C150264 Aproval letter

• Contract/PO #: C150264
• Contractor Name: Lower Latham Reservoir Company
• Contract Type: Loan
• Water District: 0
• County: Weld
• Loan Projects - Doc Type: Approval Letter

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
Fax: [phone]
www.cwcb.state.co.us

Bill Ritter, Jr.
Governor

TO:

Colorado Water Conservation Board Members

Kirk Russell, PE yJ.::. y-~// f
Mike Serlet, PE, Chief~/J
Water Supply Planning & Finance Section

Harris D. Sherman
DNR Executive Director

FROM:

Jennifer L. Gimbel
CWCB Director

Dan McAuliffe
CWCB Deputy Director

DATE:

March 11,2008 (UPDATED March 20, 2008)

SUBJECT:

Agenda Item 18b, March 18-19,2008 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Lower Latham Reservoir Company - Well Augmentation Project (Phase II)

Introduction

The,,:t~wer Latham Reservoir Company (Company) is applying for a $664,000 loan to acquire two shares of the
Lower'Latham Ditch Company (Ditch Company), for the purpose of providing augmentation water for existing
shareholder wells. This project has been identified as the Well Augmentation Project - Phase II (Project) since
the Company financed a water rights purchase through CWCB in July, 2007. The purchase of additional water
will add to the Company's augmentation plan. The current loan request is for 90% of the estimated total cost of
the purchase of the Schmidt Farm water rights of $738,000. See attached Project Data Sheet for a location map
and a project summary.

Background

The Company and the Ditch Company provide irrigation water to approximately 11,000 acres in Weld
County. The Company owns the Lower Latham Reservoir (Reservoir), which is filled by the Union Ditch
through a carriage agreement. The Lower Latham Ditch diverts water through a diversion structure on the
South Platte River one mile south of Greeley. The Ditch conveys direct flow water from the river as well as
storage water from the Reservoir. The Reservoir outlet canal conveys water from the Reservoir back into the
ditch system. The Ditch Company's annual headgate diversions are 40,172 AF/yr, and the Company's
average annual reservoir releases are 2,554 AF/yr.

The Company provides well augmentation for 84 wells, located in Weld County, to replace out-of-priority
depletions caused by well pumping and usage. The wells provide supplemental irrigation water supplies to
farms owned by Company stockholders. There are 39 wells that were formerly in the Groundwater
Appropriators of the South Platte (GASP) augmentation plan, and there are 45 wells also covered in the
augmentation plan of the Groundwater Management Subdistrict (GMS) of the Central Colorado Water
Conservancy District. The Company is purchasing additional water to supplement the water available to its
own augmentation plan that will cover the wells formerly in the GASP plan, and to supplement coverage of

Water Supply Protection. Watershed Protection & Flood Mitigation. Stream & Lake Protection. Water Supply Planning & Finance
Water Conservation & Drought Planning. Intrastate Water Management & Development