11c

• Board Meeting Date: 1/22/2008
• Description: CF Section – Construction Fund and Severance Tax Trust Fund Perpetual Base Account – New Loans - Lower Arkansas Water Management Association ‎(LAWMA)‎ - Keesee Ditch Water rights Acquisition
• Board Meetings - Doc Type: Memo

STATE OF COLORADO
Colorado Water Conservation Soard
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
~tivw.cwcb.state.co.us
Bill Ritter Jr.
TO: Colorado Water Conservation Board Members G°vernor
Harris D. Sherman
FROM: Tim Feehan, P.E. Pro~ect Mana er
1 9
Mike Serlet, P.E., Chief D1vxF,Xecutive
Director
Water Su I Plannin and Finance Section
PP y 9 Jennifer L. Gimbel
cwcB Director

DATE:
January 14, 2008 Dan McAuliffe
cwcB Deputy
Director
SUBJECT: Agenda Item 11c, January 22-23 Board Meeting
Water Supply Planning and Finance Section -New Loans
Lower Arkansas Water Management Association
Keesee Water Rights Acquisition
Introduction
The Lower Arkansas Water Management Association (LAWMA), is seeking a new loan for
$2,470,000 to purchase the remaining '/ of the Keesee Ditch water rights (Keesee water rights), for
use as additional replacement water source to offset depletions from well pumping. The total cost of
the remaining '/ Keesee Ditch water rights purchase is estimated at $3,650,000. LAWMA initially
purchased '/ of the Keesee Ditch water rights with a loan from the CWCB in 2004.
LAWMA has the opportunity to purchase the remaining Keesee water rights, which will strengthen
their ability to replace water in dry years, given that Keesee direct flow rights are very senior water
rights and can be stored in John Martin Reservoir's Offset Account. Additionally, the Keesee Ditch
has an Article II Storage Account in John Martin Reservoir, which allows for an additional source of
replacement water that can be carried over from wet years to dry years. These two factors will
greatly enhance LAWMA's ability to meet its Arkansas River Compact obligations. LAWMA has put
together a comprehensive financial program to repay all of the CWCB existing loans and the new
loan.
Background
LAWMA was formed in 1973 for the primary purpose of replacing depletions from its members' well
pumping, and other structures requiring augmentation, within the lower portion of the Arkansas River
Basin, in order to comply with Colorado law and the Arkansas River Compact. LAWMA currently
has 226 shareholder members. LAWMA's Bylaws provide that 1 share of preferred stock is
equivalent to 2.3 shares of common stock. There are currently 18,934 shares of LAWMA common
stock outstanding and 150 shares of preferred stock outstanding. For its 2007 Arkansas River Use
Rules replacement plan, LAWMA included 485 wells, of which 410 are located in the Arkansas
River's mainstem area and 75 are located in tributary areas. Further broken-down by use, there are
441 irrigation wells, 31 municipal wells and 13 commercial wells. LAWMA's primary service area is
the Arkansas River mainstem below John Martin Reservoir, although it has members in the Big
Flood Protection • Water Supply Planning and Finance • Stream and Lake Protection
Water Supply Protection • Conservation and Drought Planning