PROJ02053

• Contract/PO #: C150201
• Contractor Name: Carpenter and Mitchell Ditch Company
• Contract Type: Loan
• Water District: 71
• 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 May 31,2005)

Bill Owens
Governor

FROM:

Colorado Water ConseNation Board Members

KirkRussell, P.E. ~ lZ-
Mike Serlet, P.E., Chief ~J
Water Supply Planning a~ F~ance Section

Russell George
Executive Director

TO:

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE: May 16, 2005

SUBJECT: Agenda Item 15c, May 24-25,2005 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Carpenter & Mitchell Ditch Company - Pipeline Construction Project

Introduction

The Carpenter and Mitchell Ditch Company (Company) is applying for an initial loan in the amount of
$607,200 from CWCB to install approximately 2.5 miles of new pipeline in the existing ditch corridor for the
Carpenter and Mitchell 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 $607,200. The Company is eligible to receive in-kind engineering services
and a grant from NRCS for 75 percent of the final construction cost (estimated at $506,000), to be
disbursed to the Company upon completion of the Project. The remaining project cost will become a 30-
year CWCB loan, not to exceed $227,700. 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 Carpenter and Mitchell Ditch (Ditch) for the benefit of all five
members as an association of owners with water rights and lands served by the Ditch. The 13,000-foot
Ditch is a carriage ditch with a total flow of 11.25 cfs, and delivers irrigation water from the Chicken
Creek (a tributary of the Mancos River) to the 460-acre service area via diversion structure #508. 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 USDAlNRCS 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
this Project. In addition, the Mancos Conservation District has provided local assistance by providing

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