35 individuals/entities and the augmentation demands are
approximately 3,200 AF.

Substitute Water Supplv Plan (SWSP) - LPAC has provided well augmentation coverage
through a SWSP for 3-4 years, and in December 2006 filed a renewal request for its 2007
SWSP. The plan includes 88 wells (85 irrigation wells and 3 stock wells), and provides for
replacement of out-of-priority stream depletions from well pumping totaling 3,217 AF, from April
2007 through March 2008. The LPAC currently meets its augmentation demands through rental
water from the Water Supply and Storage Company; reservoir water from various sources
recharged through the Greeley NO.2 canal system and recharge ponds; water available from

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning