C150207 Approval Letter

• Contract/PO #: C150207
• Contractor Name: East Mancos Highline Ditch Company
• Contract Type: Loan
• Water District: 0
• County: Montezuma
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us _

MEMORANDUM
(REVISED JULY 21, 2005)

Bill Owens
Governor

FROM:

Colorado Water Conservation Board Members
-t2-
Kirk Russell, P.E. '{.b '/ r
Mike Serlet, P.E., Chief~
Water Supply Planning ana Finance Section

Russell George
Executive Director

TO:

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE: July 12, 2005

SUBJECT: Agenda Item 6c, July 18-19, 2005 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
East Mancos Highline Ditch Company - Ditch Pipeline Project

Introduction

The East Mancos Highline Ditch Company (Company) is applying for an initial loan in the amount of
$904,000 from CWCB to install approximately 5.75 miles of new pipeline in the existing ditch corridor for
the East Mancos Highline Ditch Pipeline Project (Project). The Project will increase ditch efficiency and
reduce salinity impacts in the Colorado River. The total Project cost, including engineering and
construction, is estimated at $904,000. The Company is eligible to receive a $445,926 grant from NRCS,
which is 75% of the NRCS construction cost estimate. This is to be disbursed to the Company upon
completion of the Project. The Company is also eligible for in-kind engineering services. The remaining
project cost will become a 30-year CWCB loan, not to exceed $458,074. See attached Project Data
Sheet.

Backaround

The Company is located in Montezuma County near the Town of Mancos, approximately 30 miles west
of Durango. The Company manages the East Highline Ditch (Ditch) for the benefit of the six members
as an association of owners with water rights and lands served by the Ditch. The 30,385-foot Ditch is a
carriage ditch with a total flow of 8.58 cfs, and delivers irrigation water from the East Fork of the
Mancos River to the 700-acreservice area via diversion structure #522. The Project will provide an
improved water delivery system to all members. The water is primarily used for cattle ranching and to
grow hay.

The Mancos Valley was added to the USDA/NRCS Colorado River Basin (CRB) Salinity Control
Program. NRCS is administering the Program and providing construction cost sharing and technical
assistance using the USDA's Environmental Quality Incentives Program (EQIP). Timothy Ouellette of
the NRCS, Cortez Service Center is managing the planning, design, and field engineering services for

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning