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<br /> <br />= 12545B <br /> <br />Mine. Also, the acquisition of Pueblo's Columbine Ditch could add additional <br />yield, but is not involved in the first phase of this project which is the subject of <br />the present application. <br /> <br />A copy of a detailed engineering analysis of the project yield prepared by Helton <br />& Williamsen is attached hereto as Exhibit J. This report also describes the <br />various sources and components of the project facilities. In summary, this report <br />indicates that with a 3000 acre feet Eagle Park Reservoir, a 2500 acre feet firm <br />annual yield can be developed. This is phase one of the project. With the addition <br />of the 3100 acre feet Robinson Lake, a combined firm annual yield of 5000 acre <br />feet can be developed if the project is managed for use ip dry years. This would be <br />phase two of the project and is beyond the scope of the present loan application. <br /> <br />It should be noted that the loan applicants wiII only be purchasing firm annual <br />yield of the project as it is developed. <br /> <br />Project Benefits <br /> <br />The Eagle Park Reservoir Project wiII provide a new source of water supply to <br />users in the Eagle River basin by converting (through reclamation) an existing <br />tailings pond into a fresh water reservoir. As the storage facility already exists in a <br />heavily impacted area, there are no adverse environmental impacts normally <br />associated with the construction of a new reservoir. Moreover, many of the <br />interceptors and other facilities that would divert fresh water into this reservoir <br />already exist. Those few that do not would all be located on Cyprus-Climax land. <br /> <br />Most importantly, since Eagle Park Reservoir is located in the headwaters of the <br />Eagle River, it would directly augment the downstream diversions of the <br />Authority, Consolidated District, Vail Associates, and those future users <br />represented by Eagle County. In the process, project water will enhance instream <br />flows in the upper reaches of the Eagle River, and provide dilution water in the <br />vicinity of the Gilman Mine. Therefore, the project benefits two of the principal <br />objectives of the Colorado Water Conservation Board; namely, instream flow <br />protection and the responsible development of Colorado's compact entitlement. <br /> <br />Finally, it should be noted that the systems of the Authority, the Consolidated <br />District and Vail Associates are all interconnected. Therefore, water delivered <br />from the Eagle Park Reservoir can be rediverted at the confluence of the Eagle <br />River and Gore Creek and used with the Town of Vail and at the Vail Ski Area. <br />This system will provide additional protection to and enhancement of the stream <br />flows on Gore Creek. <br /> <br />6 <br />