C150253 Feasibility Study

• Contract/PO #: C150253
• Contractor Name: Lower Latham Reservoir Company
• Contract Type: Loan
• Water District: 64
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

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I. INTRODUCTION

The Lower Latham Reservoir Company (LLRC) operates jointly with the Lower Latham Ditch
Company (LLDC) to service approximately 11,000 acres of irrigated lands within Weld County.
Appendix A contains a copy of the Articles of Incorporation for LLRC and Appendix B contain the
current Bylaws of the LLRC. A number of irrigation wells are utilized within the irrigation service
area to provide supplemental irrigation water supplies to farms owned by stockholders of LLRC and
LLDC. Prior to 2003, the irrigation wells were generally enrolled with the Groundwater
Appropriators of the South Platte (GASP) or the Groundwater Management Subdistrict of Central
Colorado Water Conservancy District (GMSCCWCD). In 2003 LLRC elected to pursue an
independent augmentation plan for a majority of the wells included within the LLRC and LLDC
service area and filed Case No. 2003CW047 in District Court, Water Division 1 for a change of
water rights and approval of plan for augmentation to ensure a means of continued legal operation of
the wells. The wells have operated under State Engineer approved annual substitute water supply
plans (SWSPs) prepared by LLRC since 2003. During this period, the LLRC has diligently pursued
additional water rights acquisitions to support the plan for augmentation. Recently, the LLRC
acquired 6.0 shares of LLDC. In addition, the LLRC has recently implemented instrumentation to
measure and record flow at various locations on the system. The water rights purchased are intended
to supplement the replacement water supplies in the Lower Latham plan for augmentation and the
instrumentation is intended to facilitate the operation of the plan for augmentation and improve the
efficiency of general ditch and reservoir operations. LLRC has acquired bridge loan financing
through a commercial bank loan for the acquisition of the subject water rights and is seeking to
obtain a Colorado Water Conservation Board (CWCB) loan for permanent financing of the 6.0 shares
of LLDC acquired and the instrumentation implementation.

II. PROJECT SPONSOR

The sponsor for this augmentation project is LLRC. The LLRC is a mutual irrigation company and a
non-profit corporation registered in the State of Colorado. There are 48 shareholders who own 156
shares of stock in the LLRC. The LLRC has the power to set annual assessments to be paid by the
shareholders; the power to curtail water deliveries to shareholders that fail to pay their assessments;
and the power to offer stock for sale to pay back assessments. The LLRC articles of incorporation
and by-laws are included in Appendices A and B, respectively.

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