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Bull Creek Reservoir, Canal & Power Company <br />January 23-24, 2007 (REVISED January 29, 2007) <br />Page 2 of 5 <br />5 <br />Agenda Item 9b <br />restriction placed on the reservoir due to dam safety concerns in 1984. The abandonment list also <br />included portions of the decreed storage rights in Reservoirs No. 1 and No. 2. This was due to the <br />fact that both of thes nt of Reservoi�r Not 4 Il�retu n the Co pany's y eld to or c eevelster storage <br />right. The enlargeme <br />In October 2003, the Company entered into an agreement with the SEO to restore the capacity of <br />the three reservoirs. Several amendments to the agreement have occurred over the last 3 years and <br />the Company will file an additional amendment to request that the Company be allowed time to <br />repair the Reservoir No. 4; return it to its original capacity and remove it from the abandonment list. <br />In addition, the Company has filed an application in Case No. 06CW261, Division No. 5, for <br />adjudication of an additional 115 ac-ft of storage in Reservoir No. 4. It is our understanding that the <br />requests will likely be granted by the Division 5 Water Court. <br />Reservoir No. 4 is located on the west branch of Bull Creek above Bull Creek Reservoir No. 3 and <br />Big Beaver Reservoir. The Reservoir is located within the Grand Mesa National Forest. The SEO <br />placed the fill restriction on the reservoir due to a substandard dam crest width and a high phreatic <br />water level in the dam, which may create an unstable embankment and possible failure. In a <br />subsequent inspection, the SEO indicated, that without the needed repairs, a breach order is likely in <br />the next two years. <br />Feasibilitv Studv <br />Paul Currier, PE, Water Resource Consultants, LLC of Rifle, has completed the loan feasibility study <br />in accordance with CWCB guidelines. The study includes: a compilation of the stipulations and <br />agreements, preliminary design drawings, cost estimates, and financial analysis. The cost estimate <br />has been prepared by Jeff Allen, PE and Dana Miller, PE of E&C Services of Buena Vista, Colorado. <br />Garrett Jackson, P.E., Dam Safety Engineer (Division 5) has provided valuable input regarding the <br />corrective actions necessary and has indicated that the concept of the proposed repairs is realistic. <br />The Bull Creek Reservoir Canal & Power CompanY <br />The Company is located in the Town of Mesa, approximately 30 miles east of Grand Junction. The <br />Company provides irrigation water to approximately 800 acres of agricultural land primarily used for <br />cattle ranching. The Company was registered in the State of Colorado in 1895 and is a non-profit <br />corporation in good standing. The Company currently has 19 shareholders and a total of 500 shares <br />of stock. The Company has the power to set members' annual assessments, cut off water deliveries <br />to shareholders that fail to pay assessments, and to sell stock to pay back assessments. <br />On December 9, 2006, the Company held a Shareholders meeting, which was attended by Kirk <br />Russell. Irvin � J areholders oted u mobsly t p oceed with the project and CWCB financ ng. <br />attendees. S <br />Water Riqhts <br />The Bull Creek Reservoirs hold the senior storage rights on Bull Creek and tributaries to Bull Creek. <br />Many of the senior rights on the creek are also owned and used by shareholders of the Company. <br />Other senior water rights of significance are irrigation rights owned by the Grand Valley Irrigation <br />Company on the Co�orado River near Palisade CO. However these senior rights seldom need to <br />place a call during winter and spring snowmelt when the reservoirs fill. The table below shows a <br />summary of existing reservoir capacities, water rights owned by the Company and the potential loss <br />of the rights if corrective action is not taken. <br />