PROJ01903 ‎(2)‎

• Contract/PO #: C150162
• Contractor Name: Johnson and Edwards Ditch Company
• Contract Type: Loan
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

Attachment C

[Part B No.5] As noted in Attachment A, the purpose of the project is to develop
augmentation water sources to cover depletions due to operation of irrigation wells.
Funding is sought to:
1). Develop recharge/reservoir pond sites.- one of the proposed sites will be
exclusively a recharge pond. Water delivered to the other site can be stored and
released to return to the river, in addition to groundwater recharge at the site.
2). Construct a recharge well within 100 feet of a live channel of the South Platte
along with a pipeline to deliver water from the recharge well to the nearest point
of the Johnson & Edwards canal.
3). Purchase one share of Jackson Lake reservoir water. A Jackson Lake share
has been made available to Johnson & Edwards pending arrangement of
financing.

Johnson & Edwards shareholders are in dire need of additional augmentation water
sources. Being a meadow right, our surface diversion right under priority 5 expires on
midnight, July 9th each year. Our surface diversion right under priority 29 is commonly
out of priority for at least part of the irrigation season. During the 2003 season, we were
llhable to pump during much of July and August. We had hoped that a temporary supply
plan filed by Groundwater Appropriators of the South Platte (GASP) would enable us to
pump, but the plan did not succeed.

We are working with owners of reservoir shares that are willing to enter into a ten-year
term lease agreement as a partial source of the augmentation water needed. We feel
that in order to have long-term secure supplies (and to satisfy reviewers of our plan of
augmentation, additional water sources that are entirely under control of Johnson &
Edwards is vital.

The bulk of funding for project payments will come from augmentation water
assessments that will be in addition to operational assessments we have had in the past.
~n previous years, we have all made payments to GASP for augmentation water,
however it is fairty evident after the 2003 season that GASP can no longer perform this
function. Hence the signifiCant increase in revenues that Johnson & Edwar~ wilt need