C150245 Feasibility Study

• Contract/PO #: C150245
• Contractor Name: Lower Poudre Augmentation Company
• Contract Type: Loan
• Water District: 0
• County: Larimer
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

Applegate RECEIVED
uv Group, tome. AN i i 200
- .Colorado Water - -
January 9, 2007 Conservation Board
Mr. Bruce Johnson
Colorado Water Conservation Board
1580 Logan Street Suite 750
Denver, CO 80203
Re: Appendix D - Box Elder Ditch Share Estimation of Value
Dear Mr. Johnson:
The Lower Poudre Augmentation Company (LPAC) has a pending agreement to purchase 4.5
shares of the Box Elder Ditch from Flatiron Companies ' (Flatiron). The Colorado Water
Conservation Board (CWCB) loan application requires an estimation of value to determine if the
price falls into the accepted range of current market values. The purchase price for the Box
Elder Ditch shares in the purchase agreement is $200,000 per share.
Applegate Group, Inc. previously completed an evaluation of the historic consumptive use for
4.5 Box Elder Ditch shares in a letter dated October 27;- 2006 (Appendix Q. The letter
summarized the historic consumptive use credit for the 4.5 Box Elder Ditch shares. The historic
consumptive use credit is . the volume of water ' per share, which will be available for
augmentation after the water court process. The volume of historic use credit is also the
common method to assign a value to a water right. The following table summarizes the historic
consumptive use credit per share and the estimated value per acre -foot of historic consumptive
use credit:
A B C D
Historic Historic Value
*column (C) shows the HCU Credit for the number ofshares listed in column (B)
The Box Elder Ditch is a very senior water right with a firm yield during dry years. This is a
requirement of the State Engineer's Office fora water right used in a plan for augmentation. In
1499 West 120th Avenue., Suite 200 - [phone] * Fax [phone]
Denver, Colorado 80234 -2759 ww .applegategroup.corn
Per
Consumptive
Acre -Foot of -
Property
Box Elder Ditch shares to be pure based
Consumptive
Use Per
Historic
by LPAC from Flatiron
Use Credit*
Share
Consumptive
(acre-feet)
acre -feet
Use Credit
Weiders onFann
I
41.7
41.7
$4,800'
Three Farms (East Rigden
Morrison, and Baumgartner
3.5
135.4
38.8
$5,200
Farms)
*column (C) shows the HCU Credit for the number ofshares listed in column (B)
The Box Elder Ditch is a very senior water right with a firm yield during dry years. This is a
requirement of the State Engineer's Office fora water right used in a plan for augmentation. In
1499 West 120th Avenue., Suite 200 - [phone] * Fax [phone]
Denver, Colorado 80234 -2759 ww .applegategroup.corn