Laserfiche WebLink
<br />PARCEL. MAURO, HULTIN &SPAANSTRA, P.C. <br /> <br />WILLIAM A. HILLHOUSE II <br /> <br />BHILLHOU@PMHSLAW.COM <br /> <br />ATTORNEYS AT LAW <br />SUITE 3600 <br />1801 CALIFORNIA STREET <br />DENVER, COLORADO 80202-2636 <br />TELEPHONE (303) 292-6400 <br />TELECOPIER (303) 295-3040 <br /> <br />DIRECT DIAL <br />(303) 293-6523 <br /> <br />September 12, 1997 <br /> <br />Linda J. Bassi, Esq. <br />Assistant Attorney General <br />Natural Resources Section <br />1525 Sherman Street, Fifth Floor <br />Denver, Colorado 80203 <br /> <br />RECE\'JEO <br />St.? ,5 1997 <br /> <br />d Water <br />Colora 9 n Board <br />Consel"laUo <br /> <br />Re: Draft of Colorado Water Conservation Board/Horse Creek W ater Users <br />Association Loan Contract <br /> <br />Dear Linda: <br /> <br />Thank you for sending us the draft of the CWCBIHCWUA loan contract, including all of the <br />suggested appendices, on August 8, 1997 . We have reviewed the draft documents and have a <br />number of specific comments to make. However, before getting into the specific comments, it may <br />be helpful for us to explain our understanding of the basic loan arrangement that was negotiated by <br />the parties and approved by the Conservation Board. This should provide a context for our <br />comments. <br /> <br />BACKGROUND: THE NATURE OF THE DEAL <br /> <br />As you likely know, the CWCB loan was put together with the active involvement of Hal <br />Simpson, State Engineer and member of CWCB, and of Jody Grantham, acting as a mediator <br />seeking a settlement ofthe Arkansas Rules litigation, Case No. 95 CW 211. Therefore, I am sending <br />copies of this letter to both ofthem, as well as to John Van Sciver and Jan Illian at the CWCB. <br /> <br />The amount of the loan, $825,000, was suggested by Mr. Simpson, after meeting with two <br />of the members of the HCWUA Board. It was designed to provide HCWUA with sufficient funds <br />to make the settlement payments required under its Settlement Agreement with the State, Box <br />Springs Canal and Reservoir Company and its shareholders, Reid Cattle Company and Smith Cattle, <br />Inc., and also to pay unpaid past, current and future legal and engineering expenses. <br /> <br />Based upon discussions with CWCB staff, it was contemplated that CWCB will disburse the <br />entire $825,000 to HCWUA as a single disbursement, once the loan contract is signed, and that <br />HCWUA can earn interest on these proceeds until the monies are paid over by HCWUA for various <br />