C150264 Feasibility Study

• Contract/PO #: C150264
• Contractor Name: Lower Latham Reservoir Company
• Contract Type: Loan
• Water District: 0
• 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. During 2007, the LLRC
pursued CWCB financing for the acquisition of 6.0 shares of LLDC and the implementation of
measurement structures and instrumentation to measure and record flow at various locations on the
system. The CWCB approved the requested financing during the July 12,2007 meeting in held in
Craig, Colorado (Contract No. CI50253). During January 2008, LLRC purchased an additional 2.0
shares of LLDC for purposes of supplementing the replacement water supplies in the Lower Latham
plan for augmentation. 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 second Colorado Water
Conservation Board (CWCB) loan for permanent financing of the additional 2.0 shares ofLLDC
recently acquired.

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 currently 47 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

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