C150179 Feasibility Study

• Contract/PO #: C150179
• Contractor Name: Henry Bolen Ditch Company
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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Funding Agreement
DRAFT; May 19, 2004

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This Agreement is made this _day of 2004, between The Henry
Bolen Ditch Company (the Company), a Colorado corporation, and the
undersigned members of the Company, (the Funding Members).

Whereas, The Bylaws of the Company require that "The Company may not
undertake additions and/or improvements to the Ditch without approval in
advance by the Membership. The Membership shall be presented with a written
resolution defining the addition and/or improvement to be voted on and also
presented with a Funding Agreement signed by the Member or Members that
agree to pay for the addition and/or improvement, if approved by the
Membership. The Funding Agreement shall set forth details of the proposed
work, the estimated cost of the work, the method for sharing the cost, including
any overruns that may occur, and the proposed schedule for conduct of the work
by the Company" I and

Whereas, The Natural Resource Conservation Service of the US Department of
Agriculture has included the Ditch in the Mancos Valley Salinity Control Project
which may qualify the Company for funding and other assistance to upgrade the
Ditch and NRCS has tendered a contract to the Company for design of a pipeline
to be installed in the Ditch and offered to co-fund 75% of the cost of the pipeline
(the Contract), and

Whereas, The undersigned Funding Members desire that the Company accept
the NRCS proposal for the pipeline to be installed in the Ditch for delivery of
irrigation water to the Members of the Company and receive the 75% co-funding
offered by NRCS, and

Whereas, The Colorado Water Conservation Board (the eWCB) has committed
to make a loan to the Company to finance the Company's share of cost for the
pipeline to be installed by NRCS, and

Whereas, The Funding Members desire that the Company accept the loan from
the CWCB to finance the Company's share of the pipeline cost.

Now, therefore, in consideration of the mutual covenants contained herein, the
Company and the below signed Funding Members agree as follows:

1. The Additions/Improvements to the Ditch- The Additions/Improvements
proposed for the Ditch are the installation of the pipeline and related
appurtenances and improvements defined in the Contract, which is
attached hereto as Exhibit A and made a part of this Agreement,
including the details of the proposed work, the estimated cost of the