PROJ01963 ‎(2)‎

• Contract/PO #: C150249
• Contractor Name: Black Dike Pipeline Company
• Contract Type: Loan
• Water District: 0
• County: Montezuma
• Loan Projects - Doc Type: Approval Letter

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM
(REVISED MAY 23, 2007)

Bill Ritter, Jr.
Governor

Harris D. Sherman
Executive Director

FROM:

Colorado Water Conservation Board Members
.,~
Kirk Russell, P.E. ~ C/ff /'.
Mike Serlet, P.E., Chief -P'l'~
Water Supply Planning and Finance Section

Rod Kuharich
CWCB Director

TO:

Dan McAuliffe
Deputy Director

DATE: May 14, 2007 (Revised May 23,2007)

SUBJECT: Agenda Item 3a, May 22-23, 2007 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Black Dike Pipeline Company - Ditch Pipeline Project

Introduction

The Black Dike Pipeline Company (Company) is applying for an initial loan in the amount of
$598,000 from CWCB to install approximately four (4) miles of new pipeline in the existing ditch
corridor for the Black Dike Ditch Pipeline Project (Project). The Project will increase ditch efficiency
and reduce salinity impacts in the Colorado River. The total Project cost, including engineering and
construction, is estimated at $598,000. The Company is eligible to receive a $391,000 grant from
the USDA, Natural Resources Conservation Services (NRCS) for engineering and construction
costs, which equates to approximately 65% of the cost estimate. This NRCS grant will be
disbursed to the Company upon completion of the Project. The remaining project cost will become
a 30-year CWCB loan, not to exceed $207,000. See attached Project Data Sheet.

Backaround

The Company is located in Cortez County west of the Town of Cortez. The Company manages
the Black Dike Ditch (Ditch) for the benefit of the nine (9) members as an association of owners
with water rights and lands served by the Ditch. The 20,000-foot Ditch is a carriage ditch with a
total flow of 7.75 cfs, and delivers irrigation water from the McElmo Creek to the 155.-acre
service area via diversion structure #509 in Water District 32. The Project will provide an
improved water delivery system to all members. The water is primarily used to grow hay for
cattle ranching and to irrigate orchard lands.

NRCS administers the Colorado River Basin (CRB) Salinity Control Program and provides
construction cost sharing and technical assistance using the USDA's Environmental Quality
Incentives Program (EQIP). Cortez Service Center is managing the grant funding for planning,
design, and construction for this Project. Qualifying agriculture producers that install "more
efficient irrigation systems", which reduce salt loadings may be eligible for funding by the EQIP.

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning