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

Lower Poudre Augmentation Company
March 12-13,2007

Agenda Item 16a

dry-up of irrigated land at the Cornish Plains property; and various other sources, including .
some additional rental of native waters f01 return flows to the Poudre River.

AUQmentation Plan - LPAC has filed a permanent well augmentation plan that is pending in
Division 1 Water Court (Case No. 04CW025). The original plan filed by the Irrigati~g Company
in February 2004 was amended in December 2006, assigning the plan to LPAC. Sources of
water for the plan are direct releases or b~-passes of augmentation water, recharge to the
alluvial aquifer along segments of the Greeley No.2 canal or off-canal recharge sites,
augmentation wells, and other potential s~urces. Also, in December 2006, a change of use
application (Case No. 06CW295) was fileq to convert, 277 shares of the Irrigating Company
(2,500 shares total) and 271.5 shares of Reservoir Company (3,000 shares total) from irrigation
to augmentation. These surface rights ar~ pledged by the well owners in perpetuity, to be used
in the Augmentation Plan. :

Proposed Proiect - LPAC proposes to purchase the Timnath Flatiron Reservoir and 4.5 shares
of Boxelder Ditch, and construct the nece'ssary improvements to utilize the reservoir for
augmentation purposes. The reservoir is!located in Larimer County at the western edge of the
Town of Timnath, in the northeast corner 6t 1-25 and Harmony Road. The reservoir is located
on the east side of 1-25 and the conveyange system begins west of 1-25 at the Boxelder Ditch
and crosses under the highway at the northwest corner of the reservoir. The reservoir has a
storage capacity of 657 AF, with a depth Qf 12-15 feet, but needs additional inlet and outlet
facilities to operate as an augmentation fa~ility. The reservoir area was mined by the current
owner Flatiron Companies for sand and g~avel resources and once mining was complete the pit
was lined with a clay liner. The completed reservoir received State Engineer's Office (SEO)
certification as a lined gravel pit storage f~cility on February 4, 2004. The reservoir .is located .
below grade and therefore is not considered a jurisdictional dam by the SEO. The reservoir
I
would be filled from a lateral off the Boxelder Ditch on the west side of 1-25, and an agreement
(dated January 10, 2005) exists with the Boxelder Ditch Company to allow the use of surplus
ditch capacity to carry additional water from the Cache la Poudre River to the reservoir. The
agreement is assignable. I

The reservoir location is desirable becaus~ of it's location relative to the Irrigating Company,
and the depletions associated with the LPAC Augmentation Plan. The acquisition of the
Boxelder Ditch shares provides the LPACa good senior right with the flexibility to respond
quickly to immediate augmentation needs; Water to fill the reservoir would come from the
various sources available to LPAC througn its augmentation plan - the Boxelder Ditch, Timnath
Reservoir exchanges, water from the Irrigating Company and Reservoir Company change case,
lease and rental water, and a future junior'storage decree from the Timnath Flatiron. Reservoir.

The Irrigating Company originally contract~d to purchase the reservoir and water rights in
September 2005, and has been operating ,with a verbal commitment for contract extension. An
amended purchase agreement is currently in process. Also, in conjunction with the proposed
,
project, LPAC will file concurrent water cO\Jrt applications for:
1. A Change of Use for 4.5 shares of!Boxelder Ditch, from irrigation to augmentation.
2. A Junior Storage Decree and Diversion for Timnath Flatiron Reservoir.

Feasibilitv Studies

LPAC, through their engineer Applegate Group, Inc., has completed the feasibility study in .
accordance with CWCB guidelines. The ~tudy includes an assessment of alternatives to
provide augmentation water for its well users.

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