PROJ01956

• Contract/PO #: C150012
• Contractor Name: Model Land and Irrigation Company, The
• Contract Type: Loan
• Water District: 19
• County: Las Animas
• Loan Projects - Doc Type: Approval Letter

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Colorado Water Conservation Board
Department of Natural Resources
1 313 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLORADO

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Bill Owens
Govemor

June 2, 1999

Greg E. Walcher
Executive Director, DNR

Peter H. Evans
Director, eweB

Mr. R. B. Jowell, President
Model Land and Irrigation Company
P.O. Box 57
Model, CO 81059

Re: Emergency Loan Application

Dear Mr. Jowell:

I am pleased to inform you that on May 25, 1999, the Colorado Water Conservation
Board granted conditional approval for a loan from the Emergency Infrastructure Repair
Account of the Construction Fund to the Model Land and Irrigation Company (Company)
in the amount of$335,000 (or for 50 percent of the total project costs, whichever is less)
for 30 years at the 1999 agricultural lending rate of3.75 percent for repairs to the Model
Dam and Reservoir. The Board also authorized the following conditions for final loan
approval:

1. The Company must complete all required feasibility investigations and
analyses. Funding will be contingent upon a fmal determination of feasibility
by the CWCB staff.

2. The Company must provide collateral that is equivalent in value to the
principal amount of the loan and will provide any analyses and appraisals of
the proposed collateral as may be required to allow the Director of the CWCB
to make a fmal determination as to the adequacy of collateral.

3. To the extent possible, the Company will pledge Model Land and Irrigation
Company water rights as all or a portion of the collateral for the loan.

4. Any collateral pledged for the loan shall be free of liens and encumbrances.

5. The Company will attempt to ensure that a CWCB loan would have parity
status with any existing debt of the Company with respect to a pledge of
revenues.