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Boulder White Rock Ditch and Reservoir Company Agenda Item 26f November 10, 2008 Page 2 of 5 Background The Company delivers water to 5,685 acres of irriga ted land in Boulder a nd Weld Counties. It diverts approximately 12,000 AF of irrigation wate r from Boulder Creek in downtown Boulder through the Boulder White Rock Ditch and stores wate r in two of its facilitie s: Six Mile Reservoir and Panama Reservoir. Historically, the Company has been exchanging water with nearby ditch users. The exchanges allow the Company to use water between its headgate on Boulder Creek and Panama Reservoir. Due to residential and commercial developments in areas serviced by the nearby ditches, these lands are no longer being irrigated an d the exchange water is no longe r available to Company users. Without this water, the Company needs to better us e its own system to meet its shareholder’s needs. Currently, the Company releases wa ter through a gravity outlet on the northeast side of the Panama Reservoir. When the reservoir is at full capac ity, its gage height (GH) is 39.5 and it holds 4,200 AF. The reservoir can be drawn down to GH 3 4.5 by releasing 1,600 AF. Due to the elevation limits on the outlet, there can be as much as 2,600 AF left in the reservoir that is unable to be used by Company shareholders. Without the water exchanges and lack of access to the 2,600 AF in Panama Reservoir, the Company is unable to meet its shareholder’s demands. In order continue providing irrigation water to its users, the Company intends to construct a pump st ation to access the remaining water in Panama Reservoir. Loan Feasibility Study Ed Toms, P.E., URS Corpor ation, prepared the Loan Feasibility Study titled “ Panama Reservoir Outlet Project, October 2008 .” The study was prepared in ac cordance with the CWCB guidelines and includes preliminary engineer ing design and cost estimates. Dan Grant, Secretary/Treasurer of the Company, also provided assi stance with the Feasibility Study. Boulder White Rock Ditch and Reservoir Company The Company is a Colorado mutual ditch company registered as a non-profit corporation. It was established in 1913. There are 5,500 shares held by 160 shareholders . The Company is controlled by a five-member Board of Directors. The Board has th e ability to enter into contracts as they deem necessary for the purpose of carrying out the bus iness of the Company. The Board also has the ability to curtail delivery of water to delinquent stockholders. Water Rights The Company has three ways to supply water to its shareholders: direct flow decrees, storage decrees, and exchange arrangements.