C150172 Approval letter

• Contract/PO #: C150172
• Contractor Name: Union Ditch Company, The
• Contract Type: Loan
• Water District: 2
• County: Weld
• 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
(Updated March 17,2004)

Bill Owens
Governor

FROM:

Colorado Water Conservation Board Members

Bruce Johnson, P.E. ~Ia~
Mike Serlet, P.E., Chief
Water Supply Planning inance Section

Russell George
Executive Director

TO:

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE: March 5, 2004

SUBJECT: Agenda Item 25f, March 16-17,2004 Board Meeting
Water Supply Planning and Finance Section - New Loans
Union Ditch Company - Well Augmentation/Recharge Project

(Note: Revisions to the March 5, 2004 loan memo are shown in Italics)

Introduction

The Union Ditch Company (UDC) is applying for a $309,500 loan from the Severance Tax Trust Fund
Perpetual Base Account to construct a groundwater recharge project consisting of 3 recharge ponds
and appurtenances to replace out-of-priority irrigation well depletions. The estimated total cost of the
project is $344,000. Please see the attached project summary and map.

Backaround

The UDC is located in Weld County, and operates the Union Ditch for the benefit of the shareholders
by providing direct flow irrigation water to a service area of approximately 5,500-acres. Water is
diverted from the South Platte River east of the Town of Milliken, and is delivered to farms that produce
primarily corn, grain, beets, pasture hay, and vegetables. In addition to the direct flow right for
irrigation, many shareholders also use tributary ground water to supplement crop needs during the
early growing season, during peak periods of water demand, and during dry years. The primary area
for irrigation extends from southeast of the Town of LaSalle easterly to Highway 34, east of Greeley
near the Town of Kersey. The irrigated area within the Union Ditch and the South Branch (a lateral
that is a part of the Union Ditch) occurs almost exclusively in the lower half of the ditch, east of SH
85. The ditch system consists of approximately 15 miles of ditch extending east from the headgate
on the South Platte. UDC typically delivers about 29,000 acre-feet per year through Union Ditch to
its shareholders.

In December 2003, UDC submitted an application for the approval of a permanent augmentation
plan to replace depletions from 40 wells, 32 owned by UDC shareholders and 8 owned by other
users along the Union Ditch. UDC's augmentation application indicates the intent to develop
various recharge structures within the Union Ditch service area. Ten potential locations for

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