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<br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 8664474 <br />www.cwcb.state.co.us <br /> <br /> <br />MEMORANDUM <br />(Revised May 31,2005) <br /> <br />Bill Owens <br />Governor <br /> <br />FROM: <br /> <br />Colorado Water Conservation Board Members <br /> <br />Kirk Russell, P.E. ~"t-- I (' <br />Mike Serlet, P.E., Chief~...J <br />Water Supply Planning a~l Finance Section <br /> <br />Russell George <br />Executive Director <br /> <br />TO: <br /> <br />Rod Kuharich <br />CWCB Director <br /> <br />Dan McAuliffe <br />Deputy Director <br /> <br />DATE: May 16, 2005 <br /> <br />SUBJECT: Agenda Item 15b, May 24-25,2005 Board Meeting <br />Water Supply Planning and Finance Section - New Project Loans <br />Sheek Ditch Company - Pipeline Construction Project <br /> <br />Introduction <br /> <br />The Sheek Ditch Company (Company) is applying for an initial loan in the amount of $427,200 from <br />CWCB to install approximately 3.8 miles of new pipeline in the existing ditch corridor for the Sheek Ditch <br />Pipeline Project (Project). The Project will increase ditch efficiency and reduce salinity impacts in the <br />Colorado River. The total Project cost, including engineering and construction, is estimated at $427,200. <br />The Company is eligible to receive in-kind engineering services and a grant from NRCS for 75 percent of <br />the final construction cost (construction cost estimate is $356,000), to be disbursed to the Company upon <br />completion of the Project. The remaining project cost will become a 3D-year CWCB loan, not to exceed <br />$160,200. See attached Project Data Sheet. <br /> <br />Backaround <br /> <br />The Company is located in Montezuma County near the Town of Mancos, approximately 30 miles west <br />of Durango. The Company manages the Sheek Ditch (Ditch) for the benefit of all 17 members as an <br />association of owners with water rights and lands served by the Ditch. The 19,000-foot Ditch is a <br />carriage ditch with a total flow of 9.3 cfs, and delivers irrigation water from the Mancos River to the 520- <br />acre service area via diversion structure #565. The Project will provide an improved water delivery <br />system to all members. The water is primarily used for cattle ranching and to grow hay. <br /> <br />The Mancos Valley was added to the USDAlNRCS Colorado River Basin (CRB) Salinity Control <br />Program. NRCS is administering the Program and providing construction cost sharing and technical <br />assistance using the USDA's Environmental Quality Incentives Program (EQIP). Timothy Ouellette of <br />the NRCS, Cortez Service Center is managing the planning, design, and field engineering services for <br />this Project. In addition, the Mancos Conservation District has provided local assistance by providing <br />informational brochures, funding coordination, project management and legal counsel for this project <br /> <br />Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation and Drought Planning <br />