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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />ongoing, unquantified costs associated with the inefficiencies throughout the <br />system in addition to rental water fees of approximately $300,000 per year (at <br />current rental rates) to meet the demands of its shareholders. <br /> <br />Alternative 2 <br /> <br />Plans by the Northern Colorado Water Conservancy District (NCWCD) for <br />development of Glade Reservoir north of Fort Collins provide a potential solution <br />to the problem of lack of storage within the system. The Company could <br />purchase shares in the reservoir to use for storage. Current projections by the <br />NCWCD for storage in Glade Reservoir are approximately $1300/ac-ft. This <br />option is attractive for overcoming the problem of lack of storage; however, it <br />does not address the operational efficiency issues of the ditch or the need for <br />groundwater augmentation. Additionally, Glade Reservoir would not be available <br />until 2012 at the earliest so this alternative does not address the Company's <br />immediate needs. <br /> <br />Alternative 3 <br /> <br />This alternative consists of constructing three reservoirs, a pipeline, and a <br />pumping station near Barnesville, Colorado. One reservoir would be used as an <br />equalizer to balance flows in the ditch to help overcome operational <br />inefficiencies. The other two reservoirs would be filled during the winter with <br />water pumped from the ditch through the pipeline. These reservoirs would be <br />used for storage and/or groundwater augmentation. <br /> <br />SELECTED ALTERNATIVE <br /> <br />Alternative 3 was selected because it is the most feasible alternative for meeting <br />the Company's needs for equalizing ditch flows, improving efficiency throughout <br />the distribution system, recharging depleted groundwater supplies, and for <br />providing storage. Specific requirements of the selected alternative are <br />described below: <br /> <br />1. Construct Barnesville Equalizer, an approximately 300 acre-foot equalizer <br />reservoir located directly adjacent to the North Side Extension. This <br />reservoir would serve to stabilize ditch flows downstream and would act as <br />a sedimentation basin for water pumped to storage. The reservoir would <br />include an approximately 5-foot high earthen dam with emergency <br />spillway. <br />2. Construct Cornish Plains Reservoir, an approximately 1600 acre-foot <br />storage/augmentation reservoir. <br />3. Construct Drury Reservoir, an approximately 600 acre-foot <br />storage/augmentation reservoir. <br />4. Construct the Barnesville Diversion Structure to divert water from the ditch <br />to the Barnesville Equalizer. The concrete structure would include a <br /> <br />New Cache Feasibility Study <br /> <br />5 <br />