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<br />STATE OF COLORADO <br /> <br />Colorado Water Conservation Board <br /> <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3441 <br />FAX: (303) 866-4474 <br />www.cwcb.state.co.us <br /> <br /> <br />FROM: <br /> <br />COlora. dO. Water conse. rvation Bo~rd M ers <br /> <br />Tim Feehan, P.E. Project M~npge <br />Mike Serlet, P.E., Chief ~/.J <br />Water Supply Planning ~rm Finance Section <br /> <br />Bill Ritter Jr. <br />Governor <br /> <br />TO: <br /> <br />Harris D. Sherman <br />DNR Executive <br />Director <br /> <br />Jennifer L. Gimbel <br />CWCB Director <br /> <br />DATE: <br /> <br />January 14, 2008 (UPDATED January 28,2008) <br /> <br />Dan McAuliffe <br />CWCB Deputy <br />Director <br /> <br />SUBJECT: Agenda Item 11 c, January 22-23 Board Meeting <br />Water Supply Planning and Finance Section - New Loans <br />Lower Arkansas Water Management Association <br />Keesee Water Rights Acquisition <br /> <br />Introduction <br /> <br />The Lower Arkansas Water Management Association (LAWMA), is seeking a new loan for <br />$2,470,000 to purchase the remaining ~ of the Keesee Ditch water rights (Keesee water rights), for <br />use as additional replacement water source to offset depletions from well pumping. The total cost of <br />the remaining % Keesee Ditch water rights purchase is estimated at $3,650,000. LAWMA initially <br />purchased % of the Keesee Ditch water rights with a loan from the CWCB in 2004. <br /> <br />LAWMA has the opportunity to purchase the remaining Keesee water rights, which will strengthen <br />their ability to replace water in dry years, given that Keesee direct flow rights are very senior water <br />rights and can be stored in John Martin Reservoir's Offset Account. Additionally, the Keesee Ditch <br />has an Article II Storage Account in John Martin Reservoir, which allows for an additional source of <br />replacement water that can be carried over from wet years to dry years. These two factors will <br />greatly enhance LAWMA's ability to meet its Arkansas River Compact obligations. LAWMA has put <br />together a comprehensive financial program to repay all of the CWCB existing loans and the new <br />loan. <br /> <br />Backaround <br /> <br />LAWMA was formed in 1973 for the primary purpose of replacing depletions from its members' well <br />pumping, and other structures requiring augmentation, within the lower portion of the Arkansas River <br />Basin, in order to comply with Colorado law and the Arkansas River Compact. LAWMA currently <br />has 226 shareholder members. LAWMA's Bylaws provide that 1 share of preferred stock is <br />equivalent to 2.3 shares of common stock. There are currently 18,934 shares of LAWMA common <br />stock outstanding and 150 shares of preferred stock outstanding. For its 2007 Arkansas River Use <br />Rules replacement plan, LAWMA included 485 wells, of which 410 are located in the Arkansas <br />River's mainstem area and 75 are located in tributary areas. Further broken-down by use, there are <br />441 irrigation wells, 31 municipal wells and 13 commercial wells. LAWMA's primary service area is <br />the Arkansas River mainstem below John Martin Reservoir, although it has members in the Big <br /> <br />Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection <br />Water Supply Protection. Conservation and Drought Planning <br />