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INTRODUCTION The Huerfano - Cucharas Irrigation Company (HCIC), located in southeast Pueblo County, owns and operates the Cucharas # 5 Dam and Reservoir. The dam is located in northern Huerfano County, on the Cucharas River, approximately 16 miles northeast of the City of Walsenburg. In May of 1987, while the reservoir was full to the spillway crest, the dam developed extensive seepage along the toe abutments of the dam. It was discovered that the upstream concrete facing on the rock fill dam had failed and was allowing large quantities of seepage flow to occur through the rock fill embankment. The reservoir was lowered and the concrete facing repaired, but the State Engineer's Office (SEO) restricted storage to gauge height 100 feet or approximately 7,500 acre-feet of storage. The storage restriction has remained in effect since 1988 and there is a suspense date of October 1, 2010 imposed by the SEO to either rehabilitate the existing dam, replace it with a new dam or a zero, no storage restriction will be imposed followed by an order to breach the dam and remove the hazard it represents. The dam has performed adequately at the restricted level with only moderate increases in seepage flow at higher storage levels being recorded, but the spillway is significantly inadequate and there remain many unknowns concerning the condition of the embankment and foundation. The purpose of this feasibility study is to select a financially possible alternative that would prevent a zero storage restriction from being imposed and maintain at least some storage in the reservoir. The company is applying for a loan from the CWCB Water Project Loan Program in the amount of 90% of the eligible project costs to fund the project. The remaining 10 percent and loan repayment will be supplied by company shareholder participation. PROJECT SPONSOR The Huerfano - Cucharas Irrigation Company is a non-profit mutual ditch company, incorporated in the State of Colorado. The company was formed to promote agribusiness by delivering a dependable irrigation water supply to the company shareholders. The company has the authority to encumber debt, pledge collateral, is not subject to TABOR and has a board of five directors that manage the company. The board of directors is able to make limited decisions for the shareholders in accordance with the Articles of Incorporation and Bylaws, a copy of which is presented in Appendix A. PROJECT BACKGROUND AND NEED A) STUDY AREA DESCRIPTION The Cucharas No. 5 Dam is located in northeastern Huerfano County on the Cucharas River, approximately 16 miles northeast of the City of Walsenburg. The dam is a 145-foot high rock fill dam that has undergone several enlargements since the original construction in 1914. The reservoir has a capacity of 35,395 acre-feet to the spillway crest elevation of 5766.0 feet MSL, gauge height 120.5 ft. based on an October 2002 survey completed by Clyde B. Young & Company. Table 1 represents the elevation-area-capacity of the reservoir based on the Cucharas Feasibility Study ~ Introduction