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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />IV. NEED FOR THE PROJECT <br /> <br />In 2003, LLRC filed an application in Division 1 water court to pursue a permanent plan for <br />augmentation for irrigation wells that irrigate lands served by the Lower Latham Ditch. The project <br />is necessary in order to allow for the continued operation of wells within the Lower Latham system <br />and provide the supplemental irrigation water supply necessary for the production of crops within the <br />system, particularly during extended drought periods. A total of 40 wells included within the project <br />were previously augmented by Groundwater Appropriators of the South Platte (GASP). The <br />remaining 45 wells which are included within the GMSCCWCD plan for augmentation. Wells can <br />no longer operate under GASP and the GMSCCWCD plan for augmentation currently provides for <br />severely curtailed pumping. The subject project is necessary to allow uncurtailed pumping of the <br />wells within the Lower Latham system during all years, including extended drought periods like the <br />one this region has been experiencing for the past several years. By and large, the well owners in <br />Latham's plan are farmers who rely solely on the crops they produce for their livelihood. If they are <br />unable to pump their wells without curtailment at critical times during the growing season, at a <br />minimum, it is likely that crop yields will be reduced, and in certain situations, even eliminated <br />altogether. <br /> <br />V. AUGMENTATION REPLACEMENT SOURCES <br /> <br />The 2007 Lower Latham SWSP provides augmentation water from the following sources: 1) <br />consumptive use credits from 16.5 shares in the Lower Latham Ditch Company; 2) consumptive use <br />credits from 13.5 shares in the Union Ditch Company; 3) consumptive use credits from 15.19 shares <br />in the Greeley Irrigation Company; and 4) fully consumable water available from the City of <br />Longmont (Longmont) pursuant to an exchange agreement. A description of each of these sources <br />and the replacement credit is provided within the 2007 SWSP, which is included in Appendix C. The <br />water rights which are subject to this loan application are excluded from the 2007 SWSP, but will be <br />included beginning in 2008. <br /> <br />The exchange of water agreement with Longmont allows LLRC to exchange Colorado-Big <br />Thompson (C-BT) water to Longmont in exchange for fully consumable water. The current <br />agreement will expire after March 2008. The exchange agreement allows LLRC to exchange water <br /> <br />I <br />I <br /> <br />~ 3 - <br />