C150240 Approval Letter

• Contract/PO #: C150240
• Contractor Name: Bull Creek Reservoir, Canal & Power Company
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Loan Projects - Doc Type: Approval Letter

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STATE OF COLORADO
Colorado Water Conservation Boax�d
Department of Nai�ral Resources
1313 Sherman Sneet, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us
MEMORANDUMI
(REVISED)
TO: Colorado Water Conservation Bo�rd Members
FROM: Kirk Russell, P.E. �l.G�
Mike 5erlet, P.E., Chie f
Water Supply Planning a d Financ,e Section
DATE: January 16, 2007 (REVISED Jan�uary 29, 2007)
SUBJECT: Agenda Item 9b, January 23-24, 2007 Board Meeting
Water Supply Planning and Finance Section — New Loans
Bull Creek Reservoir, Canal & Puwer Company
Reservoir No. 4 Rehabilitation & Enlargement
Introduction
Bill Ritter, Jr.
Governor
Harris D. Sherman
Execurive D'uector
Rod Kuharich
CWCB Direccor
Dan McAuliffe
Deputy Director
The Bull Creek Reservoir, Canal & Power Company (Company) is applying for a loan in the amount
of $1,200,000 from the CWCB to rehabilitate and enl�rge Reservoir No. 4. The Company is located
in Mesa Colorado (near Grand Junction) and has a system of canals and reservoir on the north side
of the Grand Mesa. The project is called the Bull Cre�k Reservoir No. 4 Rehabilitation and
Enlargement Project (Project) and will include the planning, permitting, engineering, and
construction. The totaM Project cost is estimated at $1,333,000. The Project is necessary to comply
with the requirements of a Stipulation and Agreemenk with the State Engineers Office (SEO). The
Stipulation, in part, requires the Company to repair R�servoir No. 4 dam to avoid abandonment of
229 acre-feet of restric;ted storage rights. See attache�d Project Data Sheet.
The Company received approval of a CWCB loan in :3eptember of 2004 for a project which included
the repair of Reservoir No. 4 and the enlargement of IReservoirs No. 1 and No. 2. As the project
proceeded, it became apparent that enlarging Reservoirs 1 and 2 was not cost effective. In 2006, the
Cornpany decided to change the scope of the project and request a new loan for the repair and
enlargement of Resenroir No. 4 and no improvements to 1 and 2. This new approach will return the
Company's reservoir system yield to its historic level.
Backqround
The Company has op�rated five reservoirs (Bull Creek Reservoirs 1 through 5) for nearly 100 years.
The water is used for I�te season irrigation. In 2001 the Division of Water Resources, Division 5 filed
a decennial abandonment list with the water court claiming the abandonment of a portion of the
storage right in Reservoir No. 4. The water right listed for abandonment was a result of a SEO filling
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