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<br />Union Ditch Company <br />March 16-17,2004 <br /> <br />Agenda Item 25f <br /> <br />recharge structures have been identified. In addition, several reaches of the canal can and will <br />likely be used as recharge structures. It is estimated that UDC will need 50 AF of <br />developed recharge storage capacity to offset the depletions from 40 wells. The Augmentation <br />Plan includes several replacement sources in addition to the recharge structures, including <br />Company owned shares in the Union Reservoir, retiming wells, by-passed senior water rights, <br />leased water rights, and excess augmentation credits from other augmentation plans. <br /> <br />UDC, with the assistance of Agua Engineering, Inc., also recently completed a technical study of <br />recharge opportunities titled "Final Report - Union Ditch Company, Recharge Project Potential." <br />The purpose of this study was to identify and evaluate potential recharge sites and structures, as <br />well as to recommend the methodologies to be used in the management and administration of the <br />recharge project. <br /> <br />Feasibility Studies <br /> <br />Aqua Engineering, Inc. of Fort Collins has completed the feasibility study in accordance with CWCB <br />guidelines. The study includes an assessment of alternatives to provide replacement water for the <br />augmentation of tributary ground water wells. <br /> <br />Union Ditch ComDanv <br /> <br />The UDC is a mutual ditch company and a non-profit corporation registered in the State of <br />Colorado. The UDC was incorporated on April 1 , 1874. There are 250 shares of UDC stock held <br />by 57 users. Currently, all shares are agricultural. UDC has the power to set annual assessments <br />to be paid by the shareholders, the power to cut off water deliveries to shareholders that fail to pay <br />their assessments, and the power to offer stock for sale to pay back assessments. <br /> <br />Water RiQhts <br /> <br />The primary source of water for the Union Ditch Company is direct flow water rights out of the South <br />Platte River. In addition, Union also has an absolute storage right in the Union Reservoir and a <br />right to seepage through the Union FDR (feeder) NO.1. The direct flow water rights diverted at the <br />Union Ditch headgate consist of two rights with appropriation dates of 1874 and 1881, totaling <br />184.03 cis. State Engineer's records indicate that the historical average annual diversions (1950 <br />through 2002) are 27,067 acre-feet. The Union FDR NO.1 water right has an appropriation date of <br />1893 for a total decreed amount of 20 cis. State Engineer's records indicate that the historical <br />average annual seepage to the Union Ditch (1950 through 2002) is 1,860 acre-feet. UDC currently <br />owns 5.75 shares of 250 total shares of stock in the Union Reservoir. The Union Reservoir has <br />two absolute storage rights decreed to it with appropriation dates of 1902 and 1973, for a total <br />decreed amount of 19,098 acre-feet. <br /> <br />The Union Ditch Company also filed for an application for water rights in December 2003 (Case No. <br />03 CW 404). Water that is available through this new junior appropriation, and any other additional <br />water sources that can be used for recharge, are expected to serve as the water source for the <br />recharge project. Water will be delivered through the ditch and into the recharge ponds where <br />seepage will occur through both the canal itself and recharge ponds. The water recharged to the <br />aquifer will eventually return to the river, in a time lagged manner, where it will be used to augment <br />stream depletions. <br /> <br />Page 2 of 7 <br />