PROJ01895 ‎(2)‎

• Contract/PO #: C153768
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Contract Documents

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MOSES, WITTEMYER, HARRISON AND WOODRUFF, P. C.

RECEIVED Q 5

JUt 0 8 1998

I.AW OFFICE;S

100i! WALNUT STREET. SUITE: 300

Colorado Wn:er
Conservation 8v~r,"'
CHARLES N. WOODRUF"
lJe4'.1998)

DAVIO I.. HARRISON
..lAMES R. MONTGOMERY
TIMOTHY oJ. BEATON
VERONICA A. SPERLING

BOULOER, COLORAOO 80302

TELEPHONE: [phone]i!
P'AX: (3031....3-8796

COUNSEL
RAPHAEL ..I. MOSEll
..I0HN WITTEMYER

GILBERT Y. MARCHANO, ..IR.
AMELIA S. WHITING
KELLY ..I. CUSTER
KEVIN ..I. K'NNEAR

ADORESS CORRESPONOENCE TO;
P. O. 1I0K 1440
SOULOER, CO 80306-1440

SPECIA1. COUNSEL
HUNTLEY STONE

July 6, 1998

Peter Evans, Acting Director
Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO 8020~

Re: Lower Arkansas Water Manaaement Association
Request for Authorization to Substitute Collateral

Dear Peter:

I am. writing on behalf of the Lower Arkansas Water
Management Association (LAWMA) to request authorization to use loan
funds under Loan Contract No. C153768 to purchase shares in the
Amity Mutual Irrigation Company. Bill Green of your staff and I
have been discussing this request for the last several weeks and a
report prepared by Helton & Williamsen with information that
provides the b~sis for the request was provided to Mr. Green a
couple of weeks: ago.
I
As you may recall, last year, the CWCB approved a $2.3
million loan to LAWMA for the purchase of 3,569 shares of the
Highland Irrigation Company and 354 shares of the Fort Bent Ditch
Company. The CWCB also approved the use of the proceeds of the
sale of the XY:Ranch land (in the amount of $1,087,400) for the
purchases. As of June 1, 1998, LAWMA has closed on the purchase of
3,382 shares of Highland and continues its efforts to buy the
remaining 187 snares.

I .
To date, no Fort Bent shares have been purchased W1th
CWCB funds. The! shares which LAWMA contemplated buying at the time
of its request ~o the CWCB are no longer available. While other
Fort Bent shareQolders have expressed an interest in selling their
shares, LAWMA has also been offered the opportunity to buy 270
shares of stock in the Amity Mutual Ditch Company.
/

Both Fort Bent and Amity shares offer a good, reliable
supply. However, Amity shares have the added benefits of further
diversifying LAWMAts water rights portfolio, increasing storage
reserves (with the addition of the Great Plains Reservoirs), and
providing a source of replacement lower down in the system. In
light of the additional advantages, LAWMA would prefer to buy the
Amity shares over the Fort Bent shares.