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Farmers Pawnee Canal Company Agenda Item 23b September 9, 2008 Page 2 of 5 Background The Company provides irrigation wa ter to approximately 10,000 acres of agricultural land in Logan County. The service area extends fr om one mile south of Merino, CO to about four miles north of Sterling, CO along the west side of the South Platte River. The Company currently uses two separate structures to control flow into the Pawnee Ditch (Ditch). The first structure is the main di version located at the South Platte River. The second structure is a few miles down the Ditch and is used to adjust flow . Both structures have been repaired over the years and are in fair condition; however, replacing the structures will allow the Company to operate its ditch more efficiently. The main diversion is a concrete rollover wall built in the river channel and has a set of gates with boards to allow flow into the Ditch. The concrete wall does have several ve nts that allow for the flushing of sand when opened. Typically, the ve nts cannot be opened unt il after the irrigation season. By the end of each summer, a large sandbar ha s usually formed in front of the structure. As a result, the sandbar causes diversion problems and maintenance problems within the ditch. The second flow control structure located down the Ditch is made up of a series of gates adjusted by boards through which more precise adjustments can be made to control flow. The existing board style gates are labor intensive a nd require monthly maintenance. Loan Feasibility Study Brent Nation, P.E., Nation Engineering Services, LLC, prepared the Loan Feasibility Study titled “ Feasibility of the Rehabilitation of the Farm ers Pawnee Canal Company Ditch Flow Control Structures, July 2008 .” The study was prepared in accordance with the CWCB guidelines and includes preliminary engineering design and cost estimates. John Guenzi, Board member, also assisted in the feasibilit y study/application process. Farmers Pawnee Canal Company The Company is a Colorado mutual ditch company and non-profit corporation. It was established in 1898 to manage the Pawnee Ditch for the benefit of its shareholders. There are 500 shares held by 110 shareholders. The Company is controlled by a six member Board of Directors. The Board has the ability to levy assessments as they deem nece ssary. The Board also has the ability to sell the stock of delinquent stockholders. Water Rights The Company has rights to dive rt 140.4 cfs from the South Pla tte River under irrigation rights decreed November 15, 1894. These rights have tw o separate appropriati ons: September 17, 1873 for 14.4 cfs and June 22, 1882 for 126.0 cfs. On av erage, the Company’s av erage diversions are 27,260 AF annually.