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company who would be willing to do the work. Layne Christensen was contacted and they are not interested in sliplining the well due to the potential danger involved. BLM is of the opinion that money would not be well spent trying to rehabilitate an SO year old well, that at best, this would be a temporary fix to the problem. Redrilling the well. In close proximity to the existing well, drill a new well. We know the geography of the area, we know the size of the aquifer and know that both will accommodate the probable success of drilling a new well. Applicant, BLM, and Layne Christensen all agree that this would be the most satisfactory solution to the existing problem and would guarantee use of this vital resource far into the future. As previously stated, because of its geographic location, Applicant considers this a sole source issue, so the 3`d alternative is the only viable solution to our problem. CONCLUSION The Park Center Water District has relied on well flows from the BLM well for 40 years, however, the users in our area have relied upon the flows for over 70 years. Because of our geographic location, alternative water supplies are extremely limited and offer no solution in the times of drought when surface waters become unavailable. Applicant has no recourse but to redrill the Park CenterBLM well to secure domestic water for our 4000 users. LOAN REQUEST Park Center Water District is requesting a 30-year loan for $1,000,000., which represents 70-80% of the estimated costs of redrilling a new Park Center Well and connecting it to our raw water distribution intake system. It is our understanding that CWCB policies approve loans for the rehabilitation or replacement of raw water infrastructure. The Park Center Well is an integral part of Applicant's water system and is necessary to service the needs of our current residents. The District is not in the cash position that would allow replacement of this well without borrowing the money and repaying it using future user fees. Applicant has an excellent history of repay with Rural Development, who has financed several major projects for Applicant dating back to 1968 and we are in a financial position to invest a substantial amount of our own money into this project. Because of the urgency of the situation, in conjunction with the Bureau of Land Management, we have already begun seeking estimates from experts in the field. Our present needs are actually being served by the failing well as we attempt to take pressure off the well by diverting flows to our raw water reservoir and to the irrigation ditches. This is a temporary solution as eventually the well leak will escalate and the well will have to be capped by the BLM. We are also working hand-in-hand with Canon Heights Irrigation Company who is allowing the ditch to remain open this winter in order to