25a

• Board Meeting Date: 11/19/2008
• Description: CF Section - Changes to Existing Loans - Southeastern Colorado Water Conservancy District - Arkansas Valley Conduit Project
• Board Meetings - Doc Type: Memo

FOR REFERENCE

Loan Approval Conditions (As approved by the CWCB in November, 200 6)

1. Final Feasibility Study - Prior to execution of a State loan contract, the project sponsor is
required to complete the feasibility study to the satisfaction of the CWCB Director or his
designee, including institutional and financial program details.

2. Participant Funding Agreements

a. Prior to execution of a State loan contract, all proposed Participant Funding Agreements
contemplated in the Loan Application & Feasibility Study shall be executed, and copies
submitted to the CWCB. The format of the agre ements shall be as agreed upon by the

CWCB and the Enterprise prior to execution with participants.

b. Water Allocation Participant Funding Agreements shall address water allocation to the
Arkansas Valley Conduit. Based on the annual availability of Fry - Ark Project water,
the District and the Enterprise shall make every attempt to allocated water in such a
manner as to meet the requested demand (6,555 acre feet) of the participants. In
average years, this will require the allocation of a minimum of 776 AF of available
return flows to the project, or an equivalent amount of water from other sources.

3. Conservation Plans
participating in the project are required to have a CWCB - approv ed Water Conservation Plan
in place.

4. Federal Authorization - No State loan contract shall be executed until Federal legislation to
authorize the federal/local cost - share for the Arkansas Valley Conduit has been approved.

5. Federal Funding Appropriation No State loan contract shall be executed until Federal
legislation appropriating construction funds for the Arkansas Valley Conduit has been
approved.

6. CWCB Loan Contract

a. Time Limit Provisions pertaining to the time limit for loan approval shall be as
outlined in CWCB Financial Policy #2 (Time Limits), with the following
exception: The moneys appropriated in the CWCB Water Projects Bill shall
remain available for the designated purposes until the project is completed;
except that if the SECWCD W ater Activity Enterprise does not enter into a loan
contract with the CWCB within two years after the effective date of the CWCB
(July 1, 2009)
Water Projects Bill (May 2007), , then the moneys appropriated