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<br />Lower Bauer West Lateral, Inc. Agenda Item 4b <br />. September 7,2004 <br />Page 2 of4 <br />and several others in the Mancos Valley. Qualifying agriculture producers that install more efficient <br />irrigation systems, which reduce salt loadings may be eligible for funding by the EQIP. This Project will <br />provide improved water delivery to all members and is primarily used for cattle ranching and to grow <br />hay. <br /> <br />Feasibility Study <br /> <br />Raymond Keith, Mancos Conservation District, has completed the feasibility study in accordance with <br />CWCB guidelines. The study includes an evaluation of alternatives available for ditch rehabilitation. <br />The cost estimate is provided by NRCS. <br /> <br />The Lower Bauer West Lateral. Inc. <br /> <br />The Company is a non-profit corporation registered in the State of Colorado in July 2004 and is in good <br />standing. There are sixteen (16) Company members. The Company is new, however the lateral has <br />been in existence for nearly 80 years. Prior to incorporation, an informal version of the Company <br />managed the Lateral by distributing costs or in-kind services for maintenance and repair needs. Future <br />member assessments will be based on shares owned in the Company. The Company will own, operate <br />and maintain the new pipe system from the measuring device below the splitter box near the Reservoir <br />outlet and will have the responsibility to receive, convey and deliver irrigation water to the members of <br />the Company. The Company does not own shares of water. <br /> <br />Water Riahts <br /> <br />The water in the Reservoir to be conveyed by this Project is owned and managed by the BLWC. The <br />source of the water for the Reservoir is direct flow water rights out of Chicken Creek (a tributary to the <br />Mancos River) plus water stored in Jackson Gulch Reservoir. The water rights diverted at the supply <br />ditch head gate on Chicken Creek consists of a 0.5 cfs adjudicated flow rights for 1073 acre-feet, both <br />dating to 1893. State Engineer's Office records indicate that average annual diversions are 1335 acre- <br />feet (1974-2003). The Company shareholders are entitled to 951 ac-ft of the average. <br /> <br />Proiect Description <br /> <br />Two alternatives were analyzed in the feasibility study: <br />1. The no-action altemative. <br />2. Reconstruct the outlet laterals with PVC pipelines. <br /> <br />Alternative NO.2 was selected since it is considered to be the least costly and most reliable approach <br />to improve the laterals and take advantage of the opportunity for services and funding to be made <br />available from NRCS. The Project will include approximately 15,500 feet of 6-in to 15-in PVC pipeline, <br />metered delivery points to each member, valves, drains and vents. <br /> <br />Total Project cost estimate is: <br /> <br />1. <br />2. <br /> <br />TOTAL <br /> <br />$ 58,500 (30% of Const. Cost) <br />195.000 <br />$253,500 <br /> <br />Planning/Engineering (NRCS In-Kind) <br />Construction . <br /> <br />The engineering design and construction related services are provided by NRCS as in-kind services. <br />NRCS is expected to complete design in late summer 2004. Construction is expected to begin October <br />2004 and to be completed by May 2005. <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $253,500. The loan request is for an initial loan in the <br />maximum amount of $195,000 during construction (77% of estimated total cost), reducing to $48,750 <br />once the project is complete and the Company receives a 75 percent construction grant from NRCS <br />(estimated $146,250). <br />