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<br />Implementation Schedule <br /> <br />The following schedule is proposed for implementation of the <br />project: <br /> <br />Task <br />~Complete Final Design <br />2. Start Construction <br />3. Complete Construction <br />4. Project is Operational <br /> <br />Date <br />04/25/03 <br />04/28/03 <br />05/15/03 <br />05/16/03 <br /> <br />Social, Economic, and Physical Impacts <br /> <br />The project will have no significant social impacts. <br /> <br />Although shareholders in the UPBCC will be impacted with <br />increased assessments for construction and loan repayment, the <br />project will have a long term positive economic impact by <br />assuring annual well diversions of approximately 12,000 acre-feet <br />of water for irrigation and as indicated on page 6 under <br />alternative 1, the reverse of this situation is not acceptable to <br />the Company. <br /> <br />The project will have minimal physical impacts once construction <br />is complete. The new dams will span a section of Badger Creek <br />currently used for growing irrigated alfalfa. The ponds will hold <br />water for a limited time and be dry most of the year. Recharge <br />ponds are becoming a very common site in the lower end of the <br />South Platte River. <br /> <br />Permitting <br /> <br />All easements and rights of way have been arranged for. The UPBCC <br />had been in negotiations on access to the land for several years <br />prior to this and held off on any design until said negotiations <br />were successful. <br /> <br />The Company expects to be exempt from 404 permitting. This will <br />be confirmed with the Denver District, Army Corps of Engineers. <br /> <br />Feasibility Study <br />Upper Platte and Beaver <br />Badger Creek Aug Project <br />April 2003 <br /> <br />9 <br />