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CWPDA charges all members an assessment of $250 per well per year plus a charge for depletions ranging from $2.70 to $9.20 per acre-foot per year. The costsof the proposal outlined in this memo, however, will be repaid by the owners of the 16 wells through assessments amounting to $395 per well and $105 per acre-foot of depletion. The cost per acre-foot of water pumped for the 16 wells will be about $109 per year. Staff believes that the financial feasibility of this proposal depends upon the willingness of the owners of the 16 wells to enter into long-term agreements to repay the loan and to , pay the associated costs summarized in Table 1. Most of the well owners are commercial or institutional water users. Recommendation Staff recommends a loan from the Perpetual Base Account of the Severance Tax Trust Fund in the amount of $205,000 to the Colorado Water Protecti ve and Development Association to refinance the purchase of the 87.35 shares in the Bessemer Irrigating Ditch Company. The lending rate will be 5.33 percent and the term of the loan will be for 30 years. As collateral for the loan, CWPDA will pledge revenues from assessments and depletion charges as well as the 87.35 shares in the Bessemer Ditch. Staff fUl1her recommends the following conditions for loan approval: 1. CWPDA will obtain agreements from each of its members to abide by the Rules and Regulations of the State Engineer's Office for groundwater use in the Arkansas Basin as well as an agreement to cease pumping in the event of failure to pay membership dues. 2. CVi/PDA will obtain additional agreements from the mvncrs of the 16 wells who will benefit from this loan to guarantee that they will pay the additional assessments and water costs associated with the purchase of the Bessemer shares. Attachments Cc: Dale Baker, CWPDA Steve Witte, Division 2 Ivan Walter, W.W. Wheeler Linda Bassi, AGO 4 c t-, ":')