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<br />Union Ditch Company <br />March 16-17,2004 <br /> <br />Agenda Item 25f <br /> <br />Proiect Description <br /> <br />The purpose of this project is to develop a UDC recharge project, which is expected to provide <br />replacement water for the augmentation of 40 tributary ground water wells. This will require that <br />UDC develop 50 AF of developed storage capacity for replacement water. Three alternatives to <br />providing for well augmentation water were considered: <br /> <br />1. The no-action alternative. <br />2. Purchase, acquire, and/or make use of existing water rights or irrigated land dry-up options. <br />3. Develop a recharge project including the acquisition of a new junior water right. <br /> <br />Alternative 1, No-action alterative - was not selected because UDC chooses to develop their own <br />augmentation plan to provide replacement water to shareholders that make use of tributary wells. If <br />UDC were not to develop an augmentation plan, well owners would have to: (1) discontinue well <br />usage, (2) join other existing augmentation plans, or (3) develop individual augmentation plans. <br /> <br />Alternative 2, Purchase, acquire, and/or make use of existing water rights or irrigated land <br />dry-up options - was not exclusively selected because the cost of acquiring or purchasing <br />alternative water sources is particularly high in the South Platte River basin. UDC has decided to <br />make use of water rights that they currently own (5.75 shares of Union Reservoir), has leased some <br />water in the short-term (for the substitute water supply plan), and has applied for a change in use of <br />the Union Ditch shares with the option to temporarily dry-up irrigated land. <br /> <br />Alternative 3, Develop a recharge project including the acquisition of a new junior water right <br />- was selected, since it is considered to be the least costly approach to developing augmentation <br />water. This alternative was also viewed as an added value to the Company, which benefits the <br />shareholders in general, and the well users in particular. <br /> <br />Selected Alternative 3, Develop a recharge project including the acquisition of a new junior <br />water right involves the development of several recharge structures in the Union Ditch service <br />area. Of the ten potential recharge locations, three have been identified as priority sites and are <br />listed as follows with the top priority site listed first: <br /> <br />1. Mecure #1 Site <br />2. R. Alles Site <br />3. J. Alles Site <br /> <br />UDC plans to initially develop the Mecure #1 site in 2004 to provide 20 AF of the required 50 AF of <br />storage. With the operational experience gained from the site, the final site selections for the other <br />two recharge structures will be made, including possible enlargement of the Mecure #1 Site. These <br />would be completed in 2005 providing the additional 30 AF of storage. UDC feels that a project of <br />this type requires some flexibility to respond to experience gained through initial operations. The <br />ponds will be filled by water that is diverted from the Union Ditch, either directly through new or <br />existing headgates by gravity flow; or water may be pumped directly from the ditch. Construction <br />will include pond excavation, flow measurement structures (flumes on feeder canals or meters for <br />pumps), headgate structures for feeder canals, and monitoring and reporting measurement <br />equipment (SCADA). The ponds will be relatively shallow in depth (< 10 feet). <br /> <br />Page 3 of 7 <br />