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.. HORSE CREEK WATER USERS ASSOCIATION Donald v: Johns, President c/o High Mesa Farm 4689 County Road 2A Rush, Colorado 80833 RECEIVED FEB 1 3 1997 Colorado Water Conservation Board February _, 1997 William P. Stanton, P.E. Chief, Project Planning and Construction Section Colorado Water Conservation Board 721 Centennial Building 1313 Sherman Street Denver, Colorado 80203 RE: Horse Creek Water Users Association - Construction Fund Bill Dear Mr. Stanton: Thank you for your letter ofFebruary'7, 1997, confirming that the CWCB has decided to recommend that a loan to the Horse Creek Water Users Association be included in the Construction Fund Bill. We are delighted with the attention that the CWCB has given to our request and with its favorable action. We look forward to working with the CWCB staff and others. I do want to clarify some of the points that you made in your letter, or request further information. First, as we have discussed with John Van Sciver, HCWUA plans to spend $500,000 of the loan amount to purchase -w'ater rights from the Box Springs Canal and Reservoir Company. The remaining $325,000 would be used to settle with Reid Cattle Company and with Smith Cattle, Inc., and to pay legal and engineering expenses. While much of this expense does relate to our negotiations with Box Springs and the State in putting the settlement together, or to expenses that we face in the future to complete this matter, including adjudication of an augmentation plan, we understand that we also can use the funds to pay certain unpaid legal and engineering expenses that pre-date the settlement negotiations. Your letter also set forth certain conditions: a. The bill must be approved by the General Assembly and signed by the Governor. We understand this condition, and HCWUA wants to provide any assistance that we can in getting this bill passed. Please let me know what help we can provide in drafting, testifying, talking to individual members or otherwise.