23a

• Board Meeting Date: 9/17/2008
• Description: CF Section - New Project Loans - Ogilvy Augmentation Company - Well Augmentation Project
• Board Meetings - Doc Type: Memo

Ogilvy Augmentation Company Agenda Item 23a
September 9, 2008
Page 2 of 7
2) Bridge loan for $55,000 water rights purchase to be paid in full with proceeds from
CWCB loan.
3) CWCB will cap the initial disbursement of $523,584 (including the 1% Loan Service
Fee) for: preliminary engineering; the wa ter rights purchase of 6.0 shares of Greeley
Irrigation Company; the purchas e and installation of measuri ng control structures on the
wells; and the construction of the rechar ge facility. Upon wate r court approval of
augmentation plan, $487,224 (including the 1% Loan Service Fee) for the 50 acre-ft
lined storage reservoir can be disburse d. CWCB has the optio n of executing two
contracts as deemed necessary by CWCB staff.
4) Borrower shall make annual payments of inte rest accrued prior to substantial completion
of project.
5) If the water court application is denied or otherwise unsuccessful the Project will be
deemed substantially complete and the Borrower shall repay the amount of funds
disbursed, along with interest, in accordan ce with the loan contract provisions.
Background
The Augmentation Company was established in 2005 for the purpose of augmenting wells that
operate under the Ogilvy Irrigat ing and Land Company (Land Compan y) service area, located in
Weld County. Wells within the irrigation serv ice area provide supplemen tal irrigation water
supplies to farms owned by stockholders of the La nd Company. Prior to 2003, the irrigation well
depletions were covered under the Groundwater Appropriators of the South Platte (GASP)
augmentation plan. In 2003, the Land Company el ected to pursue an independent augmentation
plan for 19 wells included with in the Land Company service area. The wells have operated under
State Engineer approved annual substitute water supply plans (SWSPs) since 2003 using leased
water supplies. When the Augmentation Company was established, the development and
administration of the augmentation plan and an nual SWSP was conveyed from the Land Company
to the Augmentation Company.
The Land Company owns and operates the Ogilvy D itch and Seeley Lake fo r the benefit of the
shareholders of Land Company by providing direct flow and storag e of irrigation water. The
Ogilvy Ditch diverts from the Cache La Poudre Ri ver east of Greeley and delivers water through a
15-mile ditch system to a service area of a pproximately 3,600 acres located north of Kersey,
Colorado. Members of the Augmentation Compa ny own 208 shares (57.8 percent) of the Land
Company and irrigate approxi mately 1,400 acres of land under the Land Company system.
There are currently 17 active wells within th e 2008 Augmentation Company SWSP. All wells
within the SWSP and the augmentation plan are utili zed exclusively for irriga tion purposes. Within
the SWSP, the well depletions were dete rmined using a water budget methodology which
established the total stream re placement obligation to be 60 acre-feet during the 2008 plan year
(April 2008 through March 2009).