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4.0 WELL PUMPING AND REPLACEMENT OBLIGATIONS There are a total of 17 active wells within the 2008 Ogilvy SWSP, and two inactive wells for which post-pumping depletions are being replaced. All wells within the SWSP and plan for augmentation are utilized exclusively or irrigation purposes. A copy of the 2008 Ogilvy SWSP renewal request is enclosed in Appendix D. Within the SWSP, the wells depletions are determined using a water budget methodology which determines the total stream replacement obligation to be 60 acre-feet during the 2008 plan year (April 2008 through March 2009). The 2008 SWSP was approved by the State Engineer by letter dated March 18, 2008. 5.0 NEED FOR THE PROJECT In 2003, OILC filed an application in Division 1 water court to pursue a permanent plan for augmentation (Case No 03CW150). In 2007, OAC filed an application in Division 1 water court (07CW331) for conditional water rights, including a new storage right to facilitate development of the plan for augmentation in Case No. 03CW 150. A copy of the application in Case No. 07CW331 is included in Appendix E. The project is necessary in order to allow for the continued operation of wells within the OILC system to provide supplemental irrigation water supply necessary for the production of crops within the system, particularly during extended drought periods. All of the 17 currently active wells included within the project were previously augmented by Groundwater Appropriators of the South Platte (GASP), which no longer augments the wells. The subject project is necessary to establish a base plan for augmentation. The annual SWSP operations have been operated solely on annual lease water supplies. Along-term replacement water supply is necessary in order to develop a permanent plan for augmentation. The pumping of OAC wells results in stream depletions that occur throughout the year. The water rights that OAC is acquiring yields summer water, but also includes winter return flow obligation. Therefore, recharge facilities and/or reservoir storage is required in conjunction with the water rights acquisition to complete the plan for augmentation. The OAC has considered the development of a recharge facility under the Ogilvy Ditch system for purposes of meeting the winter augmentation needs. The OAC has also evaluated the development of lined reservoir storage under the Ogilvy Ditch system which would operate in conjunction with the recharge facility. A portion of the augmentation water rights would be stored within the line reservoir storage for release during times when the recharge accretions are inadequate. Excess recharge accretions could also be recaptures and stored within the lined reservoir storage when available. The 6 shares of GIC subject to this project will provide a replacement water supply comparable in amount to that amount which OAC has leased for its annual SWSP. However, OAC Feasibility Study of the Ogilvy Augmentation Company Page 3 Well Augmentation Project