C150292 Deauth Ltr

• Contract/PO #: C150292
• Contractor Name: Huerfano-Cucharas Irrigation Company
• Contract Type: Loan
• Water District: 0
• County: Pueblo
• Loan Projects - Doc Type: Approval Letter

STATE OF COLOR.ADO
Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone:[phone]
Fax:[phone]
www.cwcb.state.co.us
TO: Colorado Water Conservation Board Members
FROM: Anna Mauss, P.E.
Tim Feehan, P.E., Chief
Finance Section
DATE:
SUBJECT:
November 5, 2010
Bill Ritter, Jr.
Governor
Mike King
DNR Executive Director
Jennifer L. Gimbel
CWCB Director
Consent Agenda Item 2a, November 15-17, 2010 Board Meeting
Finance Section — Loan De-Authorization
Huerfano-Cucharas Irrigation Company — Cucharas Reservoir Rehabilitation
Project
Recommendation
Staff recommends the Board approve the de-authorization of the CWCB loan to the Huerfano-Cucharas
Irrigation Company for the Cucharas Reservoir Rehabilitation Project approved at the May 2009 Board
meeting.
Background
The CWCB approved a Severance Tax Trust Fund Perpetual Base Account loan of $1,622,060 in May 2009 for
the Cucharas Reservoir Rehabilitation Project. The Cucharas Reservoir has been restricted by the Office of the
State Engineer (SEO) since 1987. T'he Huerfano-Cucharas Irrigation Company (Company) planned on restoring
the reservoir to a reduced level of storage (7,500 AF) to avoid a pending breach order from the SEO.
Since the time of the loan approval, the ownership of the Company ha.s changed substantially with 91 % of the
shares being sold to one entity. The new owners of the Company have a new vision for the reservoir and intend
to restore it to its full capacity (35,404 AF).
The new owners have applied for a new loan with the CWCB to be heard by the Board at the November 2010
Board meeting. As part of the Loan Feasibility Study and application, the Company requested de-authorization
of the CWCB loan (see attached excerpt from the Loan Feasibility Study).
Since this project is a Small Project Loan (less than $10 million) and it does not require legislative approval, the
Board also has the authority to de-authorize the loan.
Interstate & Federal • Waters6ed & Flood Protectiou • Stream & Lake Protection • Finance
Water Information • Water Conservation & Drought Planning • Water Supply Planning