17 ‎(6)‎

• Board Meeting Date: 9/17/2008
• Description: WPFM Section - Chatfield Reallocation Study - Letters of Commitment
• Board Meetings - Doc Type: Memo

equitable reallocation of the potentially available 20,600 AF storage space among the
Colorado Water Entities as described in Exhibit A, attached hereto; and
WHEREAS, Hock Hocking LLC previ ously surrendered its 100 acre feet
allocation set forth in Exhibit A, resulting in the distribution as set forth in Exhibit B,
attached hereto; and
WHEREAS, Parker Water and Sanitation District (“Parker”) surrendered its 2,000
acre feet allocation pursuant to paragraph 5 of the Letter of Commitment dated March 3,
2005, and as a result thereof, the Colorado Wa ter Entities listed on Exhibit B agreed to
make available a portion of Parker’s surre ndered allocation to Us er, and the Colorado
Water Conservation Board approved such transf er to User at its May 2008 meeting; and
WHEREAS, the User unders tands that the FCSA Study requires further activities,
including an Environmental Impact Statemen t, recreational studies , and other analyses
estimated to take another two years to complete and that the FCSA Study requires
matching funding from local Colorado Water Entit ies initially estimated as being $25 per
AF of allocated storage space, and possibly additional local funding at a later date; and
WHEREAS, the User unde rstands the FCSA Study ma y result in a conclusion
that no storage space, or a storage space other than 20,600 AF, may be available for
reallocation; and
WHEREAS, as of the date of executing th is Letter of Commitment, the User is an
existing and recognized governmental entity, mutual ditch company or private water
company or provider which presently provides or will in the future provide water service
to its customers and desires to acquire st orage space in Chatfield Reservoir; and
WHEREAS, the User either has acquire d, is in the process of acquiring or is
capable of acquiring water rights allowing for the lawful storage of water in Chatfield
Reservoir; and
WHEREAS, if storage space in Chatfield Reservoir is eventually reallocated, the
current estimate of the cost to acquire such storage space from the Corps is $4,000 per
AF, but this value is an estimate only and de pends upon future costs yet to be determined;
and
WHEREAS, the User has the financial cap abilities to pay both its share of the
FCSA Study local funding and the anticipated costs of any reallocated storage made
available to the User; and
WHEREAS, the User will need to reach a separate operations agreement at a later
date with the State that comp lies with the requirements for using the reallocated storage.
NOW, THEREFORE, the State and the User agree as follows:
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